South Korea may double its investments in Bangladesh RMG sector

A total of 120 Korean companies, including 62 in the export processing zones (EPZs), are now in operation in the country Bangladesh, where 62 in EPZ, produce mainly textile products, paper and plastic.

South Koreans, encouraged by better quality of Bangladesh's ready made garments (RMG) and availability of cheap labour, are contemplating doubling investment said Hanil Kim Director of Korea Trade-Investment Promotion Agency (KOTRA). He said the quality of Bangladesh RMG products and lower labour cost compared to Vietnam and Cambodia would attract more Korean investment in the RMG sector.

A Korean trade mission visited Dhaka and 11 new companies were introduced at the recent fair in Dhaka. Kim expected that the future $1billion investment plan would create an employment opportunity of at least 350,000 people, directly and indirectly.

Bangladesh is also a major export destination of South Korea, which exported goods worth around US$ 600 million last year, while Bangladesh exported mainly garments products and frozen foods worth around US$ 100 million. Bangladesh imports adhesive tapes, garment and textile dyeing, embroidery and circular knitting machinery and equipment. .