International trade is cross-border deal and both buyer and seller usually conclude the deal with communication without face to face contact. The buyer wants to be sure that he receives the goods of the quantity and quality agreed. On the other hand, the seller is eager to receive payments on time and in the currency required. In order to meet these demands, various methods of payment have been developed. There is another more important issue which is frictional money cost, which is often hard to appreciate. The cost of finance is not simply the rate that is charged – it is also the restricted availability. Finance is also limited for buyers, and it is also limited for Western banks. Importers very often request for deferred payments of their import LC or contracts. The trade finance remains stubbornly an issue for everyone – creating an unwelcome frictional cost in the bargains that rational companies want to make. Two other factors are at play. First, after many years of discussion, new regulations (Basel 3) are now finally coming into force across international markets. One requirement is that banks maintain a leverage ratio. This is the ratio between their core equity and their total balance sheet. LC (or trade finance) occupies a lot of balance sheet, but delivers only a low return for the provider. Consequently, LC is falling out of favour – as banks would rather use their balance sheet capacity (restricted by the leverage ratio) for higher margin activities. Second, banks are retreating to their home territories under pressure from regulators and shareholders. This pressure stems from the need to make sure that banks are only playing with the risks that they (and the market) understand. There are basically four methods of making payment for international transactions. These are i) cash in advance, ii) open account, iii) documentary collection and iv) documentary credit. There is a solution to the payment terms, crisis of fund and reduction of cost of transactions through different types of trade financing for both exporter in developing country and importer in developed country. The buyers not taking advantage on price of exported products on the basis of payment terms. The additional cost of transaction with LC that the exporters and the importers are shared between them. But alternately buyers prefer open account basis without LC and also factoring of transactions to reduce cost and time of transactions. For Bangladesh, this is important to understand. Historically, exporters could rely upon buyers offering them a LC as financial support, which could be used for back-to-back finance in the local market. Buyers were happy to do this – LC’s were not that expensive to organize – banks were willing to provide. Exporters can obtain working capital loan against exporter LC and further collateral security. But Bangladesh exporters offering lower prices were attractive. In the new world, this is changing. As credit (and LC) becomes scarcer, buyers become reluctant to provide LC. This is driving them into the hands of Indian and Chinese factories who are better capitalised than typical Bangladeshi manufacturers – and who can work without LC and offer open account and delay of payment. Using this new financing product allows the Bangladeshi seller to work with good quality buyers around the world on equal terms with the Chinese and the Indians. Equal terms means that the buyer is simply not troubled by the financing required in order to bridge the time from “order to cash”. The buyer gets what he wants – which is to pay for the goods only when he has sold them himself (90 days after receiving them)! This is good news for the buyer – because his scarce credit resources are used for his own purposes. This is good news for the buyer’s bank, who can refocus his credit supply onto higher margin lending and services, and away from low margin trade finance. A new breed of finance companies is emerging that can level the playing field for Bangladeshi factories allowing them to trade with buyers on open account with delay of payment and without LC. In South Asia factoring services has begun in 1990 after its successful launching in India and Sri Lanka. There are already two such overseas players in the Bangladesh market – PrimaDollar and DS-Concept. The new product is a hybrid between factoring (which is quite new in Bangladesh) and trade finance (which is as old as the hills, and which everyone understands). It is an agreement between an exporter and factor whereby the factor purchases the trade debt from the exporter and provides the services such as finance, maintenance of sales ledger, collection of debts, and protection against credit risks. There are various forms of international factoring. It may be simply defined as a purchase of receivables by factor from its client and collect it during the maturity from the debtor. Usually the factor pays the client about 80 per cent of the value of the receivable and remaining is paid by collecting from the debtor after the deduction of charges. There are few categories such as (1) Bulk Factoring, (b) Maturity factoring, (c) Agency Factoring, (d) Invoice discounting etc.  Factoring is flexible form of finance and with the help of factoring it is very easy to predict the cash flows. The factors immediately finance up to a certain percentage of the eligible export receivables. Bangladesh exporter can bargain better payment terms like deferred payment, export against contact or factoring etc. Western buyers are ready to pay more for better and less expensive payment terms. Exporter can now offer the same deal to the buyer that his stronger international competitors can. Bangladesh can compete with other competitors with better finance and better business terms with the acceptance of factoring and innovative financing of trade for value added products.

In a new move, the government has decided to give no fresh permission for setting up any export processing zone (EPZ) in the private sector. Rather, it will allow more economic zones (EZs) to be set up in the country. So far, the government has been looking for opportunities to encourage both local and foreign investments in both such zones. The Private EPZ Cell and the Bangladesh Economic Zone Authority (BEZA) were constituted under the Prime Minister’s Office with a view to providing policy- and other-related support for the purpose. The government has so far announced about the allotment of three EZs to the investors from China, Japan and India. Earlier, the Korean EPZ was set up in Chittagong as a private sector venture. Of late, the government has, however, decided to downsize this Korean Export Processing Zone (KEPZ). Bangladesh needs, at least, an aggregate amount of investments worth $35 billion a year, to help attain its cherished 8.0 per cent annual economic growth rate and graduate itself to a middle-income country by 2021. The BEZA has, meanwhile, acquired 510 acres of land at Sreepur Upazila in Gazipur for the Japanese investors and 774 acres at Anwara Upazila in Chittagong for the Chinese entrepreneurs. The government has also been in talks with Indian investors for selecting sites for their economic zones. Some developments to this effect took place during the recent visit of Indian Prime Minister Mr. N. Modi to Bangladesh. The new stance of the government on not allowing any new EPZ in the private sector reflects its preference, at this stage for economic zones in order to attract or facilitate new private investments. A meeting of the board of governors of Bangladesh Private EPZs, according to a report published in the FE this week, decided that since the executive cell has no authority to give permission for setting up private EPZs, the investors from private sector will have to make investment in EZs under the BEZA. A number of questions arises here: how did other private EPZs get permission earlier and from which authority? Secondly, if the executive cell of the private EPZs is turned into an authority, will it be able to allow more private EPZs to be established? Very recently, a total of 22 EZs got permission to operate in the country. Three of them — AK Khan Private Economic Zone (PEZ), Abdul Monem PEZ, and Garment Shilpa Park in Munshiganj — went to the private sector. Two private EPZs — Korean Export Processing Zone (KEPZ) and Rangunia Export Processing Zone (REPZ) – were given permission to operate, long ago. Reports say KEPZ and REPZ are having some problems to be fully functional. Prime Minister Sheikh Hasina directed the authorities concerned for taking steps to resolve the existing problems of two EPZs to make them operational. Of the two, the Rangunia EPZ authority failed to make any mentionable progress, save and except taking licence from the government. But the KEPZ, the much-talked-about one, is having some real problems. The government has recently decided to take back 2,000 acres of land, out of nearly 2,500 acres, from the KEPZ. The government claims that the KEPZ has not been able to utilise more than 500 acres of the land. But such a claim is not otherwise supported by facts. Thus, a spokesman of the Embassy of the Republic of Korea in Dhaka was reported to have told a contemporary this week that the work for making the whole of the KEPZ, as planned earlier, was in full progress. And he also gave a positive picture about the medium-term prospects of it to attract foreign investment in export-oriented areas, by detailing out which companies were planning to come there and in which areas or sectors. Youngone, the Korean conglomerate that has the lead role in the KEPZ, says it has legal obligations that it cannot use more than 1,200 acres, as it has to set aside 52 per cent of the land for plantation, open areas and water bodies. Besides, the KEPZ is yet to get the natural gas supply that was pledged to it before. It furthermore cited the government’s delay in handing over the mutation-related documents of the KEPZ’s land, as a lingering constraint to its operationalisation. On its part, the government has, however, been blaming the Youngone for its failure to fully use the industrial land in the KEPZ. Meanwhile, the latest government decision – that seems to have in a haste — about ‘reclaiming’ land from Youngon is likely to make the future of $1.2 billion fund flow, in the form of foreign investment by the Korean companies to the KEPZ, quite uncertain. This, as analysts have noted, will send a wrong signal — about policy flip-flops — to the foreign investors who do otherwise still look at Bangladesh as having the potential of becoming an attractive destination for relocating their sunset industries. The KEPZ, to mention here, was inaugurated twice by two separate Prime Ministers, during the last two and a half decades. But it has taken too long a period to issue the land mutation-related papers to the company concerned, even after their purchase of land and execution of related deed, upon full payment of money to the parties concerned. A litigation still awaits the completion of the judicial process at the higher level, according to reports published in the media. Against this backdrop, the government has now unfurled its latest decision about promoting growth of exports through setting up of more EZs in the country. In order to fully implement such strategic plans, it is, as the analysts have noted, very important that the existing private EPZs get sufficient opportunities to operate and sustain on fulfilment of the required procedural formalities and necessities. The EPZs are usually run by the government, while the EZs are slated to be operated under the public-private partnership (PPP). Presumably, there will not be any scarcity of land for the purpose, as the country plans to construct some of the EZs near the Bay of Bengal or on the land reclaimed from the sea. Besides, the government has stated that it would give its attention to retrieving the vacant land of the ‘unproductive’ state-owned enterprises (SoEs) and offer them to the EZs to be used as industrial plots. It is a different question whether the government can really execute such a decision. All said and done, the authorities need to appoint public operators at the EZs for their effective management. The BEZA should be at the helm of fast-track construction works. This is critically important because it is well-nigh impossible to get back a foreign investor if he leaves the country for not getting the required services to implement his project. The country’s overall investment scenario, in real terms, over the past couple of years has, in no way, been encouraging. There were flurries of registrations for fresh foreign investments with the Board of Investment (BOI). But the number of investors who really ventured further is negligible. Gross inadequacies relating to infrastructure facilities, access to gas and electricity, bureaucratic tangles etc., are some of the reasons responsible for keeping the foreign investors at bay. Reversal of such a trend needs active attention of both the government and the private sector.

The readymade garments industry is still fundamental to the prospects of the Bangladesh economy, said a UNTACD report. “The RMG industry has been the major driver of the country’s economic development in recent decades and is still fundamental to the prospects of the Bangladesh economy,” said the World Investment Report 2014, which has been published yesterday globally.  The industry is considered the “next stop” for developed-country TNCs that are moving sourcing away from China. Such opportunity is essential for development as Bangladesh needs to create jobs for its growing labour force, the report said. With the prediction of further growth in the industry and the willingness of developed-country firms to source from Bangladesh, the picture on the demand side seems promising, it added. According to the report, the sector needs to address constraints on the supply side – its poor infrastructure continues to deter investment in general and FDI in particular. While at the firm level, one issue concerns the need for better compliance with labour legislation as illustrated by several tragedies in the country’s garment industry. Besides strengthening such compliance, the industry needs to develop its capabilities, not only by consolidating strengths in basic garment production but also by diversifying into higher-value activities along the RMG value chain, the report mentioned. Currently, Bangladesh’s garment firms compete predominantly on price and capacity. The lack of sufficient skills remains a major constraint, and both domestic and foreign-invested firms needed to boost their efforts in this regard, it added. A recent UNCTAD study shows the dominance of basic and on-the-job training, which links directly to established career trajectories within firms. However, high labour turnover hampers skill development at the firm level.

The Chinese subsidiary of Hong Kong based Li & Fung signed a strategic partnership with two of China’s largest retail groups, Shanghai Bailian Group and Beijing Wangfujing Department Store. A Li & Fung press release informed that the strategic partnership has been done through setting up a joint venture (JV) in the Shanghai Free Trade Zone. Li & Fung holds 20 per cent stake in the JV, with the Bailian Group and Wangfujing Department Store holding 40 per cent each. Under the terms of the partnership, Li & Fung will provide expertise to design, source and produce private labels and licensed brands tailored to the requirements of Bailian Group and Wangfujing. According to Li & Fung, the JV combines the strengths and capabilities of two of China’s largest retailers, Bailian Group and Wangfujing Department Store and global supply chain manager, Li & Fung. Chinese multi-brand retailers are looking to develop private and proprietary brands so as to differentiate themselves from competitors, increase margins and improve customer loyalty. The key business of the JV includes facilitating the development and management of private labels and licensed brands. In the first three-year plan, the JV will focus on the development of product categories including menswear, womenswear, children’s wear and home products. It will develop between one and three private labels and up to six licensed brands over this three year period, and may involve the opening of up to 300 stores or store-in-stores and realise up to 1 billion Yuan in sales. In the long run, the JV aims to be at the forefront of a new breed of brand development and management companies giving strong own-brand capabilities to traditional retailers. “We are excited to join forces with two of China’s largest retail companies to bring forth the transformation of China’s retail industry,” said William Fung, group chairman of Li & Fung. He added, “Through this strategic partnership, Li & Fung is able to extend the global supply chain into a substantial retail network that serves a large growing middle class in China.” Through the introduction of private brands and exclusive brands, the JV will enable its partners to effectively increase their competitiveness by offering a different and cost effective product offering. The JV also aims to introduce globally sourced products that offer Chinese consumers a wider variety of foreign goods. Li & Fung specialises in responsibly managing supply chains of high-volume, time-sensitive goods for leading retailers and brands worldwide from more than 300 offices across 40 economies.

US apparel retailer Kate Spade & Company has named Emilia Fabricant as president of the North America region effective June 29, 2015. “In this role, Fabricant will oversee the Company’s North America business, with responsibilities across all distribution channels, and will report to CEO Craig Leavitt,” Kate Spade said in a press release. Craig Leavitt said, “Emilia’s combination of experience with luxury retailers, mall-based retailers and online businesses makes her an excellent fit for our team.” “She will bring valuable leadership and perspective as we continue to focus on our channel-agnostic approach and on fulfilling our lifestyle vision to drive profitability,” Leavitt added. “As our business continues to expand, Emilia will play a central role in overseeing all aspects of our distribution channels in North America,” he observed. Most recently, Emilia Fabricant served as executive vice president of Aeropostale, Inc. overseeing design and merchandising across all divisions, and serving as president of GoJane.com. Prior to that, she served as president of Bebe Stores, Inc., as well as president and chief merchandising officer of Charlotte Russe, Inc. Fabricant also founded Cadeau Maternity, and served as president and chief merchandising officer of eStyle, Inc. following its acquisition of Cadeau. She began her merchandising career with Barneys New York, where she served in a number of management roles, culminating with senior vice president, Women’s Co Op and Outlet Division. Fabricant said, “Over the past several years, I have watched Kate Spade build incredible momentum in North America and grow consumer appeal and demand across product categories.” “I am eager to apply my experience in brand management and merchandising to Kate Spade & Company and look forward to working with its talented, innovative team,” she too added.  Kate Spade & Company designs and markets accessories and apparel principally under two global, multichannel lifestyle brands; kate spade new york and Jack Spade.The Company also owns the Adelington Design Group, a private brand jewelry design and development group that markets brands through department stores. The Company also has a license for the Liz Claiborne New York brand, available at QVC, and Lizwear, which is distributed through the club store channel.

Vietnam has emerged as the fourth largest textile exporter in the world by earning US$12.18 billion in the first six months of 2015, said the Vietnam National Textile and Garment Group (Vinatex). The earning is 10.3 per cent higher than last year. US, South Korea and the European Union were the biggest buyers of Vietnamese products, posting growth of 11.0 per cent, 8.3 per cent and 8.2 per cent respectively, against the same period last year. According to Le Tien Truong, General Director, Vinatex the results are a positive sign which will enable country’s garment industry to achieve the target. The textile and garment sector is aiming at total exports of US$28.0-28.5 billion in 2015. In 2014, the industry witnessed good growth in exports reaching US$24.5 billion, up nearly 16 per cent compared to 2013. The sector is expected to benefit from several free trade agreements (FTAs) that are likely to take effect. Owing to advantages accruing from the FTAs, the textile industry could double the size of production in ten years. On opportunities brought by the Vietnam-EAEU FTA, Vietnam is likely to earn over US$1 billion from shipping textiles to the market if it takes full advantage of benefits from the agreement. Vietnam is in the final stages of negotiations for FTA with South Korea, and the Customs Union of Belarus, Kazakhstan and Russia. With favourable movements in the global economy and the recent signing of free trade agreements (FTA) between Vietnam and the Eurasian Economic Union (EAEU), and South Korea, 2015 is forecast to be a bright year for Vietnam’s garment industry. The sector will need to make additional efforts to seek new markets and opportunities, and establish partnerships with major groups to be able to sign high-value orders in the remaining month of this year, Le added.

The government-appointed engineers completed inspection of 1,000 garment factories under the national initiatives, the International Labour Organisation said in a statement yesterday. The government has been inspecting fire, electrical and structural flaws of the factories, which are not the members of the Accord and Alliance. Apart from the government inspection, two other agencies — Accord, a platform of 200 retailers and brands, mostly European, and Alliance, a platform of 26 North American retailers and brands — have been inspecting factories for ensuring workplace safety after the Rana Plaza building collapse. The government, Accord and Alliance targeted to inspect a total of 3,508 export-oriented garment factories throughout Bangladesh. According to the ILO, some 2,904 factories have been inspected so far. Of the factories, 1,000 fall under the government’s National Initiative under the Tripartite Plan of Action, supported by the ILO with backing from Canada, the Netherlands and the United Kingdom. Accord and Alliance have inspected 1,904 factories, and some 604 factories from the original list remain to be inspected, the statement said. On the completion of the inspection of 1,000 factories, Syed Ahmed, inspector general of the Department of Inspection of Factories and Establishments (DIFE), said, “This is a significant milestone as we seek to create a safer RMG sector in Bangladesh.” “We are now making concerted efforts to complete as many inspections as possible by the July 31 deadline. We shall not compromise on the safety of the workers. After this date, factories will no longer receive inspections for free and will need to meet the costs themselves if they wish to continue exporting,” Ahmed said.

Bangladesh Garment Manufacturers and Exporters Association on Tuesday demanded inclusion of its representative in the steering committee of the Accord, the platform of European buyers and retailers, to reduce the gap between the BGMEA and Accord that became visible in recent time regarding safety operation.In a meeting with the Accord, the BGMEA president Md Atiqul Islam said that there are some misunderstandings between the two parties on various aspects as there is no direct representation of the BGMEA in the Accord.Following the Rana Plaza collapse on April 24, 2013 that killed more than 1,100 people, mostly garment workers, the EU brands and retailers formed Accord on Fire and Building Safety in Bangladesh with a commitment of upgrading member factories to meet international fire and safety standards.Accord has inspected about 1,300 factories from which its members source their products and is working to implement corrective action plan.‘The Accord should include the BGMEA representative in its steering committee to reduce the gap between the factory owners and the retailers’ platform. Nowadays the misunderstanding is increasing as factory owners have no scope to discuss their concerns with the Accord directly,’ the BGMEA president told reporters after the meeting.According to Atiq, the Accord officials agreed with the BGMEA that inclusion of factory owners’ representation can reduce misunderstanding between factory owners and Accord.In the meeting, Accord officials urged the BGMEA leaders not to make any negative comment on the initiative which can put a negative impact on their image as well as safety operation.Responding the request, BGMEA said that Accord should not make public the faults of the factories through the international media without consulting with the BGMEA, the meeting source said.In the meeting, the BGMEA discussed that to some extent the Accord’s job is beyond the law of the land as factory owners received threat from the Accord to declare their units non-compliant for not reinstating workers who have been terminated as per the law.Factory owners alleged that the Field Resource People engaged by the Accord are agitating workers and damaging labour-management relations instead to raise awareness among the workers.They discussed that the government set review panel was the authority to take decision in factory closure after inspection, but Accord advised brands to stop production and to pull out orders before the decision from the review committee.The Accord assured BGMEA that the platform would conduct its safety operation in the readymade garment sector complying with the laws of the land, the BGMEA leaders said.On the remediation issue, the BGMEA said that factories remained under pressure from the buyers group to replace the fire doors and other safety equipments that had been installed as per the requirements of buyers before the launching of Accord.Financial capacity is most important for a factory to take actions for Detailed Engendering Assessment and Corrective Action Plan, but financial assistance is not forthcoming from the buyers as expected.The BGMEA demanded that considering the remediation costs, buyers should increase the price of products.It also demanded to continue procurement from the shared building factories that were foundsafe for operation and carrying out remediation works.The former presidents of the BGMEA Abdus Salam Murshedy, Shafiul Islam, vice president Shahidullah Azim, Accord executive director Rob Wayss, and chief safety inspector Brad Loewen and Regional Head (Bangladesh & Pakistan) of H&M Roger Hubert attended the meeting.

The absence of apparel makers’ representation in the Accord’s decision making process has widened communication gap between the two parties, industry leaders said.Both BGMEA and Accord’s steering committee have realised that confusion and misunderstanding have surfaced as there is no direct communication between us,” Abdus Salam Murshedy former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told the FE after a committee meeting.The meeting was held Tuesday between the leaders of the BGMEA and visiting members of the Steering Committee of Accord at the trade group’s headquarters in the city.BGMEA’s vice presidents Shahidullah Azim and Reaz -bin-Mahmood, its former president Shafiul Islam Mohiuddin and former vice president Siddiqur Rahman, Philip Chamberlain of C & A, Roger Hubert of H&M, Monika Kemperle of IndustriAll, Jenny Holdcroft from UNI Global Union, Scott Nova of Worker Rights Consortium, Accord’s Executive Director and Chief Safety Officer Rob Wayss and Brad Loewen, among others were present in the meeting.”If we were in the decision making panel, it would be easier to sort out the problems surfaced following the post inspection activities,” BGMEA President Md Atiqul Islam said.Giving example of field resource people, engaged by the platform to raise safety awareness among factory workers, he said they are outsiders and often allegedly incite agitation among workers, damaging labour-management relations.”This is not consistent with law of the land which provides for establishment of safety committee with representatives from factory workforce to raise awareness and enable workers to report safety concerns,” he added.Accord on Fire and Building Safety in Bangladesh-a coalition comprising with about 200 apparel buyers and retailers and international trade unions-was formed after Rana Plaza building collapse to build a safe and healthy readymade garment industry in the country.The Advisory Committee of the Accord holds meeting with the BGMEA leaders time to time, but the latter did not have any representation in Steering Committee that comprised with members from apparel buyers, retailers and trade unions with an independent chair from the ILO.Quoting members of the Accord’s Steering Committee, the BGMEA president, however, said that they have assured all of complying with law of the land.Earlier, the BGMEA leaders had sought detailed information from the Accord’s Steering Committee about its spending on factory remediation programme.The meeting also raised some other issues including lack of sufficient number of experts to provide service to factories for conducting detailed engineering analysis, retrofits, fire designs, financial support, especially for small and medium-sized units, assurance of continuation and increase business and not to withdraw orders from factories located in shared buildings.Replying to a question, Ms Monica said they had discussed the ‘differences’ without going details on those.”…we have to take the next step and try to go forward,” she said adding they would look into the discussed issues in the next meetings

Unhappy over non-payment of wages and festival bonus ahead of Eid, readymade garment (RMG) workers may burst into violence in Dhaka and Narayanganj, intelligence agencies fear. Industrial police have identified 410 factories across the country as vulnerable to violence ahead of the Muslims’ largest festival. Meanwhile, the home ministry has sent letters to BGMEA and BKMEA-two trade bodies of woven and knitwear segments of the RMG sector-asking for paying wage and bonus to workers in time. Garment factory owners have also been asked to take necessary measures to help stem any possible unrest. However, industrial police, as per instruction from the ministry, have stepped up patrol and vigilance in the country’s 4,500 plus factories across the country, “We’ve intensified security measures in the risky units to avert any further trouble during the fasting month. Our intelligence officials have identified 407 garment factories as risky and vulnerable to violence,” an intelligence official told the Daily Observer. At least 90 RMG trade union leaders are under strict intelligence surveillance, the official further said. Unrest in the RMG sector takes place almost every year just before Eid over the payment of workers’ arrears and bonuses. The workers take to the streets to press home their demands, causing long tailbacks on highways. Of the 407 RMG units, 136 factories have been branded as risky and vulnerable at Ashulia-Savar-Dhamrai industrial hub, home to most of the country’s biggest apparel manufacturers. At least 142 factories have been found vulnerable in Chittagong belt, 102 units in Gazipur-Tongi areas and the rest and Kanchpur region, senior police officers said, quoting from their findings. They pointed to the fact that said nearly 45 per cent of the risky factories are not registered with BGMEA and BKMEA where the security force keep their eyes open round the clock to prevent any more chaos. “Garment factory owners have assured us that they would pay the workers their salaries and bonuses,” a home ministry official said. “We hope the problems will be solved,” said BKMEA Vice-President GM Faruk. He also said RMG accounts for nearly 76 per cent of the total export earnings. On the recurrent labour unrest during the festival, the BKMEA leader said an international plot is going on to ruin the sector. “If the government does not take immediate steps to identify these perpetrators for foiling such conspiracy, the sector would fall in deep crisis,” he said. Sources claimed that uncertainty looms over the payment of salaries and bonuses in some factories of the 1,200 factories that are not members of BGMEA. Of the total 5,300 factories listed with BGMEA, 4,300 are now operative.