Most Taiwanese enterprises that have established production bases in China and Vietnam now move their production plants to Bangladesh. The main reason for emigration is that the EU and the United States have implemented anti-dumping policies against these two countries, which has seriously hindered their exports.

Sources from the Taipei Representative Office confirmed that companies producing tent fabrics, shoes, pottery and furniture are now shifting production bases. About 36 companies have moved out, of which 26 are manufacturing companies and the rest are trading companies.

Entrepreneurs have to make difficult decisions because China's investment policy has changed, and labor-intensive industries have been hit the most. The sharp increase in labor costs has led to the shrinkage of enterprise profits. The appreciation of RMB is also not conducive to the development of the whole industry, and the production cost increases significantly. Last year, the profits of companies that built production bases in China were 30% higher than this year.

Now, many important enterprises have moved to Bangladesh. In the first six months of 2008, Bangladesh's direct foreign investment from Taiwan was 200 million dollars. This figure is 2/3 of the investment attracted by the administrative department of Bangladesh Export Processing Zone in 2007-08. In 2008, Taiwan's investment in India soared to 600 million US dollars.

Eusebio, Taiwan's largest sleeping bag, canvas bag and tent manufacturing company, has invested nearly 50 million dollars to move its factory to Comilla Export Processing Zone. Even Trendex, a world-famous furniture manufacturer, invested about US $55 million in April to build a new factory in the Karnaphuli Export Processing Zone, Chittagong.

However, insiders believe that the Bangladesh Export Processing Zone does not have enough space to accommodate Taiwanese companies. If the Bangladeshi government considers giving Taiwan entrepreneurs a special industrial site, it will attract more Taiwan entrepreneurs to settle in Bangladesh and increase the investment flow in Bangladesh.