business
Strengthened Bangladesh-US collaboration holds promising trade opportunities: BGMEA President
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan on Thursday said if the U.S. government permits duty-free access for garments made from U.S.-imported cotton, it could further enhance trade relations.
"It would encourage Bangladeshi garment exporters to use more cotton imported from the US for export," he said.
This move, he explained, would not only benefit Bangladeshi RMG exporters but also contribute to a win-win situation for U.S. cotton growers, suppliers and apparel consumers as well.
Considering Bangladesh’s position as the world’s second-largest cotton-importing country, such collaborations hold strategic importance, he opined.
Faruque Hassan expressed optimism about the prospect of closer cooperation that would contribute to mutual economic growth and prosperity.
He emphasized the potential for increased trade benefits through enhanced collaboration between Bangladesh and the United States.
Zaved Akhtar new president of FICCI
Zaved Akhtar, Chairman and Managing Director of Unilever Bangladesh Limited, has been elected the President of Foreign Investors' Chamber of Commerce and Industry (FICCI) for the tenure of 2024-25.
Eric. M. Walker, Managing Director of Chevron Bangladesh, and Yasir Azman, Chief Executive Officer of Grameenphone Limited were elected as the Senior Vice President and Vice President, respectively.
Justice and freedom cannot be ignored for development, says Prof Osmani at BIDS Conference
They were elected at FICCI’s 60th Annual General Meeting (AGM) held at the Westin Dhaka on Wednesday, the Chamber said in a press release on Thursday.
Zaved Akhtar will succeed Naser Ezaz Bijoy, Chief Executive Officer of Standard Chartered Bank, who served FICCI as the President for the period of 2022-2023.
The newly elected 15 members of the Board of Directors will take charge on January 01, 2024, after the expiration of the tenure of the incumbent board on 31st December 2023, reads the release.
Padma Bank Launches “Bijoy-71” FDR to celebrate Month of Victory
Zaved Akhtar said “It is with great honour and a sense of profound responsibility that I accept the role of the President of FICCI, a chamber that has been fundamental in sculpting the economic fabric of our nation. Since its inception, FICCI has been a driving force in transforming Bangladesh into a beacon of investment—bringing in 90% of the Foreign Direct Investment (FDI) and fostering a business-friendly ecosystem that has been instrumental in the growth journey of the country.”
“I would like to thank my predecessor Nasir Ezaz Bijoy for his steadfast leadership in driving FICCI’s success for the past two years, and I am looking forward to working closely with the dedicated FICCI Board of Directors and the distinguished representatives from our member companies to take FICCI to newer heights. Together, we will not only uphold the chamber's illustrious legacy but also amplify its impact, and work towards the nation's vision of evolving into a smart and advanced economy by 2041,” he added.
KSA keen to enhance trade with Bangladesh in food, energy, logistics, and manufacturing sectors : FBCCI
Chamber’s current President Naser Ezaz Bijoy expressed his gratitude to FICCI Board of Directors for their enormous support throughout his journey with FICCI as the President.
Members of FICCI outgoing and newly elected Board of Directors, representatives of FICCI member companies were present at the AGM.
Justice and freedom cannot be ignored for development, says Prof Osmani at BIDS Conference
Freedom and justice cannot be ignored for development as the absence of justice even leads to a negative impact on the development, said SR Osmani, professor of development economics at the University of Ulster in the UK.
He said governments should work to ensure justice through equal resource allocation for all citizens, the rule of law, and freedom of speech as a pathway of a welfare government.
Professor Osmani said this while delivering a keynote speech at the opening session of the Annual BIDS Conference on Development-2023, with the theme of development, justice and freedom at a hotel in Gulshan, Dhaka on Thursday.
Planning Minister MA Mannan was the chief guest at the conference while former adviser to the prime minister Mashiur Rahman was present as the special guest. Binayak Sen, Director General of the Bangladesh Institute of Development Studies (BIDS), moderated the programme.
"If there is a lack of freedom and justice, credit discrimination occurs and the poor do not get adequate funds, which can lead to social instability," said Professor Osmani.
Under the situation, according to the economist, the private sector holds back investments, which ultimately deters development.
He said governments should not be fanatical with development. "Rather, they should be obsessed with freedom and justice by ensuring the rule of law and good governance,” he added.
Planning Minister MA Mannan shared examples of countries that have developed significantly despite their governments being autocratic.
He said some people say if a government stays in power for a long time, it may become an autocrat and autocracy deters development. "How Malaysia and Singapore developed if it is really true?"
In Malaysia, Mahathir Mohamad was in power for a long time and he led the country to progress. The same happened in Singapore, the planning minister said.
"I expect economists to discuss the impact of the continuity of a government and political stability in development," Mannan pointed out.
"Life is a product while freedom and justice are by-products, not basic things. We are trying to ensure a better life for people. We have to work more for the people who remain at the bottom of the pyramid,” the minister said.
Binayak Sen said lack of democracy and freedom of minds of people become like stone, and justice is ignored, so these things are equally required for a welfare society.
The conference will continue till December 9. The conference will feature a total of 18 papers, 5 special seminars, and 7 public lectures, encompassing various themes such as macroeconomic challenges and policy options, democratic socialism, post-COVID crisis analysis, the Rohingya refugee crisis, the ready-made garments (RMG) sector, updated growth experiences in South Asia, global price shocks and food security, megatrends in gender, population, and development, taxation, unpaid care work, evolving global order, geo-economic spectrum, agrarian change in contemporary Bangladesh, Sustainable Development Goals (SDGs), and more.
Esteemed scholars like Wahiduddin Mahmud, Ahsan H Mansur, Binayak Sen, Atiur Rahman, Sajeda Amin, Naila Kabeer, Zaidi Sattar, Hossain Zillur Rahman, Qazi Kholiquzzaman Ahmad, Ahmed Mushfiq Mobarak, Syed Abdul Hamid, Patrick Alexander Kirby, Siddharth Sharma, Daniel Resnick, James Thurlow, Paul Dorosh, Gaurav Datt, Syed Moinul Ahsan, Dileni Gunewardena, Ahmad Ahsan, M. Niaz Asadullah, Gayatri B Koolwal, Geof Wood, and others will present key insights on pivotal issues in contemporary development discourse.
The conference will conclude with an expert panel discussion titled ‘Economic Policy: Addressing Policy Challenges in the Context of Global and Domestic Uncertainty,’ bringing together distinguished economists, policymakers, civil society members, and stakeholders.
Padma Bank Launches “Bijoy-71” FDR to celebrate Month of Victory
In the month of Victory, Padma Bank has unveiled its new product titled: Bijoy 71.
In an effort to celebrate Victory Day with its clients, Padma Bank has offered its clients the opportunity to open a fixed deposit plan at a lucrative 9 percent interest rate in just seventy-one (71) days.
According to the bank, the product was recently formally inaugurated at the bank's head office in Gulshan.
Read: BGMEA urges members to strengthen business capabilities amidst changing dynamics
In just 71 days, customers will receive a year's worth of profit rate. At this time, no other banks or financial organizations are providing such an offer. Mir Shafiqul Islam, head of retail banking division, noted this as another success and stated that victory calls for celebration.
Read: NBR selects 525 best taxpayers from districts and city corporations
Besides, Padma Bank recently introduced a new monthly savings scheme. The starting amount is from five hundred and its multiples to twenty-five thousand for a period of 3, 5, 8, and 10 years. Under this special offer, the customer will receive 11% to 14% interest rate.
BGMEA says it doesn’t support clause only applicable to Bangladesh in LC from buyers
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has said it does not support inclusion of any clause in commercial instruments if it applies only to trade with Bangladesh and creates confusion.
“We have seen similar instances in the past, of quoting an LC clause from a buyer to generalize it as a sanction on Bangladesh, and made our position clear against such misrepresentation of fact,” said the apex body of the apparel exporters in a clarification.
BGMEA urges members to strengthen business capabilities amidst changing dynamics
A copy of a letter of credit (LC) from a foreign buyer to one of the BGMEA members has come to the association’s attention.
The LC contains the text: “We will not process transactions involving any country, region or party sanctioned by the UN, US, EU, UK. We are not liable for any delay, non-performance or/disclosure of information for Sanctions Reasons.”
BGMEA President calls for collaborative efforts to navigate challenges in RMG industry
There is a concern and confusion caused by the interpretation of this clause that a sanction might have been imposed against Bangladesh, which is not correct, BGMEA said.
BGMEA urged its members, receiving LCs with such clause as mentioned above, to communicate with the respective brand(s) and solicit a clarification.
BGMEA calls for speeding up customs clearance for RMG sector
“If the clause appears only in the LCs issued in favor of Bangladeshi suppliers, then this violates ethics. In such a scenario, we would urge our member factories to take the matter with utmost importance, and, if necessary, to review/reconsider continuing business with such buyer(s),” it said.
BGMEA said the global trade landscape is changing fast; human rights and environmental issues are getting increased priorities, while geopolitical issues are also influencing trade.
“Since Bangladesh’s economy and its growth are heavily reliant on trade, any development around trade policy concerns us,” it mentioned.
This is to be noted that the LC came from a particular buyer, and this is not a statutory order or notice by any country. So, this should not be misinterpreted as a measure of trade enforcement or economic sanction on Bangladesh, BGMEA said.
“We understand that human rights and environmental due diligence is of increased importance for many of our export markets. The Government of Bangladesh is engaged with our trade partners,” it said.
The US Presidential Memorandum signed on November 16, 2023 to “advance worker empowerment, rights, and high labor standards globally” adds significant weight to the ongoing global labor campaign, as it appears to be quite unique in terms of engagement and enforcement.
“We respect the spirit of it and find an alignment with its core principles. Though the Memorandum stipulates a number of measures including ‘deploying the full range of diplomatic and assistance tools and, as appropriate, financial sanctions, trade penalties, visa restrictions, and other actions,’ however, this is not adopted for Bangladesh, rather it is a unilateral stance of the United States of America on workers’ rights issue,” BGMEA observed.
KSA keen to enhance trade with Bangladesh in food, energy, logistics, and manufacturing sectors : FBCCI
The Kingdom of Saudi Arabia (KSA) is keen to strengthen trade ties with Bangladesh in several areas including food, energy, logistics, and manufacturing.
Saudi entrepreneurs expressed their interest regarding this during a meeting at the Saudi Bangladesh Business Council hosted by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) in Dhaka on Wednesday.
Investment Minister of Saudi Arabia Engr. Khalid A. Al-Falih joined the meeting as the chief guest.
The Saudi Investment Minister said Bangladesh is one of the closest friends of Saudi Arabia and both countries enjoy an excellent bilateral friendship.
The Saudi Minister said Bangladesh and Saudi Arabia have trade relations in a few areas. “But now is the time we look for ways on how we can strengthen trade for the mutual benefit of both of the countries. Saudi Arabia’s support to Bangladesh will continue in the future”, he added.
Prime Minister’s Private Industry and Investment Advisor Salman F. Rahman urged Saudi Arabian businessmen to invest in Bangladesh.
Read: BGMEA urges members to strengthen business capabilities amidst changing dynamics
Pointing out the trade potential between Saudi Arabia and Bangladesh he said that the Bangladesh government will provide full support to the businessmen of both countries to utilise these potentials.
The FBCCI President Mahbubul Alam said Bangladesh enjoys excellent bilateral relations with Saudi Arabia. “The ties between Bangladesh and Saudi Arabia are mostly based on common Islamic traditions, culture and mutual respect,” he added.
Inviting the Saudi investors to invest in Special Economic Zones, Mahbubul Alam said Bangladesh government has allocated 300 acres of land in the Bangabandhu Sheikh Mujib Shilpa Nagar’s to establish the Saudi Arabia SEZ.
Deputy Minister for Investors Outreach of KSA Badr I. AlBadr said Saudi Arabia is looking forward to boosting bilateral trade with Bangladesh.
Read: NBR falls behind target to install 3 lakh machines to collect VAT
“We want to diversify our investment in Bangladesh. We’re looking forward to starting with a few selected sectors, but in the future Saudi Arabia is going to collaborate in many areas with Bangladesh. KSA and Bangladesh will work together to resolve challenges in the future,” he said.
Among others, Chairman of the Saudi Bangladesh Business Council Ayad Al Amri, Ambassador of KSA in Bangladesh Essa bin Yousef Al Duhailan, FBCCI Vice President Khairul Huda Chopol, Dr. Joshoda Jibon Deb Nath, Md. Munir Hossain, Directors, and Business Dignitaries from Bangladesh and Saudi Arabia were present at the business council meeting.
Also read: Saudi company to operate Patenga Container Terminal under deal with CPA
BGMEA urges members to strengthen business capabilities amidst changing dynamics
President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Faruque Hassan has called upon apparel exporters to boost their business capabilities in order to adapt to evolving market dynamics.
Speaking at a meeting with BGMEA members of the Chittagong region on December 5, he urged them to adopt a pragmatic approach in business negotiations, planning, and restructuring investments to cope up with the emerging challenges.
“While the RMG industry is currently navigating through challenging times, addressing immediate concerns, it is imperative for us to think long-term to stay competitive in the global market,” said Faruque Hassan.
The meeting was attended by BGMEA First Vice President Syed Nazrul Islam, Senior Vice President S. M. Mannan (Kochi), Vice President (Finance) Khandoker Rafiqul Islam, Vice President Md. Nasir Uddin, Vice President Rakibul Alam Chowdhury, former First Vice Presidents S. M. Abu Tayeb and Nasir Uddin Chowdhury, along with Directors of BGMEA.
Faruque Hassan provided an overview of the current status of the RMG industry, with focus on the impacts of the global economic situation, challenges associated with implementing new wage structures, and the priorities to maintain industry competitiveness in the long run, said a media release on Wednesday.
He also mentioned that the industry is going through many challenges including increased cost of production due the hike in prices of electricity, gas, and bank rates.
Highlighting the recent increase in minimum wage, Faruque Hassan said the hike aims at ensuring a decent livelihood for the industry’s workers.
Ensuring workers'well-being means enhancing their productivity, which benefits the industry.
He urged the garment manufacturers to engage in discussions with buyers for a rational increase in prices to support the implementation of the new minimum wage.
“I have already written to our valued buyers, requesting them to adjust prices for orders, considering the standard of living of our workers and inflation,” remarked Faruque Hassan.
He emphasized the importance of fair prices and ethical sourcing for a smooth transition to the new wage scale.
BGMEA is actively collaborating with the government and various stakeholders to support the sustainable development of the RMG industry.
Faruque Hassan called upon the member factories to find innovative ways to optimize costs, invest in technologies to enhance efficiency, and reduce waste.
Acknowledging the industry’s current challenges, Faruque Hassan expressed optimism of overcoming them through collective efforts.
“We faced challenges before and emerged even stronger. With our collective efforts, we will be able to overcome all challenges and ensure a brighter future for the industry,” he said.
NBR falls behind target to install 3 lakh machines to collect VAT
Under a scheme to bring transparency and modern approach in collecting VAT from businesses the National Board of Revenue (NBR) started installing 3 lakh Electronic Fiscal Devices (EFDs) three years ago, but the revenue agency could set up only 18,005 devices in two years, said the revenue agency’s chairman.
Once completed, the NBR believes that an additional Tk20,000 crore would be possible to be collected. Because of such a sluggish progress in installing the devices, the NBR has assigned private company Genex Infosys Limited to speed up the process.
Also read: NBR selects 525 best taxpayers from districts and city corporations
NBR Chairman Abu Hena Md. Rahmatul Muneem revealed the information in a press conference on the occasion of marking the VAT Day at the NBR Building in Agargaon on Wednesday.
The NBR launched the project on August 25, 2020, but the progress was not satisfactory after two years of launching the scheme.
The chairman said that the NBR and the Genex have installed the device in 18,505 business establishments, including 500 SDCs (sales data controllers).
Also read: Revenue collection up by 14.36 percent in July-October, but behind target: NBR
Now the target is to set up 30,000 EFDs and SDCs by December this year and 60,000 EFDs and SDCs every year. Three lakh devices would now be installed over the next 5 years.
With the machines, taxpayers would be able to automatically submit tax returns and pay tax online.
Muneem said that the VAT payers should continue participating in the monthly lottery using EFD machines-produced challans while purchasing goods or services.
The lottery draw of the EFD challan is held automatically in the first week of every month. The lottery has 101 prizes ranging from Tk 1 lakh to Tk 10,000. The issue will be widely publicised on the VAT Day and the VAT Weeks, he said.
He said that the purpose of observing the VAT Day and the Week is to increase public engagement and awareness in VAT collection.
Also read: NBR extends tax return submission deadline by two months
HATIL: Pioneering the Bangladeshi Furniture Industry Landscape
Bangladesh’s furniture industry landscape has been shaped by several visionary enterprises, and among them, HATIL stands tall as the country’s leading furniture brand.
With a considerable annual growth rate, the furniture industry in Bangladesh has made an extraordinary leap in recent years.
According to the Export Promotion Bureau, the current size of the furniture industry in Bangladesh is worth Tk 25,000 crore.
However, the number is close to Tk 30,000 crore, according to estimates of Bangladeshi furniture manufacturers.
Leading the drive towards this growth is HATIL Complex Ltd, recognized as a game-changer in the country’s furniture industry.
Established nearly three decades ago, HATIL has grown from a modest door manufacturer to an industry leader with two cutting-edge factories and more than 70 outlets across the country, making its indelible presence felt in the global market.
Roots and Entrepreneurial Vision
Rooted in the entrepreneurial spirit of Selim H. Rahman, the company's founder, HATIL embarked on its journey by recognizing an untapped niche in the furniture market. Starting as a door seller, Rahman's astute observation of the industry's missing parts propelled HATIL's evolution into a comprehensive furniture solutions provider.
Saudi company to operate Patenga Container Terminal under deal with CPA
The Red Sea Gateway Terminal International (RSGT), a Saudi company, and Chittagong Port Authority (CPA) on Wednesday signed a concession agreement to manage and operate the Patenga Container Terminal.
Prime Minister Sheikh Hasina and visiting Saudi Investment Minister Khalid A. Al-Falih witnessed the signing ceremony held at the Prime Minister’s Office.
CPA Chairman Rear Admiral Mohammad Sohail and CEO of RSGT Jeans O. Foley signed the agreement.
Before the event, the Saudi minister had a courtesy meeting with the prime minister at her office.
Saudi Minister Khalid A. Al-Falih arrived here on December 5 on a two-day visit.
It will be the first foreign company to receive Bangladesh’s offer to operate its ports.
RSGT is an international terminal operator representing a partnership between the Red Sea Gateway Terminal of Saudi Arabia and the Malaysian Mining Company (MMC).
The combined assets, handling capacity and experience place the terminal operations among the ten largest container terminal operators globally, with a combined annual handling capacity of 20 million TEUs, and equity-weighted throughput of over 10 million TEUS.
RSGTI will operate the Patenga Container Terminal for the next 22 years.
In May this year in Doha, Saudi Arabia offered to make large scale investment in various sectors of Bangladesh as the country has a stable government and good record of economic growth.
Saudi Arabian Minister of Investment Khalid A. Al-Faliah and Minister of Economy and Planning Faisal Alibrahim came up with the offer when they jointly called on Prime Minister Sheikh Hasina at her place of residence in Doha recently.