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Bangladesh garment park's future in limbo

The Bangladesh government's move to establish a garment park is now in limbo as manufacturers are not willing to bear the cost of acquiring land for the project. Readymade garment manufacturers say they can’t bear the huge land acquisition cost for the park. They say the government should come forward with the required funds for the acquisition of the land and the owners will gradually repay the loan through installments.

The park will have plots with infrastructural facilities, utility services, medical facilities, central effluent treatment plants, day-care centers, roads, drainage facilities, waste-dumping yards, fire-fighting equipments, banks, insurance offices and information technology parks. The demand for a separate garment park for relocation of rented and vulnerable garment units has become strong among manufacturers after a series of accidents and fires highlighted the need for a safe working environment.

Bangladesh is emerging as the second largest readymade garment exporter after China and the surging export demand also forced the government to think about the garment park. A garment factory with  annual exports of more than $12 million needs to pay 40 per cent of the total price of the plot as down payment with three years of repayment period. Manufacturing units with annual exports less than $12 million have to pay 20 per cent of the plot's price with a repayment time of four years.

 
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