COVER STORY
TO ADVERTISE
Contact Rani Mahendru + 91-11-47390000 ( 512 ) rani @ apparelresources . com
GOING TO A GOOD EVENT ?
Send your industry gossip , photos and news to isaxena @ apparelresources . com
INDUSTRY SPEAKS
Roshan Withanage , Managing Director , CJ International Ltd . inflows of FDI between July 2016 and May 2017 , whereas the amount was US $ 2.33 billion in the same period of the previous year . Korea in particular is said to be one of the major investors in the country . “ South Korea is one of the largest sources of FDI in Bangladesh and the largest foreign investor in the Export Processing Zones ( EPZs ). This is not all . We can receive more FDIs from Korea ,” reportedly maintained Bangladesh Ambassador to South Korea Abida Islam while speaking to the media , adding that an enhanced inflow of Korean FDI could be a game changer for Bangladesh ’ s industrial development . The Korea
in the readymade garment sector in the SEZs and high-end fashion items to give the RMG sector the much-needed thrust . And this has already evoked a lot of interest amongst many garment manufacturing companies from across the globe including countries like China , Japan and Mexico that are keen to relocate to Bangladesh .
Bangladesh ’ s promise has even drawn in its competitor Vietnam , which has recently shown active interest to invest in the country . President of Vietnam , Tran Dai Quang , during his March visit to Bangladesh reportedly expressed
AOB : Can Vietnam surpass Bangladesh in apparel exports in near future ?
Roshan : Yes , this is quite possible as they are currently almost at Bangladesh level … Both the countries stand at about US $ 34 billion annual exports this year . Also , Vietnam has an advantage of a very stable Government and far superior infrastructure and an educated and productive labour force . The only drawback for Vietnam is the expensive labour when compared to that of Bangladesh . But the Vietnamese workforce is more efficient and productive and so it is going to be a close call .
AOB : Probability of Bangladesh to maintain lead …
Roshan : Bangladesh always has the size advantage of being a country of 170 million people as opposed to the 92 million in Vietnam . But the country ’ s next five years ’ growth will be mainly dependent on the Government ’ stability , infrastructure development , plus streamlining the support services , such as customs and banking .
AOB : Catalysts for growth
Roshan : The apparel financing and payment systems need to be modernised with banks and other Government institutes making it easy for factories and buyers to do business in Bangladesh . Currently the bureaucracy is holding the industry back . It doesn ’ t matter how far we have developed and what positive changes we have brought in . If our competitor has done better than us ( Vietnam in this case ), then we have failed .
AOB : Bangladesh ’ s strengths vis-à-vis Vietnam
Roshan : Large , cheaper , efficient and productive workforce ; lower cost of energy ; better infrastructure ; Government and other institutional efficiencies .
AOB : Concern areas that Bangladesh need to address ?
Roshan : Bangladesh needs to improve its support services really fast in order to emerge as the winner .
International Cooperation Agency ( KOICA ), in particular , has an active presence in Bangladesh and since its inception , 19 projects have been completed under KOICA grant with an amount of US $ 39.67 million while currently 8 projects are ongoing at a total cost of US $ 54.49 million .
When it comes to promoting and supporting the readymade garment sector , Bangladesh has not been found waiting either . The Government , besides deciding to open 100 Special Economic Zones across the country , is reportedly mulling to give a go-ahead to foreign direct investment ( FDI ) his country ’ s eagerness to invest in Bangladesh ’ s textile sector alongside telecom , agriculture , information technology , oil & gas and infrastructure .
“ There is a lot of opportunity for investment with the current size of the economy of Bangladesh . Bangladesh has a big market and low-cost production facility ,” reportedly maintained Quang while addressing the media .
Manpower & Production Cost
It ’ s no secret that the garment business typically chases the next cheapest pair of hands . Due
16 Apparel Online Bangladesh | MAY 2018 | www . apparelresources . com