Bangladesh As a Production Location: A Case Study on Compagnie Mauricienne de Textile Ltée (CMT)

Abstract

The internship project is one of the most significant parts of the Bachelor of Business Administration (BBA) program, which provides the opportunity to gather practical experience of business activities that are taught in different courses during the program. To fulfill the partial requirement of my BBA program, I worked as an intern in the Accessories Department of Consumer Knitex Limited (CKL), which is a subsidiary of Compagnie Mauricienne de Textile Ltée (CMT).

Therefore, this report is prepared primarily to describe the internship experience gathered through working as an intern in the CKL. Besides, why MNCs like CMT choose Bangladesh as a production location is also explored. Based on several previous pieces of literature, a conceptual framework is developed about location choice for the production of MNCs. There are seven identified factors and several associated attributes that might explain why CMT choose Bangladesh as its production Base.

The significant findings of the study show that Bangladesh is an excellent location for procuring knitwear items. As, CMT is a global renowned RMG producer, especially in the jersey wear industry, Bangladesh seems a perfect choice for CMT to shift its production base. Among the critical factors and crucial attributes that explain why CMT choose Bangladesh for its production location, few significant are labor costs, manufacturing costs, transportation facilities, value chain & supply chain, distribution network, feasibility for future expansion, government attitudes towards business, culture, norms & customs, tariff & NTM, tax advantage, etc.

However, this study also identified several problems that need to be addressed immediately to ensure a smooth continuation of MNCs like CMT. Few of these are poor infrastructure, product costs, variety & quality, lack of innovation, research & development, political instability, inadequate labor skills & quality, limited productivity & profitability, etc. Therefore, this study suggests, developing infrastructure, improving political stability, creating newer incentives for investment promotion, implementing government support policies, improving labor skills and capabilities, investing in technological advancement, transportation & communications to make Bangladesh a more attractive location for FDI.