Nagsun Apparel (Fiji) Pte Ltd has announced the closure of its factory in Ba, a decision driven by escalating operational costs and fierce competition in the market. Following five years of operations, the move has resulted in significant job losses for factory workers. Shabana Azmin, the company’s production and sales manager, highlighted the challenges faced due to increasing national minimum wage, which made it difficult for the factory to generate sustainable returns.
This closure comes amidst a larger trend affecting Fiji’s manufacturing sector, particularly within the textile and apparel industries. Employment in this area has plummeted from 7,000 to approximately 4,000 since the onset of the COVID-19 pandemic. One major contributor to this decline is the growing preference for cheaper imported goods from nations such as Bangladesh and China, where lower production costs have made these products more attractive to local retailers.
Azmin pointed out that the competitive landscape forced Nagsun Apparel to rethink its business viability in Fiji. Rising operational costs stem from wage hikes and intensified competition from imports that benefit from a lower tax burden, overshadowing the locally made offerings despite existing import duties.
The closure of Nagsun Apparel serves as a stark reminder of the ongoing challenges within Fiji’s manufacturing industry, which has also seen the recent shutdowns of notable companies like Performance Flotation Developments and Vonu Apparel. The president of the Textile, Clothing, and Footwear Council has expressed concerns that without significant reforms and support, the sector may witness further declines.
In response to these challenges, Trade Minister Manoa Kamikamica is reportedly engaged in discussions aimed at finding innovative solutions and fostering investments to revitalize the local manufacturing sector. The situation presents an urgent call for action to ensure the future sustainability of manufacturing in Fiji and to prevent additional job losses.
At this crucial juncture for Fiji’s economy, there remains a glimmer of hope that strategic reforms could cultivate resilience and growth in the manufacturing sector, potentially leading to the creation of new job opportunities in the future. Implementing supportive measures and encouraging local production could help restore competitiveness and stimulate economic recovery.
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