5 Reasons Behind China-Bangladesh Investment Relationship in Garments Industry

Bangladesh has one of the friendliest investment environment especially in the garments
industry. Chain-Bangladesh investment relationship is improving rapidly and both the nations
are being benefited out of this.

Bangladesh attracts thousands of investors in its garments manufacturing facility every year
and china is the biggest investor in the countries growing garments and textile sector.
There are many reasons behind the China-Bangladesh investment relationship and the lowest
labor cost is the main reason for china to invest in Bangladesh.

Production cost of China is Growing

The increasing production cost remains the most important fact for china to shift its garments

and textile investment to Bangladesh. China has the third highest production cost among the

top 10 garments manufacturers. Previously China emerged as a global textile and garments

power because of its huge workforce and lowest labor cost.

As per a report in 2018, the minimum wage of china for a garments worker is $270 per month

which is higher than its closest competitors. And the minimum wage is consistently increasing

for the technological advancement of China.

Bangladesh Remains Low in Terms of Labor Cost

In compare to China, Bangladesh has the lowest garments production cost in the world after Sri

Lank. China-Bangladesh investment relationship is growing because of the steady growth of

wages in Bangladesh. On the other hand, Chinese human resource is away from the garments

sector because garments workers earn way lower than any other jobs. In compare to China,

Bangladesh pays $73 less which stands in the second lowest in the world.

Because of the labor cost, the production cost increases. In addition to that Chinese investors

are more interested to invest in Bangladesh than their own country.

Rise of Eco-Textile in China

The concept of Eco-textile is evolving in china and the government is trying to build a

sustainable ecofriendly textile and garments industry. Some factories cannot meet the Chinese

requirements, and due to pressure many have to shut down their facility.

Considering the hostile situation in China, Bangladesh is being spotted for investment. As the

Chines investment started to grow china government investing in Bangladeshi infrastructure so

that their versatile investment can be beneficial.

China has become very polluted and they are following the footstep of USA like. They don’t

want to pollute their country anymore so they are desperate to a better China-Bangladesh

relationship for business.

China Shifting to Electronic Products Manufacturing

China is moving forward very fast and the IT industry is the new hot shot for China. As textile and

garments manufacturing requires a lot of space and workforce, China started to shift their business

interest. 

If we realize the fact that most of the electronic products including famous Apple Products are made in China, we will be able understand that the world is moving toward china for electronics manufacturing. In the technological sector wage is bit high and environment is safer than the garments industry.

So all these technological advancements are pushing china to shift their garments investment to other

manufacturing nations. 

China-Bangladesh Trade Tie 

China Bangladesh trade tie is another reason for china to take the opportunity. The political stability of Bangladesh provides enough room for China to increase their investment in Bangladesh.

China has become the biggest contributor to Bangladeshi economy and helping Bangladesh building a better infrastructure. In addition to Chinese help Bangladesh facilitates Chinese investors more than any other nationals.