FNF fashion to set up garment factory in Nepal
Kathmandu, September 5
At the time when apparel entrepreneurs in the country are seeking various incentives with the government citing low profit margin in exports due to high competitiveness in the global market, FNF fashion has announced it is establishing a large scale garment factory in the country eyeing the export market in the United States and Europe.
FNF fashion, registered in the country under the Foreign Direct Investment (FDI) rules and regulation in 2014, is 100 per cent FDI from Bangladesh. The initial investment of the company is $50,000 and currently the company has been running a small manufacturing factory in Sorhakhutte and has set up three outlets — in KL Tower, Ranjana Trade Centre and Ratopul.
“The outlets also offer branded readymade garment products from Bangladesh but our main aim is to set up a large scale factory in outskirts of Kathmandu and we are preparing to raise investment in Nepal to $200,000 for this purpose,” said Mohammad Mustafijur Rahman, managing director of the company.
“Currently, we have been providing training to Nepali workers from a Bangladeshi trainer and are also looking for a land of around 5,000 square feet to set up a factory.”
The firm launched its new outlet in Ratopul today. During the inauguration, Ambassador of Bangladesh to Nepal Mashfee Binte Shams said it is encouraging to see Bangladeshi apparel manufacturers setting up ventures abroad.
As per Ambassador Shams, Bangladesh is second-largest garment exporter in the world. Bangladesh had exported apparel worth $27 billion in the world market last year.
“FDI from Bangladesh will also transfer technology related to apparels in Nepal and it will also be beneficial for the other entrepreneurs in the country to learn how they can reduce cost of production to be competitive in the global market,” the ambassador stated.
Garment entrepreneurs have said that in the context of duty-free facility extended by the US in 66 Nepali products, including some apparels and travel goods, the country could lure more FDI for the production of these products.