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Major New Investments in Bangladesh

Investors are still betting on Bangladesh, investing almost $50 million in the creation of four new garment factories in the Comilla Export Processing Zone.

Investors from Japan and Hong Kong are involved, according to the general manager of the export zone, as quoted in just-style.

A Pakistani denim factory is also coming to the zone, along with several non-apparel related businesses, for a total investment of more than $70 million. The factories are expected to create around 40,000 jobs, and opportunities for 400 to 450 technicians.

The news shows that, despite a recent fall in garment orders, investors see long-term potential in Bangladesh. Many had speculated that the collapse of Rana Plaza would drive investors to other sourcing destinations, ending a decade-long boom.

The manager of the export zone stressed that the quality of the construction would be very high, and audits would be conducted regularly. He also cited other factories safely operating in the zone.

Vice president of Bangladesh Knitwear Manufacturers and Exporters Association, Mohammad Hatem, said that this high quality construction is much more typical of the norm for the sector. The 5,000 factory industry is, overall, quite safe he claimed. Rana Plaza did not reflect the state of the sector, and the BKMEA is “doing our utmost to fix factory safety issues.”