Bangladesh - the World's 2nd Largest Apparel Exporter
Apparel industry has been making steady growth in Bangladesh
Following China, India and ASEAN countries that have long been popular destinations for Japanese business, Bangladesh has recently been attracting attentions of Japanese companies as an alternative location for their business especially in labor intensive industries such as textile & garment. Bangladesh, a pro-Japanese nation, has a great potential to become a solid business partner in years to come.
Apparel – Leading industry of the country
Garments and knitwears account for nearly 80% of Bangladesh’s exports. It reached the value of US$ 23.5 billion in 2013, making the country the world’s second-largest apparel exporter after China.
Bangladesh Exports (by product group) Apparel Exports of Asia (in value)
[JETRO Export Statistics 2011-2012] [WTO 2013 / US$ million]
Bangladesh is one of the GSP (Generalized System of Preferences) beneficiary
countries, and enjoys no tariff on exports to Japan, which is a big advantage over
China and many other Asian countries.
Large Labor Supply at Competitive Wages
Wage level in Bangladesh is roughly equivalent to 1/4 to 1/5 that in China, 1/2 to 1/3 of India, and 2/3 to 1/1 of Vietnam.
Population is estimated at 160 million, increasing yearly by 2 million. Further expansion of consumer market is also expected.
Japanese Companies in Bangladesh Increasing
Production outsourcing by partnership with local garment factories/companies which offer quality control and logistics as well, could be an option to start your business in Bangladesh.
Setting up your own factory by FDI is another option, as you could have more control over your management and production.
189 Japanese companies are already in operation in Bangladesh (April 2014, JETRO). You may often experience difficulties in obtaining suitable land to set up your business, as there is little land space available at Export Processing Zones (EPZs). Under such circumstances, it is important to establish relationships with reliable local partners and to obtain the latest information on local circumstances.
<Japanese companies in Bangladesh>
|Textile & Garments||F.V.G, KURABO INTERNATIONAL, GUNZE, Sankei, YOSHIDAYU, Kojima Iryo, TORAY,
Nakano, Maruhisa, Matsuoka Corporation, UNIQLO, YKK etc
|Trading||ITOCHU Corporation, N.I. Teijin Shoji, Sumitomo Corporation, Chori, Toyota Tshusho Corporation, Marubeni Corporation, Mitsui Corporation, Mitsubishi Corporation, etc|
|Logistics||“K”Line, Kintetsu World Express, Konoike Transport, Nippon Express, NYK Line etc|
|Garment Inspection||Asahi Link, QTEC, KEN2, HAMAKYOREX, KAKEN, Pacific Quality Control (PQC) etc|
|Others||Ajinomoto, NIPRO, DEUX LA MAREE, ROHTO Pharmaceutical, OBAYASHI Corporation, KDDI, NTT Docomo, Shimizu Corporation, H.I.S. etc|
To start your business in Bangladesh
To start your business in Bangladesh it is crucial to find your business partner through a reliable consultant or other source, as you may find it difficult to seek assistance from the public institutions in a timely manner.
UNIDO ITPO Tokyo will invite Mr. Jaralul Hai, Chairman & CEO, HAISON International Ltd. from Bangladesh for 21st – 31st of July. Meetings with Mr. Hai could be arranged during his stay in Japan upon request (free of charge).
Mr. Hai, former Foreign Investment Director, Board of Investment (BOI) of Bangladesh have been helping Japanese companies to set up their business in the country. He also carries over 3 year experience as Adviser at the Embassy of Japan in Bangladesh. If you wish to have a meeting with Mr. Hai, please contact Ms. Toshinaga, UNIDO ITPO Tokyo.
Mr. Hai will also give a presentation at “Bangladesh Seminar” as below. For more details, please check the seminar page.
Date/Time: Wednesday, 22 July, 2015 / 11:00 – 11:50
Venue: “PLAZA” (Seminar space at JFW-IFF venue),
West Exhibition Hall-02 (1F), Tokyo Big Sight