Orders For Foreign Companies Began To Shift From China To Bangladesh.
from
The People's Republic of Bangladesh
The capital, Dhaka, drove northward along the narrow expressway for about 30 miles, and the car entered a potholed muddy road.
Some areas around Bangladesh's capital are no longer remote. Because Chinese workers have repeatedly asked for higher wages, prompting some foreign companies to start looking for cheaper labor elsewhere, Bangladesh has received more and more orders from foreign companies.
Behind the high concrete walls and big iron gates, tens of thousands of workers are working, most of them women. They are sewing shirts and trousers for the world famous Brand Company.
To this end, some Bangladesh factories have also built new high-rise plants and added equipment.
As China's domestic costs rise, some international garment companies are turning to other countries such as Bangladesh, Vietnam and Kampuchea. At least, some products such as casual clothing and low-end electronic devices need intensive labor, but not necessarily knowledgeable workers.
A Hongkong company's output in Bangladesh increased by 20% last year, while its output in China dropped by 5%.
This family
enterprise
"The competitiveness of Bangladesh is growing," said the head of the competition.
Before the recent disturbances in China's domestic workers have not led to a substantial increase in wages, the reform of monetary policy in Beijing may lead to China.
Export cost
Before the improvement, these enterprises have begun to turn their businesses to poorer countries such as Bangladesh.
But economists expect the loss of low wage workers in China will continue to increase.
Although workers in some developing countries such as Bangladesh also demand high wages, they still earn much less than Chinese workers.
In the world's garment industry, Bangladesh has the lowest wage, according to local standards, the average monthly income is $64, while the lowest monthly salary in China's coastal provinces is around 117 - 147 dollars.
Barry, a professor of economics and politics at University of California, said that the main problems facing China are mainly those producing textiles, shoes and rubber products.
Many countries in southern Africa, East Asia and Central America are willing to fill this vacancy.
But Bangladesh also faces some challenges, because China's industrialization level is not available in Bangladesh, and most of the Chinese workers are at least primary school education.
In addition, in industrial areas, China also has developed roads, railways and power grids.
At the same time, the Chinese government also provides low interest loans and other preferential measures to enterprises, which is difficult for some other countries to do.
Bangladesh is short of investment in electricity and natural gas, and most of its power cuts are 6 to 7 hours a day.
Although the Bangladesh government is trying to cope with these problems, these problems can hardly be resolved quickly.
Bangladesh has only 55% literacy, compared with 92% in China.
Therefore, the productivity of workers in Bangladesh is only 1/4 of that of Chinese workers.
Despite these problems, Bangladesh's clothing exports doubled about 2004 to 2009.
Bangladesh's garment industry now has about 3 million people, more than any other industry.
From 6 to November last year, Bangladesh's clothing exports accounted for more than 80% of total exports (US $7 billion 100 million).
According to statistics from the world trade organization, Bangladesh is the third largest exporter of clothing in developing countries. Although Turkey is second, it is far less than China.
Some reforms in China may have advantages and disadvantages for Bangladesh.
If China allows its currency to circulate freely, Bangladesh's exports may be more competitive.
But the biggest damage to Bangladesh is probably the rise in cloth and machinery prices imported from China.
As time goes on, Bangladesh will probably buy more from India and other countries.
But these countries need to increase production capacity substantially.
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