Chinese clothing industry High Hope Zhongtian Corp plans to set up office in Dhaka
Highlights:
- It is considering partnering with a local factory or starting its own
- Huge development and GDP growth attracted it to Bangladesh
- Wants to share technical knowledge with Bangladeshi businesses
- Makes fabric, garments, home textiles, kids' garments, accessories, bags
- Exports to US, Europe, Japan, Southeast Asia, South America, Australia
Chinese clothing industry High Hope Zhongtian Corporation, a core affiliate of Jiangsu SOHO Holdings Group, plans to open an office in Dhaka to explore investment opportunities in the textile and apparel sector in Bangladesh.
Bao Zhenxing, chairman of the corporation, recently visited Dhaka for the first time as part of the investment plan.
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In an interview with The Business Standard during the visit, Zhenxing said that they are looking at two options: collaboration with a local textile factory and setting up their own factory.
He said they have a strong fabric business with which they can support local garment factories in manufacturing high-value apparel.
"We are very popular in the fabric business, and each season we are developing more than 100 items about the fabric in woven and knitting," he said. "We can ship out fabric for local factories in Bangladesh."
Founded in 1973, the state-owned enterprise operates in the textile and clothing industry in China. In 2020, the export value of its textile and clothing products was $140 million, according to the company.
The company manufactures fabric, garments, home textiles, kids' garments, fashion accessories, and bags. The group exports fabric to global markets, including the USA, Europe, Japan, Southeast Asia, South America, and Australia.
"We own professional fabric designer, technician, as well as specialised quality control team," said Zhenxing.
He said huge infrastructural development and high GDP growth attracted them to Bangladesh to look for business opportunities.
He said labour costs are still very low, which is a great advantage for them to be competitive in exporting products from Bangladesh.
For instance, in China, the monthly labour wage rose to $1,000 when the cost in Bangladesh was between $100 and $115, which is very cost-effective, he added.
The chairman said the company is also interested in improving the capacities of Bangladeshi businesses through the sharing of knowledge and technical know-how in developing high-quality fabric.
Formerly known as the Jiangsu Branch of China Textile Import and Export Corporation, High Hope Zhongtian Corporation is one of the earliest provincial-level professional foreign trade companies in Jiangsu Province.
Through multiple mergers and restructurings, the corporation has become a core affiliate of Jiangsu High Hope International Group, the largest foreign trade group of Jiangsu, according to the group website.
Earlier in April, a delegation led by Zhou Yong, chairman of Jiangsu SOHO Holdings, visited Dhaka and had a meeting with the Bangladesh Garment Manufacturers and Exporters Association to discuss potential collaborations and investment opportunities in the textile and apparel sectors.
