FBCCI
FBCCI President urges expatriate Bangladeshi businessmen to invest in economic zones
Speakers at a discussion organised by Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) emphasized establishing Europe-Bangladesh Chamber of Commerce in order to expand trade with Europe.
They said although many products other than readymade garments are exported to Europe the consumers are mainly expatriate Bangladeshis.
Those products are not yet well known in the mainstream market and such a chamber can work to improve the situation, they said.
READ: FBCCI demands corporate tax cut in backward linkage industry
President of France-Bangladesh Economic Chamber Kazi Enayet Ullah spoke at the discussion meeting at FBCCI on Saturday.
Kazi Enayet Ullah said that the initiative is planned to be implemented by next July.
With the establishment of the Europe-Bangladesh Chamber of Commerce, it will be possible to ensure the visible presence of Bangladeshi products in the main European economy,he said.
Through this chamber, various activities will be undertaken to enhance bilateral trade and attract European investment, he added.
Kazi Enayet Ullah called on the Bangladesh government to create a skilled workforce saying the European labour market has changed dramatically since the Coronavirus pandemic and it needs huge manpower.
Earlier in his welcome address, FBCCI President Md. Jashim Uddin said that many Bangladeshis have established themselves abroad as businessmen.
He urged them to take a special economic zone in Bangladesh.
Highlighting the country's investment-friendly policies, the FBCCI chief said the income of the people of Bangladesh is increasing day by day. “Due to a large number of population, the domestic market of this country is also huge. Therefore, by investing in this country, expatriates can play a greater role in the economic development of Bangladesh.”
He said PWC is conducting a study on the London market under the initiative of the FBCCI, adding that the results of the study would be known in the next few months.
Based on the research outcome, FBCCI will take necessary measures to popularize Bangladeshi products in foreign markets. Similar research initiatives will be undertaken in other countries in future.
At the same time, Md. Jashim Uddin called upon the France-Bangladesh Economic Chamber to brand Bangladesh in France.
The President of the All-European Awami League M. Nazrul Islam, Executive Director of France-Bangladesh Chamber of Commerce and Industry Rubaba Navera Sayeed, Vice President of France-Bangladesh Economic Chamber Fakhrul Akon Selim and FBCCI Advisor Manzur Ahmed also spoke at the meeting.
Among others, FBCCI President Md. Habib Ullah Dawn, Director Priti Chakraborty, Dr. Ferdousi Begum were also present at the meeting moderated by FBCCI Secretary General Mohammad Mahfuzul Hoque.
FBCCI demands corporate tax cut in backward linkage industry
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has demanded reduction of corporate tax in the backward linkage industries to help their growth.
Businesses have demanded a corporate tax fixed at 10 to 15 per cent for the backward linkage industry to increase competitiveness.
They came up with this call at the first meeting of the FBCCI Standing Committee on Backward Linkage Industries held on Thursday at FBCCI office in the city.
Abul Kalam Bhuiyan, chairman of the committee said, lowering the corporate tax to 10 to 15 per cent would help in the development of the backward linkage industry.
He also demanded that the entrepreneurs get industry plots at affordable cost for the expansion of the industry.
Speaking as the chief guest at the meeting, FBCCI Vice President M A Momen said that today's most of the giant companies have started their journey as backward linkage industry.
The role of this industry in the overall development of the country is undeniable. Industrialization is not possible without development of this sector.
Bilateral pacts on the cards to boost Canadian investment in Bangladesh
Dhaka and Ottawa are likely to ink two key pacts to increase Canadian trade and investment in Bangladesh.
"The free trade pact and the foreign investment promotion and protection agreement between the two countries are on the table," Bangladesh's High Commissioner to Canada, Dr Khalil Rahman said.
The veteran diplomat was addressing a virtual meeting of the Canada-Bangladesh Joint Working Group on Strengthening Commercial Relations on Monday night.
Read: Joint committee to work to brand Bangladesh in Canada
Citing the complexity of Canadian visa process as a major obstacle to bilateral trade, the High Commissioner said that "discussions are also underway to set up a visa office at the Canadian High Commission in Dhaka".
Mentioning the Business Council of Canada's (BCC) interest in Bangladesh, the High Commissioner said the organisation sought sector-based information from the Bangladesh High Commission in Canada.
The High Commissioner also proposed the signing of an MoU between the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) and the BCC to strengthen Canada-Bangladesh trade and investment relations.
FBCCI President Md Jashim Uddin, co-chair of the meeting for Bangladesh, said that the plastics industry is one of the most promising sectors for Canadian entrepreneurs to invest in. "In addition to the huge domestic market, the world market also has strong export potential."
Moreover, he spoke about the huge demand for plastic products as a backward linkage industry in the readymade garments, pharmaceuticals, engineering and automobile industries.
President of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA), Shamim Ahmed presented a report on the market and investment prospects of the plastics industry.
"Some 1.2 million people are working in the sector and direct and indirect exports are worth 1 billion US dollars. The sector is growing at an average rate of 4 percent per year. All the 29 sub-sectors of plastics have export potential."
He also mentioned the various policy assistance provided by the government for foreign investors.
President of the Canada-Bangladesh Chamber of Commerce and Industry, Masud Rahman presented a report on the Canada-Bangladesh investment prospects at the meeting.
According to the report, Bangladesh's infrastructure sector could be one of the biggest investment opportunities for Canadian entrepreneurs. "Canadians can contribute to the development of this sector through public-private partnerships."
"Therefore, the country's investment bank, Export Development Canada (EDC), can play a role in increasing investment in the country through the formation of 'Bangladesh Fund'. Canadian Pension Fund may also appear to be a good source for financing investment in Bangladesh," he added.
Md. Saiful Islam, a member of the working group and director of the FBCCI, emphasised the need for working out a specific course of action to increase bilateral trade to 2 billion dollars.
Read: Canada provides 2.2mn doses of AstraZeneca to Bangladesh
He called on Canadian entrepreneurs to invest and transfer technology in the agricultural sector.
Nuzhat Tam-Zaman, the co-chair from the Canadian side, said the joint working group should work on education too.
She said that more Bangladeshi students should be brought to Canadian universities. "Then the number of Bangladeshis in Canada's skilled human resource immigration will also increase."
President of the Saskatchewan Trade and Export Partnership Chris Decker, leader of Energy Sector Group Gowling WLG Tom Timmins, and Secretary General of the FBCCI Mohammad Mahfuzul Hoque were present in the meeting.
The meeting was moderated by Angela Dark, Senior Trade Commissioner, Canadian High Commission.
Incentivise fire safety for all, not just RMG sector: FBCCI
Entrepreneurs on Sunday demanded an end to the existing discrimination in tariff rates on the import of fire safety equipment.
They made the demand at the first meeting of the FBCCI Standing Committee on Fire Safety, Disaster and Explosion held at FBCCI.
They were referring to the fact that the government has only allowed tax benefits for the import of fire safety equipment to the garment sector .
But the image of Bangladesh abroad is tarnished when fires break out in other industries as well.
Moreover, they said, workers in all sectors have equal rights to safety and security.
Therefore, there should be no such discrimination in the tariff rate on the import of fire safety equipment, they demanded.
Also read: FBCCI to work for restoring confidence in e-commerce sector
The committee chairman Md. Niaz Ali Chisty said it is important for factories in all sectors to have fire protection systems to ensure safe industrialization in the country.
But other than the garment industry, other industrialists have to bear the heavy tax burden of importing these much-needed equipment, he said.
The total tax incidence is 58.6 percent in fire door, fire alarm cable and hose reel imports, 37 percent in gate valve, 26.2 percent in fire pump and fire alarm system (detector), 11.05 percent in fire extinguisher and 31 percent in ABC dry powder, he informed.
Due to high tax incidence, he said, it is often not possible for small and medium entrepreneurs to take adequate fire protection measures. Hence, he demanded equal benefits for all sectors like the readymade garment industry.
Separate permits, required for the import of carbon dioxide, foam, dry powder and other fire-resistant gases and chemicals result in harassment and time delay for the importers.
As there is no BSTI laboratory in Chattogram, chemicals have to be sent to Dhaka for testing, which takes an additional 8 to 10 days. Prices have risen due to fares at ports and containers for those days.
Speaking as the chief guest at the meeting, FBCCI Vice President Md. Amin Helaly said that the development of Bangladesh has been largely informal. But now it is time to ensure security to the industry.
He urged the standing committee to prepare an action plan to ensure fire safety in the factory.
He also recommended starting sector-based training by preparing a training manual. At the same time, the vice-president urged the importers to take initiative to manufacture fire safety equipment locally.
Abu Motaleb, director-in-charge of the committee, said there could be various reasons behind the fire at the factory.
Also read: Automobile industry lacks policy to grow in Bangladesh: FBCCI
But first of all, the owner is blamed. He said the standing committee would soon submit a policy to the FBCCI identifying the problems and action plan to ensure fire safety in the factory, he added.
A sub-committee is also formed at the meeting to formulate that policy.
During the meeting, Brig Gen. (retd) Abu Nayeem Md Shahidullah, advisor of FBCCI's Safety Council, said that FBCCI has already contacted ILO to start safety training in the industry.
The government is also considering setting up a national level one-stop service in order to provide all fire safety certificates and permits, he informed.
FBCCI Director Harun Or Rashid, Secretary General Mohammad Mahfuzul Hoque, Standing Committee Co-Chairman Md. Wahid Uddin, Mohammed Shahjahan, Abul Hossain, M Mahmudur Rashid, Zakir Uddin Ahmed, Mohammad Shamsul Haque Jamil, Mohammad Awlad Husain Rajib, Mohammad Monzur Alam, Tanjir Ahmmed Tohin and other members of the committee were present in the meeting.
FBCCI to work for restoring confidence in e-commerce sector
The country’s apex business body, FBCCI has said it will work for regaining the consumers’ confidence in e-Commerce as this sectors hold huge potentials for growth.
The sector suffers a crisis of consumer confidence, the FBCCI's Standing Committee on E-Commerce said at its first meeting on Thursday promising to work to overcome this situation and create new entrepreneurs.
Shomi Kaiser, director in charge of the committee and president of E-Cab said e-commerce businesses have bloomed during the Covid pandemic and generated thousands of employment.
Read Incentivise fire safety for all, not just RMG sector: FBCCI
In some isolated cases, the image of e-commerce has been tarnished. In order to overcome this crisis, the Ministry of Commerce will provide unique identification numbers for e-commerce companies, she informed.
A Complaints Management Cell will also be formed soon under the supervision of the directorate of national consumer Rights Protection.
All These initiatives will soon regain the consumers' trust on e-commerce, Shomi added.
Read Automobile industry lacks policy to grow in Bangladesh: FBCCI
She mentioned that a year-long roadmap would be drawn up by the standing committee for the development of the overall e-commerce ecosystem.
Speaking as the chief guest at the meeting, FBCCI President Md. Jashim Uddin said to create sustainable e-commerce, entrepreneurs in this sector must ensure institutional transparency and accountability and compliance.
FBCCI Senior Vice President Mostofa Azad Chowdhury Babu said that in order to restore confidence in e-commerce, it is necessary to formulate specific policies in this sector.
Read: Govt preparing roadmap to increase rice production to control price
Presiding over the meeting, the Chairman of the Standing Committee TIM Nurul Kabir said that, lack of bank loans, poor penetration of cards, over-reliance on cash on delivery and absence of cross-border e-commerce policies are some of the major challenges facing the business.
In the open discussion, the co-chairmen and members of the committee complained that the commerce ministry has not yet made the digital commerce cell fully functional and also it is yet to fix who will monitor the SOP in E-commerce.
The speakers demanded tax relaxation till 2030 and to include e-commerce in government procurement till 2030.
Read Skilled manpower shortage holds back development: FBCCI
Also present at the meeting were FBCCI Director Amzad Hussain, Secretary General Mohammad Mahfuzul Hoque, Standing Committee Co-Chairmen Mohammad Abdul Haque, Mohammad Sahab Uddin, Mostafizur Rahman Sohel, Zia Ashraf, M Rashidul Hasan and others members.
Automobile industry lacks policy to grow in Bangladesh: FBCCI
Bangladesh has failed to exploit its immense potential in the automobile sector due to absence of policy, design and drawings of two, three and four wheelers, according to the FBCCI.
As a result, almost 99 per cent of automobiles are manufactured by foreign vendors. Entrepreneurs in this sector urged the government to shield the sector with proper policy.
Read: Skilled manpower shortage holds back development: FBCCI
They made this call at the first meeting of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Standing Committee on Automobile Manufacturers and Assemblers held at FBCCI Icon on Wednesday.
Speaking as the chief guest, FBCCI president Md. Jashim Uddin said Bangladesh is now gradually lessening its dependence on import, while strengthening the local manufacturing capacity, which enables the country to expand its export base in addition to meeting domestic demand.
Proper branding of this capacity would have led to more investment and employment as well, he said.
Md. Habib Ullah Dawn, director in charge of the Standing Committee called for ensuring a competitive market of quality products besides solving the problems related to policies regarding automobile industries.
In future, FBCCI would organize seminars inviting the representatives from concerned ministries, he added.
Read:FBCCI calls for extension of loan moratorium till June
Chairing the meeting, the Chairman of the Standing Committee and the Chairman of Runner Group, Hafizur Rahman Khan urged the businessmen to work on sector wise development and to prepare a draft on various issues to be submitted to the government through FBCCI.
The FBCCI already started working with the government regarding vendor policy, Hafizur Rahman informed the meeting.
Skilled manpower shortage holds back development: FBCCI
Lack of skilled manpower is hindering the private sector’s efforts to reach various development targets set by the government, Md. Jashim Uddin, president of the country’s apex chamber said on Sunday.
The FBCCI president was speaking at its Standing Committee meeting on National Economic Policy and Planning, 8th Five Year Plan, SDG and Vision 2041, held at FBCCI Icon Hall.
Read:FBCCI calls for extension of loan moratorium till June
He said the garment factories are running with a 15 to 20 per cent skill manpower shortage.
Therefore, entrepreneurs have to depend on foreigners for various positions of management. Although there is no shortage of highly educated youth in the country, there is a lack of necessary skills required in the industry, he said.
The government runs many technical education institutes, but they fail to provide the desired quality manpower. The government must focus on creating skilled manpower to achieve various economic and development goals, he said.
He emphasized that it is imperative to harmonize the formal education curriculum with the industry’s needs.
He called upon the National Skills Development Authority to be more dynamic.
Jasim also called for the recruitment of skilled manpower in government offices to meet the challenges in the post-LDC period.
He said that in future, free trade agreements should be signed and new strategies should be adopted to protect local industries after becoming a developing country. Therefore, the government agencies will need more dynamic and skilled manpower to deal with the more complex global trade issues.
The FBCCI Chief also called upon the government agencies to consult with the private sector before formulating policies. Formulating policies without consulting with private stakeholders often makes them difficult to implement as they do not reflect the field level realities.
Read: FBCCI concerned over move to hike gas price
Earlier in the discussion, various challenges of industrialization in Bangladesh came up.
The speakers said that the industrialization of the country is mainly stuck in Dhaka and Chattogram. Establishing economic zones across the country alone cannot decentralize the industry unless township is built.
The members of the standing committee spoke on economic development as well as reduction of inequality, improvement of education, Industry-Academia linkage, and formulation of national strategy on the 4IR, women empowerment, and increase in use of renewable energy.
At the meeting, the Director in Charge of the committee Dr. Nadia Binte Amin said the SME sector contributes up to 80 per cent to the economies of developed countries. In Bangladesh this is only 60 per cent. Government policy cooperation needs to be further enhanced to harness the potential of the SME sector.
The meeting was presided over by the Chairman of the committee AKM Shamsuddoha. Among others, also present were FBCCI Senior Vice President Mostafa Azad Chowdhury Babu, Directors Bijoy Kumar Kejriwal, Md. Naser, Syed Almas Kabir, Secretary General Mohammad Mahfuzul Hoque, Advisor Manzur Ahmed, Standing Committee Member Shamim Ahmed, Tasfia Jasim, ASM Mainuddin, Syed Habib Ali, Munir Ahmed, Ayesha Siddique, Shamima Shirin and Dr. Md. Nazmul Islam.
Japanese economic zone to go into production in 2023: Envoy
The Japanese economic zone in Narayanganj's Araihazar will go into production in 2023, Ito Naoki, the country's ambassador to Bangladesh, said Thursday.
The envoy announced the plan while paying a courtesy call on FBCCI President Md Jashim Uddin in the afternoon.
"The interest of Japanese companies is growing, especially around the Araihazar economic zone. There is an opportunity to further develop the economy of Bangladesh by taking advantage," he said, calling for making the investment climate friendlier.
Also read: Special economic zones changing Bangladesh's industrial landscape: BEZA
"Restriction on overseas remittance from branches, limitation in loans for working capital, restriction on royalty remittance, overdue payment, delay of letter of credit (LC), collection of additional income taxes and VAT, renewal of bond licence, the wage gap between inside and outside Export Processing Zone (EPZ), are creating barriers to investments," he said.
Jasim Uddin assured the envoy that the FBCCI will work sincerely with the government to solve these problems.
"More than a hundred Japanese companies have been doing business in Bangladesh for many years. Also, Japan is one of the major partners of Bangladesh in development projects," he added.
"With the country's economic development, the lifestyle of Bangladesh's people has been upgraded. So, the size of the domestic market has also increased."
Also read: Bangladesh a regional leader, economic force in S Asia: US
"The popularity of Japanese products in this country is also relatively high. Japanese companies investing in Bangladesh are more likely to be profitable," the FBCCI president said.
Joint committee to work to brand Bangladesh in Canada
Canada-Bangladesh Joint Working Group has planned to form a joint working committee of the two countries to brand Bangladesh in Canada for boosting both investment and trade.
The Group has decided to form the committee at a virtual meeting where nominated members of the governments of the two countries discussed the issue on Tuesday.
FBCCI President Md Jashim Uddin and Cofounder and Vice Chairman of Consumer Health Nuzhat Tam-Zaman cochaired the meeting.
Read:FBCCI calls for extension of loan moratorium till June
The meeting discussed that with the development of the economy, new potentials for foreign investment have been created in Bangladesh.
It said Bangladesh is now one of the best investment destinations in the region due to its infrastructural facilities, huge domestic market and duty-free facilities in the major markets of the world. “But Canadian investors are not yet aware of this advantage.”
So, they decided to form a joint working committee.
The previous meeting of the Canada-Bangladesh Joint Working Group identified tourism, ICT, agriculture, agri-food, education, pharmaceuticals and renewable energy as potential sectors for collaboration.
FBCCI President Md Jashim Uddin called for a new inclusion of the blue economy and plastics sector.
He said Canada is one of the best countries in the world in terms of ocean economy. The country has the expertise and knowledge to use its marine resources in a sustainable manner.
On the other hand, the FBCCI chief said Bangladesh has a 710-km long coastline with an exclusive economic zone of 200 nautical miles inside the Bay of Bengal. But most of the resources are untapped.
“With Canadian investment, technical knowledge and assistance, Bangladesh's economy will move forward by utilizing its marine resources.”
He said the FBCCI would soon submit a sector-wise report on the blue economy, plastics and tourism to the working committee.
FBCCI Director Syed Almas Kabir will also submit a report on skills development and information technology at the next meeting.
The two sides agreed to strengthen interactions between industry associations to remove trade barriers and increase import-export between two countries.
At the meeting, the entrepreneurs talked about making Canada's Rules of Origin easier to increase exports of Bangladeshi products, while Canada has demanded an on-arrival visa facility in Bangladesh to facilitate trade and investment.
Read: FBCCI concerned over move to hike gas price
During the meeting, a study report on the prospects of Bangladesh’s leather, leather products, and footwear export sector in Canada was presented by Md Saiful Islam, Director of FBCCI and President of MCCI, Dhaka.
Chris Dekker, President, Saskatchewan Trade and Export Partnership (STEP) presented another report on Bilateral Trade Enhancement.
The next meeting of the committee is scheduled to be held on February 7 this year.
FBCCI calls for extension of loan moratorium till June
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) urged the government to reinstate the moratorium on loan instalments till June this year as the country's trade and commerce look set to take another hit from the pandemic.
The apex trade body said around 50 percent of businesses will turn defaulters without the moratorm
The businesses made the demand at a discussion meeting of the Council of Chamber Presidents-2022 organized by the FBCCI on Saturday in the capital. Presidents and vice-presidents of districts, cities and chambers of women entrepreneurs from all over the country addressed the meeting.
FBCCI President Md. Jashim Uddin was present as the chief guest at the meeting.
Under the moratorium, bank clients would not be recorded as defaulters even if they failed to pay any instalments in 2020. In 2021, borrowers to remain out of default needed to pay just 25 percent of their scheduled instalments. The facility was first introduced in mid-2020 amid the Covid-19 pandemic and extended several times to allow people falling into hard times to cope. It expired last on December 31,2021, before the latest wave of infections hit.
Read: FBCCI concerned over move to hike gas price
Expressing solidarity with the demands of the businessmen, the FBCCI president said "at least 50 percent of the borrowers" would default if the term of the loan classification facility was not extended.
"Bangladesh Bank's policy support is now needed even more overcome the pandemic recession. Otherwise, it will be difficult for business, trade and the economy to recover," Jashim said. He complained that the sectors whose business activities were shut down under the instruction of the government to control the Covid-19 infection have not yet received stimulus loans.
Though small and medium entrepreneurs have been most affected by the pandemic, they had received a very small amount as incentive so far, he said. Meanwhile a large portion of SME incentives were not distributed while incentive funds to the large industries were almost 100 percent discounted.
"Banks are reluctant to provide small loans to small and medium enterprises, as banks think it is not profitable to provide small loans. They think lending to the big business sector reduces the operation cost of the bank. But this idea is wrong. Rather it increases the risk of bad debt,” FBCCI president said.
Jashim called upon the government to keep private sector representatives in the policy-making meeting to create a business-friendly environment in the country.
Read: FBCCI calls for making law before formulating new industrial policy
He said the private sector contributes 82 percent to the economy, so a representative of the private sector is important for any policy formulation for the sake of business friendly policy.
The meeting was chaired by Mostofa Azad Chowdhury Babu, President of the Council of Chamber Presidents and Senior Vice President of the FBCCI. He said businessmen are still being harassed in the country for collecting taxes and VAT. Company law, import and export law are being renewed. The FBCCI is working to make these laws business friendly.
Presidents and vice-presidents of various chambers from across the country demanded that the FBCCI president be accorded the rank and status of a state minister.