Showing posts with label Future of Bangladesh. Show all posts
Showing posts with label Future of Bangladesh. Show all posts
Thursday, February 3, 2011
B'desh will be among top 30 nations by 2030: PM
B'desh will be among top 30 nations by 2030: PM
B'desh will be among top 30 nations by 2030: PM
FE Report
Prime Minister Sheikh Hasina said Saturday Bangladesh will be the 30th economic power of the globe by 2030.
"We expect that our country will take place among top thirty nations in the world by 2030 if the present trend of growth in export earnings continues," Sheikh Hasina said while inaugurating the 16th Dhaka International Trade Fair (DITF).
The Prime Minister said Bangladesh earned Tk 8.28 billion during the last five months ending in November adding: "This is over 36 per cent higher than that of the corresponding period in 2009."
The Prime Minister said the government's main objective is to facilitate the country's businesses.
"Doing business is not the job of the government. It is your job. We will assist you," Sheikh Hasina told the business community.
She said her government will continue its all-out efforts so that Bangladesh can increase its contribu tions to world trade, export and investment.
But the Premier reminded the entrepreneurs to take care of their workers so that they can maintain a standard living adding: "We'll give our best support to your noble moves."
"Please take care of the workers who help you earn profits through their hard work. It is my earnest request to you," she said.
She said Bangladesh has become the third largest RMG exporting country in the US market.
Hasina however urged the entrepreneurs to produce quality products for better growth of exports and the economy.
She advised the business leaders to pay special attention to high-value products, newer designs and markets.
The month-long fair jointly organised by Export Promotion Bureau (EPB) and Commerce Ministry - the largest of its kind in the country - is being participated by 13 foreign countries.
The other countries participating in the fair are India, Pakistan, China, Iran, South Korea, Thailand, United States, Turkey, Singapore, Japan, Saudi Arabia, Malaysia and United Arab Emirates.
Some 530 pavilions and stalls have been put up at the fair being held at Sher-e-Bangla Nagar in the city.
Hasina said the present government has finalised a guideline under Public Private Partnership (PPP) for the enhancement of trade and improvement of infrastructure.
She said her government has already set up 33 power projects and 10 more will be installed shortly.
"We've already added 1,000 mw of power to the national grid," she added.
Sheikh Hasina listed a number of steps initiated and being implemented by her government in several key areas like power generation, construction of Padma Bridge, elevated expressway in the capital and easing trade and commerce.
She said the implementation of Padma Bridge will begin in March the next.
The government and the exporters have to come forward with fresh strategies for further expansion of trade and new markets and to build up Bangladesh's capacity to face challenges of the globalisation of trade, the Prime Minister added.
The Prime Minister said diplomatic efforts are on to increase export of Bangladeshi products along with attracting foreign investment in the country.
Besides, she said discussions are underway with a number of potential countries including the USA to get duty- and quota-free access to their markets.
Hasina said: "We are working for economic development of the poor by increasing their purchasing power. We want to ensure food security for all."
She said there is no alternative to increasing the purchasing capacity of the common people for a sustainable economy.
Among others, Commerce Minister Muhammad Faruk Khan, Commerce Secretary Ghulum Hussain, FBCCI President AK Azad and EPB Vice-President Jalal Ahmed also spoke on the occasion.
Faruk Khan said businesses should utilise the opportunity of globalisation by expanding market, which has become 'highly competitive'.
The minister also urged businesses to invest in the jute sector, saying that manufacturing and marketing of jute goods should be increased.
The FBCCI president put emphasis on ample supply of gas and power, turning the Dhaka-Chittagong highway into a four-lane one and streamlining the activities of Chittagong Port.
Later, the Prime Minister went round several stalls of the fair. She also opened a stall named "Bangabandhur Sangey Kichhukhan" (Moments with Bangabandhu).
Tuesday, January 11, 2011
Youngone chairman explains how Bangladesh can take apparel exports to $30b
http://www.thedailystar.net/newDesign/news-details.php?nid=169735
Seize the day or lose
Youngone chairman explains how Bangladesh can take apparel exports to $30b
Sajjadur Rahman
Bangladesh might double its apparel exports to $30 billion within three years, but limited capacity and a poor business environment could foil the opportunity, said Kihak Sung, chairman of Youngone.
The Youngone boss talked about Bangladesh’s export potential, in a recent interview with The Daily Star at his Uttara home. He spoke about the speculation of restricting foreign investment in the RMG sector, Bangladesh’s move for duty- and quota-free access to the US market and Korean Export Processing Zone in Chittagong.
Relaxation of generalised system of preferences (GSP) rules by the European Union and access to East Asian markets can become a major springboard for Bangladesh’s garment exports.
“Garment exports to Europe may double to $14 billion due to flexible GSP rules. Another $4 billion income is possible from exports to East Asian countries,” said Sung.
Sung is optimistic, particularly about the export potential in South Korea, Japan and China. However, it will not be easy for Bangladesh to cash in on the opportunity, he said.
Downside risks lie with four core areas: energy constraint, labour issues, port capacity and general law and order situation.
Seoul-based Youngone, the largest manufacturers and exporters of readymade garments in Bangladesh, had a business turnover of $1.2 billion in 2010. Nearly half — 45 percent — of it came from Bangladesh operations.
Youngone started business in Bangladesh in early 1980s and presently, it has 47,000 employees with some 4,500 in officer rank. Ninety-nine percent of them are locals as the company’s philosophy is to run enterprises by local people.
Sung said Bangladesh has an excellent opportunity to increase its garment exports in few years. Besides Europe, he sees East Asia as a major export destination as China gradually shifted to high-end products from low-end ones.
The European Union relaxed rules for the least developed countries (LDC) under GSP in textile trade. The new rules of origin (RoO), effective from January 1, allowed most apparel items from all LDCs would get duty-free access, no matter where the raw materials originated.
Korea has recently allowed Bangladesh duty-free export of some items including jackets. More items will follow, said Sung who is believed to be the main architect behind this duty free access.
“If four issues are resolved, at least reasonably, Bangladesh will have an enormous export opportunity.” They must be addressed simultaneously without specific prioritising, he noted.
Without building capacity in the areas such as energy and infrastructure, including ports, Bangladesh might lose the chance to its competitors, he added.
“The energy problem is looming over and disrupting business seriously,” said Sung. The unnecessary delay in the port cause huge business losses.
On the issue of minimum wage, Sung said: “It’s not enough, but agitation cannot ensure it.” He said his company gives Eid bonuses, rice subsidy and medical services for the workers.
About the recent agitation at Youngone factories in Chittagong, he said the company wanted to merge rice subsidy with the wages, but workers misunderstood it as a cancellation move.
Sung, a Korean national, blamed outsiders for the agitation. “Ninety percent of the agitators were outsiders,” he claimed.
Youngone invested Tk 130 crore to develop Korean EPZ in Chittagong, but the government took almost one decade to issue permit. In the meantime, he shifted some of his planned factories to China and Vietnam. The EPZ, if developed, would employ some 50,000 workers.
Foreigners were given special facilities at the EPZs in Bangladesh so that they would transfer technology and their skills to Bangladeshis but some raised questions about it.
He said technology has been transferred and it is one of the main reasons for flourishing apparel factories in Bangladesh. “Some 50 Bangladeshis run our factories in Vietnam and another five work in China,” he added.
However, the garment maker hailed local entrepreneurs for their relentless efforts to go forward amid lot of limitations.
Restricting foreign investment in garment sector in Bangladesh will not be a wise decision, Sung said. It will give bad signals to the global markets, he added.
The Youngone chairman said it is very unlikely that Bangladesh would get duty- and quota-free market access to the US, which he believes cannot negate the same facilities to Africa, Jordan and Israel.
Seize the day or lose
Youngone chairman explains how Bangladesh can take apparel exports to $30b
Kihak Sung
Bangladesh might double its apparel exports to $30 billion within three years, but limited capacity and a poor business environment could foil the opportunity, said Kihak Sung, chairman of Youngone.
The Youngone boss talked about Bangladesh’s export potential, in a recent interview with The Daily Star at his Uttara home. He spoke about the speculation of restricting foreign investment in the RMG sector, Bangladesh’s move for duty- and quota-free access to the US market and Korean Export Processing Zone in Chittagong.
Relaxation of generalised system of preferences (GSP) rules by the European Union and access to East Asian markets can become a major springboard for Bangladesh’s garment exports.
“Garment exports to Europe may double to $14 billion due to flexible GSP rules. Another $4 billion income is possible from exports to East Asian countries,” said Sung.
Sung is optimistic, particularly about the export potential in South Korea, Japan and China. However, it will not be easy for Bangladesh to cash in on the opportunity, he said.
Downside risks lie with four core areas: energy constraint, labour issues, port capacity and general law and order situation.
Seoul-based Youngone, the largest manufacturers and exporters of readymade garments in Bangladesh, had a business turnover of $1.2 billion in 2010. Nearly half — 45 percent — of it came from Bangladesh operations.
Youngone started business in Bangladesh in early 1980s and presently, it has 47,000 employees with some 4,500 in officer rank. Ninety-nine percent of them are locals as the company’s philosophy is to run enterprises by local people.
Sung said Bangladesh has an excellent opportunity to increase its garment exports in few years. Besides Europe, he sees East Asia as a major export destination as China gradually shifted to high-end products from low-end ones.
The European Union relaxed rules for the least developed countries (LDC) under GSP in textile trade. The new rules of origin (RoO), effective from January 1, allowed most apparel items from all LDCs would get duty-free access, no matter where the raw materials originated.
Korea has recently allowed Bangladesh duty-free export of some items including jackets. More items will follow, said Sung who is believed to be the main architect behind this duty free access.
“If four issues are resolved, at least reasonably, Bangladesh will have an enormous export opportunity.” They must be addressed simultaneously without specific prioritising, he noted.
Without building capacity in the areas such as energy and infrastructure, including ports, Bangladesh might lose the chance to its competitors, he added.
“The energy problem is looming over and disrupting business seriously,” said Sung. The unnecessary delay in the port cause huge business losses.
On the issue of minimum wage, Sung said: “It’s not enough, but agitation cannot ensure it.” He said his company gives Eid bonuses, rice subsidy and medical services for the workers.
About the recent agitation at Youngone factories in Chittagong, he said the company wanted to merge rice subsidy with the wages, but workers misunderstood it as a cancellation move.
Sung, a Korean national, blamed outsiders for the agitation. “Ninety percent of the agitators were outsiders,” he claimed.
Youngone invested Tk 130 crore to develop Korean EPZ in Chittagong, but the government took almost one decade to issue permit. In the meantime, he shifted some of his planned factories to China and Vietnam. The EPZ, if developed, would employ some 50,000 workers.
Foreigners were given special facilities at the EPZs in Bangladesh so that they would transfer technology and their skills to Bangladeshis but some raised questions about it.
He said technology has been transferred and it is one of the main reasons for flourishing apparel factories in Bangladesh. “Some 50 Bangladeshis run our factories in Vietnam and another five work in China,” he added.
However, the garment maker hailed local entrepreneurs for their relentless efforts to go forward amid lot of limitations.
Restricting foreign investment in garment sector in Bangladesh will not be a wise decision, Sung said. It will give bad signals to the global markets, he added.
The Youngone chairman said it is very unlikely that Bangladesh would get duty- and quota-free market access to the US, which he believes cannot negate the same facilities to Africa, Jordan and Israel.
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