The recent spate of accidents in the garment trade, especially in Bangladesh, where in addition to the building collapse more than 100 have also died in factory fires over the past year has led labor unions and worker-safety groups to press Western retailers to tighten oversight of their supply chains.

WSJ: 3 Die in Cambodia Factory Collapse

The Cambodian incidents follow several more-deadly accidents in Bangladesh, where more than 1, 000 people died in a garment building collapse last month and others have perished in garment factory fires over the past year.

WSJ: Another Cambodian Garment Factory Has Accident

Authorities also have promised to improve factory safety by modernizing equipment, overhauling fire-safety and building-safety laws, and increasing inspections.

WSJ: Another Fire as Bangladesh Toll Tops 900

Many startups who have attempted to do so have gone out of business or are still working on building their first or second large factory.

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So far, government loans have financed the expansion of a chewing-gum factory on the outskirts of Sanandaj, and the building of a handful of other industrial units.

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Tata Motors is building a factory to produce the Nano in the state of Gujarat that will have a capacity to produce 250, 000 cars annually, but it likely won't come online until 2010.

FORBES: Market Scan