Abstract
Ready Made Garments (RMG) sector is one of the most potential sectors of earning foreign capital to improve economic growth. Bangladesh is the great place for Chinese investors to invest in RMG sector as its export trend is increasing day by day. The main objective of this research paper was to find out opportunities and challenges of Chinese investment in Bangladesh. Data were collected from different secondary sources. Low labor rate, labor availability, low government debt, huge gross national savings etc. influenced Chinese investors to invest. Besides, political instability, infrastructural factory premises, low lead time hampers the flow of Chinese investments. If necessary remedies are taken to mitigate the problems including training the labor force, Chinese investment in Bangladesh is going to be enhanced at a large scale. Key words: Chinese investment, foreign direct invest, readymade garments, labor.
Highlights
Investment helps to increase the surplus of capital account, improving balance of payment and macroeconomic stability of the country
The Chinese investors, who have moved out of Ready Made Garments (RMG) sector in their own country because of high labor costs and higher tariff slapped on their products by the developed countries, are interested investing in the Bangladesh RMG sector
The main objective of this study was to describe the present condition of Chinese investment in RMG sector in Bangladesh
Summary
Investment helps to increase the surplus of capital account, improving balance of payment and macroeconomic stability of the country. This increase of about 25% is higher than the average 23% worldwide growth of investment (Bangladesh Bank, 2016). By the late 1980s, China opened up its economy welcoming foreign capital, technology and expertise and encouraged its own enterprises to invest abroad. The Chinese investors, who have moved out of RMG sector in their own country because of high labor costs and higher tariff slapped on their products by the developed countries, are interested investing in the Bangladesh RMG sector. The main objective of this study was to describe the present condition of Chinese investment in RMG sector in Bangladesh. The secondary objectives were to identify the reasons of Chinese investment, to describe the problems and opportunities as well as government rules and regulations of Chinese investment in Bangladeshi RMG sector
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