Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

North Korea emerges a low-cost sourcing destination

Asian garment manufacturers are eyeing North Korea as the region’s next low-cost sourcing destination. The country’s garment and textile industry was estimated to be worth $725 million in 2016, a substantial proportion of its economy, and even with sanctions in place, apparel manufacturing employs a significant number of North Korean citizens in state-run factories around the country.

Manufacturing in North Korea allows manufacturers to move sourcing closer to existing supply chains, while making goods in one of the cheapest markets. Wages in the country are less than half of what they are in China and North Korean workers are reported to be more productive than Chinese workers.

Also, as China focuses on producing more complex, technical garments and Vietnam’s continues to grapple with labour shortages, a reformed North Korean manufacturing sector could solve a number of regional supply chain problems. For many years, low-cost industries had to move to countries such as Indonesia and Bangladesh; the arrival of North Korea on the scene would certainly provide them a welcome change.

 

 
LATEST TOP NEWS
 


 
MOST POPULAR NEWS
VF Logo