Bangladesh will achieve at least $32 billion export earnings against the target of $33.2 billion fixed earlier for the outgoing fiscal year 2014-15, Commerce Minister Tofail Ahmed said on SaturdayHe said despite having so many bottlenecks in power, energy and infrastructure sectors, the country’s RMG, pharmaceuticals, ICT and automobile industries are moving aheadThe Minister came up with the observation at a breakfast meeting organised by the Dhaka Chamber of Commerce and Industry (DCCI) at a city hotel.During the meeting, the participants also discussed on the topic ‘Bangladesh 2030: Next Billion Dollar Opportunities’.President of International Chamber of Commerce, Bangladesh Mahbubur Rahman was present as guest of honour at the meeting attended by Ambassador of Korea to Bangladesh Lee Yun-Young, UK Deputy High Commissioner, High Commissioner of Pakistan Shuja Alam and Commercial Counsellor Farah Farooq, Commercial Officer of Danish Embassy Saadia Taufiq, Deputy Head of France Embassy Somen Dutta, Second Secretary of Indonesian Embassy Fitri fjandra Prijanti, First Secretary of Russian Embassy Andrei Bankaev, Commercial Counsellor of Turkish Embassy Tulay Uyanik, Consul Attaché of Libyan Embassy Adel A Musa, Director of UK Trade & Investment Ruzina Hasan and Brad, a representative from US Embassy in Dhaka, also attended the meeting.The Commerce Minister informed the meeting that the government was going to establish an industrial park for the ready-made garments (RMG) industry in Munshiganj.He said considering the shortage of land, this government has decided to establish 17 economic zones across the country.Speakers in their observation said Bangladesh is a preferred destination for investment.DCCI President Hossain Khaled in his welcome address said Bangladesh needs to accelerate its investment to GDP by at least 38 per cent from the existing 28 per cent in order to achieve the middle income country status.To set the country as the 30th largest economy in the world by the year 2030 and to achieve a double digit growth, the emerging country needs additional 14 per cent investment of GDP.He also invited foreign investors to invest in this country as we have skilled and easily-trainable workforce, access to global market, FDI-friendly economic zones and attractive incentive packages, among other things.

Source: https://www.observerbd.com/2015/05/31/91773.php

The government has selected 13 firms to conduct required detailed engineering assessment in the readymade garment factories under the ongoing joint inspection programme of the government and the International Labour Organisation. The selection came after factory owners had claimed that they failed to conduct DEA as they failed to reach appropriate firms. Government officials said that the list of the engineering firms would be published on newspapers through advertisement as well as on the web site of the Department of Inspection for Factories and Establishments. ‘Once the list is published, factory authorities will have to conduct DEA within the set timeframe, otherwise they will have to face tough action including closer of the factory,’ Syed Ahmed, inspector general of the DIFE, told New Age. At a meeting on Thursday a taskforce formed to ensure post-inspection monitoring in the RMG factories finalised the list of the firms. The taskforce includes representatives from the government, Bangladesh University of Engineering and Technology and RAJUK. On December 23 last year, the National Tripartite Committee formed two separate task forces with the aim of ensuring post-assessment monitoring of the ongoing government-ILO joint inspection programme in the RMG sector. As per the decision of the NTC, one task force will monitor the post-inspection corrective action plan regarding structural integrity and another to monitor the corrective action plan regarding fire and electrical safety. The task force set standards that a firm must have at least two structural engineers with 10-15 years of experience to be eligible to conduct DEA of the RMG factories and the firm will have experience of conducting at least two DEA in last three years. After setting the standards the task force sought applications from the interested firms. Syed said that they received applications from 22 engineering firms and selected 13 firms through proper verifications. Following the Rana Plaza building collapse on April 24, 2013 that killed more than 1,100 people, the retailers and apparel brands from the EU and North America separately formed Accord on Fire and Building Safety in Bangladesh and Alliance for Bangladesh Workers Safety Initiative. Both the initiatives announced inspection programmes and completed inspection in 2,200 garment factories that produce products for the EU and US buyers. At the same time, the government of Bangladesh and the ILO started a three-and-a-half-year initiative to assess 1,500 factories that have been kept outside the surveys carried out by Accord and Alliance. More than 700 factories have so far been assessed under the government-ILO programme and out of them 262 factories have been recommended to conduct DEA but most of them did not comply with the recommendation, an ILO source said. The DIFE chief said that now (after the selection of the engineering firms) it would be easier for the government to put pressure on the factory owners to conduct the DEA timely. Syed, also the chief of the taskforce, said that the DIFE started to collect information on the factories which had been recommended to conduct DEA but were yet to begin the process.

Source: https://newagebd.net/124741/govt-selects-13-firms-to-conduct-dea/#sthash.yDRxAvLb.dpuf

The 4th international exhibition on branded clothing and fashion products titled ‘4th Bangladesh Fashion Carnival 2015’ will begin in the city’s Emmanuelle’s Banquet Hall on Wednesday, reports UNB. Redcarpet365 Limited in association with Freelancerz will organise the three-day exhibition to be participated by about 45 companies from home and abroad. The exhibition has targetted huge Eid-ul-Fitr shopping carrying a slogan ‘Do your Eid Shopping with us’. “We’re expecting a good number of visitors from entire South Asia in the fashion carnival,” Ahmed Imtiaz, CEO of the RedCarpet365 Limited, told the news agency on Saturday. Referring to features of the carnival, he said it would create an opportunity for both local and foreign participants to display their latest designs and quality products before potential buyers, resulting in business transactions worth millions. He said this exhibition will encourage local manufacturers and producers to export their goods to foreign markets, giving a big boost to the country’s export earnings. A big range of quality products will be put on display in the fashion carnival, he added. The products include clothing (women), fashion wear, home textile, knitwear, kurtas, original lawns, premium clothing, salwar-kameez, three-pieces, shawls, sherwanis, beauty aids, beauty products and equipment, fashion house, gift and novelty items, leather and leather products and other services.GulAhmed is the Global Brand of this expo, with their exclusive collection of Original Lawn. The expo will remain open for general and trade visitors from 10.00am to 9.30pm.

Source: https://www.thefinancialexpress-bd.com/2015/05/31/94781

The government has recently selected 13 engineering firms to carry out a detailed engineering analysis (DEA) of ready-made garment factories, officials concerned said. The selected engineering firms will conduct the DEA of the garment units which have already been assessed or to be assessed under the National Tripartite Plan of Action, they added. Department of Inspection for Factories and Establishments (DIFE) finalised a list of the engineering firms from a good number of applicants last week. “The second meeting of the taskforce held Thursday last selected the 13 engineering firms after scrutiny,” Syed Ahmed, Inspector General of DIFE, told the FE. The names of the selected firms will be available at the DIFE website shortly, he said, adding the taskforce will also share the list with two apparel apex bodies – Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). In February, the government decided to pick some engineering firms having expertise to carry out DEA and invited applications from interested firms, Mr Ahmed added. Earlier, the National Tripartite Committee under the Ministry of Labour on December 23 last formed two taskforces to oversee the post-inspection activities, including hiring of consultancy firms to do DEA, approve corrective action plan (CAP) and monitor its implementation of the ongoing garment factory assessment under the government-ILO joint initiative. All the selected firms have sufficient equipment and knowledge of conducting at least two DEA, said Professor Mehedi Ahmed Ansari of Bangladesh University of Engineering and Technology (BUET). Some 800 garment factories have so far been assessed under the joint initiative and 500 by BUET. BUET recommended DEA for more than 200 out of 500 garment factories after it found structural flaws there, Mr Ansari, also a member of the taskforce, said. The inspection programme under the joint initiative started in November 2013. The teams of BUET engineers gave the factories six-week time for conducting the DEA. On the other hand, an official review panel also asked 45 more factories to do the same. Of them, some 14 units are yet to start the process. The panel headed by the DIFE inspector general was formed in 2013 to decide on closure of any garment factory if found risky or non-compliant during inspection by any of three initiatives – Accord, Alliance and the government-ILO joint programme. Mr Ansari said DEA was recommended for those factory buildings which fail to meet some seven criteria including buildings expanded horizontally or vertically without approval from the authority concerned and when the factory owners or manufacturers of garments in a building failed to provide its drawing, design, soil test, depth of building foundation, scanning or rod and columns and core test and other required documents.

Source: https://www.thefinancialexpress-bd.com/2015/05/31/94777

Bangladesh will post strong economic growth and see a bullish trend in exports up to 2030, according to a forecast by UK-based banking giant HSBC.The HSBC Global Connections Trade Forecast Report said the country’s economy has grown by around 6 percent annually over the past decade, and it will continue to grow at a similar rate over the next ten years.Robust growth is expected over the medium-term, with GDP expanding by 5.5 percent a year in the decade to 2030.”It said the country’s trade prospects are bright, particularly in the textiles sector, and trade liberalisation efforts with its neighbours in Asia should boost prospects further, encouraging more diversification of the export base.The HSBC Trade Forecast examines prospects for exporters in 25 countries and territories. It shows that the short-term outlook for emerging economies is patchy, in part, because of relatively low commodity prices and a moderation in Chinese growth. Over the medium term, however, patterns of global trade will be increasingly influenced by rapidly-growing Asian economies with rising average incomes. Trade between emerging markets will become more significant as their middle classes expand.Among the countries covered in the Trade Forecast, Vietnam, India, China, Turkey and Bangladesh are expected to experience the strongest trade growth.Each is predicted to increase merchandise exports by an average of 8 percent or more per year between 2015 and 2030.Bangladesh has a strong foothold in the global market for garments, and HSBC expects this to continue, with around 80 percent of export growth from 2015-30 coming from clothing and apparel.Although the importance of agriculture will gradually decline as more of the population moves into urban areas, agriculture will continue to be Bangladesh’s second largest export sector out to 2030, contributing around 7 percent of the forecast increase in exports.In recent years, Bangladesh has made good progress towards macroeconomic stability under the guidance of the International Monetary Fund, but major infrastructure investment remains essential, the report said.The report said positive progress towards liberalising trade flows with neighbours in recent years is expected to help maintain competitive advantages in clothing and apparel sector. But rising incomes will encourage a gradual move towards higher value sectors, potentially including the assembly of electronic products, and boosting the sector.Simon Cooper, chief executive of global commercial banking at HSBC, said: “In the short-term an increasingly robust US economy, aided by cyclical upturns in Europe and Japan, is likely to provide the greatest cross-border opportunities for businesses. Further out, demographic trends in emerging markets will undoubtedly fuel greater South-South trade.”The report said the potential for Bangladesh to attract more foreign direct investment inflows is large.

Source: https://www.thedailystar.net/business/banking/hsbc-bullish-bangladesh-90043

Thirty-three out of 53 Bangladesh missions abroad have failed to achieve their respective export targets for the July-April period of the current fiscal. The situation is worse for the commercial wings as only 4 out of 17 commercial wings could meet the export target set for the period. Latest data of Export Promotion Bureau (EPB) suggests that the 33 missions altogether fetched $22768.77 million in export earnings against the target of $25241.66 million for the first 10 months of the current fiscal. The shortfall has been estimated at 9.80 percent. These 33 Bangladesh missions are located in Washington, London, Madrid, Paris, Rome, The Hague, Stockholm, Tokyo, Singapore, Geneva, Tripoli, Brussels, Beijing, Muscat, Manama, Moscow, Kuala Lumpur, Berlin, Ottawa, Ankara, Seoul, Hong Kong, Jakarta, Tehran, Bangkok, Kuwait, Colombo, Amman, Doha, Port Luis, Mexico City, Hanoi and Lisbon. On the other hand, 13 out 17 commercial wings also failed to meet export targets. The commercial wings are located in Washington, London, Paris, Tokyo, Madrid, Brussels, Beijing, Moscow, Geneva, Kuala Lumpur, Berlin, Tehran and Ottawa. Data show that the 13 commercial missions bagged $17957.01 million in export income against the target of $19814.41 million for the July-April period of the current fiscal. Though the 13 commercial wings missed the export target for the July-April period of FY 15, their export income in the first 10 months of FY 15 was 2.36 percent higher than the same period last fiscal. Abdus Salam Murshedy, president of Bangladesh Exporters Association, stressed on the need for arranging more trade shows abroad for more effective promotion of Bangladeshi products abroad.

Source: https://www.daily-sun.com/printversion/details/47394/33-Bangladesh-missions-miss-export-target

The Bangladesh Economic Zones Authority (BEZA) has sought to put its name in the new import and export policies along with enough policy bounties to lure in investors from home and abroad. Officials of the new body on economic sector plead for a square deal in this regard on a par with Bangladesh Export Processing Zones Authority (BEPZA), especially for attracting foreign investors. “We all are trying to make an industry-friendly environment for the proposed economic zones (EZs). We have applied to the government for including name of the BEZA in the two new upcoming policies,” said executive chairman of BEZA Paban Chowdhury. He expressed the hope that BEZA would be included in the new Import Policy (2015-18) and Export Policy (2015-18). “We have already consulted all state authorities concerned in this connection,” the chairman said. The proposal has been given due mainly to get more and more responses from domestic and foreign investors to EZ-development plans in future. “Foreign investors analyze the country’s profile, different trade-and investment-related policies when they want to invest in any country. Presently, there is no mention of the name of BEZA in the existing two policies,” said a high official of BEZA to point out the lacking in this respect. As a result, he said, foreign investors do not find the name of the BEZA in the policies and it creates confusion among the investors. “So, it is badly needed to put the name of the authority in the new policies,” said the BEZA official. The BEZA, placed under prime minister’s office (PMO), recently sent a letter to the ministry of commerce (MoC) for including its name and stipulate same rules in the policies. “It is needed to include the name of BEZA in the new policies and also same rules for the BEZA as BEPZA,” the letter reads. Currently, the MoC is working to finalise the Import Policy (2015-18) and the Export Policy (2015-18). The validity of the current Import Policy (2012-15) and the Export Policy (2012-15) expires on June 30. Exporters under the BEPZA presently enjoy different facilities and incentives. They get duty-free facilities in import of all of their raw materials. Besides, they are exempted from paying customs duty on import of capital machinery. Furthermore, they are having rules and regulations support under the existing policies, which, the officials pleaded, should also be applicable for the BEZA entrepreneurs. Earlier, some 22 areas for establishment of economic zones have been approved by the Governing Board (GB) of BEZA. Some sites have been selected for more 8 zones. The Authority gave licences to 4 private economic zones for development and a good number of licences are under processing. The government established the BEZA to regulate and oversee the new zones under the Economic Zones Act 2010. The regulator started work in 2012 on establishing economic zones in different areas of the country having potential to contribute to the national economy.

Source: https://www.thefinancialexpress-bd.com/2015/05/30/94661

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has set the target of raising its apparel export earnings to US$ 50 billion by 2021. It will be the year when the nation celebrates its 50 years of independence. The rapidly growing garment exports have been pushing the country’s economy forward for long. It now enjoys a major place among the economic indicators of the country like gross domestic product (GDP).

The RMG sector constituted only 32 per cent of our total exports in 1989, which has reached 80 per cent in 2014. With a 15 per cent growth in the RMG sector, the Bangladesh economy has progressed impressively in the last few decades.

Moreover, backward and forward integration of RMG-related industries is also providing boost to the economy. Despite many challenges including political turmoil in the country and legal bindings, the sector has been making its dominant presence felt in the country’s economy. The number of apparel factories is also witnessing an increase, which is lowering unemployment. A number of factors have lately emerged to hold prospects for the RMG sector to boost its output faster and take its earnings to US$ 50 billion by the year 2021. The Bangladesh government and the private sector are expected to put in their all-out efforts to this end. Let us have a look at the factors that will be conducive to the RMG sector’s rapid growth. Firstly, cost of production in China is rising due to higher labour cost and upward prices of raw materials, socio-economic and livelihood standard uplift and shift to high-tech industries. This has caused concern among international buyers of late. As a result, a large section of the buyers is shifting their orders to other apparel producing countries. And Bangladesh is fast becoming a beneficiary. As per World Trade Organisation (WTO) statistics, China occupied a 37.35 per cent share in global clothing exports in 2011, whereas Bangladesh had a share of about 4.83 per cent (which increased slightly later). This huge gap points to an enormous opportunity for Bangladesh as it keeps strengthening its position as the second largest apparel exporter. Secondly, for achieving the dream goal for 2021, enhancing the market is fundamental. The existing market will provide only a small digit growth, but in order to strike a revolution in RMG export, Bangladesh needs to explore newer opportunities and grab other destinations of the global apparel export market. Now is the time to expand the sector horizontally to shape the country’s market. It is interesting to note that Bangladesh is also exploring newer markets and diversifying its exports and going beyond the traditional exports to the European Union and the US. The share of apparel exports to markets other than the EU and North America was 6.88 per cent in 2008-09. It increased to 14.71 per cent in 2013-14. The new markets include Japan, China, India, South Korea, South Africa, Russia, Brazil, Mexico and Chile. The duty-free access and preferential market access offered by countries like India, China, Korea and Malaysia have helped in the process. North America can be an important and potential market for Bangladesh. Thirdly, only exploring markets will not be enough, as steady growth is required to achieve the dream within the shortest possible time. Manufacturing new apparel products is also a big factor. New products should be manufactured to attract more foreign buyers. The product-wise RMG exports from Bangladesh indicate that the highest share is occupied by trousers, followed by T-shirts and jackets; sweaters and shirts follow. Over the last 5 years, however, the highest growth has been seen in export of shirts and jackets. In a period of about four years from 2009-10 to 2013-14, jacket exports increased by over 120 per cent, whereas export of shirts increased by about 118 per cent. Trouser exports increased by about 87 per cent.

A few challenges must be faced to realise the goal, the major challenges being a well-structured infrastructure as well as international relations. In achieving the RMG export target of US$ 50 billion, a lot of other challenges might emerge. Bangladesh will have to deal with them. However, the main challenge will be posed by the sector’s infrastructure. Let us see how we stand among other Asian countries in the Global Competitiveness. The Global Competitiveness Report 2014-15 (World Economic Forum) evaluates important apparel exporting countries on their infrastructure quality.

The table [Comparison of Infrastructure Quality: 2014-15] shows the areas where Bangladesh still needs to work in relation to infrastructure improvements, especially roads and electricity. Besides, the availability of skilled workforce would be another important aspect which would be very important for the desired growth. Investment in education and training would be highly important in raising a large and skilled workforce. In terms of challenges, the infrastructural development is a prime concern for the major export business owners. It involves massive projects that include deep-sea port, metro rail in Dhaka, the eight-lane Dhaka-Chittagong Highway etc. These projects need to be completed within specific timeline. All this is part of the prerequisite that ought to be met for Bangladesh to materialise its RMG exports vision by 2021. Another basic need for the apparel industry is sufficient power and energy. Electricity supply has increased lately, but gas supply hasn’t, and its supply pattern is almost unchanged. Besides, costly power and energy add to the expenditure of the RMG factory owners. Less costly power as well as its uninterrupted supply is vital for achieving the RMG sector’s vision. All-round stability is imperative for development and growth. Volatile politics and government mean volatility in policy. Violence and unrest affect production even more. They erode confidence of businesses and hamper reputation. Following bouts of political turbulence in the recent past, Bangladesh is now badly in need of a peaceful political atmosphere. The last two spells of political violence have taken their toll on the country’s export activities, especially those involving the RMG sector. Think-tanks observe that ‘the cost of capital’ is the main challenge to achieving growth target. In line with this, sufficient loans to the RMG sector, export financing and congenial banking services must be ensured to increase productivity and meet market demand. The government should also ensure safety and compliance measures at the factories. The country had to face image crisis due to major incidents like the Rana Plaza collapse and the Tazreen fire. All these measures must guarantee that such incidents will not recur. Digital Bangladesh doesn’t only mean increase in internet use, electronic money transfer and use of video conferences; the real benefits of digitisation should find expression in good governance. Every sector is more or less graft-ridden in Bangladesh. From getting necessary approval for setting up new factories to having gas and electricity connections, every step requires extra money or influence of powerful quarters, or both. Setting up of factories by new entrepreneurs has thus become almost impossible. In this reality, overseas entrepreneurs as well as foreign direct investment should be encouraged to bring in new financing to the RMG industry. The target of $50 billion exports by 2021 is highly ambitious, but not entirely unachievable. Here we should see the growth achieved in the last 5 years as exports doubled from $12 billion to $24 billion. However, Bangladesh’s apparel sector needs to work hard for improving its infrastructure and ensuring a larger supply of skilled workforce to make the grand RMG export dream for 2021 come true.

Source: https://www.thefinancialexpress-bd.com/2015/05/30/94638