The year of investors

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The year of investors

Sarwar A Chowdhury

It was a boon year for investors, although a record fall this month created adrenaline panic among those who put their money in stocks. There is hardly any investor who made loss in 2010.

The stockmarket witnessed a boom from all sides — the price index, turnover, market capitalisation and its ratio to GDP (gross domestic product), and the number of new arrivals both in terms of issues and investors.

The Dhaka market ranked third globally in terms of performance, according to an analysis of LankaBangla Securities.

The record growth also helped the government get manifold revenues. In 2010, the government received Tk 315 crore tax at source against only Tk 62 crore a year ago.

From January 3 to December 30, the benchmark index of Dhaka Stock Exchange went up by 3,754 points, or 82 percent, to 8,290. The listing of record number of 25 new securities and a continuous rise in prices led the jump in the index.

The total turnover shot up by 172 percent to Tk 400,991 crore, while the transactions went up by 113 percent to 1,697 crore shares and mutual fund units.

Market capitalisation reached Tk 350,000 crore — registering a 84 percent rise. The market capitalisation to GDP ratio stood at 51 percent at the end of 2010.

The bullish trend forced the Securities and Exchange Commission (SEC) to come up with a number of cooling measures.

But the piecemeal regulatory intervention was always criticised by the market intermediaries, analysts and experts. The experts always said the regulator should take long-term measures.

However, the SEC made some positive changes to some of the securities laws. Change in the IPO (initial public offering) rules was a notable one — after the amendment to the regulations, many non-listed companies are now showing their interest to come in the market.

The market needs to be more professional, the experts said.

“There has been improvement in terms of price index, turnover, and entry of new mutual funds and fresh investors,” said Faruq Ahmad Siddiqi, head of capital market wing of Southeast Bank and a former chairman of the SEC.

“However, with the rise in share prices, increased the risk factors. These risk factors can be minimised through professionalism and educating the retail investors,” he said, adding that the regulator should also take more consistent policies.

Leading stockbrokers also think professionalism should be main agenda in the coming years. “Our stockmarket has grown up, and we now need to be more professional,” said Mohammed Nasir Uddin Chowdhury, chief executive officer of LankaBangla Securities.

Bangladesh Institute of Capital Market, which started its journey last month, will play a great role in bringing professionalism in the market, he said.

Although a bullish trend dominated the market most of the time in the year, the market witnessed some dramatic and record falls in December that prompted hundreds of investors to take to the street.

December 19 was a black day for the Bangladesh stockmarket’s 55-year history, as the index on that ‘Black Sunday’ dropped by 551 points that the market even did not witness in 1996 crash.

Finally, the Dhaka market completed a lucrative year ending on the last trading session of 2010 in green with the investors’ optimism of better corporate declarations and return in 2011.

sarwar@thedailystar.net

UK-China JV to invest $40m in Comilla EPZ

http://www.newagebd.com/2010/dec/31/busi.html#6

UK-China JV to invest $40m in Comilla EPZ
Bangladesh Sangbad Sangstha . Dhaka

Kadena Sportswear Limited, an UK-China joint venture company, will set up a knit and woven garments manufacturing units in the Comilla Export Processing Zone. This foreign owned company will invest $40.44 million in setting up their unit and will manufacture garments items.

The company will also create employment opportunity for 8,030 persons including 30 foreign nationals.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and the Kadena Sportswear Limited at BEFZA Complex in the city.

Moyjuddin Ahmed, member (investment promotion) of BEPZA, and Leonidas Loukaides, chairman of Kadena Sportswear Limited, signed the agreement on behalf of their respective organisations.

BEPZA executive chairman Major General ATM Shahidul Islam, member (finance) AKM Mahbubur Rahman, general manager (investment promotion) AZM Azizur Rahman and other officials of BEPZA were present on the occasion.

Turkish co to invest in infrastructure

http://www.thefinancialexpress-bd.com/more.php?news_id=121456&date=2010-12-31

Turkish co to invest in infrastructure
M Azizur Rahman

A Turkish private asset management firm RHEA has planned to invest in infrastructure including power plants through public private partnership (PPP) in the country, its officials said.

A high-powered delegation of the Istanbul-based company is now in the city for talks with the government.

The RHEA team led by its head of asset management Memet Yazici discussed the company’s prospective investment sectors with the Communication Minister Syed Abul Hossain and State Minister for Power and Energy Muhammad Enamul Haque.

Power plants, roads and bridges, ports development, major airport construction and urban transport facilities like rails and light rails are the sectors the Turkish company is planning to invest in Bangladesh, a power ministry official said.

The company also inquired about the Bangladesh’s offshore oil and gas prospects in the Bay of Bengal.

“The (Turkish) firm is interested to materialise its investment plan within the shortest possible time,” the official said.

The Turkish investment plan comes at a time when the government has moved to implement several infrastructure projects including flyovers, bridges, elevated expressway under PPP.

The government is seeking foreign investment to implement these cash-intensive projects.

“RHEA is interested to initiate business in Bangladesh as part of its business expansion plan in new markets,” managing director of the company’s local representative Syed Salman Masud told the FE.

He said the company intends to do business with the government in Bangladesh as it seeks “confirmation over return of its investment.”

RHEA is a reputed firm with extensive global investment management experience.

Apart from its strong presence in Turkey, the RHEA has offices in Dubai, UAE; Bucharest, Romania; London, UK to conduct global operations.

Earlier in February this year RHEA offered Bangladesh a US$1.0 billion “conditional soft loan” to win infrastructure deals.

It also pledged a $5 million donation for health care and educational projects in Bangladesh if the government awards work orders to Turkish builders for building flyovers and bridges.

Although the government is yet to come up with any decision, a senior official said the Finance Ministry is in favour of securing the Turkish conditional loan.

New 30 TTCs to train 1 lakh workers a year

http://www.newagebd.com/2010/dec/30/busi.html#5

New 30 TTCs to train 1 lakh workers a year
Bangladesh Sangbad Sangstha . Dhaka

New 30 technical training centres, which are now under construction by the expatriate welfare and overseas employment ministry, are likely to create one lakh skilled workers every year to send abroad.

‘Existing 38 TTCs are creating around 30,000 trained workers but after building of 30 new TTCs we will be able to produce nearly one lakh trained workers every year,’ expatriate welfare and overseas employment minister Khandakar Mosharraf Hossain said while exchanging views with principals of TTCs at his secretariat office in the city on Wednesday.

The ministry is building 30 new TTCs and five marine training institutes in Munshiganj, Faridpur, Chandpur, Sirajganj and Bagerhat to send skilled workers abroad.

The five new marine training institutes will produce 3,000 skilled diploma marine engineers annually. Now, only 600 marine diploma engineers are coming out from the country’s lone marine training institute in Narayanganj.

The minister said the government was focused in sending more skilled workers abroad, as only three per cent (two lakh) among the current total overseas workforce are skilled and 31 per cent (21 lakh) are semi-skilled against 50 per cent (33 lakh) unskilled workers.

He said there is no alternative of extension of vocational training side by side the general education to bring success in poverty alleviation.

Mosharraf urged the principals of TTCs to encourage women in taking various technical training before go to the foreign lands.

The overseas employment sector is turning into the engine of country’s economy with last year’s remittance standing at Tk 78,000 crore, where the total budget of the government was around taka one lakh crore.

Remittance earning presently contributes to 12 per cent of the GDP, six times higher than overseas development assistance and 11 times than foreign direct investment. Around 76 lakh Bangladeshi workers were employed in more or less 100 countries whereas, the number of total government employees across the country is just over 10 lakh.

ASA to open 300 SME branches in 2011

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ASA to open 300 SME branches in 2011
Star Business Desk

ASA, one of the largest microfinance institutions in Bangladesh, will open 300 branches across the country in 2011 to cater small entrepreneurs.

The organisation also plans to disburse Tk 8,000 crore in loans to restructure credit schemes to make them more flexible for clients.

The plans were disclosed at the MFI’s three-day annual coordinating meeting at Cox’s Bazar on December 29-30, the company said in a statement yesterday. ASA President Md Shafiqual Haque Choudhury attended the programme as the chief guest.

“Scholarship, health, sanitation and solar programmes of ASA will be extended to cover more people in 2011,” said Choudhury, also a former caretaker government adviser.

In the New Year, the MFI will also start 500 irrigation schemes using solar power.

Over 150 delegates from districts and head office of the institution including top officials and directors participated in the event.

Since its inception in 1978, ASA has extended its outreach in the country through 3,236 branches. Its 24,021 employees serve over 55 lakh clients.

Microenterprise clients of ASA now account for over 10 percent of its clients and about 30 percent of its total loans outstanding.

Govt to make Ctg Chemical operational next year

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Govt to make Ctg Chemical operational next year

The government hopes to complete three major tasks in the industrial sector including cut dependence on import of Urea fertiliser and resume production at Chittagong Chemical Complex (CCC) in the coming year.

Though the Industries Ministry could not resume production at the CCC and give final shape to Shahjalal Fertiliser Factory this year as pledged earlier, it hopes to complete the two major tasks next year.

The annual demand of Urea in the country is about 2.83 million tonnes and the country address the demand mostly depending on import from Qatar, the UAE and Saudi Arabia.

While talking to UNB, Industries Minister Dilip Barua said they hope to implement all the plans they had taken this year.

“There are a number of successes. I don’t think any major task was left half-done last year. New National Industrial Policy 2010, keeping fertiliser production smooth despite gas crisis and introduction of digital-purji are three major successes we achieved this year,” he said.

Aman rice production exceeds target by 9.57 percent in Rangpur Zone

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Aman rice production exceeds target by 9.57 percent in Rangpur Zone

PANCHAGARH, Dec 30 (BSS) – The farmers have produced a record quantity of 29,60,357 tonnes Aman rice, 9.57 percent higher than the fixed target of 27,01,694 tonnes rice, in all eight districts under Rangpur Agriculture Zone (RAZ) this season, officials said today.

The farmers had cultivated T-Aman crop in 10,84,863 hectares land this season against the fixed target of bringing 10,74,03 hectares and they got a super bumper rice production due to average favourable climatic conditions and massive pro-farmer steps taken by the government.

Of them, 36,816 tonnes hybrid Aman rice was produced from 12,694 hectares, 27,94,711 tonnes high yielding Aman rice from 9,93,221 hectares and 1,28,830 tones local variety T-Aman trice from 78,948 hectares land, said Additional Director of the Department of Agriculture Extension (DAE) Mohsin Ali.

The achieved yield rates of hybrid variety Aman stood at 2.9 tonnes clean rice per hectare this time against 2.89 tonnes last year, 2.81 tonnes for high yielding variety against 2.65 tonnes last year and 1.63 tonnes for local variety Aman rice against 1.50 tonnes last year.

The crop grew well and the government extended allout supports to the farmers in achieving the super bumper Aman production this time in the zone.

Rice scientist Dr MA Mazid told BSS that the farmers could successfully cultivate the Aman paddies and many of them also used the latest technologies this season that assisted in achieving the bumper Aman production.

Farmers Abdul Karim, Zulfikar Ali and Abdul Aziz told that they are very happy getting excellent Aman yields and have now engaged their allout efforts to make the Boro and Rabi crops farming programme successful.

They expressed huge satisfactions over the present market prices of the newly harvested Aman paddy in between Taka 8850 and 950 per maund (every 40 kgs) depending on the varieties and qualities in the local markets of region.

NRB bank gets green light from Bangladesh Bank

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NRB bank gets green light from Bangladesh Bank
Rejaul Karim Byron

A new bank, 50 percent owned by non-resident Bangladeshis, has received a green light from Bangladesh Bank.

The central bank will seek applications from interested NRB entrepreneurs, said an official, after the BB’s Board of Directors on Tuesday approved a proposal to set up the bank.

The central bank will also make a set of criteria for evaluating the application forms.

The proposal mentioned that the amount of foreign direct investment in Bangladesh is much lower than in neighbouring countries.

NRBs are interested to invest here and their demand for establishing banks owned by them was raised many times in different forums.

Considering the huge remittances sent by the NRBs, formation of such a bank to create a handsome foreign exchange reserve has opened up a positive side, the proposal said.

In line with a guideline, also approved by the board, the paid-up capital of the NRB bank will be Tk 400 crore. The NRBs will provide the half of the paid-up capital and the rest will be raised through a public offering.

An entrepreneur can hold a minimum of Tk 10 crore in shares or a maximum of 10 percent of the total shares. No share of the entrepreneur can be transferred in three years without the central bank’s permission.

A non-refundable amount of $15,000 has to be deposited with the application.

There are about 50 local and foreign commercial banks operating in the country, of which 30 are private.

The approval for any new bank had been on hold from 2001, following the presence of more-than-required banks and criticisms from various quarters.

Govt to work for high job rate in manufacturing

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Govt to work for high job rate in manufacturing
Unb, Dhaka

The government will work to increase employment rate to 16 percent in the manufacturing sector by 2015 with an aim to achieve gross domestic product growth to about 8 percent.

At present, the manufacturing sector accounts for 11 percent of employment although it includes over 80 percent of the country’s industrial units, according to a draft of the sixth five-year plan (SFYP) for 2011-15.

General Economics Division of the Planning Commission placed the draft before the meeting of the steering committee who formulate the SFYP.

The meeting was held at the NEC conference room at Sher-e-Bangla Nagar in Dhaka yesterday.

Headed by Planning Minister AK Khandker, the steering committee comprises secretaries of different ministries.

The SFYP will concentrate on reducing regional disparities and developing human resources for converting Bangladesh into a middle-income country.

Strategic directions and policy framework of the SFYP identified 22 core targets in the context of the government’s `Vision 2021′.

The SFYP will target increasing manufacturing sector’s GDP share to 25 percent and employment to 16 percent by 2015. Besides, it will also seek removal of constraints on expansion of external trade for diversifying the country’s exports.

The SFYP will also look for improving the efficiency of and access to financial sector by reducing intermediary costs.

The proposed plan will further focus on removing infrastructure constraints through massive investment in power and transport sectors.

It will strive to address the issues of disadvantaged regions, especially Khulna, Rajshahi and Barisal divisions, through a strategy that involves public expenditure in infrastructure and human development. It will also seek to facilitate more trade and investment in the border districts with the neighbouring countries including India, the draft said.

The SFYP will seek to address the income inequality problem through a range of measures. These are creating better access to high productivity, high-paid jobs, and improving farm productivity and income.

It will also strive improving the access of the poor to agriculture inputs including fertiliser, seeds, water, electricity and also rural transportation.

Bangladesh has made significant progress in education and gender equality both at primary and secondary levels, the draft document mentioned.

Showcase Malaysia in June 2011

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Showcase Malaysia in June 2011
Staff Reporter

DHAKA, DEC 29: Bangladesh-Malaysia Chamber of Commerce & Industry (BMCCI) is going to organize a single country trade fair known as ‘Showcase Malaysia’ in Dhaka on 10-12 June 2011 at Dhaka Sheraton Hotel. This was disclosed by the BMCCI President Syed Moazzam Hossain while he was delivering his welcome speech in the 9th Annual General Meeting of the Chamber followed by dinner and a cultural show held at Gulshan Club Auditorium on Tuesday.

The Chamber chief said that after successfully organized the 1st Showcase Malaysia in 2008 in Dhaka and also 1st Showcase Bangladesh in Kuala Lumpur in January this year, BMCCI in cooperation with Malaysia External Trade Development Corporation (MATRADE) has undertaken the program to organize the Showcase Malaysia in a bigger way and in a befitting manner.

Jamaluddin Bin Sabeh, High Commissioner of Malaysia and Patron BMCCI who attended the function as the Special Guest expressed his satisfaction in the initiative taken by the BMCCI.

He urged the Chamber members to be more active to increase the business and assured to extend his cooperation to those who intend to do business with Malaysia. As regards an FTA between Bangladesh and Malaysia as mentioned by the BMCCI chief, High Commissioner said that his government would definitely be agreeable to such an arrangement in the better interest of both the countries.

Syed Moazzam Hossain in his speech also disclosed that BMCCI is going to introduce a Gold Madel & a Scholarship for leadership development in Dhaka University in the name of Tun Dr. Mahathir Mohamad.

Besides, the BMCCI members, leaders of the Chambers and trade associations, high officials of the ministries, departments / divisions, diplomats, financial institutions and media persons attended the function. Ashraful Haq Chowdhury Hony. Secretary General of BMCCI also spoke in the function.

e-governance from next month: Yeafesh

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e-governance from next month: Yeafesh
BSS

DHAKA, Dec 29: In line with the government’s vision to build Digital Bangladesh by 2021, the much-awaited e- governance is going to be implemented in the country from next month, State Minister for Science and Information and Communica-tion Technology Architect Yeafesh Osman said today. “With the implementation of e-governance, all government works will be digitalized, reducing dependence on paper documents,” he said while inaugurating the Digital ICT Fair-2010 at Multiplan Computer City at Elephant Road in the city.

After the framing of ICT Policy-2009, he said, 306 action plans have been undertaken so far and the government is working fast to execute those plans.

Listing various government measures for building Digital Bangladesh, the state minister said online tender and payment system at all government offices will be introduced soon to check corruption as well as ensure transparency and accountability in the government activities.

He called upon all to work like a team, saying that if the government and people work unitedly, all achievements could be possible.

Speaking on the occasion, Chairman of Bangladesh Telecommunications Regulatory Commission (BTRC) Maj Gen (retd) Zia Ahmed stressed the need for rapid expansion of ICT sector in the country and said with the increase in the number of internet users, trade and export also rise.

Meghna aims to double turnover, jobs

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Meghna aims to double turnover, jobs

Mostafa Kamal, in white punjabi, chairman and managing director of Meghna Group of Industries, visits the company's site for expansion works in Narayanganj on Friday.

Sajjadur Rahman

When many domestic businesses are stuck in energy crisis and have shelved new ventures or expansion ideas, Meghna Group of Industries has taken the risk of investing Tk 1,400 crore ($200 million) for expansion and setting up new lines of business.

Presently, the $1 billion turnover group, dubbed as the second biggest conglomerate after Abul Khair, has taken an ambitious plan of setting up a number of industries, including the biggest chemical factory in the country, a condensed and a powdered milk factory, a paper mill, a salt factory and a composite hatchery.

Also the group is marching fast with expansion of many of its existing industries. The list includes sugar and oil, flour, power, shipbuilding, mineral water, printing and packaging and cement production.

“Rising domestic demand and export potential have prompted us to take the risk of investing a huge amount,” said Mostafa Kamal, chairman and managing director of the group.

Meghna Group started its business humbly by setting up a small vegetable oil mill in 1987 on a small piece of land at Meghna Ghat in Narayanganj. Now it runs over 25 industries on over 1,000 bighas of land.

The group runs on its own electricity of 34 megawatts generated in two units. Another unit of 25-megawatt capacity has already been built to meet the growing demand. The Prime Minister is expected to inaugurate the plant next month.

“The new industries and expansion of the existing ones will double our annual turnover and the number of employees in five years,” said Kamal.

Presently, the group employs 10,000 people permanently and another 5,000 on makeshift basis.

Of the new industries, the chemical plant would be the most capital intensive. Nearly $40 million would be invested to build the factory that is expected to go for production in early 2012. The factory will produce import substitutes sodium hydroxide, hydrogen peroxide and liquid chlorine for textile mills.

The next big investment would go to a composite hatchery where breeding, egg producing and meat processing would be done on a land of 100 bighas. Acquisition of land is going on in full swing.

A state-of-the-art salt factory is being built with Swiss technology and machine. The condensed milk and powdered milk plants will have the capacity of 120 tonnes and 2,000 tonnes a day, while a soya seed-crushing factory will have 120 tonnes.

The group is also expanding a number of existing industries. The capacity of its sugar refinery is being expanded to 3,000 tonnes per day from present 2,000 tonnes. The flourmill’s capacity will increase to 280 tonnes a day from current 150 tonnes.

The gram factory will double its capacity to 700 tonnes per day, and the oil refinery to 1,200 tonnes.

Also, the group is enhancing the capacity of its mineral water, feed, printing and packaging, shipbuilding, paper, cement bag and cement factories.

The cement factory will soon double its capacity to 7,000 tonnes per day to meet the growing demand of the product, according to the chairman of the group.

“We will pump nearly $50 million in two phases in 2011 and 2012 to expand the capacity of our cement factory,” said Kamal. “We predict a lot of construction works will take place in the country.”

The group seems to be lucky in terms of gas supply. When hundreds of factories around the country are facing gas shortage, the group is not to that extent, as the supply is better in the area where most of its plants are located.

Meghna Group that mainly produces in the name of ‘Fresh’ brand has paid over Tk 500 crore to the state exchequer in fiscal 2009-10. Presently, the group is supplying 15 megawatt of electricity to the national grid and another 10 megawatt will come next month from its new plant.

sajjad@thedailystar.net

Bangladesh to clock record GDP growth: BB

http://www.theindependentbd.com/business/finance/26192-bangladesh-to-clock-record-gdp-growth-bb.html

Bangladesh to clock record GDP growth: BB
AFP

DHAKA, Dec 28: Bangladesh’s central bank said Tuesday the country was on track to achieve a record 6.7 per cent economic growth this financial year, driven by an impressive turnaround in garment exports. The Bangladesh Bank said economic activity had gained momentum since the start of the financial year in July, with exports posting 37 per cent growth in the four months to October thanks to a huge rise in garment orders.

Imports were also up 37 per cent, reflecting rising domestic demand, and imports of industrial machinery grew 36 per cent, indicating a major expansion in the country’s manufacturing sector.

The global economic crisis drove gross domestic product (GDP) growth to a seven-year low of 5.8 per cent in the year to July 2010.

“If the trend continues, the country will achieve 6.7 per cent growth in Gross Domestic Product in the current financial year and seven per cent in the medium term from 2012,” the bank said in a statement midway through the financial year.

Bangladesh previously clocked its highest annual GDP growth rate in the 2006 fiscal year, when the economy expanded by 6.6 per cent.

Exporters said they have been flooded with export orders of clothing from European Union countries and North America, with major retailers like Wal-Mart, Gap and H&M making the country a key source for their low-cost products.

Ready-made garments for top Western brands make up 80 per cent of Bangladesh’s annual export earnings and employ some 40 per cent of the country’s industrial workforce.

Pharma sector to get API Park

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Pharma sector to get API Park
UNB

Dhaka, Dec 28: The longstanding demand of country’s pharmaceutical companies for a specialized park that got stuck due to complexities over acquiring lands has seen the light again following the completion of land acquisition. The work of land-filling for the country’s first specialized industrial park – Active Pharmaceutical Ingredients (API) Park – in Gajaria upazila of Munshiganj district for the pharmaceuticals sector is now going on in full swing.

“The land-filling work will be completed by June next year. Once the land-filling is done, we’ll immediately allocate plots,” Industries Minister Dilip Barua told the agency over phone.

He said Prime Minister Sheikh Hasina wants to inaugurate the formal works of the park after completion of land-filling.  Bangladesh Small and Cottage Industries Corporation (BSCIC) under the Ministry of Industries has taken up the project in a bid to facilitate production of basic raw materials locally, enhance local and foreign investment and to boost foreign exchange earning through exports.

RMG a bright spot

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RMG a bright spot

Refayet Ullah Mirdha

A series of events marked the outgoing year in the readymade garment sector that stayed on track, thanks to robust growth in exports. The early part of the year was not so bright. But orders for Bangladeshi garments poured in, with some Western economies shaking off recession jitters.

Cheap labour has also shifted the focus of the buyers from China to Bangladesh, and the sector has started diversifying its exports to be customised with the varied orders. Garment units spent much time than before in developing quality and designs for their buyers, both the existing and new. Some other new hopes also stirred the hearts — Bangladeshi garments will get relaxed ‘rules of origin’ facility from the Europeans from January 1.

On the downside, workers’ unrest for a better wage rocked the textile units, many a time. The workers also got a new minimum wage, although their satisfaction was mixed over what they got new.

The export witnessed a robust growth despite gas and power crisis, poor infrastructure and labour unrest.

The combined growth of knitwear and woven products marked a 36.36 percent rise in the July-November period compared with the same period a year earlier, according to Export Promotion Bureau data.

Knitwear exports worth $3.6 billion saw a 36.56 percent growth and woven products worth $2.89 billion registered a 35.83 percent growth, the data said.

Production was put in halt in many garment factories for some days following the labour unrest in the middle of the year. The government resolved the issue by setting the minimum wage for the workers at Tk 3,000 per month from Tk 1,662 before.

The government formed a six-member minimum wage board on January 14 to set the minimum salary, which came into effect from November 1.

The exporters, trade experts and government officials credited the growth to the recovery of Western economies from recession, cheap labour, new export markets, production of basic garment items and the buyers’ shift from China.

Mohammad Abdullah, managing director of Nassa Group, said the orders from China are shifting to Bangladesh as the buyers get cheaper rate here.

“We are solving the power crisis installing generators,” he said, adding that his group is expecting $300 million export revenue at the end of 2010 and $350 million in 2011, from 34 garment units.

Managing Director of Standard Group Mosharraf Hussain echoed the views of Abdullah, regarding the growth in export.

But he said: “If we can’t explore gas, the growth will stop at a certain point.” His company exported garment items worth $180 million in 2010.

The export of RMG products increased mainly for recovery of the global demand, said Mustafizur Rahman, executive director of Centre for Policy Dialogue.

The Japanese government adopted the China plus one policy in 2008 to diversify markets and reduce dependency on China, the world’s largest apparel supplier. As a result, Bangladesh is now enjoying a new but bright Japanese market, he said.

“But, we should remember that the export growth of this year is calculated on low-base that means the export was low last year. Sustaining higher growth will be a challenge.”

Rahman said the manufacturers faced gas and power crises, but they took initiatives and started using alternative sources.

The prices of Bangladeshi garment items increased because the prices of raw materials like yarn and cotton rose worldwide. “The export growth is not only volume driven, but also value driven,” he said.

Rahman called for properly using the relaxed rules of origin facility under the Generalised System of Preferences (GSP) given by the EU-27 to the least developed countries, from January 1.

“The relaxed rules of origin created ample opportunities, so we should increase the export of not only high-value knitwear, but also woven products,” Rahman said.

The government should set a target to double the export and grab more shares in the global apparel market within the next five years through product diversification, efficient port management and lead-time reduction, the CPD researcher said.

At present the market share of local apparel products worldwide is nearly 4 percent, he said.

AM Hamim Rahmatullah, president of Foreign Investors’ Chamber of Commerce and Industry (FICCI), also said the higher cost of production in China sent many buyers to Bangladesh.

“We need a long-term power solution; the manufacturers survived because of the electricity from their own plants,” he said.

Monoj Kumar Roy, joint secretary (export) of the commerce ministry, said if there were no gas and power crises, the growth would be 50 percent.

He said the recession could not affect export because Bangladesh is strong in production of basic or low-end garment items.

reefat@thedailystar.net