A CLOTHING manufacturing company had shut down its Ba factory in December last year after it could not keep up with rising costs, an increased national minimum wage and a competitive economic environment.
Nagsun Apparel (Fiji) Pte Ltd made the decision to let go of its factory workers in Ba after just five years in operation.
Company production and sales manager Shabana Azmin said the decision was difficult but necessary because they found it hard to make fair returns in the face of “threatening” competition while trying to pay workers under the new national minimum wage.
“All this led to the cost of production going up. We also started losing existing clients not only from overseas, but also from the local market,” Ms Azmin said.
“Local clients find it cheaper to import readymade garments out of Bangladesh or China than have it made in Fiji.”
Ms Azmin said importing ready-made garments was a costly exercise.
“Even the duty to import garments into Fiji is low, so despite paying that, retailers here find it cheaper to import against locally-made garments.”
Ms Azmin explained the company opened its Ba branch for manufacturing Bula-wear in January 2019.
“We closed operations on December 20, 2024.
“This is a big downturn for our business because when we expand, it means growth for the company and our people getting new jobs.
“So, when the decision was made to close due to these issues, it was not a good sign for our future.
“The competition has been very tough to cope with.”
Ms Azmin said the company was facing a bleak future if there was no change.
Fiji’s import duty on garments falls under ad valorem bands or any tax imposed based on the monetary value of the taxed item.
The bands range from between 0 per cent, five per cent, 15 per cent or 32 per cent with an excise tax and Value Added Tax also applying to certain goods, including selected clothing.
