They are also optimistic about capturing a major portion of the big Chinese apparel market worth around US$420 billion, as for the first time they are going to take part in an international fair in Southern China.

Some ten Bangladeshi knitwear companies will participate in the five-day 13th China Kunming Import and Export Commodities Fair beginning on June 6 at Kunming International Convention and Exhibition Centre.

Talking to The Daily Star, Fazlul Haque, president of Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA), said the BKMEA will set up a pavilion in the fair where Bangladeshi knitwear goods especially T-shirt, polo shirt and basic sweater will be put on display.

He said although China dominates the world apparel market, the country has to import apparel products to meet its local demand.

For exporting apparel products China subsidised the apparel exporters, but Chinese local garment manufacturers do not get any subsidy from the government. So the production cost remains higher than the cost of imported items, he told quoting a study on the Chinese apparel market done by the BKMEA recently.

"Moreover, China is now looking for manufacturing more value added items, which creates an opportunity for us to export our items at a competitive price," he said.

"The study also revealed that we have a great chance to capture the Chinese market especially of the knitwear segment," said the BKMEA chief who will lead a 34-member business delegation to participate in the fair.

Haque said the fair will help establish new business contacts, develop new business sectors, improve customer ties and at the same time meet new buyers.

The fair will also enable Bangladeshi knitwear manufacturers to showcase their products and capabilities, promote Bangladeshi products as well as strengthen business links between Bangladesh and China, he hoped.

On the sideline of the fair, the BKMEA will also hold business meetings with potential Chinese buyers, chambers, associations and government bodies, Haque added.

He said there is also a possibility of Chinese investment in Bangladesh as China now wants to relocate some textile industries in the least developed countries (LDCs).

"And I think Bangladesh is one step ahead in this regard as our country is a safer place for investment," he said adding that Bangladesh is also receiving some facilities from the US and EU as an LDC.

However, the BKMEA president said, "The prospect, what we are saying, depends on the successes of the Kunming fair and business meetings."

More than 1,000 businesspeople from some 30 countries, regions and international organisations, and more than 1,200 enterprises, including over 100 foreign-funded ones, from 27 Chinese provinces, municipalities and autonomous regions will attend the fair in Kunming, the provincial capital of Yunnan province.

Bangladesh earned US$ 2,152 million from export of knitwear goods in the first nine months of 2004-05, posting an increase of 40 percent from the corresponding period of the last fiscal.