Businesspeople and economists have urged the government to take steps to spur stubbornly stagnant investment by fixing infrastructure deficits and cutting bank lending rates. Businesses and industries are not being able to do their business amid double digit interest rates, said Syed Manzur Elahi, a former president of the Metropolitan Chamber of Commerce and Industry in Dhaka.“If we can bring the banks’ lending rates down to a single digit it would help immensely,” he said.Elahi said the cost of doing business is going up in Bangladesh compared to China. “Bangladesh can’t go far on the back of cheap labour. If we can give land, gas and electricity to investors, both local and foreign, there will be no dearth of investment.”He spoke at a pre-budget discussion jointly organised by private television channel NTV and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at Sonargaon Hotel in Dhaka on Friday.Debapriya Bhattacharya, distinguished fellow of the Centre for Policy Dialogue, said the government is enjoying six advantages in formulating the budget for the next fiscal yeaThe advantages are: the inflation is within the central bank’s target of 6-7 percent; banks’ lending rates are on a downward trend; the exchange rates are stable; the budget deficit is within limits; the overall balance of payments is positive; and the lower prices of petroleum and fertiliser at international markets offer the scope to adjust subsidies, he said.Bhattacharya also turned his attention to the challenges the budget will face. He said the government would have to work to bolster revenue generation, disburse and attract more foreign aid and augment public investment to spur private investment.He also called for the need to implement big projects in time, as their implementation cost goes up if they are not finished timely.Bhattacharya criticised the government for not strongly using the tools under its control to spur investment.Because of the failure in administrative reforms, the allocation under the public-private partnership framework has remained unused, the economist also said.“Besides, questions about financial transparency have surfaced over the PPP projects which have been undertaken to date.”

Source: https://www.thedailystar.net/business/call-steps-boost-investment-81393

Bangladesh is turning into a major source of denim products as international retailers attracted by cheaper prices place higher volumes of denim-based work orders. Bangladesh’s popularity as a denim destination comes on the back of rising denim costs in China, the largest garment supplier worldwide, which is deflecting its buyers towards cheaper options. The overwhelming response by international retailers to the first Bangladesh Denim Expo in November last year proves the strength of the country’s denim sub-sector, said Mostafiz Uddin, managing director of Denim Expert. More than 100 exclusive retailers and brands from Europe and the US have registered to participate in the two-day second denim show that begins at Radisson hotel in Dhaka tomorrow. Mostafiz has been organising the shows. Almost all renowned retailers and brands will participate in the show and Mostafiz is also planning to organise a similarly large scale denim-exclusive exhibition in Europe soon.Besides the retailers, denim producers from India, China, Pakistan, Germany, Thailand, Turkey, the US, Japan, Spain and Thailand will showcase their denim products at the exhibition. Of the total 25 booths at the show, nine are booked by local denim makers. The fair expects more than 350 global invitees and guests.Denim Expert supplies its BlueXonly brand products to boutiques in different European countries, including the Netherlands, Belgium, Hungary and Italy. It makes jeans for both men and women, and 60 percent of its products are sold under its own brand.On the growing strength of the sector, Mostafiz said by 2020 every four out of five denim products in Europe would be sourced from Bangladesh.Currently, 25 denim factories are operating in Bangladesh, who produce around 20 million yards of the fabric every month to meet half of the local demand. The rest is imported. Total investment in the sub-sector stands at Tk 6,500 crore. Five new companies are also setting up factories.Local entrepreneurs supply denim products to major retailers and brands, including H&M, Levi’s, Uniqlo, Nike, Tesco, Wrangler, s.Oliver, Hugo Boss, Puma, Primark, JC Penney and C&A.The global denim market will cross $65 billion in the next four to five years, Mostafiz said, adding that denim will contribute around $2 billion to the country’s garment export target of $50 billion by 2021.Among the global players in the $60 billion denim market, Bangladesh stands behind China, the US, Italy and some Latin American countries.Currently, Bangladesh is the third largest denim exporter to the US after Mexico and China with an 11.3 percent market share, according to the US Department of Commerce.Bangladesh exports denim products worth more than $500 million to Europe a year, according to industry insiders.Anwar-ul-Alam Chowdhury Parvez, managing director of Argon Denims, said the response in the first exhibition was very good.“The brands and retailers could know from the exhibition that Bangladesh is a major player in the global denim market. Our next major business opportunity is denim, as orders are shifting from China to Bangladesh,” Parvez said.He produced 13.21 million yards of denim in 2014 and aims to manufacture 18 million yards this year. “We have huge potential in denim business, but we need an adequate supply of gas and power to utilise it,” he said.

Source: https://www.thedailystar.net/business/denim-opens-big-export-opportunity-81394

About a thousand workers of two garment factories in Ashulia demonstrated in Savar Bus Stand area yesterday pressing home their five-point demand, including reopening a factory and ending random terminating of workers.Workers of NRN Knitting and Garments Ltd and Natural Sweater Village Ltd-2 under the banner of “Garment Workers Trade Union Centre” formed a human chain on the Dhaka-Aricha highway and then brought out a procession from the Rana Plaza collapse site to Pakiza crossing.The workers of NRN Knitting and Garments Ltd said after the recent earthquakes, they had demonstrated demanding the authorities examine the building their factory is house in to find out whether it was fit.Afterwards, the factory management fired two workers, they claimed, adding when they protested the termination of their co-workers, the management again terminated 27 workers on May 3.Md Sarwar Hosen, production manager, admitted that they fired the workers, but said the orders came from higher-ups.While, the other factory workers said the authorities suddenly shut down the factory.Shahadat Hosen, production manager, said the management could not run the factory due to shortage of work-order.Police were deployed in the area and at the factories.

Source: https://www.thedailystar.net/city/garment-workers-protest-random-termination-81433

Bangladesh is aiming to achieve an ambitious rise to $3.5 billion of readymade garments (RMG) exports to Canada by 2021. According to Masud Rahman, chief of the Canada Bangladesh Chamber of Commerce and Industry (CanCham Bangladesh), exports to Canada stood at $1.1 billion in the fiscal year to June 2014, $770 million of which were ready made garments. Bangladesh has hopes of hitting an overall target of $50 billion of overseas sales by the end of 2021 as they become a middle income country. Canada will be one of the key garment export destinations. Bangladesh is currently the 2nd largest RMG exporter in the world behind China. This trend remains true when looking at Canada’s current top RMG import partners. -Business 2 Community

Source: https://www.observerbd.com/2015/05/07/87403.php#sthash.O5iebMwo.dpuf

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has blacklisted Seduka Jeans Inc USA, one of its buyers from the United States, for not paying dues to its sources in Bangladesh. The decision was taken after a request from the foreign exchange policy department of the Bangladesh Bank, said a leader of BGMEA in Dhaka. “This (Seduka Jeans Inc) is a fraudulent company. They have not paid their dues to the producers and that’s why it has been blacklisted,” BGMEA Vice President Shahidullah Azim told reporters. The decision to blacklist the company was taken to avoid further harassment of Bangladeshi companies by Seduka. Central bank officials said that Seduka had sourced apparels from a Bangladeshi company, but did not pay for it. Bangladesh Bank had looked in to the matter after the exporter complained. In 2013, an LC was opened by Excelsior Garments Ltd with the state-owned Sonali Bank against a buying order from Seduka Jeans Inc. An LC or Letter of Credit is a written commitment to pay, by a buyer’s or importer’s bank to the seller’s or exporter’s bank. It guarantees payment of a specified sum in a specified currency, provided the seller meets conditions and submits the prescribed documents within a fixed timeframe. The LC was valued at $48,816 but Seduka paid $25,321.25 less than the committed amount.

Source: https://www.observerbd.com/2015/05/07/87401.php#sthash.TZPkiHDy.dpuf

Apparel owners on Wednesday agreed to give 0.03 per cent of their total export earnings which stand at Tk 72crore annually to the Bangladesh Labour Welfare Foundation. The money will be used for the welfare of workers. Following a series of meetings between the apparel owners and the government, Commerce minister Tofail Ahmed made the announcement on Wednesday afternoon. “The government finalized the Labour Rules-2015 for enforcement of Bangladesh Labour Law (Amendment) Bill 2013″ at a meeting at Probashi Kalyan Bhaban in the city. Apparel owners and senior ministers of the government were present in the meeting,” he said. Under the rules, if workers are injured or killed in accidents, they will get Tk two lakh each from the welfare fund. The joint meeting was presided over by Expatriates Welfare and Overseas Employment Minister Khandker Mosharraf Hossain. Shipping Minister Shahjahan Khan, Information Minister Hasanul Haq Inu and State Minister for Labour and Employment Mojibul Haque Chunnu, among others, were present on the occasion. The law was passed on July 15, 2013 in Jatiya Sangsad (Parliament) through amendments to the Labour Act 2006. After enactment of the amended law, a government committee was formed (chaired by the expatriates welfare and overseas employment minister) to discuss with labour leaders to finalize the draft labour rules. Before finalizing the law the government sat with all stakeholders including workers and owners of factories and industries to take their opinions. “Government enacted the labour law 2013, which has drawn appreciation from all over the world,” the Commerce Minister claimed.

Source: https://www.observerbd.com/2015/05/07/87512.php#sthash.CepypjaH.dpuf

Global buyers of Bangladeshi apparel products have recently expressed concern over the outflow of brand items to the local market and sought cooperation from the garment exporters to protect the image of the brands. Buyers raised the issue repeatedly at the Buyers’ Forum meeting in the capital as the products made for international buyers are being sold in the local market with the labels of the noted brands. At a meeting of the Buyers’ Forum on Monday buyers alleged that the image of their brands were being hampered as leakage is taking place from some factories and left-over products are being made available in the local market in Bangladesh, meeting sources said. They also alleged that some of the manufacturers which are not involved with the export business were using fabricated tags in low quality products and selling those in the local market. According to the sources, the leakage of brand items from the factory and fabricated tags were the prime concern for the buyers and they thought the issues should be resolved to protect the image of the global brands. Responding the call from the buyers, Bangladesh Garment Manufacturers and Exporters Association has recently issued a circular to its members asking for better disposal of the left-overs so that no leakage takes place. To maintain good business relationship with the buyers, it is very important that all factory owners extend support to the buyers to resolve the issue, the BGMEA circular said. ‘We strongly feel that the precautionary measures which we follow to dispose of the left-overs have to be more closely monitored to ensure that no leakage takes place,’ the BGMEA vice president Shahidullah Azim told new Age on Tuesday. The BGMEA suggested its members that if necessary, they may consult with buyers’ agent for better disposal of the left-overs, he said. At the meeting, Azim called upon the buyers to take back the excess products on payment and arrange destruction of the defective items by burning those after paying for the cost of production. If the buyers take back the left-overs, no leakage of brand products would take place in the local market, he said. The BGMEA leader admitted that some of the brand products were being leaked from the factories and being sold in local market with the tags of renowned global brands. On the other hand, a section of dishonest business people were using fabricated tags of the global brands and marketing low quality products in the local market but BGMEA has nothing to do as they were not members of the association, Azim said.

Source: https://newagebd.net/117558/rmg-buyers-concerned-over-brand-image/#sthash.TdUmz6l1.dpuf

New German Ambassador to Bangladesh Thomas Prinz said the consumers should change their mindset of buying clothes at low prices. “In Berlin one can buy a T-shirt at 3 euro only and a pair trousers at 9 euro,” Thomas Prinz said describing price situation of products of Bangladesh’s largest industry which has been struggling to ensure workers’ safety after the 2013 Rana Plaza disaster. He urged the German people to pay more for the purchase of Bangladeshi garment products so standards can be maintained in the industry. The envoy made the call at a reception accorded to him by the Bangladesh German Chamber of Commerce and Industry (BGCCI) at a Dhaka hotel yesterday. “Customers in Germany should change their behavior of purchasing RMG products made in Bangladesh at low prices,” Thomas Prinz stressed, adding “It is very tough to maintain standard of the products at such low prices.” He criticised Accord and Alliance – two safety initiatives of the Western buyers – for not questioning low prices of the products at the time when they were working to ensure safety in garment factories. The ambassador said the bilateral trade between Bangladesh and Germany increased by 12% in 2014. “I will try to boost the economic relationship and development between the two countries.” He said the volume of bilateral trade reached almost 4.5bn euro in 2014, of which Bangladesh export was 3.8bn euro and German’s export to Bangladesh was about 600m euro. “Bangladesh is a dynamic market with excellent perspectives for future economic development. I see huge potentials for further development of trade ties not only by scaling up but also diversification of products.” He mentioned Bangladesh’s shipbuilding and ICT as potential sectors in diversification of export goods. German investment in Bangladesh has for years remained on a modest level due to problems such as bureaucracy in combination with corruption, energy shortage, land security for factory building, blockades and country-wide political turmoil, said Thomas Prinz. He said an image problem is also to add to these obstacles. He said: “I want to focus on the economic possibilities, development cooperation and people.” BGCCI President Sakhawat Abu Khair also spoke at the event. According to Export Promotion Bureau data, in first nine months of the 2014-15 fiscal year, Bangladesh earned $3.5bn from exports to Germany, of which, $3.26bn came from the RMG products. In the FY2013-14, Bangladesh’s export earnings from Germany was $4.72bn. About 92% of Bangladesh export to German is RMG products, 2.5% sea foods, 2% leather products and the rest is other products.

Source: https://www.dhakatribune.com/business/2015/may/06/german-envoy-change-mindset-buying-garments-cheap#sthash.g5by04EI.dpuf

Commerce Minister Tofail Ahmed yesterday said the introduction of System Application Products (SAP) to RMG and other industries will enable companies to be more competitive in the global market by reducing their costs, increasing their profitability and addressing workers safety. The minister came up with the remarks at a seminar organised by Bangladesh German Chamber of Commerce and Industry (BGCCI) and SAP Bangladesh in a city hotel yesterday. BGCCI along with its Gold partner SS Solutions organised the programme titled “SAP RMG, Textile and Pharma Meet” to launch the special solution package and SAP Education Academy in Bangladesh. The seminar focused on how businesses can integrate and automate manufacturing, supply chain, sales and financial process with an integrated solution specifically designed for RMG, Textiles and Life Science industries at an affordable price with SAP. Bangladesh Football Federation President and Chairman of SS Solutions Kazi Salahuddin, Managing Director Sarazeen Kazi, Exporters Association of Bangladesh (EAB) President Abdus Salam Murshedy and stakeholder Tabith Mohammed Awal were present at the programme. In his address, Commerce Minister Tofail Ahmed said: “I am pleased to know that SAP is launching a special package for Bangladesh Garments and Textiles.” He added that SAP solutions for garments and textiles will enable companies to be more competitive in the world market by decreasing their costs and thereby increasing their profitability. “As 97% of the life science companies in the Forbes Global 2,000 are SAP customers, I am pleased to know that SAP is conducting a special workshop for the pharma industry, which, in order to be compliant with FDA and other regulations for export, requires a global solution with compliant processes,” said Thomas Prinz, German Ambassador to Bangladesh. Mentioning Bangladesh’s position among the dynamic emerging markets, he stressed the importance of using technology for bigger achievements in all those sectors. Prinz also praised the time-appropriate initiative of SAP for the RMG, textiles and Pharmaceutical industries of Bangladesh.

Source: https://www.dhakatribune.com/business/2015/may/06/sap-launch-special-package-rmg-textiles#sthash.TZOp6szb.dpuf

The Accord on Fire and Building Safety in Bangladesh, the platform of European retailers, on Tuesday recommended that two earthquake-hit garment factories should be evacuated immediately as the Accord engineers found the buildings unsafe during the latest safety assessment. The factories are Ethical Garments Limited in the capital and Man Trust Sweater Limited in Gazipur. The Accord sent the list of the factories to the government-formed review committee on garment factory inspections. ‘We have found the name of two factories from Accord. The ongoing post-earthquake safety assessment of the retailers group identified that cracks have developed in the factory buildings due to foreshocks of earthquake,’ Syed Ahmed, Inspector General of the Department of Inspection for Factories and Establishments, told New Age on Tuesday. He said that the Accord recommended for immediate evacuation of the factory buildings. Syed said that the next course regarding the two factories would be finalised following the inspection of review committee, comprised of representatives from the government, Accord, Alliance, BUET, BGMEA and BKMEA. To identify the immediate impact of the April 25 earthquake, that jolted Nepal, Bangladesh and some parts of India and China, the Accord started inspection of roughly 200 factories which were deemed structurally the most vulnerable from its initial inspections. Up to Monday the platform inspected 61 factories and found cracks in three units. Accord officials said that all 11 Accord structural engineers were in the field doing immediate impact inspections at the factories and they were utilising an internationally-recognised system for these immediate inspections. After the Rana Plaza factory collapse on April 24, 2013 that killed more than 1,100 people, mostly garment workers, the EU brands and retailers including H&M, Carrefour and Mango, as well as 14 American companies formed Accord and the platform started safety inspection in more than 1,500 garment factories that supply to the Accord’s members. During the inspection the structural integrity in 17 buildings was found below an acceptable level of safety and the platform recommended a government-set review panel for temporary evacuation of the buildings. As per the recommendation, 24 factories in nine buildings were closed while four factories in five buildings were partially closed.

Source: https://newagebd.net/117262/european-buyers-for-evacuation-of-2-quake-hit-rmg-factories/#sthash.xfXWXkbn.dpuf