Business
RMG exports to EU up 11.47% in July-September of FY 2023-24
As per the latest statistics of the Export Promotion Bureau (EPB), readymade garment export to the European Union reached US$ 5.51 billion during July-September of FY 2023-24, 11.47% up compared to the same period of the previous fiscal year.
Read: CPD recommends minimum wage of Tk 17,568 for RMG industries
“Our exports to Spain, France, Netherlands and Italy showed 23.26%, 8.67%, 18.97% and 23.22% growth respectively. On the other hand, export to Germany, the largest export market in the EU, declined by 4.41% with an amount of US$ 1.45 billion compared to the July-September 2022-23 FY, said a press release sent by Mohiuddin Rubel, director at BGMEA.
Read: BGMEA seeks NBR support to sustain RMG industry's global competitiveness amidst ongoing challenges
“Our RMG export to the USA stood US$ 2.07 billion in the first three months of FY 2023-24 with 2.77 % growth. At the same time, exports to the UK and Canada reached US$ 1.45 billion and US$ 352.86 million, with 21.35 % and 5.44% growth respectively,” he said.
During July-September, of FY 2023-24, apparel export to non-traditional markets grew by 24.93% to US$ 2.24 billion from US$ 1.80 billion in the corresponding period of previous year, said the BGMEA director.
Read more: 6 RMG workers dead after bus runs them over on highway in Trishal
Among the major non-traditional markets, exports to Japan, Australia and South Korea increased by 39.44%, 54.11% and 37.01% respectively but export to India declined by 7.69%, he added.
Fashion World Tokyo: Bangladesh Ambassador urges Japanese companies to source more quality products from Bangladesh
Bangladesh Ambassador to Japan Shahabuddin Ahmed has urged Japanese companies to source more quality products from Bangladesh.
Bangladesh participated in Fashion World Tokyo (FaW), held from October 10-12, at the Tokyo Big Sight in Japan.
Also read: Japan-Bangladesh business cooperation will grow further: speakers
With around 1150 exhibitors, the Fashion World Tokyo is the largest trade show for the fashion industry in Japan, gathering all kinds of apparel, bags, shoes, textile, leather, fashion accessories sourced from all over the world.
Under the market development initiative of the Export Promotion Bureau (EPB), Ministry of Commerce, Bangladesh, 17 reputed exporters belonging to the apparel and leather industries participated in the event.
Also read: PM Hasina offers land to Japanese businesses to set up industries
Ambassador of Bangladesh to Japan Shahabuddin Ahmed inaugurated the Bangladesh pavilion and visited Bangladeshi booths as well as NRB exhibitors on the first day of the trade show.
The exhibitors expect that Bangladesh’s participation in Fashion World Tokyo will play a significant role to retain the prevailing market share and augment export to the Japanese market, said the Bangladesh Embassy in Tokyo.
Also read: Investment in Bangladesh will bring huge success: PM Hasina to Japanese businesses
The Bangladesh Embassy organized a seminar on ‘Made in Bangladesh Textile, Leather and Jute products’ on the second day of the fair at Tokyo Big Sight.
Kiminobu Hiraishi, President of Maruhisa Co. Ltd. and Toshinao Okunaka, President of Marutomi Co. Ltd., delivered presentations on their business experiences in Bangladesh while Dr. Ariful Haque, Minister (Commerce) of the Embassy highlighted on sustainable factories in Bangladesh and opportunities for Japanese companies as well as support services by the embassy.
In the evening on the same day, a networking dinner reception was organized by the Embassy at a local hotel with the participation of the exhibitors, representatives from Japanese companies and entities, and Embassy officials.
Mayumi Murayama, Executive Vice president of Japan External Trade organization (JETRO) was the special guest.
She praised Bangladesh’s economic success over the years and assured to continue JETRO’s support for strengthening Bangladesh-Japan trade relation.
EPB has been participating in the fair with a good number of exporters along with leading sector players for over a decade. Bangladesh’s export to Japan was USD 1.9 billion in 2022-23, which was significantly higher than the previous year.
BGMEA seeks NBR support to sustain RMG industry's global competitiveness amidst ongoing challenges
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) underscores the crucial role of the National Board of Revenue (NBR) in achieving the Sustainability Strategic Vision 2030 for the country's ready-made garment (RMG) industry.
This vision focuses on bolstering the RMG sector's competitiveness while concurrently fostering sustainable growth.
Also read: Indian delegation meets BGMEA president to discuss trade,investment potential
Faruque Hassan, president of BGMEA, emphasized this during a recent meeting with NBR Chairman Abu Hena Md Rahmatul Muneem at the NBR office in Dhaka on Wednesday.
The meeting aimed to discuss the current state of the RMG industry, global trade trends, and their impact on Bangladesh's economy.
Hassan stressed the significance of NBR's support and cooperation in realizing this vision. He highlighted that streamlined and expedited business procedures and services are essential to maintain the RMG industry's global competitiveness.
Also read: BGMEA urges NBR to speed up customs, bond services for RMG sector
The fashion industry's evolving dynamics, including the demand for shorter lead times in high-end garments, necessitate the need for prompt and hassle-free services to sustain the RMG industry's global position.
President Faruque Hassan further emphasized that NBR's vital support is required to retain the RMG sector's export competitiveness and growth momentum, particularly in the post-Least Developed Country (LDC) era.
The LDC graduation introduces new opportunities and challenges, including changes in the tariff regime, requiring strategic measures to preserve the industry's competitiveness in the post-LDC period.
Also read: BGMEA calls for government support to safeguard RMG sector in testing times
In parallel, BGMEA President Faruque Hassan held discussions with Md. Masud Sadiq, member (Customs: Policy and ICT), NBR, to address the challenges faced by RMG exporters, particularly those related to customs, bonds, and taxes. BGMEA seeks cooperation from NBR to resolve these issues.
In a separate meeting on the same day, a delegation led by Vice President Shahidullah Azim from BGMEA met with Hossain Ahmed, member (Customs: Export, Bond, and IT) at NBR.
The discussions centered on the current state of the RMG industry, its export targets, and the need for policy support to align with the evolving business landscape.
The delegation urged NBR to streamline customs, bond, and tax procedures to enhance the industry's competitiveness.
Robi launches Google’s Rich Business Messaging service
Robi Axiata Limited has become the country’s first operator to launch “Rich Business Messaging” (RBM), a messaging service by Google that enables business to send rich, interactive messages to their customers.
RBM messages can include text, images, videos, buttons, and other interactive elements, making it potentially richer and more engaging than traditional SMS messages. Due to its visual appeal, RBM messages are more likely to be opened and read by customers than traditional SMS messages, according to a press release.
Also read: Robi’s sustained investment improves network experience across country
RBM allows businesses to engage their customers in a more personalized and meaningful way by sending interactive messages and product catalogs, and even scheduling appointments seamlessly. Businesses can also facilitate robust customer service by offering its customers real-time channels to communicate with them, it said.
"Compared to basic SMS messages, Google RBM elevates communication to a whole new level with the use of dynamic visual support. With the highest penetration of smartphone devices (60%+) in the industry, Robi is in a commanding position to truly revolutionize the way businesses communicate with their customers through the introduction of RBM service,” said Robi's Managing Director and CEO, Rajeev Sethi
Also read: Robi launches sales academy
“We are immensely proud to be the first mobile operator in Bangladesh to offer this uniquely innovative service,” he said.
"Google RBM is a game-changer for businesses and consumers alike. It provides a dynamic platform for customers to interact with their favorite brands, access services, and get real-time support, all within the messaging app they already use every day," said Robi’s Chief Commercial Officer Shihab Ahmad.
Also read: Rajeev Sethi new CEO for Robi
"We are thrilled to deepen our engagement with Robi. Our collaboration will demonstrate our technical expertise in managing Google RBM in Bangladesh. Furthermore, it will enable Robi to expand its market reach in Bangladesh, driving momentum towards rich interactive messaging and accelerating the adoption of next-generation technology,” said Rajdipkumar Gupta, MD and Group CEO of Route Mobile.
“With the introduction of RBM business messaging in Bangladesh, we anticipate message volumes to reach 1 billion over the next 3 years,” he said.
Daraz supports South Asian female cricket athletes in achieving their goals
Daraz, the official e-commerce platform of the 19th Asian Games Hangzhou, has concluded its youth empowerment activation where it sponsored a full-expense paid trip for three aspiring female cricket athletes from Bangladesh, Sri Lanka and Nepal to Hangzhou to watch the Asian Games.
By providing them with a unique opportunity to witness the Women’s cricket matches in person at the prestigious event, Daraz aims to contribute to the growth and empowerment of women in sports, bringing them one step closer to their dreams, according to a press release.
Also read: Daraz celebrates 9th anniversary
The road to becoming a professional cricket player is not an easy one, especially for women. Recognizing the potential and determination of female athletes in South Asia, Daraz took a significant step to support their aspirations and promote gender equality in sports, it said.
The selected athletes, Tharushi Fernando from Sri Lanka, Nuzhat Sabah from Bangladesh, and Khushi Dangol from Nepal, are such female athletes who are defying the odds to achieve their dreams and represent their nations on the international stage, the release said.
Also read: Daraz introduces Seller Development Program for consumers
Nuzhat Sabah Firdaus reflected on her experience, saying, “I tried so many new things for the first time and learned a great deal about myself and others on this trip. It was also my first time watching the women’s cricket matches in person. I gained invaluable insights into the game itself, things I wouldn't have learned by simply watching it on television - which I believe will help me improve my skills as a cricket player. Thank you, Daraz, for this incredible opportunity!”
Cheryl Ang, Daraz Group chief marketing officer said, “Daraz was started nine years ago to uplift communities through the power of commerce, and today, our mission remains unchanged. Daraz recognises the significance of supporting aspiring athletes and promoting women's cricket at an international level, and aims to lead the charge in representing South Asia on a global stage.”
Also read: Nagad offers 16% cashback on payment on Daraz
“It's heartening to see how this experience has made a lasting impact on the lives of these three young ladies, and witness how they bonded over their mutual love for cricket. This has only further cemented our resolve to support more initiatives that empower the greater South Asian community, and we can’t wait to see what’s in store for us next,” the Group CMO said.
National Bank signs agreement with Bangladesh Bank to boost CMSME financing
An agreement was signed between Bangladesh Bank and National Bank Limited (NBL) on 'Financial Inclusion Credit Guarantee Scheme'.
Manoj Kumar Howlader, Director Credit Guarantee Department, Bangladesh Bank and Md. Mehmood Husain, Managing Director and CEO, signed the agreement on behalf of their respective organisations, according to NBL.
Also read: NBL holds 39th AGM
During the signing of the agreement at Bangladesh Bank's head office in Dhaka, Additional Director of Bangladesh Bank Credit Guarantee Department, Syed Himyanuddin Ahmed; Joint Director Md. Oliul Islam; National Bank's CRM (MSME) Division Head Md. Sahidul Islam; and other officials from Bangladesh Bank and National Bank Limited were also present.
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Under this agreement, National Bank through its branches will provide collateral-free loan facilities to marginal/landless farmers, low-income professionals, businessmen among whom are Tk 10,50,100 account holders and school banking account holders.
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The interest rate of the loan will be 7 percent. National Bank expects that the agreement will boost its Cottage, Micro, Small & Medium Enterprises (CMSME) financing.
Commitment to quality behind HATIL’s success: Director Mahfuzur Rahman
It was his father’s letter to his then Malibagh address in July 1993 that marked the beginning of Mahfuzur Rahman – one of the five brothers who own and operate HATIL Complex Limited – at the helm of H. A. Timber Industries Ltd.
H. A. Timber Industries Ltd – a small timber shop on the bank of the Buriganga River – was founded by the late Al-Hajj Habibur Rahman in 1963, at 2/1 Ultinganj Lane in Old Dhaka’s Farashganj area.
Despite being a part of a family with a three-decade-long involvement in the wooden furniture business, Mahfuzur Rahman chose a distinctly unconventional path for his career in the beginning.
After completing his graduation from Dhaka College, Mahfuzur Rahman started his own monthly publication called “Computers and Electronics” with his friends in September, 1991.
Two years into his publication business, Rahman got a letter from his father, urging him to join H.A. Timber Industries Ltd. as an Executive Director. In August 1993, he joined the family business with a salary of Tk 4,000 per month, Rahman recalled – now managing director at H.A. Timber Industries Limited.
During an exclusive interview with UNB, Rahman shared how HATIL became the furniture giant it is today.
Rahman is one of the directors at HATIL Complex Ltd., one of the top furniture brands in Bangladesh, established by his father late Al-Hajj Habibur Rahman in 1989.
Bangladesh’s furniture industry has seen rapid growth over the past few decades, which is expected to continue in the coming years.
According to Statista, revenue in the furniture market in Bangladesh was US$ 2 billion in 2023. The global furniture market size was valued at $ 541.52 billion in 2023 as per ‘Fortune Business Insights’ data. The furniture market in Bangladesh is further expected to grow annually by 9.71 percent (CAGR 2023-2028).
HATIL Complex Ltd., now the top exporting furniture brand in Bangladesh, is a leader in driving that growth in the industry.
During his interview with UNB, Mahfuzur Rahman shed light on HATIL’s past, present and future as well as the challenges it is facing due to the ongoing crises around the world.
Rahman attributed HATIL’s success to his brother Selim H. Rahman’s leadership, the hard work of his four brothers, and HATIL’s commitment to not compromise on its product quality.
H. A. Timber Industries Ltd. installed 1st Seasoning plant in the private sector in 1988 with a motto to make available seasoned timber for furniture, doors and door frames.
When asked about the rationale for choosing “Slim is Smart” as the company’s slogan, Mahfuzur Rahman said: “Consumer preferences are changing over time. When people from this generation go to the market to purchase furniture for their apartments with limited space, they look for products that are both compact and affordable. Taking their preferences into account, HATIL employed the ‘Slim is Smart’ strategy.”
It is worth noting that the furniture industry in Bangladesh can be divided into two types: branded and non-branded. Currently, non-branded industries dominate 65 percent of the country’s furniture market.
For Mahfuzur Rahman, the non-branded or traditional furniture industry is currently a threat to the branded furniture market.
“As a brand, when we do business, we have to pay taxes to the government, which the non-branded ones may or may not pay. For a product sale worth Tk 100, we have to incur a cost of Tk 47 that includes VAT, income taxes, among others.”
“The government can earn huge tax revenue if the traditional furniture market can be brought under the tax regime,” he said.
What is HATIL doing to get ready for the inevitable in light of the country’s impending LDC graduation and analysts’ calls for diversifying the economy, particularly its exports?
Mahfuzur Rahman responded: “To prepare for the changes in the local furniture market, we are replacing our machinery with automated machines from Germany to keep up with the changing nature of the market.”
HATIL currently sources its major raw materials from various countries around the world. For wood, HATIL uses FSC (Forest Stewardship Council) certified beech-sawn timber and red oak, which are imported from Germany and Canada.
For hardware or furniture accessories such as handles, locks and keys, hinges, screws, latches etc., HATIL goes to China.
HATIL Complex Ltd. has to pay import duty for all these products (16 - 31 percent for wood and 60-90 percent for hardware), which, according to Rahman, is one of the biggest challenges the company faces right now and will continue to face in the future.
On the trend of using automation in production, Mahfuzur Rahman said, “With the change of time, we also have to change our way of thinking. That is why we are focusing on research and development and recruiting qualified manpower in those places.”
Among the two most tumultuous events in the last 4-5 years – Covid-19 pandemic and Russia’s war in Ukraine – the latter has had the most profound impact on the furniture industry, according to Rahman.
“We went into lockdown in March 2020 due to the pandemic. In that case, even though our manufacturing and revenue generation had completely shut down, we paid the salaries and bonuses of our employees on time and even gave them increments. Then, in September of that year, we turned around. In 2021, we were in a slightly better position after overcoming the effects of the pandemic.
“However, in 2022, we were confronted with a dire situation due to the supply chain disruption, inflation, and dollar crisis caused by the Russia-Ukraine war. And I personally think this crisis will persist until at least June-July next year,” he said.
During the interview, Mahfuzur Rahman talked about H.A. Timbers Industries Ltd. For him, holding onto this timber business, which has lost its past glory, is more about holding onto his family’s heritage than about business.
Apart from his involvement with HATIL Complex Ltd, Mahfuzur Rahman is involved with numerous other organisations. He is the president of the Dhaka College HSC '89 Foundation. The organisation is involved in several health programmes.
They also provided financial support to many lower-income people during the Covid-19 pandemic. Currently, they are considering establishing a vocational institute for health in Manikganj’s Singair Upazila.
Mahfuzur Rahman is a member of the trustee board of Bhola Children’s Special School Bangladesh. He is also an associate member of the Dhaka University Club and a lifetime member of Farashganj Sporting Club (Farashganj SC) and Madaripur Legal Aid Association (MLAA).
Rahman is also a goodwill ambassador of Bijoyphool, an initiative aiming to make the youths aware of the struggles during the Liberation War of Bang.
Read more: Bangladeshi furniture industry needs reforms to reach its full potential: HATIL Chairman Selim H. Rahman
Brac Bank signs employee banking agreement with Unilever Bangladesh
Brac Bank has signed an employee banking agreement with Unilever Bangladesh Limited (UBL), and Unilever Consumer Care Limited (UCL).
Through this agreement, employees of Unilever Bangladesh are set to enjoy a seamless and delightful banking experience, including salary accounts, multi-currency debit and credit cards, loan facilities, DPS, FD, and priority services, in line with Brac Bank's Employee Banking proposition.
Also read: Brac Bank’s ‘Druti’ clinches 12 awards
Mahiul Islam, head of Retail Banking at Brac Bank and Syeda Durdana Kabir, human resources director at UBL, signed the agreement on October 2 on behalf of their respective organisations in Dhaka.
Also read: Unilever partners with Orange Corners Bangladesh
Tareq Refat Ullah Khan, deputy managing director and head of Corporate Banking Division; AKM Shahadul Islam, head of Employee Banking; Chowdhury Farzad Ali, head of Relationship Unit 4 and other members from Brac Bank were present on the occasion.
Also read: BRAC Bank wins award for highest online bill collection
Additionally, from UBL and UCL, Amira Muktadir, financial controller; Ahmed Inam, people experience lead -Bangladesh; and Md Nuruzzaman, people experience and operations manager, along with their team, attended the signing ceremony.
Import controls fail to arrest decline in forex reserves
The country’s foreign exchange reserves are in rapid decline, with growing import payments being one of the main drivers behind this declining trend.
Bangladesh Bank sold $3.75 billion from reserves in the first quarter (July-September) of the 2023-24 fiscal, mostly for the purpose of meeting the country’s import liabilities.
Also read: Global lenders can’t help if reserves reach $10 billion or below, Rehman Sobhan says in ERF talk
At the end of September, the country’s forex reserves stood at $21.05 billion. According to Bangladesh Bank’s own data, at the end of the financial year 2020-21, the reserves stood at $46.39 billion. It means the amount has more than halved in the space of 27 months (July 2021 to September 2023).
Central bank data shows it sold close to $25 billion from reserves in these 27 months. Apart from the $3.75 billion sold in the first quarter of the current fiscal, $13.58 billion was sold in the last fiscal (2022-23), and $7.62 billion in 2021-22.
The central bank sold these dollars mainly for the import of fuel, fertiliser, and food. The government has been providing assistance in the form of selling dollars from its forex reserves for importing some items. This has exacerbated the dollar crisis in the country.
Also read: Net reserves of foreign exchange as per BPM-6 below $18 billion: Economist Zahid Hussain
Bangladesh reportedly missed its June 30 target for net foreign exchange reserves set with the IMF, as part of the conditions for the country’s $4.7 billion loan program with the Washington-based lender.
Economists also point out that the dues to the Asian Clearing Union (ACU) for the months of September and October have to be paid in early November. After that the reserves could fall further to around $18 billion, ex-lead economist of the World Bank office in Dhaka, Zahid Hussain, warned recently.
Economist and former IMF official Ahsan H Mansur told UNB that the dollar crisis has been going on in the country for one-and-a-half years. Despite various measures taken by the government to try and end it, the crisis persists.
Also read: IMF reviewing reserves, macroeconomic condition ahead of next fund release
One of the measures was to impose restrictions on the import of various items considered non-essential or luxury items, through increased duties and tariffs. However it has clearly not worked in terms of trying to stem the tide of dwindling reserves.
The dollar crisis has put a range of macroeconomic indicators in a bad state and affected various sectors, Mansur, executive director of leading think tank the Policy Research Institute, pointed out.
He believes that the decline in inward remittances and a rise in trade-based money laundering, in the face of political uncertainty, are the two major factors behind the declining reserves.
The country recorded its lowest inflow of inward remittances in almost 3-and-a-half years in September. The dollar crisis in fact contributes to the lower remittances, since there is a wide gap that has opened up between the dollar price offered by banks and other formal channels, and the price on the open or kerb market.
Also read: Why Bangladesh’s forex reserves dipped to $21.15 billion? Economists cite reasons
Banks currently offer Tk 110 for each dollar remitted, but on the open market they are likely to get upwards of Tk 122 for each dollar. So the decline in remittances despite increased export of manpower is thought to be due to expatriate workers switching to the informal hundi channel as their preferred way to send money home.
Ahsan Mansur said the situation would not improve before the election, as the uncertainty in the political arena would continue to be a factor.
Once it passes, if a stable government is formed through a credible election, then the economy could recover on the strength of improving confidence levels, he added.
In September, Customs authorities reported trade-based money laundering worth Tk 3.0 billion, or $30 million, by ten ghost companies. But this is thought to be just the tip of the iceberg.
IMF satisfied with BBS for efforts to meet conditions: Official
The International Monetary Fund (IMF) on Monday expressed satisfaction with the progress of implementing some conditions of the global lender by the Bangladesh Bureau of Statistics (BBS).
The IMF expressed this satisfaction during a meeting with the BBS as part of justifying the IMF’s condition for Bangladesh to get a second installment of $4.70 billion in loans, a senior BBS official told UNB.
Also read: IMF reviewing reserves, macroeconomic condition ahead of next fund release
The IMF has already held official meetings with the Bangladesh Bank, the Ministry of Finance, the National Board of Revenue, the Energy and Power Division, and other several departments and organisations of the government.
Also read: IMF team holds meeting with Energy Division
Earlier, the IMF had given three conditions. They are to make some changes in the method of determining inflation or Consumer Price Index (CPI), the second condition of the IMF was to publish a marginal report of gross domestic product (GDP) and to publish consistent data on Bangladesh's growth in the last 50 years since independence.
Also read: Bangladesh expected to receive IMF loan’s 2nd instalment in Nov