African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4064

Full Length Research Paper

Chinese Investment in Bangladeshi RMG Sector: Challenges and Opportunities

Mir Sohrab Hossain
  • Mir Sohrab Hossain
  • Business Administration Discipline, Khulna University, Khulna-9208, Bangladesh.
  • Google Scholar
Nusrat Zahan Lopa
  • Nusrat Zahan Lopa
  • Business Administration Discipline, Khulna University, Khulna-9208, Bangladesh.
  • Google Scholar
Md. Saidur Rahman
  • Md. Saidur Rahman
  • Business Administration Discipline, Khulna University, Khulna-9208, Bangladesh.
  • Google Scholar


  •  Received: 03 July 2018
  •  Accepted: 21 August 2018
  •  Published: 28 August 2018

Abstract

Ready Made Garments (RMG) sector is one of the most potential sectors of earning foreign capital to improve economic growth. Bangladesh is the great place for Chinese investors to invest in RMG sector as its export trend is increasing day by day. The main objective of this research paper was to find out opportunities and challenges of Chinese investment in Bangladesh. Data were collected from different secondary sources. Low labor rate, labor availability, low government debt, huge gross national savings etc. influenced Chinese investors to invest. Besides, political instability, infrastructural factory premises, low lead time hampers the flow of Chinese investments. If necessary remedies are taken to mitigate the problems including training the labor force, Chinese investment in Bangladesh is going to be enhanced at a large scale.

 

Key words: Chinese investment, foreign direct invest, readymade garments, labor.