China RMG factories eye joint ventures with Bangladesh

#US·China trade war and the rising cost lead Chinese RMG factories to search joint venture in Bangladesh. They are finding Bangladesh as a competitive destination to relocate their units.

Figure: The trade war is providing a positive boom for the Bangladesh apparel sector.

Earlier, Chinese textile and garment industry owners have invested in neighboring Vietnam and Cambodia in the last two decades.

Charlie Yee, Vice President, Business Development of Peli Bio-Chem Technology Co. Ltd, said, “We believe Bangladesh has a long and bright future in textile and we are very optimistic because China is moving from this business.”

As uninterrupted electricity is needed for enzyme production, Peli Bio-Chem Technology (Shanghai) Co. Ltd wants to establish its production in Bangladesh after five years when the electricity condition will be improved.

Bangladesh is a competitive place compared to China, Vietnam and Cambodia for setting up industries because of the lower cost of production, trade privileges granted in major markets such as the EU and China.

They are interested to set up factories in fabrics, garment, printing, and dyeing as Bangladesh hasn’t allowed foreign investment in basic apparels, limiting their presence in high-end and value-added textile and garment items.