Dhaka, Bangladesh (BBN)- A Chinese business delegation, led by vice-president of Feng Dehu China National Garment Association (CNGA), arrived in the capital on Friday and visited a number of apparel factories.
Founded in 1991, CNGA is a nationwide organisation of China's garment industry.
Market insiders said Chinese firms are turning to Bangladesh to make cloths as factories in China are not competitive anymore because of increasing wages of labourers and a sharp hike in overall production costs.
Some Chinese firms are reportedly opened offices in Dhaka and looking to order cloths from Bangladesh.
Chinese manufacturers say if they source cloths from Bangladesh, prices can come down by 10 percent to 15 percent depending on the category.
Orders from China are likely to receive a boost in the coming years following the combination of lower labour costs and duty free access and the Chinese orders may help offset the decline in demand from the US and Eurozone.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has been in talks with the Chinese businesses for long to ensure RMG products’ greater access to the Chinese market.
The BGMEA will arrange a press briefing over the outcome of the visit at its conference room at 12:30 pm.
Newly appointed Chinese Ambassador to Bangladesh Li Jun, Export Promotion Bureau (EPB) Vice Chairman Shubhashish Bose and BGMEA former presidents, including present President M Shafiul Islam Mohiuddin, will be present at the press briefing, the BGMEA officials said.
BBN/SSR/AD-02Sept12-11:20 am (BST)
