Our generation needs an ENTREPRENEURIAL REVOLUTION.
Bangladesh is reported to have exports of textile rising by 43% this year according to reports from KPMG, stealing thunder from China. China is experiencing rising wages. Thus, the outsourcing venues are, as water moves to where the costs are lower.
l. Where will be next outsourcing destination after Bangladesh?
2. What will happen to China?
3. What will be strategies for countries who lose the cost advantage?
4. Will Bangladesh be progressive just like China?
Here is a link to the video from BBC.
http://www.bbc.co.uk/news/business-14981796
"20 September 2011 Last updated at 01:28 GMT
Bangladesh is reported to have exports of textile rising by 43% this year according to reports from KPMG, stealing thunder from China. China is experiencing rising wages. Thus, the outsourcing venues are, as water moves to where the costs are lower.
l. Where will be next outsourcing destination after Bangladesh?
2. What will happen to China?
3. What will be strategies for countries who lose the cost advantage?
4. Will Bangladesh be progressive just like China?
Here is a link to the video from BBC.
http://www.bbc.co.uk/news/business-14981796
"20 September 2011 Last updated at 01:28 GMT
A report from consultancy firm KPMG says China's textile industry is facing increasing competition from cheaper rivals.
Indonesia and Bangladesh are benefiting most as rising costs in China force firms to switch production.
Bangladeshi textile exports surged 43% in the first half of this year.
The main reason for this is because of the low minimum wage in Bangladesh. The BBC's Anbarasan Ethirajan reports from Dhaka."
Indonesia and Bangladesh are benefiting most as rising costs in China force firms to switch production.
Bangladeshi textile exports surged 43% in the first half of this year.
The main reason for this is because of the low minimum wage in Bangladesh. The BBC's Anbarasan Ethirajan reports from Dhaka."
Bangladesh is definitely an emerging contender to Chinese dominance on the labor market. However, it has to work on several critical areas to improve the country's competitiveness. Based on the 2010-2011 Global Competitiveness Report of the World Economic Forum, Bangladesh has the following problem areas:
ReplyDelete1. Inadequate supply of infrastructure
2. Inefficient government bureaucracy
3. Corruption
4. Policy instability
5. Access to financing
Government focus on these areas should improve Bangladesh's competitiveness and elevate it's threat to China as the next outsourcing destination, not just in apparel exports but also on manufacturing and IT.