Business
RMG exports to EU grew 9.93% in FY 2022-23: Export Promotion Bureau
RMG exports from Bangladesh to the European Union (EU) saw 9.93 percent growth during the fiscal year 2022-23 — from $21.40 billion in FY 2021-22 to $23.52 billion in FY 2022-23, according to the Export Promotion Bureau (EPB).
Read: Bangladesh to retain duty-free access for 98% of exports, including RMG as UK introduces new scheme
However, exports to some major markets in the EU region, such as Germany and Poland, have declined significantly, said BGMEA Director Mohiuddin Rubel quoting the facts.
In FY 2022-23, apparel exports to Spain, France, Italy, Denmark and Netherland were worth US$ 3.37 billion, US$ 2.94 billion, US$ 2.27 billion, US$ 1.28 billion, and US$ 1.85 billion respectively.
Read: Elevated Expressway’s Airport-Farmgate section to open in September: Quader
Export to USA, the top apparel export destination of Bangladesh, declined by 5.51 percent to US$ 8.51 billion, from US$ 9.01 billion in FY 2021-22, in the mentioned period.
At the same time, RMG exports to the UK and Canada increased by 11.78 percent and 16.55 percent respectively.
During the mentioned year, Bangladesh’s exports to non-traditional markets has achieved significant growth of 31.38 percent.
Read: RMG exports in FY23 almost $47bn, 85% of total exports
Among the major non-traditional markets, exports to Japan, Australia and India crossed the one billion dollar milestone.
The share of non-traditional markets in total RMG export also increased by 17.82 percent in FY 2022-23 from 14.96 percent in FY 2021-22.
Overtaking US, India will become second largest economy in the world by 2075: Goldman Sachs
India is on track to become the world's second-largest economy by 2075, surpassing not just Japan and Germany, but even the United States, according to Goldman Sachs.
India now has the world's fifth-largest economy, after Germany, Japan, China, and the United States, reports CNBC.
Also read: Bangladesh now world's 35th largest economy: Canadian publication
Aside from a growing population, the projection is driven by the country's growth in innovation and technology, increased capital investment, and improved worker productivity, according to a recent analysis by the investment bank, it said.
“Over the next two decades, the dependency ratio of India will be one of the lowest among regional economies,” said Goldman Sachs Research’s India economist, Santanu Sengupta.
The dependency ratio of a country is calculated by dividing the number of dependents by the total working-age population. A low dependence ratio shows that there are a greater number of working-age individuals who can support the youth and elderly.
Aslo read: By 2030, Bangladesh will be the 24th largest economy. Here's how ICT is driving that growth
Sengupta went on to say that the key to unlocking the potential of India's fast rising population is to increase labour force participation. And, according to Sengupta, India will have one of the lowest dependence rates among global countries over the next 20 years.
“So that really is the window for India to get it right in terms of setting up manufacturing capacity, continuing to grow services, continuing the growth of infrastructure,” he said.
The Indian government has prioritised infrastructure development, particularly the construction of roads and railroads. The country's new budget plans to maintain the 50-year interest-free lending programmes to state governments in order to stimulate infrastructure investment, the report also said.
According to Goldman Sachs, this is an ideal time for the private sector to ramp up capacity creation in manufacturing and services in order to create more employment and absorb the big labour force.
Also read: Bangladesh to become 25th largest economy in 2034: CEBR
Tech and Investments
According to Goldman Sachs, India's economic trajectory is being driven by advances in technology and innovation.
According to Nasscom, a nonprofit trade organisation, India's technology sector income is predicted to expand by $245 billion by the end of 2023. According to Nasscom's research, this increase will come from the IT, business process management, and software product streams.
Furthermore, Goldman forecasted that capital investment will be a big engine of India's growth, added the report.“India’s savings rate is likely to increase with falling dependency ratios, rising incomes, and deeper financial sector development, which is likely to make the pool of capital available to drive further investment,” the report stated.
Bangladesh starts trade with India in rupees with opening two LCs today
Bangladesh finally started trade transactions in Indian rupees (INR) today.
The move is being seen as an initiative to reduce the dependence on US dollars in international trade.
On the occasion, Indian High Commission and Bangladesh Bank orgaised an inaugural programme at a Dhaka hotel.
Also read: Trade in Rupee with India will start a new era of trade in different currencies: Experts
Bangladesh Bank Governor Abdur Rauf Talukder and Indian High Commissioner Pranay Verma were present on the occasion.
The central bank governor said, “Discussion (on this initiative) between India and Bangladesh has been going on for a long time; businessmen have been demanding this for a long time… Now, it has become a reality.”
Now trade will be done in rupees as well as dollars, he said.
He said that India is one of Bangladesh’s biggest trading partners. Bangladesh imports $14 billion worth of goods from India and exports $2 billion worth of goods to the neighbouring country.
Also read: Bangladesh, India trade transactions in rupees will ease pressure on forex reserves: High Commissioner
Transaction costs during trade with India will be reduced with the introduction of the taka-rupee dual currency card, he added.
The Indian high commissioner hoped that both countries would benefit from this approach.
Afzal Karim, Managing Director (MD) of Sonali Bank; Ali Reza Iftekhar, MD of Eastern Bank; Sheikh Md Salimullah, Secretary to the Financial Institutions Division of the Ministry of Finance, also spoke on the occasion.
BIDA Chairman Lokman Hossain Mia; Commerce Secretary Tapan Kanti Ghosh; FBCCI President Md. Jasim Uddin; India-Bangladesh Chamber President Abdul Matlub Ahmed; and BGMEA President Farooq Hasan attended the event as well.
Also read: ‘De-dollarisation’: Bangladesh, India to trade using taka, rupee from September
Sonali Bank and Eastern Bank of Bangladesh and the State Bank of India and ICICI Bank of India are the banks responsible for trading in rupees between the two countries.
Bangladesh Bank Spokesperson Md Mesbaul Haque, during a press conference at the bank’s headquarters in Motijheel, informed of LCs opened on the inaugural day.
He said two Bangladeshi businesses – Tamim Agro and Shahjahan Mia – received export letters of credit (LCs) worth 28 million Indian rupees and two import LCs – Nita Company and Abdul Matlub Ahmad – worth 12 million Indian rupees were handed over by Sonali Bank, Eastern Bank of Bangladesh and State Bank of India and ICICI Bank.
Also read: India-Bangladesh trade using rupee instead of US dollar could start soon
NBL Securities Limited gets DSE FIX certification
NBL Securities Limited has recently received FIX (financial information exchange) certification from Dhaka Stock Exchange (DSE), which will enable them to install their own order management system (OMS) for the convenience of the investors.
NBL Securities Limited achieved this certification within the shortest possible time owing to the whole-hearted efforts of different stakeholders specially DSE IT & System TeamSK, Advisory LLC and Techetron Ventures Ltd (TVL)’s extended support throughout the process whereas DSE Team has cooperated all through for making this certification process as smooth as possible, said a press release.
It is mentionable that DSE FIX Certification is a must for the brokerage firms to launch their own OMS, which can communicate with DSE’s trading engine directly in real-time while enabling the investors to enjoy easeful and convenient trading from the comfort of their homes.
Zobayed Al Mamun Hasan, Managing Director (MD) of NBL Securities Limited, said, “I would like to express my gratitude to DSE IT, System and management team for helping us in this endeavor….With this certification, NBL Securities is opening up new windows for the investors as they can do trading from any corner of the country.”
NBL Securities Limited aims to cater the best investment experience for untapped investors hailing from all over the country and is committed to encouraging more people to invest in the capital market, the press release reads.
Bangladesh urged to strongly pursue extension of BSGI agreement
The Bangladesh businesses are "concerned" about the growing risk that Bangladesh and other countries of the world would face if the Black Sea Grain Initiative (“BSGI”) is not renewed beyond 17 July expiry date.
The businesses, therefore, urged upon the government of Bangladesh to strongly pursue the extension of BSGI agreement for further terms as it is vital lifeline for global food security.
Md. Jashim Uddin, President, FBCCI, Mahbubur Rahman, President, ICC Bangladesh, Md. Sameer Sattar, President, DCCI, Md. Saiful Islam, President, MCCI, Mahbubul Alam, President, CCCI and Naser Ezaz Bijoy, President, FICCI made the call on Tuesday.
What is Black Sea Grain Initiative and why does it matter
The BSGI has facilitated, to date, more than 32 million metric tons of foodstuffs to be exported from three Ukrainian ports to 45 countries across three continents – with the proportion of wheat exported through the Black Sea to least developed economies remaining largely unchanged from pre-war levels.
As a direct result of this trade through the Black Sea – as well as exports of food and fertilizers from the Russian Federation – the Food and Agriculture Organization reports that global food prices have dropped by 22% since March 2022.
‘A beacon of hope’: Ukraine, Russia sign grain export deal
Crucially, the World Food Programme is once again procuring wheat from Ukraine at the same volumes as in 2021 – purchasing nearly 700,000 tons through the Black Sea Grain Initiative to support humanitarian operations in Afghanistan, Ethiopia, Kenya, Somalia, Sudan and Yemen, said the Bangladeshi businesses.
Continued facilitation of Ukrainian and Russian exports of food and fertilizers thus remains crucial to global food security. By extension, any lapse in the BSGI risks severely jeopardising the availability and affordability of food for millions around the world: a situation that will have truly damaging social, economic and – above all – human consequences, they said.
Bangladesh participates in Global Sourcing Expo Sydney 2023
The three-day Global Sourcing Expo Sydney 2023 has begun at the International Convention Centre in Sydney, Australia.
Some 22 companies from Bangladesh in the fields of apparel, textile, jute, home decor, and gifts are participating in the event under the initiatives of the Bangladesh High Commission in Canberra.
Among them, eight exhibitors in readymade garments are funded by the Export Promotion Bureau of Bangladesh.
Read: Trade in Rupee with India will start a new era of trade in different currencies: Experts
Bangladesh High Commissioner to Australia, M. Allama Siddiki, and Chief Executive of the organizing firm, Marie Kinsella, inaugurated the exhibition of Bangladeshi products at the Global Sourcing Expo.
The Consul General of Bangladesh in Sydney, Commercial Counsellor and other officers of the High Commission were present there.
Australia’s global sourcing trade show is held twice a year with expos in Sydney and Melbourne. It brings together more than 350 manufacturers and suppliers from around the world.
Read: Chinese company to invest US$ 76.41 million at BEPZA Economic Zone
This international trade show provides a platform for businesses to showcase their products, explore new markets, and establish valuable connections.
The expo provides enhanced opportunities for global exporters, manufacturers, and producers to reach their targeted trade-buying audience.
Read: Deal signed to import 1.80 lakh tonnes of fertiliser from Russia
Apparel scores top in Bangladesh-Australia bilateral trade.
The ready-made garment (RMG) constitutes about 93% of total export to Australia. Bangladesh is the 32nd largest trade partner of Australia.
How to Build Social Capital to Grow Your Business
Since the COVID-19 pandemic, businesses have been navigating a rapidly changing landscape. Traditional revenue generation methods may no longer be as effective, and companies are looking for innovative approaches to drive growth. One such powerful yet often overlooked strategy is leveraging social capital. By effectively utilizing social capital, businesses can enhance revenue generation and gain a competitive edge. Let's take a look into the concept and methods of social capital building.
What is Social Capital?
Social capital refers to the value embedded within the relationships and networks a company has built with various stakeholders, including employees, customers, suppliers, and the wider community. It encompasses trust, shared norms, and mutual obligations.
Social capital can manifest in various forms, such as strong customer relationships, influential industry connections, and a supportive network of partners. It represents an intangible asset that companies can leverage to gain a competitive advantage and stimulate revenue growth.
Read more: How to Build a Successful Company?
Significance of Social Capital in Business
Social capital holds immense significance in the business realm. It enables companies to access resources, knowledge, and opportunities that might otherwise be unavailable. By fostering strong relationships with customers, companies can enhance customer loyalty, drive repeat business, and benefit from positive word-of-mouth referrals.
Additionally, social capital facilitates collaboration and knowledge-sharing among employees, leading to increased productivity and innovation. Companies with robust social capital often enjoy favorable partnerships, joint ventures, and business opportunities that arise from a strong network.
Ways to Build Social Capital for the Growth of Your Business
The following strategies can help you develop social capital and generate more revenues for your business or company.
Building A Strong Network
Building a strong network involves actively connecting with individuals and organizations within your industry and related fields. It would be helpful if you attend conferences, industry events, and trade shows to meet potential customers, partners, and influencers.
Read more: Silent Partner vs Investor in Business: Know the Difference, Pros and Cons
You may engage in networking activities both online (LinkedIn can be a great option) and offline, such as joining professional associations or participating in industry-specific forums. Attempt to actively seek opportunities to establish relationships and build rapport with key individuals.
Cultivating Relationships
Once you have established connections, it would be better to focus on cultivating meaningful relationships. It is essential to invest time and effort in nurturing these relationships by providing value, offering assistance, and sharing relevant insights. You can develop yourself as a resource by sharing industry knowledge, providing support, and connecting individuals who can benefit from each other.
By consistently demonstrating your willingness to help and contribute, you can strengthen your social capital and increase the likelihood of receiving support and referrals.
Read more: What to Consider Before Investing in a Startup or Company?
Growing Strong Customer Relationships
Try to focus on building meaningful connections with your customers. Building and nurturing strong relationships with customers is essential for utilizing social capital. Companies can focus on providing exceptional customer experiences, personalized services, and addressing their needs effectively. By going the extra mile to foster trust and loyalty, businesses can benefit from positive customer testimonials, repeat business, and increased referrals.
Walton to hold first-ever mega 'International Advanced Components and Technology Expo' in August
Along with home appliances like fridge, TV, AC, Walton is producing more than 50,000 types of industrial materials, components and solutions products, including PCB, motherboard, mold and die, nut-bolt, screw, master batch, glue, tap etc.
Most of them are being used at various stages in almost all types of industrial sectors.
After meeting local demands, Walton has been exporting these products to different countries of the world with a huge potential for further growth in exports as demands for the products have increased in the world market.
Also read: Walton sees surge in fridge sales ahead of Eid-ul-Azha
To grab such opportunities, Walton's Advance Technology Solution (ATS) Department is going to arrange the country's first-ever mega industrial expo titled 'International Advanced Components and Technology Expo-2023 (ATS)' to highlight the Walton's manufactured electrical and electronics goods, home and kitchen appliances, ICT devices, industrial materials, components, testing lab and solutions before domestic and foreign industrial buyers and visitors.
The ATS Expo-2023 is scheduled to be held from August 10 to 12 this year at the Hall No-1 of International Convention Center Bashundhara in the capital.
Also read: Walton exports ‘Made in Bangladesh’ ACs to Yemen and Mali
In this regard, Golam Murshed, Managing Director and CEO of Walton Hi-Tech Industries PLC, said that the main objective to organize the ATS Expo is to increase the domestic industries' empowerment by providing quality industrial materials, components and testing solutions to the leading industrial organizations, strengthen the growth of the industrial sector, save billions of dollars foreign currencies cutting the import bills, increase export earnings and accelerate the national economic prosperity.
He also said the ATS Expo will be the first and largest international industrial fair of a single organization in Bangladesh. Over 50,000 sorts of environment-friendly green technology energy saving electrical, electronics, home and kitchen appliance products, industrial materials, components, testing labs, facilities and machinery will be displayed in this expo.
Also read: Walton Orbit Y21 Review: Budget-friendly phone with a smart look
From now, this expo will continue every year to draw the attention of local and foreign buyers, he said, “We have a plan to organize such exhibitions outside the country”.
Along with the manufacturing plants, country's largest research and innovation center and several international standard testing labs, including NUSDAT-UTS, have been built at the Walton headquarters at Walton headquarters in Chandra Gazipur to facilitate the testing solutions of products manufactured by other leading industrial organizations of the country.
After securing the top position in the domestic market, Walton products are being exported to more than 40 countries in Asia, Europe, America, Middle East and Africa.
Also read: Walton posts Tk 250 crore profit despite dollar price hike
The international standard testing lab 'NUSDAT' established at Walton Headquarters is accredited by Bangladesh Accreditation Board (BAB). Product quality reports from BAB-accredited testing organizations are directly acceptable to member countries of International Laboratory Accreditation Cooperation (ILAC) and Asia-Pacific Laboratory Accreditation Cooperation (APLAC).
At the ATS Expo-2023, electrical and electronics goods, industrial materials, components, solutions, ICT and digital devices and also testing solutions products will be displayed in 4 categories, including Testing Solutions, Services, Products and Industrial Materials and Components.
Also read: Walton's business thrives in Q3 of FY 22-23
Trade in Rupee with India will start a new era of trade in different currencies: Experts
Bangladesh will start trade with India in Rupees in order to reduce stress on the US dollar requirements from Tuesday .
Experts and businesses opined that it will save $2 billion dollars at least annually, which Bangladesh may use for other purposes.
Besides, a significant portion of the dollar will be saved from the informal sector, which was spent by travelers to India for different purposes, following another initiative of dual currency cards, they said.
Former governor of Bangladesh Bank (BB) Dr Atiur Rahman told UNB that Bangladesh's trade in Indian Rupees will start in regional trade with an alternate currency which will also incorporate Bangladesh Taka subsequently.
Read: Despite over 8% revenue collection growth, Tk 44000 crore shortfall in FY 2022-23
This will help take some pressure off the ACU payment settlement which takes place every two months, he said.
However, this will be only a small step as there is a huge imbalance in Indo-Bangladesh trade, Dr Atiur said.
“Bangladesh exports about $2 billion to India against India exporting nearly eight times of that amount. So, our designated banks can open accounts in Indian designated banks and put export proceeds in Rupees,” he opined.
Read: Khurshed Alam elected chair of Finance Committee of the International Seabed Authority
Similarly, Indian banks can open Taka accounts in Bangladesh banks to put their export proceeds in Taka to a limited extent. The rest of the payments will continue conventionally in dollars, he said.
The dollar being the dominant currency, the trading in Indian Rupee will be only partial and experimental.
“We will learn by doing. One should not be complacent about it, although this can be a new way of transactions in regional alternate currencies,” Dr Atiur added.
Read: Bangladesh Bank working to normalise inflation and dollar crisis despite geopolitical challenges
President of India-Bangladesh Chamber of Commerce and Industry (IBCCI) Abdul Matlub Ahmad told UNB that Bangladeshi traders incur an additional cost of 4-6 percent that will be saved if taka-rupee transactions are started.
Nagad now has 8 crore customers
Mobile financial services Naga has reached of 8 crore customers recently.
Nagad celebrated the accomplishment on Sunday along with the return of its brand ambassador cricketer Tamim Iqbal, said a press release.
Also read: Nagad welcomes govt’s move to increase safety net allocation
“Nagad will play a pivotal role in building a cashless society. It will continue to go ahead and acquire more customers at a pace even faster than it has reached the 8-crore milestone,” said Tamim.
“I am a member of Nagad family. I followed Nagad even before I became part of it. It is very surprising that Nagad has acquired 8 crore customers in such a quick time. I have complete trust in Nagad family. I hope our customers will double soon,” he added.
Also read: Nagad holds 'Distributors Meet 2022'
Nagad was inaugurated on March 26, 2019 by Prime Minister Sheikh Hasina. And it quickly made a significant influence on the market. The organisation went on achieving a 1 crore customers in January of the following. In August of that year, its user base had grown to 2 crore. Nagad's clients surpassed 3 crore in March 2021, 4 crore in April, and 5 crore in June 2021. In February and December 2022, the number of its clients topped 6 crore and 7 crore, respectively, the release added.
“The positive response that we have been receiving from our customers over the last four years encourages us to go for new innovations and expand our services. We want to bring all kinds of financial transactions of all the people in our country to a digital platform. In this way, Nagad will contribute to the country’s socioeconomic development,” said Tanvir A Mishuk, founder and managing director of Nagad Limited.
Also read: Nagad became a billion-dollar company in just 3 years, 5 more Bangladeshi unicorns by 2025: Palak
Social safety net allowances and education stipends are now being disbursed through this state-owned MFS carrier. Besides, Nagad is distributing government aid and allowances of different ministries, the release also said.