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ভিয়েতনাম জামাকাপড় ধরে রাখার ফলে বাংলাদেশ লাভবান হতে পারে

POST BY
RMG Bangladesh
-

বাংলাদেশের পোশাক প্রস্তুতকারীরা বলেছে যে তারা নিরাপদ অবস্থানে রয়েছে এবং এমনকি কিছু সুবিধাও পাবে কারণ ভিয়েতনামের পোশাক এবং পাদুকা প্রস্তুতকারীরা জিনজিয়াংয়ের তুলার তৈরি পণ্যের উদ্ধৃতি দিয়ে দক্ষিণ-পূর্ব এশিয়ার দেশটির কিছু চালান ক্লিয়ার না করার কারণে আমেরিকা চাপের মধ্যে রয়েছে।

ইউএস সরকার উইঘুর ফোর্সড লেবার প্রিভেনশন অ্যাক্ট (ইউএফএলপিএ) পাস করেছে, যা 21 জুন, 2022 তারিখে কার্যকর হয়েছিল, যা মার্কিন সীমান্ত কর্তৃপক্ষকে উত্তর-পশ্চিমের একটি স্বায়ত্তশাসিত অঞ্চল জিনজিয়াং-এ আংশিক বা সম্পূর্ণভাবে তৈরি পণ্যগুলিকে ব্লক বা বাজেয়াপ্ত করার আরও বেশি ক্ষমতা দিয়েছে। চীন, চীনে জোরপূর্বক শ্রমের সাথে যুক্ত।

2017 সাল থেকে, চীনা কর্তৃপক্ষ প্রায় এক মিলিয়ন উইঘুরকে আটক করেছে এবং তাদের জোরপূর্বক শ্রমের শিকার করেছে।

মিডিয়া রিপোর্ট অনুসারে, কিছু ভিয়েতনামী উদ্যোগ চীনা ব্যবসায়ীদের তুলা ব্যবহার করে এবং উত্তর আমেরিকার দেশে রপ্তানি করে মার্কিন কর বা নিষেধাজ্ঞা এড়াতে সহায়তা করেছে। অবশেষে, ইউএফএলপিএ চেকের জন্য $15 মিলিয়ন মূল্যের পোশাক এবং পাদুকা চালান আটকে রাখা হয়েছে, 80 শতাংশেরও বেশি ভিয়েতনামের, এবং এর কার্গোগুলির মাত্র 13 শতাংশ প্রবেশের জন্য সাফ করা হয়েছিল, 3 এপ্রিল পর্যন্ত মার্কিন কাস্টমস ডেটা দেখায়।

অনেক ইউএস আমদানিকারক এখনও নিরঙ্কুশ, তবে তাদের সরবরাহ চেইনগুলি এখনও ব্যাহত হতে পারে কারণ ভিয়েতনামের পোশাক প্রস্তুতকারীরা তাদের ইনপুট সামগ্রীর প্রায় অর্ধেক জন্য চীনের উপর নির্ভর করে, মিডিয়া রিপোর্টে বলা হয়েছে।

পরিস্থিতির মধ্যে, ভিয়েতনাম পোশাক রপ্তানিকারক এবং মার্কিন ব্র্যান্ডের মধ্যে উত্তেজনা বেড়েছে। বাংলাদেশের তৈরি পোশাক রপ্তানিকারকরাও উদ্বিগ্ন কারণ প্রায় শতভাগ তুলা এবং কাপড় ও সুতার চাহিদার একটি বড় অংশ আমদানির মাধ্যমে মেটানো হয় এবং একটি বড় পরিমাণ চীন থেকে আসে।

তবে, বাংলাদেশ গার্মেন্টস ম্যানুফ্যাকচারার্স অ্যান্ড এক্সপোর্টার্স অ্যাসোসিয়েশনের (বিজিএমইএ) সভাপতি ফারুক হাসান দ্য বিজনেস পোস্টকে বলেছেন যে তারা নিরাপদ অঞ্চলে রয়েছে কারণ সমস্ত পোশাক প্রস্তুতকারীরা জিনজিয়াং তুলার বিরুদ্ধে মার্কিন নিষেধাজ্ঞা সম্পর্কে সচেতন।

“যখন ইউএফএলপিএ আইন পাশ হয়, আমরা কোনো দেশ থেকে কাঁচামাল আমদানির আগে তুলার উৎপত্তি সম্পর্কে স্পষ্ট করার জন্য সব সদস্যকে চিঠি দিয়েছিলাম। যুক্তরাষ্ট্রের ভিয়েতনামের কাপড় জব্দ করায় বাংলাদেশ সুবিধা পাবে কারণ ভিয়েতনাম থেকে পণ্য আমদানিতে মার্কিন ক্রেতাদের আস্থা কমে যাবে।

“তবে আমি সমস্ত পোশাক রপ্তানিকারকদের কাঁচামাল আমদানিতে আরও সচেতন হতে বলছি, এমনকি তারা অন্য দেশ থেকে আমদানি করলেও,” তিনি যোগ করেন।

ইউনাইটেড স্টেটস ডিপার্টমেন্ট অফ এগ্রিকালচার (ইউএসডিএ) অনুসারে, বাংলাদেশ তার তুলার চাহিদার ৯৯ শতাংশ পূরণ করেছে আমদানির মাধ্যমে, এবং চীনের সামান্য অংশ থাকতে পারে। তবে দেশটির কাপড় আমদানির ৫৯ শতাংশ চীনের দখলে।

বাংলাদেশ চীন থেকে বার্ষিক সুতা আমদানির চাহিদার ১২ শতাংশ পূরণ করে।

শিল্পের অভ্যন্তরীণ ব্যক্তিরা জানিয়েছেন যে তারা স্থানীয় উত্সের মাধ্যমে তুলার সুতার চাহিদার প্রায় 85 শতাংশ পূরণ করে এবং বাকিগুলি ভারত, তুরস্ক, পাকিস্তান এবং অন্যান্য দেশ থেকে এসেছে। চীনের শেয়ার এক শতাংশের নিচে।

যদিও বাংলাদেশের সুতা ও কাপড় আমদানিতে দেশটির একটি বড় অংশ রয়েছে, তবে এটি মূলত নন-কটন। বাংলাদেশ ইন্দোনেশিয়া এবং ভিয়েতনাম থেকেও কিছু তুলা-সুতা আমদানি করে, তবে তারা সবসময় তুলার উৎপত্তি পরীক্ষা করে বলে দাবি করেছে।

এছাড়া যুক্তরাষ্ট্র বাংলাদেশের জন্য সবচেয়ে বড় রপ্তানি গন্তব্য হওয়ায় নির্মাতারা দেশের নিয়ম-কানুন সম্পর্কে অত্যন্ত সচেতন। এ কারণে ইউএফএলপিএ আইনের মুখোমুখি হওয়ার কোনো সুযোগ নেই।

বাংলাদেশ নিটওয়্যার ম্যানুফ্যাকচারার্স অ্যান্ড এক্সপোর্টার্স অ্যাসোসিয়েশনের (বিকেএমইএ) সহ-সভাপতি ফজলি শামীম এহসান বলেন, “আমরা আস্থা ও স্বচ্ছতায় বিশ্বাস করি এবং সবসময় আমাদের প্রতিশ্রুতি রক্ষা করি। এখন মার্কিন যুক্তরাষ্ট্র এবং অন্যান্য পশ্চিমা ক্রেতাদের আরও অর্ডার নিয়ে বাংলাদেশে আসা উচিত কারণ অন্যরা তাদের প্রতিশ্রুতি রাখতে ব্যর্থ হয়েছে।

Bangladesh may benefit from Vietnam clothes hold-up

POST BY
RMG Bangladesh
-

Bangladesh’s apparel manufacturers said that they are in safe position and even will get some benefits as Vietnam’s apparel and footwear manufacturers are under pressure due to the US not clearing some of the Southeast Asian country’s consignments, citing Xinjiang cotton-made products.

The US government passed the Uyghur Forced Labor Prevention Act (UFLPA), which came into force on June 21, 2022, giving the US border authorities greater powers to block or seize goods any product partly or wholly made in Xinjiang, an autonomous territory in northwest China, linked to forced labour in China.

Since 2017, the Chinese authorities have detained as many as one million Uyghurs and subjected them to forced labour.

According to media report, some Vietnamese enterprises have helped Chinese businessmen avoid US taxation or sanctions by using the cotton and exporting to the North American country. Finally, $15 million worth of apparel and footwear shipments held up for UFLPA checks, more than 80 per cent were from Vietnam, and only 13 per cent of its cargoes were cleared for entry, US customs data up to April 3 showed.

Many US importers are still sanguine, but their supply chains could still be disrupted as Vietnam’s apparel makers depend on China for about half of their input materials, media reports said.

Amid the situation, tension rose among the Vietnam apparel exporters and the US brands. Bangladesh’s readymade garment exporters are also worried as nearly hundred per cent cotton and a big portion of fabrics and yarn demand is met through imports, and a large volume came from China.

However, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan told The Business Post that they are in safe zone because all apparel manufacturers are aware of the US sanctions against Xinjiang cotton.

“When the UFLPA law was passed, we sent a letter to all members to clarify the origin of cotton before import of raw materials from any country. Due to the US seizure of Vietnam’s clothes, Bangladesh will get advantage as the US buyers’ confidence will decline for importing goods from Vietnam.

“I am, however, asking all the apparel exporters to be more aware of importing raw materials, even if they import from other countries,” he added.

According to the United States Department of Agriculture (USDA), Bangladesh met its above 99 per cent of cotton demands through imports, and China may have a little share. However, China holds the country’s 59 per cent of fabrics imports share.

Bangladesh also meets its 12 per cent of annual yarn imports demand from China.

Industry insiders said that they met nearly 85 per cent of cotton-yarn demand through local sources and the rest of them have come from India, Turkey, Pakistan and other countries. China’s share is below one per cent of the items.

Although the country holds a big share of Bangladesh’s yarn and fabrics import, this is mainly non-cotton. Bangladesh also imports some cotton-yarn from Indonesia and Vietnam, but they always checked the origin of the cotton, they claimed.

Besides, as the US is the largest export destination for Bangladesh, manufacturers are highly aware of the country’s rules and laws. That is why there is not any chance to face the UFLPA law.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Vice President Fazlee Shamim Ehsan said, “We believed in trust and transparency and always kept our commitments. Now the US and other western buyers should come to Bangladesh with more orders as others failed to keep their commitments.”

Ring Shine Textiles MD resigns, can’t go abroad

POST BY
RMG Bangladesh
-

The Bangladesh Police – following a request from the Bangladesh Securities and Exchange Commission (BSEC) – have banned Ring Shine Textiles Ltd’s former managing director Sung Wey Min from travelling abroad.

This Indonesian citizen had allegedly laundered Tk 2,000 crore from Bangladesh in the last 22 years utilising a myriad of financial anomalies.

The Ring Shine Textiles Ltd (RSTL) on Tuesday informed its shareholders that the company’s Board of Directors has accepted Sung Wey Min’s resignation as the managing director of RSTL, which is located at Dhaka EPZ of Savar.

On April 18 this year, The Business Post published a report titled “Ring Shine Textiles’ Tale of Laundering Tk 2,000 crore.” This staggering tale of gross irregularities came to light in a report, compiled by an inquiry committee and special auditor under the BSEC.

Documents show that between 1998 and 2020, RSTL’s management laundered $124 million, or nearly Tk 1,242 crore through telegraphic transfers (TT), moving funds from corporate to overseas accounts of the then managing director, sponsor directors, and parties unknown.

Besides utilising an illegal trick called over-invoicing, the RSTL also

laundered Tk 845 crore in the name of procuring property, plant and equipment, and raw materials over five years that ended in June 2020.

In addition to this, an unknown businessman – who was operating the RSTL’s two accounts in banks – laundered Tk 19.2 crore and Tk 20 crore between October and November of 2019.

It should be noted that all the sponsors of the debt-burdened company hail from Indonesia, Singapore, and Taiwan.

As per the company’s IPO prospectus, Sung Wey Min, managing director of the company, who held a total of 18,591,650 shares of the RSTL, had his home city address at Leuwigajah, Cimahi, and Bandung in Indonesia.

Auniruddho Piaal, the company secretary of RSTL, confirmed that its managing director resigned on Thursday due to BSEC’s order on corporate good governance guidelines.

Brig Gen AHM Mokbul Hossain (retd) has been appointed as the company’s new managing director, effective from Wednesday. He represents RSTL’s new investor Wise Star Textile Mills Ltd, a private company run by Queen South Textile. The decision came during Ring Shine’s 78th board meeting, held on Tuesday.

BSEC Chairman Prof Shibli Rubayat Ul Islam had told The Business Post, “We have identified significant irregularities within the company and reported them to the Anti-Corruption Commission (ACC) chairman and the Bangladesh Financial Intelligence Unit (BFIU) chief.

“They will now take necessary action in this regard.”

Shibli further mentions that the BSEC has implemented measures through the Bangladesh Police to prevent the former managing director of RSTL from leaving Bangladesh.

Founded in 1997, Ring Shine Textiles Ltd raised Tk 150 crore from the market through an initial public offering (IPO) in 2019 to purchase machinery and repay bank loans.

The company had declared a stock dividend of 15 per cent for the shareholders on the audited financial statements as of June 30, 2019, disbursed bonus shares to the respective shareholders, and raised its paid-up capital to Tk 500 crore.

In the second year of its listing, the RSTL Savar plant in Dhaka’s Export Processing Zone announced a month-long closure in September 2020, citing a decrease in foreign buyers and a shortage in the import of raw materials due to the Covid-19 crisis.

This closing period was later extended three times. On January 27, 2021, the BSEC dissolved the company’s board of directors and tasked a new board with taking the necessary measures to restart the company.

In June 2021, the company declared it would resume production after almost nine months of closure. The company said it would resume production on June 13 at 25 per cent capacity.

The RSTL did not pay any dividends in FY21 and FY22, and the company’s loss per share stood at Tk 1.54 in the last FY.

Debut meeting of RMG wage board Today Wednesday

POST BY
RMG Bangladesh
-

Members of the ready-made garment (RMG) sector’s new wage board will hold their first meeting at Sromo Bhaban in Dhaka on Wednesday to set a new pay structure for apparel workers.

On April 9, the labour and employment ministry formed the four permanent-member new wage board, headed by senior district Judge Liaquat Ali Molla, to review RMG workers’ wages.

The three other members are – Bangladesh Employers’ Federation representative Moksud Belal Siddiqui, workers’ representative Jatiya Sramik League leader Sultan Ahmed, and independent member Dhaka University Prof Md Kamal Uddin.

Besides, the ministry also announced the names of two members – former president of the Bangladesh Garment Manufacturers and Exporters Association Md Siddiqur Rahman and Bangladesh National Garments Workers Employees League President Sirajul Islam Rony as owners’ and workers’ representatives respectively.

As per the Bangladesh Labour Act and labour rules, the government will form a new wage board every five years and it will set a new wage structure.

In December 2018, the government-nominated board declared a new pay structure fixing minimum wages at Tk 8,000 per month.

Since early 2022, RMG workers had staged demonstrations several times demanding the formation of a new wage board, and Tk 24,000 as the monthly minimum wage, citing skyrocketing inflation in the country.

Bangladesh likely to get advantage from Vietnam garments block

POST BY
RMG Bangladesh
-

The US government passed the Uyghur Forced Labor Prevention Act (UFLPA), which came into force on June 21, 2022. It allows US border authorities to practice greater powers to block or seize goods any product partly or wholly made in Xinjiang, an autonomous territory in northwest China, linked to forced labor in China.

Figure: Bangladesh met its above 99 per cent of cotton demands through imports, and China may have a little share. However, China holds the country’s 59 per cent of fabrics imports share.

Bangladesh’s apparel manufacturers said that they are in safe position and even will get some benefits as Vietnam’s apparel and footwear manufacturers are under pressure due to the US not clearing some of the Southeast Asian country’s consignments, citing Xinjiang cotton-made products.

Since 2017, the Chinese authorities have detained as many as one million Uyghurs and subjected them to forced labor.

According to media report, some Vietnamese enterprises have helped Chinese businessmen avoid US taxation or sanctions by using the cotton and exporting to the North American country. Finally, $15 million worth of apparel and footwear shipments held up for UFLPA checks, more than 80 per cent were from Vietnam, and only 13 per cent of its cargoes were cleared for entry, US customs data up to April 3 showed.

Many US importers are still sanguine, but their supply chains could still be disrupted as Vietnam’s apparel makers depend on China for about half of their input materials, media reports said.

Amid the situation, tension rose among the Vietnam apparel exporters and the US brands. Bangladesh’s readymade garment exporters are also worried as nearly hundred per cent cotton and a big portion of fabrics and yarn demand is met through imports, and a large volume came from China.

However, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan said that they are in safe zone because all apparel manufacturers are aware of the US sanctions against Xinjiang cotton.

“When the UFLPA law was passed, we sent a letter to all members to clarify the origin of cotton before import of raw materials from any country. Due to the US seizure of Vietnam’s clothes, Bangladesh will get advantage as the US buyers’ confidence will decline for importing goods from Vietnam.

“I am, however, asking all the apparel exporters to be more aware of importing raw materials, even if they import from other countries,” he added.

According to the United States Department of Agriculture (USDA), Bangladesh met its above 99 per cent of cotton demands through imports, and China may have a little share. However, China holds the country’s 59 per cent of fabrics imports share.

Bangladesh also meets its 12 percent of annual yarn imports demand from China.

Industry insiders said that they met nearly 85 percent of cotton-yarn demand through local sources and the rest of them have come from India, Turkey, Pakistan and other countries. China’s share is below one percent of the items.

Although the country holds a big share of Bangladesh’s yarn and fabrics import, this is mainly non-cotton. Bangladesh also imports some cotton-yarn from Indonesia and Vietnam, but they always checked the origin of the cotton, they claimed.

Besides, as the US is the largest export destination for Bangladesh, manufacturers are highly aware of the country’s rules and laws. That is why there is not any chance to face the UFLPA law.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Vice President Fazlee Shamim Ehsan said, “We believed in trust and transparency and always kept our commitments. Now the US and other western buyers should come to Bangladesh with more orders as others failed to keep their commitments.

US key export destination, Saudi Arabia top remittance source

POST BY
RMG Bangladesh
-

Bangladesh’s economy is still in dire straits. Foreign exchange reserves have been declining with the persisting high rate of the US dollar. Inflation pressure remains steep. Amid this, the growth in export and remittance inflow brought some respite to the government. At the same time, the cost of imports fell. This has reduced the existing current account deficit by one-fourth. However, the country’s current account deficit was the highest in the last 51 years in the fiscal 2021-22.

Amid the global economic slump, the US and European Union (EU) markets helped Bangladesh’s export income sustain. The United States topped the list as a single market. On the other hand, Saudi Arabia and the United Arab Emirates (UAE) have always been the top sources of remittance inflow. The United States has replaced United Arab Emirates to occupy the second place. The US may occupy the top spot if the trend of the first 10 months of the current fiscal 2022-23 continues for the rest of the year.

Bangladesh is basically an import-dependent country. The import costs here are much higher than the export revenue. Nearly half of Bangladesh’s total imports come from China and India. As a result, the trade deficit has to be met mainly with remittance. Foreign investment and loans are the two other sources of foreign exchange earnings of the country apart from exports and remittance. The US is also at the top in terms of Foreign Direct Investment (FDI).

According to Bangladesh Bank and Export Promotion Bureau (EPB) data, the US is the destinations of 20 per cent of the country’s total product exports. US investors accounted for 19 per cent of foreign direct investment (FDI) while the total remittance from the US contributes to 16 per cent of the overall total. On the other hand, a 3.75 per cent of total product imports are received from the United States.

Major export destination in the US

The US has long been the single largest market for Bangladesh in terms of product exports. Germany became the top destination for Bangladeshi products for a while, but that did not last long. As many as 20 per cent of Bangladesh’s product exports went to the US market in 2021-22 fiscal. However, 44.60 per cent of total product exports go to the EU. Bangladesh enjoys duty-free facilities for exporting products to this market.

According to EPB data, Bangladesh exported goods worth USD 52.08 billion in the previous fiscal. Of that, the US accounted for the highest export worth USD 10.42 billion. Besides, Bangladesh exported products worth USD 7.59 billion to Germany, USD 4.83 billion United Kingdom, to France USD 2.71 billion and USD 3.17 billion to Spain. Compared to these four countries, the growth in exports  to the United States was the highest, at 49 per cent.

Bangladesh exported 86 per cent of the total exports worth USD 10.42 billion were manufactured garments, which amounted to 9.01 billion dollars. Besides, home textiles worth USD 310 million have been exported as well. The US is the destination for 21 per cent of readymade garments and 17.85 per cent of home textiles exported from Bangladesh.

Exports to the US market fell by 8 per cent in the first 10 months of the current fiscal due to global economic crisis. Yet as much as products worth USD 7.94 billion were exported to the country. Of this, readymade garment products accounted for USD 6.95 billion, which is nearly 18 per cent of the total readymade garments export from Bangladesh.

Bangladesh has been adopting various initiatives to boost exports of readymade garment products to non-traditional or new market for over a decade. Cash assistance is also being provided. Still, exports from other countries apart from the US, EU, UK and Canada did not exceed 15 per cent of the total apparel exports. Readymade garments worth USD 6.37 billion were exported to new countries in the previous fiscal. However, the imports of the US alone exceed the combined imports of the products by a margin of USD 2.64 billion.

The president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Farooq Hasan told Prothom Alo on Friday, “The US is a vital market for our readymade garment exports. The EU allows us to export any goods other than arms duty-free under the Generalized System of Preferences (GSP). That’s why we currently export almost half of our readymade garment products to the EU. Even though the US does not give us GSP facility, 21 per cent of the apparel products go to the country. We are also trying to increase this.”

The US buyers have been moving their orders from China due to its trade rivalry with China. Again, Vietnam’s apparel exports to the US markets slowed due to the use of Chinese cotton. The purchase orders of these two countries are being transferred to Bangladesh. Referring to this data, Farooq Hasan said, “Bangladesh and US politicians have been talking over various things recently. It is their private matter. We will continue our business. The US is still the biggest market for our readymade garment products.”

China top exporter

According to Bangladesh Bank and EPB data, goods were imported worth USD 75.6 billion (total import including import of export processing zones or EPZ and service sector is USD 89.34 billion) in the fiscal 2021-22. On the contrary the export was worth USD 52.08 billion. Export of service sector is USD 8.88 billion. However, USD 52.47 billion came from the exports and service sectors last year. The remittance inflow was USD 21.03 billion. It constitutes that the entire import expenditure could not be met with the USD 73.39 billion received from exports and remittance leading to deficit of USD 1.81 billion.

According to Bangladesh Bank data, Bangladesh imports the most goods from China followed by India, Singapore, Malaysia, Indonesia, USA, Japan, Brazil, Qatar and Saudi Arabia. The US is in the sixth position in terms of imports.

Bangladesh imported USD 19.35 billion worth products from China and USD 13.69 billion from India in the previous fiscal while it’s import from the US was USD 2.83 billion worth of goods.

Bangladesh mainly imported mineral fuel (USD 790 million), iron and steel (USD 730 million), oilseeds and fruits (USD 440 million), cotton (USD 290 million) and machinery worth USD 130 million from the United States.

Saudi Arabia top remittance source

According to the data of Bangladesh Bank, the country received USD 21.03 billion remittance from different countries in the fiscal 2021-22. Bangladeshi migrant workers in Saudi Arabia sent the highest amount of USD 4.54 billion. The second highest remittance inflow came from the United States, amounted to USD 3.44 billion. The third highest remittance of USD 2.07 billion came from the UAE last year.

People in the US and Europe are under huge pressure due to high inflation caused by the Russia-Ukraine war. Increasing oil price became a saving grace for Middle East economy. In the first 10 months (July-April) of the current fiscal, more remittance came from the United States than from the United Arab Emirates, Kuwait or Qatar. At times, the United States toppled Saudi Arabia. Bangladesh received record USD 3.04 billion remittance from the country. Expatriate Bangladeshis from Saudi Arabia sent the second highest amount of USD3.03billion. However, we will be able to know whether the US can occupy the top position at the end of the current fiscal.

US at the top in foreign investment too

The government is setting up a hundred special economic zones to attract foreign investment. Investors from various countries including China, Japan, India are expressing their interest in building industries in these economic zones. But the US is ahead of other countries in foreign direct investment (FDI) in Bangladesh.

According to the data of Bangladesh Bank, FDI of USD 21.15 billion has arrived in the country till December 2022. Among them, 19.38 per cent or USD 4.1 billion of investment came from the US, which is the highest. Besides, Bangladesh received USD 2.71 billion from United Kingdom, USD 1.84 billion from Singapore, USD 1.46 billion from South Korea and USD 1.35 billion from China.

Of the USD 4.1 billion FDI received from the US, the gas and petroleum sector received USD 2.91 billion, USD 120 million in the textile sector, USD 200 million in banking, USD 170 million in the power sector, USD 240 million in financial institutions, and USD 270 million in insurance.

US importance to go up

Mustafizur Rahman, distinguished fellow of the Centre for Policy Dialogue (CPD), told Prothom Alo, “Our big market is the European Union, an alliance of 27 countries. However, the US is the largest market as a single country. Our products remain competitive in this market even with an average duty of 15 per cent. This is important. Because, Bangladesh will no longer get duty-free benefits in various countries including EU, India, China, Canada if it graduates to the list of developing countries from the list of least developed countries (LDC). So there is concern about exports to these markets. But we do not have worry about this in the US market. This is why; the US will be more important partner after the transition from LDC.”

Mustafizur Rahman further said, “We have a surplus in our trade as exports are high and imports are low with the United States, which is helping to increase our foreign exchange reserves. Besides, the highest remittance is now received from the US.”

He also said, “The US exerts strong influence on international organisations such as the International Trade Organization (WTO) and the World Bank. We are seeking additional benefits for six years after transition from LDC. The US will play a major role for us to obtain those facilities.”

*This report, originally published in Prothom Alo print edition, has been rewritten in English by Farjana Liakat

Australia becomes billion dollar export market for Bangladesh

POST BY
RMG Bangladesh
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Australia, an emerging and high potential non-traditional market, has become $12 billion export destination for Bangladesh despite the ongoing global economic headwinds.

In the first ten months of the fiscal year 2022-23, Bangladesh earned $1.05 billion from the market, posting a 34.3 per cent year-on-year growth, which was 2.3 per cent of total $54.68 billion export earnings, according to the Export Promotion Bureau (EPB) data.

Industry insiders and experts said that duty-free market access to Australia, product diversification, massive marketing in that country and China-Australia geopolitical conflict helped Bangladesh achieve the milestone.

If businesses continue their current trajectory, their earnings may double or even triple in near future, they claimed.

Commenting on the matter, Research and Policy Integration for Development (RAPID) Chairman Mohammad Abdur Razzaque told The Business Post, “It’s a piece of good news to all amid the ongoing economic crisis and we welcome it.”

“This has happened because duty-free market access to Australia will continue after the country’s graduation from LDC status in 2026. We have been able to gain the confidence of Australian importers due to the long-term policy declaration. That’s why they are also focusing on Bangladesh for more apparel sourcing.”

He added: “We are now manufacturing high-end items and the country’s people are also using them. China-Australia geopolitical tension has inspired the country’s importers to diversify their import destination which has helped us achieve growth. I think the trend will continue for a long time.”

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan said, “We are performing well in non-traditional markets thanks to 4 per cent cash incentives for exporters and initiatives taken by BGMEA and exporters.”

“We are using high-technology machinery and manufacturing high-value clothes which help us achieve the target. We have a lot of chances to increase export of non-cotton goods and that is why we are seeking 10 per cent cash incentives for product exports which will help us earn more.”

Which products are in demand in Australia?

Though Australia imports goods worth about $275 billion annually, Bangladesh has a limited export basket. Bangladesh exports readymade garment (RMG), home textile, leather and leather goods, footwear, jute and jute goods, pharmaceuticals, live and frozen foods, crustaceans and plastics items etc to Australia.

The EPB data showed that during the July-April period of FY23, $961 million out of total $1.05 billion exports came from the RMG sector while $46.59 million from home textile.

Besides, $8.5 million export earnings came from trunk and suitcase, $5 million from non-leather footwear, $3.3 million from hats, $2.47 million from sugar confectionary, $1.64 million from basketwork, $1.61 million from bread and pastry, $1.25 from jute fabrics, $1 million from jams and jelly, $1.03 million from crustaceans.

Md Mahtab Uddin Khan, Secretary General of Australia-Bangladesh Chamber of Commerce & Industry, told The Business Post that though the RMG sector is performing well in Australia, Bangladesh has a huge opportunity to earn from export of other goods.

“Bangladesh could earn by exporting agro-processing items, processed food, jute diversified goods, fruits, vegetables, leather and leather goods. But the problem is that enough initiatives for road show, trade fair and business-to-business dialogue have not taken to boost export. Even there was not any joint chamber just three years back. But India is trying to increase its exports to Australia since last five-six years.”

“Australian customers are using high-end items and they never compromise with low quality products. If we can maintain the quality of products and take pragmatic steps, exports of non-RMG items will also grow,” he added.

Tulika Eco Chief Executive Officer and Bangladesh Jute Goods Exporters Association Director Esrat Jahan Chowdhury said, “Due to a lack of marketing, jute goods exporters could not increase exports to Australia despite having its huge demand.”

“As Bangladesh has limited communication with Australian businesses, the government should organise several expos in Australia. India already did it.”

High-end RMG, home textile shine

The World Bank data showed that Australia imported $11 billion worth of textile and apparel products in 2020 amid the Covid-19 pandemic, which was $9.58 billion in 2019. During these two years, China exported apparel products worth $7.19 billion and $5.67 billion respectively.

On the other hand, Bangladesh exported $713 million and $749 million worth of textile and apparel goods to Australia in 2020 and 2019 respectively, though Bangladesh is the second largest apparel sourcing country for Australia while India holds the third position.

According to media reports, Australia imported apparel products worth $7.40 billion in 2021 while Bangladesh exported goods worth $765.47 million to the country.

Sparrow Group Managing Director Shovon Islam said, “We are performing well in the new markets. Among the new markets, Australia is in the second position after Japan.”

“Now we are manufacturing high-priced clothes by adopting the state-of-the-art technology. Besides, our production cost is lower than any other countries. That is why Australian buyers are showing interest in boosting trade with Bangladesh.”

The EPB data showed that in the first 10 months of this fiscal year, the RMG sector earned its maximum portion by exporting high-value and luxury clothes. During the period, export of knitwear items fetched $643 million while oven items $318 million.

Among the knitwear and woven items, $368 million earnings came from suit and blazer export, $269 million from T-shirt, $125 million from jersey and pullover, and $47 million from shirt.

Besides, bed and table linen earned $33 million and tarpaulins $10 million.

“We, especially sweater and winter clothes manufacturers, face an order crisis during the August-January period. The Australian buyers are important for us because they buy the same items during our lean period,” Southeast Sweaters Chief Executive Director Mahbubur Rahman Lucky said.

Rapid Chairman Razzaque said, “Due to the geopolitical crisis, Australia will come out from Chinese dependency. That is why we have a chance to increase our market share in Australia from 10-12 per cent to 35 per cent within a few years.”

“Besides, though New Zealand is a small market, they are using high-value items. We can export goods to the country through Australia.”

“Many Australians are likely to invest in Bangladesh’s RMG backward linkage as their import from the country has rising, and the government should focus on this area,” he said.

Dhaka again seeks duty-free access for RMG made of US cotton

POST BY
RMG Bangladesh
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Bangladesh has again sought duty free access to the US market for locally produced garments made from the US cotton, said Senior Commerce Secretary Tapan Kanti Ghosh.

“Bangladesh made the same demand in the last meeting of the Trade and Investment Cooperation Forum Agreement (TICFA) held in Washington in December last year,” he told the journalists emerging out of a meeting with senior officials of the United States Trade Representative (USTR) at his office in Dhaka on Sunday.

The commerce ministry raised the same demand to the USTR officials, although the US usually does not allow duty free access of garment products to the country. In the meeting, Bangladesh did not directly request for revival of the GSP to the US markets but demanded preferential market access, he said.

Ghosh said Bangladesh has the right to demand the duty free access for the garment products made from US cotton as reciprocity, because it has lifted the years-long fumigation of US cotton in Bangladesh.

Mentioning that the USTR officials in the meeting complained about the export of counterfeit goods from Bangladesh to the USA, the commerce secretary said, “There is no chance of sending any counterfeit goods from Bangladesh to the USA and to the EU as the consignments are audited by different organisations at different levels before final shipments.”

The USTR also urged to improve the business climate in the country for attracting more American investment in Bangladesh, he informed.

“The government has already changed the renewal time of trade and export-import licences. Previously, those licences had to be renewed every year but now it is needed to renew in five years,” he said.

Ghosh said the USTR officials also expressed concern about the government’s formulation of the Data Protection Act which might discourage the US investors for increment in Bangladesh. The visiting USTR team will sit with the ICT ministry in a meeting in this regard.

Regarding the labour situation, Ghosh said the government has been updating the labour law and rules and publishing the updates on the website so that people can know about it.

Mentionable, the labour law and rules of the law are being updated under the National Action Plan addressing the requirements of the EU for GSP Plus facility.

However, Bangladesh sought cooperation from the USA for supporting Bangladesh in obtaining the extension of LDC facility beyond 2026 in the forum of World Trade Organisation (WTO).

From the US side Brian Luti, director for South Asia Regional Affairs, National Security Council, Brendan Lynch, deputy assistant USTR and Mahnaz Khan, director for South Asia USTR attended the meeting.

Nobody from the USTR talked to the journalists after the meeting.

BGMEA to collaborate with CBCCI to boost RMG exports

POST BY
RMG Bangladesh
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A delegation of the Canada-Bangladesh Chamber of Commerce and Industry (CBCCI) led by its Executive Vice-President Areef Rahman on Monday met with Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan to discuss potential collaboration in boosting RMG exports to Canada.

During the meeting, they discussed prospects of Bangladesh’s RMG exports in the Canadian market and how Bangladeshi exporters could explore more business opportunities through participation in the trade fair titled “CBCCI Trade Expo 2023” which will be organised by the CBCCI in Toronto from November 17 to 19, read a press release.

Farzana Ali, country director of CBCCI in Bangladesh, and Bangladeshi film actor Ferdous Ahmed, who is promoting the trade fair as its brand ambassador, were also present at the meeting held at the BGMEA Complex in Dhaka’s Uttara.

Faruque Hassan said Bangladesh was keen to increase its ready-made garment (RMG) exports to Canada, especially with high-value products like jacket, outerwear, technical textile items, and lingerie.

He also said the BGMEA had been supporting garment exporters in expanding their business in existing markets like Canada and exploring new emerging markets as well.

“BGMEA provides support to its member garment factories in participating in international trade fairs so that they could build relationships with new buyers and demonstrate the capabilities of Bangladesh’s apparel industry, especially in manufacturing more complex and high-value items,” he added.

Faruque thanked the CBCCI for organising the trade fair, saying the event would provide an opportunity to strengthen business ties with potential Canadian buyers and ramp up RMG exports.

He laid emphasis on intensifying the focus on the Canadian market to make optimum use of the duty-free market access to Canada.

He assured the CBCCI of BGMEA’s all-out cooperation in promoting the participation of the BGMEA member factories in the trade fair.

Fire-fighting equipment still not enough

POST BY
RMG Bangladesh
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Although the fire service’s capacity has increased significantly in the last ten years, it is still not enough when taking the country’s population into consideration, said Bangladesh Fire Service and Civil Defense Director Lt Col Tajul Islam Chowdhury.

He made the comment while speaking at a programme titled “Hygiene and Safety” organised by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at their Dhaka office, read a press release on Sunday.

The director said, “The government purchased high-tech equipment for fire service. Now, we can easily reach 24 storied buildings to extinguish any fires. Besides, we have enough improvement in the industrial area in terms of fire safety.

“That is why fire incidents and causalities have gone down in the last ten years. We have some limitations because our fire-fighting equipment and human resources are not enough, though the government is trying to improve in that area.”

BGMEA President Faruque Hassan said, “Workers’ good health and welfare are important to build a sustainable industry.”

“In recent times, several fires occurred in different markets across Dhaka, and experts thought that short-circuit is the reason for those incidents. As RMG and textile factories are using electric-run machinery, we have to be more aware.”

Faruque continued, “We have asked our workers and owners to inspect their machinery as well as electric cables, switches and other equipment. We also asked to always keep the emergency exit door open, and train workers on what to do during a fire.”

During the programme, BGMEA announced that it will inspect all the member factories’ safety protocols from Sunday to next Saturday, and also inaugurated their public relation and communication department.

BGMEA President Faruque Hassan launched the department, where senior journalist and Economic Reporters Forum (ERF) President Mohammad Refayet Ullah Mridha attended the event as a special guest.

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