Fluctuation Affecting Competitiveness
The year 2018 is set to bring a smile on the faces of workers involved in the textile, apparel and garment industry across South Asian countries, as a rise in their wages is on the cards. The news is obviously not so heartening for the industry as well as for buyers, simply because it is set to increase production costs, resulting in soaring prices of readymade garments.
Already posing tough competition for all players across the globe, China has taken a lead in hiking the minimum wages, reaching over US$ 200 in many of its provinces. Neighbouring countries, including Bangladesh, Cambodia, India, Myanmar, Sri Lanka, and Vietnam, have also geared up to follow suit in the current year, due to pressure of workers’ groups and unions.
Over the years, Southeast Asia had been an attractive hub for manufacturing industries, not only because of low minimum wages, but also because of a hardworking labour force and workers’ discipline.