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RMG: 'Bangladesh, Vietnam can grow together by sharing knowledge, expertise'
Bangladesh and Vietnam are two major players in the global apparel market, and the scope is huge for the countries to complement each other for deriving two-way trade benefits, the Bangladesh Garment Manufacturers and Exporters Association said.
"We can share our knowledge and expertise and intensify collaboration that will help both sides develop and grow together," BGMEA President Faruque said Wednesday.
"To do so, it's very important to connect businesses of two countries so that they can explore trade opportunities and seize them," he added.
A Vietnamese apparel business delegation, led by the country's ambassador to Bangladesh Pham Viet Chien called on BGMEA President Faruque Hassan in Dhaka today to discuss business opportunities and potential partnerships to promote mutual trade growth.
Other members of the delegation were Do Quoc Hung, deputy director-general of Asia-Africa Market Department of Do Van Trong, Pham Anh Dong, managing director of Viet Giang Garment, Nguyen Thi Hien, director of Vietnam Textile and Garment Sustainable Development Solutions, Pham Thi Phuong Hoa, director of Hung Yen Garment Corporation-Joint Stock Company, and Le Phuc Tien, director of Bac Giang LGG Garment Corporation.
BGMEA Director Rajiv Chowdhury and Urmi Group Chairman Ashfaque Ahmed were also present.
The discussions covered a range of topics, including global apparel business trends, current challenges and the potential of trade and investment.
The two sides also discussed opportunities that have been created in the global apparel market and avenues of working together to make use of them.
They expressed willingness to arrange more visits and meetings between businesses of Bangladesh and Vietnam to strengthen trade ties.
Make marginal profit in Ramadan, Munshi urges businessmen
Commerce Minister Tipu Munshi on Wednesday urged businessmen to make marginal profit during the month of Ramadan considering people’s sufferings.
The minister advised the common people to cross-check and shop without stepping into the trap of lucrative advertisements.
Munshi said this while speaking as the chief guest at a discussion meeting organised by the Directorate of National Consumer Rights Protection (DNCRP) on the occasion of 'World Consumer Rights Day 2023' at Bangabandhu International Conference Center in Agargaon on Wednesday.
Taking into account the suffering of the people, the Commerce Minister asked the businessmen, "There are various discount systems in different countries of the world during various festivals. They make little (profit).”
“In Bangladesh the situation is different, the holy month of Ramadan is ahead. Be a bit more moderate. Keep prices reasonable in this month, less profit margin less,” he added.
The minister also said: “Consumer rights are human rights. When we can inform consumers about all their rights, half of our work will be done. Consumer awareness is very important.”
The government is working on this, he said.
Munshi urged people not to buy products in a rush during Ramadan. “Once you buy a product a plenty, it affects the market, and then the traders take it as an opportunity to hike price abnormally.”
The President of the Consumers Association of Bangladesh Golam Rahman in his speech called for strengthening the government's steps to reduce the unequal competition in the market as well as the necessary reform of the legal framework and to be proactive in its implementation.
Senior commerce secretary Tapan Kanti Ghosh, FBCCI vice president Mostafa Azad Chowdhury Babu, DG of DNCRP AHM Shafiquzzaman, TCB Chairman Ariful Hasan, First Director General of Consumer Affairs, Department Abul Hossain Mia, Competition Commission Chairperson Pradeep Ranjan Chakraborty, among others, were present at the function.
Munshi also distributed prizes among the winners of the Essay Competition organised on the National Consumer Rights Day.
Walton Digital Campaign: 1 more customer gets 101 products for free
Md Nazrul Islam, a businessman from Morrelganj municipality of Bagerhat, has got a total of 101 products for free after purchasing a refrigerator of Walton brand.
Walton has been providing the facilities to its customers under the ongoing ‘Digital Campaign Season-17.’ Earlier, another customer Jashim Uddin from Ramu upazila of Cox’s Bazar also got 101 free products after buying a Walton fridge.
Walton has been conducting the ‘Digital Campaign’ across the country to accelerate the initiative to building a customer database for delivering online-based swift and best after-sales service.
Various benefits are given to customers to ensure their spontaneous participation in this process. Under the campaign, customers may get 101 free products or cash vouchers of up to Tk one lakh or sure gifts.
On last Monday, Walton Plaza’s Chief Executive Officer (CEO) Mohammad Rayhan, Walton Hi-Tech Industries’ Deputy Managing Director (DMD) Humayun Kabir and Senior Executive Director popular actor Amin Khan officially handed over the 101 free products to Nazrul Islam at a function held at Morrelganj Walton Plaza.
Morrelganj Upazila Chairman Shah-E-Alam Bachchu and Vice-Chairman Mozammel Haque Mozam, female Vice-Chairman Fahima Khanam, local police station Officer in-charge Saidur Rahman and other Walton high-ups were also present.
Nazrul Islam, director of Bashundhara Diagnostic Complex and president of Sharankhola Diagnostic and Clinic Owners Association, purchased a 226-liter refrigerator from Morrelganj Walton Plaza on March 6.
Later he received an SMS on his mobile phone from Walton with the notification of getting 101 free products upon registration of the fridge under digital campaign.
The 101 free products included Walton fridge, AC, smart TV, washing machine, air cooler, microwave and electric oven, ceiling, pedestal, tornado and rechargeable fans and rice cooker.
Thanking Walton, Nazrul Islam said that he has been using Walton products at home and in his office.
“We are fully satisfied with Walton products because for their international standard and services with various facilities. I like Walton’s digital campaign concept and it is unbelievable that customers are getting 101 products with purchasing only one product,” he said, adding that his respect and trust on Walton have been increased as they kept their promises.
Walton Plaza’s CEO Mohammad Rayhan said Walton always provides best products and services to customers.
Usage of electronics products is increasing through such campaigns with strengthening national economy.
BGMEA urges EU to consider transition period extension
BGMEA President Faruque Hassan has urged the European Union to consider an extension of the transition period of GSP (EBA) from 3 years now to 6 years for ensuring smoother graduation.
He made the call while speaking at a seminar on “50 Years of EU-Bangladesh Partnership:
Charting Ahead on A Legacy of Success” organized by Research and Policy Integration for Development (RAPID) in Dhaka on March 14.
Dr. Mashiur Rahman, Economic Affairs Adviser to the Prime Minister, attended the seminar as the chief guest while Charles Whiteley, Ambassador and Head of Delegation, Delegation of the European Union to Bangladesh was present as special guest.
Professor Dr. Imtiaz Ahmed, Professor Dr. Lailufar Yasmin, UNDP Country Economist Dr. Nazneen Ahmed also spoke at the seminar.
Dr Abdur Razzak, chairman of RAPID, presented the keynote addres.
In his speech, Faruque Hassan pointed out the challenges for Bangladesh after its graduation from the LDC category.
He stressed economic diplomacy and industry capacity development to face challenges.
“The government of Bangladesh has taken a number of steps required to mitigate the challenge, particularly through engaging diplomatically, as well as at the local industry level,” he said.
He also said, “In addition to building the capacity of the industries, the overall efficiency of the country's trade logistics infrastructure will be crucial, and the government is implementing a number of mega projects to fill in that gap.”
BGMEA for stakeholders collaboration to achieve shared sustainability goals
BGMEA President Faruque Hassan has urged all the stakeholders, including buyers, to join hands together to achieve shared goals around sustainability in order to secure a safe and bright future.
“To what extent climate change will change the world is still unclear, but one thing is certain: businesses can no longer grow at the cost of the environment. The decisions taken now and in the coming years will affect the planet,” he said.
All would have to play their respective roles to protect the planet from peril, the BGMEA chief said.
He made the comments while addressing a seminar on “Promoting circularity for a sustainable RMG sector in Bangladesh” as a special guest.
Salman F Rahman MP, Private Industry and Investment Advisor to the Prime Minister, Charles Whiteley, Ambassador and Head of Delegation, Delegation of the European Union to Bangladesh; Winnie Estrup, Ambassador of Denmark to Bangladesh, Silje Fines Wenebbo,?Charge the Affairs of Norway Embassy and Tahrin Aman, President, Nordic Chamber of Commerce and Industry, also spoke at the seminar organized by NCCI and Nordic embassies in Dhaka on March 14.
Highlighting the achievements of Bangladesh’s garment industry, Faruque Hassan said, “Bangladesh RMG industry’s march toward environmental sustainability is unprecedented and unmatched anywhere in the world. It is also a manifestation of Bangladeshi apparel makers’ commitment to take the sector forward and meet ESG standards throughout the manufacturing process.”
Calling on brands to support their suppliers in sustainability efforts, he said, “Brands are pressing us for a net-zero road map in line with their own strategic targets of becoming climate neutral. When the brands are setting ambitious targets, it is their responsibility to make sure that no one is left behind in the supply chain.”
He also put emphasis on assisting SMEs in adopting sustainable practices.
“We also have to keep in mind that SMEs represent the majority of the BGMEA member factories, and given the ambitious goals made by brands towards sustainability, it is harder for them to invest in issues like circularity or overall climate change. So, it is imperative that we keep them in our mind while designing the business model or offering a collaborative approach.”
Bangladesh a safe destination for investment, speakers tell FBCCI-sponsored Business Summit
Speakers in different plenary sessions on the second day of the Bangladesh Business Summit 2023 said that the country is secure for investment with the advantage of a low-cost workforce and lucrative tax exemption offers for both domestic and foreign investors.They said Bangladesh has also the advantage of being the hub for regional connectivity for several big markets of Asia.
Commerce Minister Tipu Munshi said that investment in Bangladesh is much more affordable, attractive, and safe than in other countries of the world. China, Korea, and Japan have already invested here, he said.
“The development work of 100 economic zones of the country has also progressed. There is an export target of $100 billion by 2031,” he added. Prime Minister's Advisor on Private Industry and Investment Salman F Rahman said Bangladesh has a more affordable and safer investment environment than other countries in the world.“Investing in this country will save 47 to 84 percent of cost for workers, and 41 to 69 percent of operational spending,” he said.State Minister for Foreign Affairs Shahriar Alam said, “Infrastructure development has taken place around our mega project. Many other developments, including Padma Bridge, Karnaphuli Tunnel, and Payra Bridge have been made to facilitate investment and business.Bangladesh has the most green factories in the world. The top cleanest green factory in the world is also in the country, he said.“We have a safe working environment, come here, we have all facilities, for investors,” said Alam.
Ministers from seven countries, including the United Kingdom, Saudi Arabia, China, Bhutan, and the United Arab Emirates, chief executive officers of 12 multinational companies, more than 200 foreign investors’ representatives, and business leaders from 17 countries participated in the summit. FBCCI organised the summit to celebrate 50 years of its foundation.FBCCI called for highlighting Bangladesh's achievements in the economy in 50 years.
Prime Minister Sheikh Hasina inaugurated the three-day summit at the Bangabandhu International Conference Centre (BICC) on Saturday.On Monday (March 13) several sessions will be held on circular economy, public-private partnership, hi-tech and automobiles, SMEs development, pharmaceuticals and healthcare, Special Economic Zone, women’s participation, tourism and blue economy.
AMTOB gives 16 proposals including reduction of corporate tax rate to NBR
The Association of Mobile Telecom Operators of Bangladesh (AMTOB), a platform representing all telecom operators in the country, presented 16 proposals including a reduction of the corporate tax rate on mobile phone operating companies in the next budget.
"We propose to remove or reduce the minimum tax. Mobile operators are required to pay a minimum tax of 2% of their annual gross revenue which is in conflict with the Income Tax Act. Paying minimum tax despite loss in business means paying tax out of capital which is a barrier to business expansion," AMTOB Secretary General Brig Gen (retd) SM Farhad said during the pre-budget discussion meeting with the National Board of Revenue (NBR) on Sunday.
AMTOB also proposed to withdraw the minimum turnover tax and abolish the tax of Tk200 imposed on SIM cards.
"There is no alternative to removing or reducing the minimum tax in favour of sustaining the industry and building the Digital Bangladesh, as announced by the government," he added.
"The high rate of corporate tax should be reduced. The general corporate tax rate in the country is 27.5% for unlisted companie and 20% to 22.5% for listed companies. However, despite being an essential service, Bangladesh's mobile sector has to pay a high rate of corporate tax. The tax rate is 40% for listed mobile operators and 45% for unlisted companies," he added.
"In terms of taxation, instead of classifying mobile operators as a separate category, we demand that they be reorganised in line with other companies and that the tax be reduced at that rate," he further said.
The AMTOB Secretary General also said that the mobile phone sector is one of the sectors that provide the most revenue to the government in Bangladesh.
"We need to remember that the top three operators in the mobile sector are all foreign investors and their contribution to the socioeconomic development of the country is immense,” he said.
He said that from the main source of people's telecommunication and internet access to banking, mobile money, ride sharing, e-commerce, education, or e-courier, all sectors are directly or indirectly dependent on mobile.
“As the growth of mobile service providers increases, customers will get better quality services and the government will get more revenue," he added.
"Even then it is seen that the government is imposing new taxes every year in this sector. If the growth of the mobile sector is not encouraged by rationally considering the taxation system of the mobile sector, it will have an impact on all other sectors," SM Fahad added.
Besides, there is no clear guideline for VAT removal for Govt. regulatory organisations as per new VAT & SD ACT 2012. Government agencies and regulators are not following VAT- control proportionately.
“For this reason, operators are ultimately suffering. There needs a clear guideline for solving this problem,” he said.
He said that there is no separate HS coding system for telecom machinery, equipment and software , and the organisations have to import under different HS code.
“HS coding systems are currently hampering telecom operators' antenna designing and customisation solutions. This complicates unreasonable tax assessments and VAT rebates,” he added.
Overall inflation rose by 8.78 percent in February: BBS
The inflation rose again in February after five consecutive months of declining trend amid depreciation of taka against US dollar.
According to the Bangladesh Bureau of Statistics (BBS), food inflation also increased along with overall inflation. However, non-food inflation remained unchanged.
The statistic shows that overall inflation rose by 8.78 percent in February. In January, overall price inflation was 8.57 percent.
In February, 8.19 percent of inflation was in food and 9.98 percent in non-food products. At that time, there was a 7.98 percent inflation in food products and 9.61 percent in non-food products in the city.
In August last year, inflation rose to over 9 percent. That rate of inflation was the highest in the last 11.9 years (144 months). In May 2011, the highest rate of inflation was 10.20 percent. Then inflation never exceeded 9 percent.
Read: Bangladesh for speedy implementation of BIMSTEC Free Trade Area
After August 2022, the inflation rate continued to decline again. In January this year, it decreased by 8.57 percent.
On the other hand, according to the latest inflation estimates, inflationary pressure is still higher in rural areas than in urban areas.
In February, the overall inflation rate in urban areas was 8.75 percent, while in rural areas it was calculated at 8.80 percent. In addition to overall inflation, the rate of inflation in rural areas was higher in both the food and non-food sectors.
Meanwhile, the prices of goods in the market saw an increasing trend even though the inflation rate decreased according to the government in the last few months.
Even the cost of broiler chicken, one of the major sources of protein for low-income people, has risen above the bicentennial mark. As a result, common people are not in comfort zone for many days, said SM Nazer Hossain, vice-president Consumers Association of Bangladesh (CAB).
While prices of most commodities in the market have risen in recent weeks, the prices for a number of commodities that have fallen is very small.
In such a situation, the statistics of the increase in the inflation rate were published in February.
Eggs, broiler chicken, and cultured fish are key protein sources for millions of limited-income groups of people in the country. But the people of lower-income groups are cutting intake of these protein-rich foods because of rising prices to adjust to their limited income, he said.
Young will drive economic growth of Bangladesh: BGMEA President
BGMEA President Faruque Hassan has laid emphasis on providing young people with the skills, knowledge, and resources they need to succeed in the business world as they achievements would contribute to building a more prosperous and better Bangladesh.
“We have a young and vibrant population that has the potential to drive economic growth and lead Bangladesh to the position we aspire to reach,” he said.
He called on students to gather knowledge and master skills to build themselves keeping pace with the changing trends in the world so that they could unleash their potential and create a better future for themselves and the country as a whole.
Faruque Hassan made the observations while addressing the opening ceremony of the “1ST DRMC National Business Carnival 2023” as chief guest in Dhaka on March 10.
Principal of DRMC Brigadier General Kazi Shameem Farhad, ndc, ps chaired the opening ceremony.
The business carnival organized by Dhaka Residential Model College’s Business and Career Club is being held from 10 to 12 March at the college campus with 23 amazing segments to participate in.
The carnival is supported by BGMEA.
In the carnival, there will be different types of Olympiads, including accounting, finance, marketing, management, economics, analytical ability, and general knowledge.
Praising the DRMC Business and Career Club for their the initiative of organizing the business carnival, the BGMEA President said such kind of event was a very useful platform for students to interact with industry professionals and learn about the latest happenings in the business world.
The carnival would enrich the experience of the students and inspire them to venture into the business world, he said.
“We have to equip our students with entrepreneurial skills such as business planning, marketing, and financial management along with fostering a mindset of innovation and resilience,” he further commented.
He expressed hope that DRMC would continue the initiative for the students in the coming days.
He invited all, including BGMEA members, to visit the carnival and inspire students who are displaying their ideas there.
'Hazaribagh leather cluster an example of products diversification for SMEs'
The speakers at a seminar Thursday said cluster-based specialised product development will accelerate the pace of product diversification and enhance the capacity of small entrepreneurs.
A cluster of luxury and quality leather products has been developed in Hazaribagh of the capital after the relocation of the heavy leather industry to Savar, they added. "The annual turnover in this cluster is about Tk60 crore."
They were speaking at a seminar on the potential and future of leather products in the Hazaribagh cluster in the capital's Agargaon.
Abdul Hamid, director general of the Department of Environment, and SME Foundation Chair Md Masudur Rahman spoke at the event.
The SME Foundation is supporting product upgrades, diversification, and skill development in the cluster.
According to the SME Foundation's cluster mapping study, various products, including leather shoes, belts, wallets, jackets, and official bags are produced in the leather cluster, developed in the old tannery village in Hazaribagh of the capital.
There are around 350-400 shops, showrooms, and small factories of leather goods in the area, from Hazaribagh Tannery Lane to Leather Technology College, Hazaribagh Bazar, and Dhanmondi 15 Bus Stand Lane.