Some Chinese garment makers are planning to set up their factories under joint venture in Bangladesh as the country is a competitive destination to relocate plants amid raging US-China trade war and the rising cost in the world’s second largest economy.
Chinese textile and garment industry owners have invested heavily in neighboring Vietnam and Cambodia in the last two decades. However, now they are focusing to shift their factories to Myanmar and Bangladesh.
The reasons for the change in focus include a lack of skilled workforce in Chinese textile and garment industry, rising cost of production, shifting industrial base to industries such as IT and over-investment in Vietnam and Cambodia where labor costs are lower.
Faisal Samad, Vice-President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) met some entrepreneurs of Hong Kong-based Chinese Manufacturers’ Association during their visit to Dhaka from May 22 to May 26. The entrepreneurs came to Bangladesh to explore investment opportunities.
