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is it knit garments productin profitable business in bangladesh?

i want to start a knit garments factory in bangladesh. i dont know if it is profitable or not. can anybody advise me for it? is there any possiblities to lost the investment?

Public Comments

1. Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA) has a website and the banner reads like: "Knitwear is the 2nd largest export earning sector of the country which is expected to become number one very soon." We know that the knit-items' export from Bangladesh is earning real money (profit) in compare to the woven-items. The quality of our knitting products far surpasses those are made in India. Comparison of labor cost in textile industries: 1. Thailand = US$ 1.00 per hour 2. India = US$ 0.60 per hour 3. Sri Lanka = US$ 0.45 per hour 4. Vietnam = US$ 0.40 per hour 5. Indonesia = US$ 0.40 per hour 6. Pakistan = US$ 0.40 per hour 7. China = US$ 0.35 per hour 8. Bangladesh = US$ 0.25 per hour Energy cost in Bangladesh is lower compared to India and Pakistan 1. India = US$ 0.095 per Kilowatt Hour (KwH) 2. Pakistan = US$ 0.08 per Kilowatt Hour (KwH) 3. Bangladesh = US$ 0.07 per Kilowatt Hour (KwH) There are 6 Export Processing Zones in Bangladesh: 1. Dhaka EPZ 2. Chittagong EPZ 3. Comilla EPZ 4. Mongla EPZ 5. Ishwardi (Pabna) EPZ 6. Uttara (Nilphamari-Rangpur) EPZ Industries in the EPZs enjoy Tax Holiday for 10 years, exemption of income tax on interest on borrowed capital (5 to 7 years), freedom from National Import Policy Restrictions, and some other facilities which are not enjoyed by industries outside EPZs. Some of the special facilities and incentives for foreign investors are who are investing in EPZs are as follows: - No Import Duty for 100% export oriented industries. For other industries it is 5% Ad Valorem. - Exemption of income tax upto 3-years for expatriate employees - Facilities for full repatriation of invested capital, profit and dividends. - Foreign investor can set up ventures either wholly owned or in joint collaboration with local partner. - No import duty is charged in case of capital machineries and spares. - Special incentives are provided to encourage non-resident Bangladeshis for investment in the country. Facts & Figures of the Knitwear sector of Bangladesh for FY 2005-2006: Total Export: US$ 3,816.98 Million (2nd Largest after the Woven sector) 1. USA = 618.51 Million 2. EU = 2,910.52 Million 3. Canada = 188.55 Million 4. Others = 99.40 Million Other vital statistics: - Share in National Export: 36.26% - Share in RMG Export: 48.31% - Yearly growth: 35.38% - Net Retention Amount: US$ 2,290.19 - Net Retention Rate: 60% - Value Addition: 75% - Quantity Exported: 165.02 million dozens. - Labor force (Direct): 1.00 Million, about 70% of them are women. - Labor force (Indirect): 0.50 Million - Number of member Units: 1,091 as of 2006. Contact: BKMEA Dhaka Office: Tel.: +880-2-8620377 Fax: +880-2-9673337 Email: info@bkmea.com Hope above helps. Wish you all the luck in your venture.