Bangladesh Becomes the Laborer of Chinese Factories

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Bangladesh Becomes the Laborer of Chinese
Factories

• As Syed FaizulAhsan walks through his own
  garments factory located in Dhaka (the outside
  Capital of Bangladeshi), he felt that he step
  with a spring in his foot. Workers on his
  factories are very busy in manufacturing sweater
  for an overseas client. Hundreds of his workers
  are from rural areas and the majority of it is
  woman. MrAhsans unit is the one who is most
  popular factories among the other factories in
  Bangladesh even though its setting is just the
  same with thousands of factories there.
• China is the one among other countries who export
  the biggest share of garments from Bangladesh.
  The sweaters made in his unit are not heading to
  the US or Euro zone. Emerging orders from
  mainland China denote that MrAhsan can breathe
  easy regardless of the low demand from the US and
  euro zone.5 of my factory output was for Chinese
  clothes market a few years ago but now, it
  increase in 20, he says.He also expects that it
  will continue to rise for these coming years.
• Labor cost
• It may sound weird that Chinese firms are turning
  to Bangladesh to make clothes, for the reason
  that China is the comprehensive leader in
  clothing manufacturing and exports in the whole
  world. Only around 70 to 100 are the Bangladesh
  average monthly salaries for garments every month
  but if I, I will make it more competitive.
• Rosa Dada of Four Seasons Fashion Limited, a
  Chinese garments producer, says factories in
  China are not competitive any longer for the
  reason that of its increasing wages of laborers
  and a sharp hike in overall production costs.
  Its been two decades since Ms Dada systematize
  garments factory in the Chinese port city of
  Ningbo. She tells me throughout her current
  vacation here in Bangladesh to look for
  opportunities that her factory in China, the
  salary of workers has been increasing steadily
  over the last few years.
• It has reached around 400 to 500 (250 315)
  a month per worker. If I continue to produce
  there, our business will be bank crop. In
  Bangladesh the regular monthly wage for garments
  workers is only around 70 to 100. If I produce
  here, price is much more competitive.She has
  previously opened an office in Dhaka as well as
  is not just looking to order clothes for her own
  firm however is also involved in getting other
  Chinese online retailers to source from
  Bangladesh. Some Chinese Clothing Company if they
  will get clothes from Bangladesh, prices may
  decrease by 10 to 15 depending on the category.
• A new beginning
• The further advantage enjoy by the Bangladesh
  garment exporters are they produce more that 90
  of product going to the counties (as T-shirts,
  jeans, sweaters and casual trousers enjoy duty
  free access to the Chinese market).The grouping
  of lower labor costs as well as duty free access
  means that orders from China are likely to
  receive a boost in the approaching years. Few
  years ago, only 19m of Bangladesh clothing
  exported to China but now its already more than
  100m.
• The delivery in China in this coming 5 years will
  increase in 500m. Bangladeshi factory owners
  already expect it. Chinas largest online
  clothing retailer has already shifted a portion
  of its shirts and casual trousers orders to
  Bangladeshi factories according to Chinese media
  reports.
• In the meantime, western fashion brands such as
  Ocean and HM are also making clothes for Chinese
  customers in Bangladeshi factories.I think it
  marks a new beginning for our exports,
  SiddiqurRahman, vice president of the Bangladesh
  Garment Manufacturers and Exporters Association
  (BGMEA), tells the BBC.At a time when western
  economies are going through recession, Asian
  countries like China, Japan and India are opening
  up for us.
• Potential pitfalls
• Our prices are low. Thats why big western
  fashion brands are coming here. If they increase
  their buying price, we will also increase our
  salary to the workers
• There has been a main worry for the clothing
  manufacturers said by the Bangladeshs creaky
  infrastructure and political instability.
  Additionally, there have been violent labor
  complaints current months ago in the workers
  demanding for improved salary and setting.
  Bangladeshi clothes manufacturing workers are
  among the lowest paid in the world for this type
  of work, says by Labor activists.
• The murder of a well-known labor activist, Aminul
  Islam, prior this year has only added to the
  insecurity among the factory workers. Subsequent
  protest by western campaign groups over wages
  major global retailers like Walmart and GAP have
  urged the countrys factories to increase wages.
  However Bangladeshi business leaders are
  disobedient say that they have recently increase
  salary in the sector and notify that any further
  increase may damage its competitiveness.
• MrRahman says, Our prices are low, thats why
  big western fashion brands are coming here. If
  they increase their buying price, we will also
  increase our salary to the workers, Nevertheless
  as the nation try to increase ground as a
  lower-cost alternative to China, local workers
  conditions will come under increasing analysis.
  Manufacturing players will have to find the right
  equilibrium among upholding competitiveness,
  meeting labor demands and keeping their buyers
  contented.That may prove to be the toughest test
  for the sector yet.
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