Feasibility Study of Construction of a Shoe and Bag Factory
Abstract:
Bag and shoe industry is among activities that have a relatively long history in Iran. In the past,
not only bag and shoe making factories were able to provide all internal market's demands, but
they were also sold in foreign markets. But unfortunately, this trend has not been sustained over
the years, and faces serious deficiencies at the moment.
This industry is suffering from high import rate of foreign shoes and bags into the country. On
the other hand, producing high-grade products can help to improve employee’s rate, and
downstream industries.
High employment potential and direct impact on the economy, and low investment costs
compared to other industries are among reasons that make bag and shoe industry interesting for
investors.
According to the technology of developed countries and the cheap labor force in the region,
construction of a shoe making factory can be very profitable and will help the development of
production as well as exports to neighboring markets.
One of the best ways to develop this industry is to attract investors and foreign business partners
which is a way easier based on Maku Free Zone’s law.
Iran’s exchange relations with Europe, neighboring with Turkey, accessing a large geographic
area, the completion of two-year airport construction - which has resulted in having
transportation facilities, export terminals, financial services and other transportation facilities -
have attracted attentions for investment in this region.
Furthermore, 20-year tax exemption from all activities and unrestricted partnership with foreign
investors, 100% foreign investment, exemption from customs duties to import raw materials and
machinery and government’s guarantee on foreign investment would all be advantages of
investment in this region.
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