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Garment sector's growth drives economic boom

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John Cremer

As a hub for export manufacturing, Bangladesh has obvious attractions for Hong Kong-based companies familiar with the principle and practices of outsourcing production.

A low-cost base, abundant skilled labour and the capacity for expansion present major advantages. But the various authorities also know that the competition of a global economy and demand for ever-higher quality standards mean they can take nothing for granted.

'Bangladesh is going through a tremendous boom, mainly thanks to its apparel industry, which is also propelling rapid growth in many affiliated sectors,' says Ranjan Mahtani, chief executive and principal owner of apparel supplier The Epic Group.

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'Over the next two years, the expansion of infrastructure will be the major challenge the country faces. If infrastructure [keeps pace with] requirements and if the textile industry evolves, the country could easily multiply current exports five times by 2022.'

Epic's own presence in Bangladesh goes back almost 30 years and, in round terms, the group is increasing production capacity there by 20 per cent annually.

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A state-of-the-art garment factory was opened in Dhaka in 2006, with space for an advanced wet-processing area, wrinkle-free technology and computerised embroidery machines.

A new denim-weaving plant has been commissioned and will help meet orders from Europe and the United States placed by many of the best-known brand names and chain stores.

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