The Bay Company Moved Its Production Base From China And Vietnam To Bangladesh.

Most of the Taiwan enterprises that build production bases in China and Vietnam are now moving their production plants to Bangladesh.

The main reason for the relocation is that the European Union and the United States imposed anti-dumping policies on the two countries, leading to serious obstacles to exports from the two countries.

The Taipei representative office has confirmed that companies that produce tent fabrics, shoes, pottery and furniture are now shifting production bases.

About 36 companies have moved out, of which 26 belong to manufacturing enterprises and the rest belong to trading companies.

Entrepreneurs have to make difficult decisions because China's investment policies have changed and labour intensive industries have suffered the most.

The sharp increase in labor costs has led to shrinking corporate profits.

RMB appreciation is also not conducive to the development of the industry as a whole, and the cost of production has increased substantially.

Last year, the company built its production base in China was 30% higher than this year.

Now, many important enterprises have moved to Bangladesh. In the first 6 months of 2008, Bangladesh's direct foreign investment from Taiwan was US $200 million.

This figure is the investment 2/3 of the Bangladesh export processing special zone administration in 2007-08.

Taiwan's investment in India jumped to $600 million in 2008.

Eusebio, the largest sleeping bag, canvas bag and tent maker in Taiwan, has invested nearly $50 million to move the factory to the Comilla export processing zone.

Even Trendex, the world's leading furniture manufacturer, invested about $55 million in April to build a new factory in the Karnaphuli export processing zone of Chittagong.

However, the industry believes that the Bangladesh export processing zone does not have enough space to accommodate Taiwan companies.

If the Bangladesh government considers giving Taiwan entrepreneurs a dedicated industrial site, it will attract more Taiwan entrepreneurs to settle in Bangladesh and increase investment flows in Bangladesh.