Country's apparel manufacturers have set their eyes on China to explore both the market and investment potentiality.
A memorandum of understanding (MoU) to develop bilateral trade was signed between BGMEA and Ningbo Yinzhou Textile and Garment International Chamber of Commerce when a ten-member delegation headed by the President of Bangladesh Garment Manufacturers and Exporters Association Shafiul Islam Mohiuddin visited China during June 9-11.
The MoU focuses on development of networking among businessmen, entrepreneurs and investors of both countries, steps to remove trade barriers, assistance to transfer technology and raise human skill.
The entrepreneurs in Ningbo -- the fifth largest city of China -- showed interest to shift their production in Bangladesh following the high production cost there due to wage hike, a statement issued by BGMEA said Wednesday.
Both the countries' entrepreneurs focused on investment in apparel industry including suit and oven textile, it added.
The Asian giant is the single largest apparel exporter in the world contributing about 36 per cent to the global market.
Bangladesh's export will get a big boost if it gets the production share of the big market, the statement added.
Manufacturers said China has concentrated more on high-tech industrialisation and is gradually withdrawing from the manufacture of apparels that involves high cost.
The move has forced China to look for sources that can offer apparels for its domestic consumption at cheap and competitive prices and Bangladesh remains a potential source, they said.
China is a lucrative destination for Bangladesh's garment as apparel exports to that country saw an extraordinary 179 per cent growth in the fiscal year (FY) 2010-11 over that of FY 2009-10, they said.
Bangladesh exported apparel products, both knit and woven items, worth $52.81 million during the July-June of FY 2010-11 which was $18.95 million in FY 2009-10.
Country's export to China was only $9.49 million in FY 2008-09.
During July-December of current fiscal year, apparel export to China stood at $132.26 million.