They also blamed apathetic attitude of the government toward resolving host of issues affecting the industrial and export sectors which, they said, were gradually slowing down.

 

“Labor dispute and industrial unrest have emerged as the big challenges to the Nepal´s apparel sector that was already reeling under adverse condition in the internal and world markets,” said Uday Raj Pandey, president of Garment Association-Nepal (GAN) at its 21st Annual General Meeting.

 

Garment was once the country´s largest exports commodity with annual volume touching over Rs 12 billion in 1999/2000. However, exports dropped to Rs 4.08 billion during the year 2010/11.

 

He said that if the government failed to enforce social security and ´no work no pay´ system, other garment producers would face similar fate as Surya Nepal Garment, an Indian multinational that closed down operations permanently few months back citing labor unrest. 

 

He stated that Chinese investors were ready to invest in Nepal´s garment sector if the government guarantees conducive climate by providing investment security and enforcing law and order in the country.

Garment exporters also demanded the government to restore the buyback facility, include garment in Nepal Trade Integration Strategy (NTIS) and provide concessions to apparel industry as an ailing industry.

 

Suraj Vaidya, president of Federation of Nepalese Chambers of Commerce Industry (FNCCI), also highlighted the low productivity of Nepali labor due to increasing political meddling by labor unions.

 

He said productivity of Nepali garment workers per day hovers around 120 pieces which is far lower than 190 pieces and 250 pieces in Bangladesh and Vietnam respectively. 

 

“Not just frequent labor disputes, lack of clear industrial policy and absence of vision among manufacturers and exporters also create a niche market for their products and have brought gloom in the garment industry,” added Vaidya. 

 

Three top exporters awarded

Garment Association of Nepal (GAN) awarded top three garment exporters on the occasion of its 21th AGM on Thursday. Apparel producers and exporters receiving award and certificates are Nepal Fashion Pvt Ltd (largest), Kathmandu Star Fashion Pvt Ltd (second largest) and Heritage Fashion Pvt Ltd (third largest).