Dhaka, Thimphu agree on energy cooperation

http://www.thedailystar.net/newDesign/news-details.php?nid=113482

Dhaka, Thimphu agree on energy cooperation
Focus on land connectivity, trade
Unb, Dhaka

Bangladesh and Bhutan have agreed to explore the possibility of cooperation in energy sector under Saarc regional collaboration.

The agreement came in the wake of growing demand for energy in Bangladesh and Bhutan’s high potential for production of hydroelectricity, according to a joint press release issued yesterday from Dhaka and Thimphu at the end of Prime Minister Sheikh Hasina’s visit to Bhutan.

Both sides agreed to explore the possibility of land connectivity between the two next-door neighbours under the aegis of Saarc transport connectivity to promote intra-regional trade and travel.

Dhaka and Thimphu also agreed to work together in promoting regional tourism recognising the potential of developing tourism packages, offering visits to the Himalayan mountains in Bhutan and with the golden sandy beaches of Cox’s Bazar and the world’s largest mangrove forest of the Sundarbans in Bangladesh.

Responding positively to Bhutanese request, Hasina agreed to raise the yearly reserved seats for Bhutanese students for MBBS courses in Bangladesh’s government medical colleges under Saarc quota.

During the visit, Dhaka and Thimphu signed a trade agreement. The joint release said the trade between the two countries has been steadily increasing over the years and making significant differences to the income of farmers in Bhutan and industries of Bangladesh.

Bhutan has waived all duties on imports from Bangladesh. Hasina has announced that Bangladesh will reduce tariff on 18 commodities imported from Bhutan from the existing rate of 15 percent to zero percent.

The trade agreement would also pave the way for cooperation in other sectors in the future.

Recognising that the full potential of the friendly relations between Bangladesh and Bhutan could not be tapped yet, the leaders of the two countries hoped that Bangladesh PM’s visit, which would remain as a milestone in the Bangladesh and Bhutan relationship, would usher in a new era of cooperation.

Meanwhile, the Bangladesh premier returned home yesterday afternoon. She arrived at 1:10pm by Druk Airlines. Earlier, the Bhutanese prime minister and his spouse saw her off at Paro International Airport.

BoI chief upbeat on FDI flow

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BoI chief upbeat on FDI flow

Star Business Report

The state-run investment promotional body chief is upbeat on foreign direct investment flow to Bangladesh at an amount of at least $5 billion a year, despite the present declining trend.

i”It is our target to receive a minimum of $ 3 billion and a maximum of $5 billion in oversees investment per year,” SA Samad told a meeting of foreign entrepreneurs in Dhaka yesterday.

Held at Radisson Water Garden Hotel, the monthly luncheon was organised by Foreign Investors’ Chamber of Commerce and Industry (Ficci).

The Board of Investment (BoI) executive chairman also drew the entrepreneurs’ attention to Bangladesh’s improving investment climate.

Pointing his finger at the present recovery from global recession by major economies, Samad hoped that the country would come out of the 2009 FDI trend.

The 2008 FDI was $1billion.

“We expect foreign investors to shift some of their investments to Bangladesh, considering the lesser impacts of global recession in the country,” the BoI chief said.

Referring to Ficci President Waliur Rahman Bhuiyan who suggested a double-digit growth for the alleviation of poverty, Samad said, “It is not easy. But we can be optimistic to achieve that if private sector investment gains momentum.”

Sri Lanka did not lose FDI despite having a civil war for the last 30 years, he pointed out.

He assured investors of government policy support.

Samad admitted to some hurdles in new investment, such as utilities. “A democratic government is more investment-friendly. We have to be more pragmatic.”

FDI is expected to grow steadily from low base but could pick up significantly if energy situation improves, said the Ficci president.

“Foreign investors have demonstrated widespread interest in Bangladesh after the new democratic government took over,” Bhuiyan said.

Bangladesh’s FDI registration in the January-July period stood at $ 573.60 million.

Although the country’s investment climate compares favourably with most other South Asian countries, particularly in terms of competitive labour costs and flexible labour laws, the cost of doing business in Bangladesh is perceived to be high, said Bhuiyan.

“The high cost is a reflection of corruption, a weak law and order situation, inadequate infrastructure and services, gaps in the skills base and distressed financial markets,” the Ficci president said.

“If the existing foreign investors are happy, then only will prospective investors be encouraged to invest. We feel BoI can play a significant role in this regard.”

Bangladesh to export $1b RMG to Japan in 2 years

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Bangladesh to export $1b RMG to Japan in 2 years
Visiting business tycoon hopes

Refayet Ullah Mirdha

Trends show that Bangladesh will be able to export apparel items worth about $1.0 billion to Japan in the next two years, said a Japanese business tycoon, now in Dhaka in connection with the biggest knitwear exposition held every year.

Hiroshi Okada, president of Japan Textile Products Quality and Technology Centre (QTEC), said Japanese lab testing and quality inspection companies are visiting Bangladesh to survey investment potential, as there is a strong presence of Japanese apparel buyers.

The QTEC will start operations in Dhaka from February 1, Okada said in an interview on the sidelines of the 5th knitexpo at Dhaka Sheraton Hotel.

Okada said at present, at least 20 Japanese companies are in Dhaka to procure Bangladesh made apparels. But lab test and quality inspection is important to Japanese buyers, as Japanese customers are highly quality-conscious, he said.

After conducting a market study, he said, it now takes a lot of time to complete lab tests and inspect quality for the Japanese market, as Japanese buyers test all apparels pieces, instead of following a sampling method.

Local manufacturers have to send fabrics to Hong Kong or other important destinations to test results, as there are no such facilities in Bangladesh to meet Japanese quality standards, Okada said.

“We will start operations with an investment of half a million US dollars in Bangladesh as lab tests do not need large investments at first. But we will employ a significant number of trained employees here,” he said.

QTEC, which has been testing garment, leather and jute goods worldwide over the last 64 years, will work in joint collaboration with the local Pacific Quality Control Centre Ltd.

At present, QTEC has operations in Japan, China, Korea and the fourth will be in Bangladesh, he said, adding that QTEC earned $38 million in 2008 in testing fees alone.

He said Japan is the latest avenue for Bangladeshi exports as a large number of Japanese customers are coming to Bangladesh after the Japanese government announced the China+1 Campaign.

Last year, Japanese entrepreneurs were advised to invest in other countries as well.

As a result, Japanese started relocating their factories in different countries, including Bangladesh. A strong presence of Japanese buyers was seen at the just concluded knitexpo, where more than 60 Japanese buyers and investors took part.

Leading Japanese socks maker Okamoto is also coming to set up a modern factory in Bangladesh.

BKMEA President Fazlul Hoque said the largest Japanese retail chain Uniqlo invested $70million in Bangladesh and they target purchase of apparel items in large huge volumes.

“Since Japanese customers are quality-conscious, setting up of such test labs and quality inspection companies will play a vital role in increasing exports to Japan,” Hoque said.

reefat@thedailystar.net

BD to sign investment accord to join big Asian economies

http://www.thefinancialexpress-bd.com/2009/11/06/83559.html

BD to sign investment accord to join big Asian economies

Nazmul Ahsan

Bangladesh is going to join the big Asian economies under a Framework Agreement on Promotion, Protection and Liberalisation of Investment to help boost foreign investment flow to the country and also its external trade in holistic and rule-based ways, trade officials said.

The high performing Asian economic like those of China, Korea and India, along with countries like Sri Lanka, Laos and Bangladesh that are also signatories to the Asia Pacific Trade Agreement (APTA), will sign the historic Investment agreement on December 15 in South Korean capital Seoul. The commerce ministers of member countries will attend the signing ceremony there on behalf their respective countries, sources said.

The officials of the Ministry of Commerce (MoC) said the APTA Standing Committee, comprising trade officials of the member countries in their latest round of negotiations finalised the draft deal in Bangkok.

An inter-ministerial meeting, held recently in the Ministry of Commerce (MoC), approved the draft agreement. This will be placed before the Cabinet Division soon for approval by the cabinet, a high official in the MoC said.

“The agreement will be a major tool to attract foreign direct investment from major Asian countries, particularly from China and Korea as it would provide protection of investment to the investors from APTA member countries,” another top official in the MoC told the FE.

“The country’s external trade is expected to increase manifold following signing of the groundbreaking agreement,” he added.

Commerce Minister Faruk Khan will attend the Ministerial Council

meeting in Seoul as the head of Bangladesh delegation.

The APTA was formerly known as the Bangkok Agreement, with officials holding meetings from time to time to discuss trade and economic ties among the six Asian nations.

According to the agreement, member countries will enact new laws to give full security and protection to investments to be made in the countries that are its members.

The contracting countries under the framework agreement will not practise any unreasonable or discriminatory measures, impairing the operations, management, maintenance, disposition or liquidation of investment to be made by member countries, said the agreement.

The member countries of the agreement will protect and uphold the principles of Intellectual Property Rights, in line with the spirit of the World Trade Organisation (WTO), the agreement said further.

No restriction could be imposed on transfer of capital, profit to be derived from such investment, royalties and other income, said the agreement referring to basic criteria of foreign investment.

All sorts of movable and immovable products, share, debenture and stock will be considered as investment, the agreement said.

The member countries of the Investment Pact will promote free flow of investments and encourage transfer of technology among participating countries, according to the regional investment agreement.

“The least developed countries (LDCs) will be provided flexibility, in terms of observing and maintaining the main features of the agreement,” a trade diplomat said.

“Technical cooperation relating to attracting investment and diversifying export-oriented sectors, will be provided by member countries of the big economies to the LDCs and Sri Lanka,” he added.

Danish-Bangla investment accord signed

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Danish-Bangla investment accord signed
Star Business Desk

Bangladesh and Denmark signed a bilateral investment protection agreement yesterday.

The deal was signed by Industries Secretary Dewan Zakir Hossain and Dutch Ambassador in Dhaka Einar H. Jensen on behalf of the governments of the two countries, according to a press release.

Held at the industries ministry, the signing ceremony was also attended by Industries Minister Dilip Barua and Head of Asian Department of the Danish foreign ministry Martin Bille Hermann.

The agreement aims at protecting and promoting foreign investment. It will be an important foundation for the future cooperation between the two countries as it spells out the overall framework for bilateral private sector investments in the two countries.

“The agreement is first of all an important signal to Danish companies who want to invest in Bangladesh. They can now feel more confident when investing in the country”, says the Danish envoy.

Direct trade between Bangladesh and Denmark has been growing steady in recent years.

BKMEA eyes markets in East Asia, South Africa, LatAm

http://www.thefinancialexpress-bd.com/2009/11/05/83424.html

BKMEA eyes markets in East Asia, South Africa, LatAm

Mehdi Musharraf Bhuiyan

After years of EU-American duopoly in the apparel export market, knitwear manufacturers are eyeing the untapped destinations of East Asia, Southern Africa and Latin America; as the country’s largest foreign exchange earners have felt the pinch of the fallout from the recent global recession.

During the three-day long Knitwear Expo currently being held in the city, leaders in the local knitwear industry are targeting buyers from Japan, South Korea, South Africa and various South American countries, a notion that signals the shift from the transatlantic dependence of the local apparel sector.

“This is the most unique feature of this year’s Expo I must say, and something which makes the event a timely one”, said Md. Fazlul Hoque, President of Bangladesh Knitwear Manufactures & Exporters Association (BKMEA), the organiser of the event.

A total of 139 buyers from various countries have visited Bangladesh for the first time on the occasion of this expo. Of the total 52 arrived from Japan, 26 from Hong Kong and 14 from South Africa, BKMEA informed the newsmen.

Industry leaders said Japan imports apparels worth around US$ 25 billion every year and is a potentially large market for Bangladeshi apparel exporters.

However, China, which tops the chart of the knitwear exporters all over the world, has an overwhelming presence in the Japanese apparel market.

“There are some unique characteristics of the Japanese market, which makes it a challenging one for the local apparel manufacturers” Fazlul Haq said, “Japanese people are more fashion conscious compared to their European counterparts and the demand of market is more varied”.

The recent move means that many leading knit manufacturers would partly shift their focus to various locations around the world, nevertheless without ignoring the importance of the vast EU or US markets.

“Usually, 70 per cent of the products manufactured in my factory is shipped to USA while 25 per cent of them finds their way to Europe, but as the recession draws to end, I am now looking for buyers from Japan and other countries”, said Md. Ashraful Haq Sikder, General Manager of Rupashi Knit Wears Limited, a leading knit manufacturer.

“Due to their higher production cost; Chinese apparels are still more expensive than ours, So, if we can highlight ‘lower cost and lower price’ factor of our country to the Japanese buyers, there is high potential for Bangladeshi knitwear manufacturers in Japan”, said, Shoaib Arefin of Wisdome Apparels Limited.

Industry insiders observe this late shift in the apparel industry as a positive sign, as the move is likely to eliminate decades of dependence on the European and American market.

With an export that peaked to US$ 6.43 billion in 2008/09, Bangladesh stands as the world’s third largest Knitwear exporter, which also contributes to 41.31 per cent of the country’s total national export.

During the recent global financial downturn, the local garments and knitwear industry was virtually on a thin ice, as most of its major markets were severely hit by the recession, raising concerns within the industry circle.

Since then, there have been calls from the leaders from the sector as well as the stakeholders for identifying new destinations and diversifying the market to avoid the risk of overwhelming dependence on a few particular regions.

“Our target in the long term is to capture 20 per cent of the Japanese apparel market, but initially we would happy with nearly five per cent of that chunk”, BKMEA President said.

Bhutan may give free trade facility for most BD items

http://www.thefinancialexpress-bd.com/2009/11/04/83352.html

Bhutan may give free trade facility for most BD items

Munima Sultana

Bangladesh is likely to enjoy free trade facility for most of the items imported from Bhutan when the bilateral trade agreement is renewed during the four-day visit of the Bangladesh Prime Minister.

Prime Minister Sheikh Hasina will visit the monarchy country on November 6 where commerce ministers of Bangladesh and Bhutan will sign the agreement on behalf of the respective countries.

“Both sides examined the free trade agreement issues and Bhutan has already agreed to give the facility for their products exported to Bangladesh,” said an official preferring anonymity.

He said though Bhutan is likely to seek similar facility from Bangladesh during the prime minister’s visit to that country, no decision has been made yet.

Official sources said the trade agreement is to be signed to renew the previous agreement, which expired in 2008. Bangladesh and Bhutan had the first trade agreement in 1984 that expired in 2000. The second and last agreement was signed in 2003.

In the fresh agreement, the officials said, the two countries reviewed the low trade volume of both sides and agreed to increase it.

During the visit of Bhutanese economic affairs minister’s last month, Bhutan has hinted to sign free trade agreement (FTA) with Bangladesh to boost economic relation between the two countries

Proposals for Free trade agreement (FTA) with Sri Lanka, Pakistan and India are now being examined under South Asian Preferential Trade Agreement and South Asian Free Trade Area.

In the new Bangladesh-Bhutan trade agreement which was finalised after consultation at commerce secretary level in August 2008, issues of improving regional connectivity and transit have also been added, the official sources said.

Both sides also agreed to increase total number of items for trading on each side to 90, which is now 74.

At present Bhutan is enjoying tax concession for 20 products from Bangladesh under a statutory regulatory order of 1989. The Bhutanese minister for economic affairs visited Burimari land port on October 5 to see for himself the infrastructure facilities at the Bangladeshi land border point.

Apparel exporters eye bigger Japanese market

http://www.newagebd.com/2009/nov/02/busi.html#1

Apparel exporters eye bigger Japanese market
Staff Correspondent

Bangladesh garment exports to Japan may increase to two billion US dollar within a couple of years should the country get duty-free market access to that country under relaxed rules of origin.

With over $24 billion annual imports, Japan apparel market is very much selective that demands capacity development of Bangladeshi exporters, speakers said at a discussion, organised by the Centre for Policy Dialogue, a think-tank.

Former finance minister M Syeduzzaman presided over the discussion that was participated by the commerce minister, Faruk Khan, former commerce minister, Amir Khasru Mahmud Chowdhury, and the Japanese ambassador in Dhaka, Tamotsu Shinotsuka.

Khondaker Golam Moazzem, a senior research fellow of the CPD, presented the keynote paper while the president of Bangladesh Knitwear Manufacturers and Exporters Association, Fazlul Hoque, described the industry potentials and his experience in Japanese market.

Japan’s apparel imports crossed $24 billion in 2008 and the market is offering more as Moazzem said, ‘Under the changing market dynamics, Japanese buyers [importers] have initiated new strategy to diversify their import base.’

The new Japanese strategy is to shift focus from one country [China] to a number of potential countries.

Fazlul Hoque said Bangladesh could be placed next to China as he observed a huge interest of Japanese importers in sourcing from Bangladesh.

As an LDC, Bangladesh gets duty-free access to Japan but rules of origin for importing knitted wear into Japan was a major barrier, said Hoque.

The rules require locally manufactured yarns for knitted garments. Hoque pointed out that Bangladesh does not produce fancy yarns or non-cotton yarns, which are necessary for diversified knitted wear productions.

In the past 2008-2009 fiscal year, Bangladesh exported $74 million worth garments to Japan and the year-on-year shipment growth was double.

The BKMEA president said if relaxed rules of origin were provided, two billion dollar worth shipments of Bangladeshi garments to Japan within a couple of years or so could be achieved.

Amir Khasru Mahmud Chowdhury said duty-free access is a precondition to boosting exports. So, government should pursue the Japanese authorities on providing easy rules of origin facility.

Khasru said that going into typical trade bargain Bangladesh would not gain such a facility but if the facility is sought as an aid for trade that may inspire Japan. Japan is the top and very sympathetic donor to Bangladesh, he cited.

‘The government should negotiate with Japan by focusing on the issue as an aid for trade case,’ suggested Khasru.

The Japanese ambassador said rules of origin was set same for all LDC beneficiaries but he did not rule out possibility of changed and convenient rules.

The embassy in Dhaka has taken attention to rules of origin issue, said the Japanese ambassador, ‘I have already communicated with Tokyo in this regard.’

Tamotsu Shinotsuka said Bangladesh had an image problem in Japan as many there don’t know capacity of Bangladesh industry.

The former president of the Dhaka Chamber of Commerce and Industry Sayeeful Islam said Japanese business culture was different than others and importers show zero tolerance to quality and timely shipment.

The commerce minister, Faruk Khan, hoped that strikingly explored Japanese market would help Bangladeshi exporters to offset shocks from recession hit western markets.

He assured exporters that government would provide all supports including diplomatic efforts for attaining more convenient trade facility from Japan.

US$ 223m fixed as export target to Japan next year: Faruk Khan

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US$ 223m fixed as export target to Japan next year: Faruk Khan

DHAKA, Bangladesh, Nov 1 (BSS) – Commerce Minister Lt Col (retd) Faruq Khan today said Bangladesh has fixed a record high export target of US dollar 223 million for the Japanese market during the next year.

“A supportive export policy (2009-2012) is being formulated to see the major export markets like the United States and the European countries are encouraged along with the South Asian countries to buy the Bangladeshi products,” he said while addressing a dialogue at CIRDAP auditorium here this afternoon.

Centre for Policy Dialogue (CPD), a private research organization, organized the dialogue on `In Search of New market, New Product: Bangladesh’s Apparels in Japan’.

Senior Research fellow of CPD Dr Khondaker Golam Moazzam presented the keynote paper while former finance adviser M Saiduzzaman was in the chair.

Representatives from garment and knitwear manufacturing associations, trade bodies and business analysts took part in the
dialogue.

Faruk Khan said he is very much optimistic about the credibility of the country’s manufacturing sector, as this area is capable enough to have more Bangladeshi goods to the new destinations.

Bangladesh has remained resilient to the competition in the face of the global financial rescission as the country this year has fetched US dollar 15 billion from exports to different countries with an 11 percent rise over the last fiscal’s level, he said.

The Commerce Minister, however, made it clear that the Rules of Origin would not be a problem in the case of Bangladesh’s exports to Japan as both the countries have long been maintaining friendly relations.

During an open discussion, the business leaders have identified various problems in the way of Japanese investment to Bangladesh. The problems included infrastructure limitations, utility problems, low productivity and lack of appropriate technologies.

Dr Khondaker put forward a set of recommendations for overcoming barriers in the way of encouraging Japanese investment to Bangladesh.

In this respect, he said the local garment and knitwear manufacturing associations should play a specific role along with pursuing a constant interaction with the Japanese business associations working in the fields of fashion, textiles and apparels.

M Saiduzzaman said increased productivity, quality assurance and better designs as per requirement of the Japanese market must be ensured for more Bangladeshi exports to Japan.

Forex reserves at record high in Oct

http://www.thefinancialexpress-bd.com/2009/11/02/83214.html

Forex reserves at record high in Oct

Bangladesh’s foreign exchange reserves rose to a record high of $9.54 billion at the end of October from $9.36 billion in September, the central bank said Sunday, following a steady rise since February. The increase was attributed mostly to strong inflows of remittances from more than 6.0 million Bangladeshis working overseas. — Reuters

Bangladesh fares better than low-income competitors, says IMF outlook

http://www.thefinancialexpress-bd.com/2009/10/31/83021.html

Bangladesh fares better than low-income competitors, says IMF outlook

FE Report

Lower labour costs and a more vertically integrated garment sector have enabled Bangladesh to gain market share this year in the large economies, compared to the situation of its low-income competitors.

According to the IMF outlook for Asia and the Pacific, released Thursday in Seoul, overall export volumes of Asian low-income countries (LIC) are likely to see only a slight decline in 2009.

“The exchange rate depreciation relative to the euro as a result of its US dollar peg also help the country gain market share,” it said mentioning the case of Bangladesh.

“It is much better performance than in the newly industrialised economies and ASEAN-4, where volumes are likely to be significantly down for 2009.”

After being hit hard by the global economic slump, Asia is now rebounding fast, stated the International Monetary Fund (IMF) in its Regional Economic Outlook for the Asia and Pacific Region.

The longer-term shifts in strategic sourcing by multinational corporations (MNCs) toward lowest-cost producers have benefited Bangladesh and Vietnam, allowing them to gain market shares, especially in the United States.

The outlook, however, said Cambodia’s garment exports appear to be suffering because of higher labour and utility costs, lower productivity, and lack of vertical integration.

In response to the global recession, Bangladesh announced and offered proactively stimulus package to increase capital and social spending, reduce tax and interest, and other government subsidies to designated sectors.

The outlook cautioned that the implementation of stimulus measures has been constrained by available financing and capacity limitations.

Positive growth in remittance flow is expected in Bangladesh as most of its migrant workers are employed in the Gulf Cooperation Council (GCC) countries.

Most Asian LICs are expected to record positive growth in 2009 and should see a further strengthening of activity in 2010 as global conditions continue to improve, the outlook said.

IMF forecasts suggest Asia will grow by 5.75 per cent in 2010–far higher than the 1.25 per cent predicted for the G-7 economies but well short of the 6.67 per cent average recorded for the region over the past decade.

“A strong rebound in exports is unlikely, given that some of the Asian LICs’ export products including agricultural goods and garments have low responsiveness to global demand changes.”

The outlook said establishing a robust recovery in the Asian LICs, however, will depend on their ability to maintain macroeconomic stability.

“The threats to stability are many: fiscal deficits are large, credit growth and inflation are high, and in some cases international reserves are low.”

Tighter monetary conditions would help rein in credit growth and alleviate emerging inflation concerns in Bangladesh, the outlook said.

The report said Asia’s outlook remains closely tied to the global economy and the key behind Asia’s recovery was bounced back from the sudden stop in global trade and finance at the end-2008.

“This has fuelled a rapid recovery in exports, boosting industrial production and overall GDP,” said the report.

In the wake of the global downturn, Asian government authorities swiftly deployed packages to boost public spending, reduce interest rates, and stabilise financial markets.

These measures were much larger than in previous crises, and in the case of the fiscal programmes, even larger, on average, than those introduced by the Group of 20 industrialised and emerging market countries.

“The vigorous reaction was made possible by Asia’s relatively strong initial conditions: in many countries, government fiscal positions were sounder, monetary policies more credible, and corporate and bank balance sheets sturdier than at any time in the past,” noted the report.

Kevin Brown of the Financial Times adds from Singapore under syndication service: The International Monetary Fund (IMF) more than doubled its forecast for Asian economic growth for the year and raised its forecast for 2010, reflecting a sharp improvement in the region’s prospects over the past six months.

In its latest Asia Pacific regional economic outlook, the fund forecast growth in gross domestic product (GDP) of 2.8 per cent for this year and of 5.8 per cent for 2010. In May, the IMF said growth would be just 1.2 per cent in 2009 and 4.3 per cent in 2010.

“The primary driver of Asia’s recovery has been a progressive return towards [normality] following the abrupt collapse in global trade and finance at the end of 2008,” the IMF said, also highlighting forceful monetary and fiscal stimulus programmes within the region. “Just as the US downturn triggered an outsized fall in Asia’s GDP because international trade and finance froze, now their normalisation is generating an outsized Asian upturn.”

Anoop Singh, the IMF’s Asia Pacific director, said the recovery was largely export based, adding that regional governments need to maintain caution because of the sluggishness of advanced economies. It forecast that 2010 growth would consequently remain below the 6.6 per cent annual regional average posted over the last decade.

“As we look ahead to the next decade, it is likely that private demand from advanced economies and the US is not going to be as strong as we had expected,” Mr Singh said. “This means that for Asia to retain its strong growth momentum, it needs to shift the drivers of recovery from an export engine more into domestic demand within Asia.”

The IMF said there had been “exceptional uncertainty” at the time of its May forecasts, which had now receded. However, it said risks remained that could weaken growth, including a premature exit from extraordinary monetary and fiscal policies.

“If signs of renewed external environment weakness were to arise, the positive feedback loop triggered in Asia could shift into reverse,” the report said, warning that renewed foreign risk aversion and weak demand could trigger capital outflows and induce companies to shed jobs.

In a slew of country upgrades published with the report, it raised growth forecasts for 2010 for Japan from 0.5 per cent to 1.7 per cent, for Australia from 0.7 per cent to 2.0 per cent, and for China from 7.5 per cent to 9.0 per cent. The forecast for South Korea was raised from 1.6 per cent to 3.6 per cent and for India from 5.6 per cent to 6.4 per cent.

Country fetches $15b from exports last fiscal

http://www.thefinancialexpress-bd.com/2009/10/30/82964.html

Country fetches $15b from exports last fiscal

Commerce Minister Faruk Khan Thursday told the Jatiya Sangsad that the country exported goods worth US dollar 15 billion during the 2008-’09 fiscal year with an 11 per cent rise over the previous year’s level, reports BSS.

The surge in exports during the last fiscal year (FY) was possible despite global economic recession at that moment when most of the countries suffered setback in their external trade, he said while replying to a supplementary question from treasury bench lawmaker Akhtaruzzaman Chowdhury Babu.

The minister said the country’s trade gap with India was at present Tk 170 billion. The present government had taken various measures to increase Bangladesh’s exports to India. “As part of it, many land ports with Indian borders including that in Akhaura have been opened,” he said.

Replying to a question from treasury bench lawmaker Dhirendra Devnath Shambhu, the minister said the target for exports of Bangladeshi products to Myanmar had been increased to $30,000 from $10,000.

Despite complicacies in exchange rate of currencies with Myanmar, the government was trying to further raise Bangladesh’s exports to that country, he added.

Replying to a question from treasury bench lawmaker Md Jasim Uddin, Faruk Khan said the country achieved cent per cent export target for readymade garments (RMG) during 2008-’09 fiscal year. “The country fetched Tk 864.3439 billion from exports of RMG products during the last fiscal year,” he added.

Analysts spotlight business scope to German delegation

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Analysts spotlight business scope to German delegation
Star Business Report

The foreign direct investment (FDI) regime in Bangladesh is liberal as almost all sectors are open to foreign investors and profit repatriation, analysts said at a seminar in Dhaka yesterday.

Infrastructure, power, agro-processed foods and telecommunication are some potential sectors for German investment in Bangladesh, they said at the seminar joined by a visiting German business delegation.

Bangladesh German Chamber of Commerce and Industry organised the seminar styled “Investment Climate and Economic Prospects for Bangladesh” in association with OAV-German Asia Pacific Business Association.

OAV is a network of more than 500 German companies from all industries including production, trade and finance services.

President of the chamber Saiful Islam said the newly elected government’s agenda includes huge investment in power and infrastructure and Germany is welcome to come up with development projects for infrastructure and energy.

He also expressed concern that Bangladesh has been portrayed with a negative image in the western media.

Former caretaker government finance adviser AB Mirza Azizul Islam said manufacturing, readymade garments, agro-processed foods, energy, water resources, inland river container, and telecommunications are the areas where German businessmen can invest.

As the government allows full profit repatriation and FDI in all the areas except some sectors such as arms and information, foreign investors can enjoy huge freedom in the country, he added.

Despite rapid growth in mobile telecommunication in the last few years, tele-density rate in the country is still one of the lowest in the world, he said, describing the justification to invest in the sector.

Aziz said the size of the capital market has doubled in the last 3-4 years, while the largest-ever initial public offering was 3.5 times oversubscribed, showing a vibrant capital market.

In a keynote speech, Mamun Rashid, managing director of Citibank NA in Bangladesh, said the infrastructure problem is not unique for the country. “During my work in different countries of Southeast Asia and Africa, I have seen that infrastructure is a common problem for all the emerging countries.”

About the economic progress of the country in the last few years, he said now the size of the capital market is two times higher than that of Philippines, while foreign currency reserve has reached $9 billion recently from $1 billion in 2001.

BD Rahmatullah, former director general of Power Cell and Power Division of the Ministry of Power, Energy and Mineral Resources, said the average per day power shortage in the country is now 2,000 megawatt.

It is not possible for any country to develop to its full potential with such a shortage of power, he added.

He also said the ‘Vision 2021′ of the government will remain unimplemented with a dilapidated power sector.

Not the mineral resources but absence of proper policy is the main problem for power sector development as it is possible to generate 10,000MW of power for 50 years by using the coal in the northern region of the country only, he said.

German Ambassador to Bangladesh Holger Michael said he would carry a strong message with him from the discussion at the seminar — the country has a huge potential.

Editor and Publisher of The Daily Star Mahfuz Anam said Bangladesh has a huge opportunity for development, while the best way of defining the country is that it is a rose with many thorns and so one has to take risks to enjoy the beauty of the flower.

Anam said it seems that the country is on the right track as the government has taken some bold steps to develop the power sector — though still at planning level. He however said: “We are good planners, not implementers.”

Christoph Isenmann, director of KfW office in Dhaka, identified traffic congestion, transport and energy situation as some of the bottlenecks for the country’s development.

KfW is the German state-owned development bank. Isenmann also urged the authorities to at least spare the power sector bidding from politicisation for the development of the sector.

Peter Clasen, head of the OAV delegation, said although there is business potential in the country, it will require more efforts in this regard.

He also said the people of the country are business-loving.

Zaidi Sattar, former senior economist of World Bank South Asia region, and chairman of Policy Research Institute of Bangladesh, said there has been around 6 percent GDP (gross domestic product) growth in the last few years.

But the country could achieve 8-10 percent growth, he added.

He also suggested making the country part of the global supply chain instead of relying on 8-10 products for export.

He said Bangladesh still has a huge potential in RMG sector, as the existing $12 billion annual RMG export of the county is insignificant in the $400 billion global apparel market.

In a keynote speech, Mahboob Ahmed, managing director of Shipwrights Bangladesh Ltd, a concern of Rupayan Port and Logistics Services Ltd, stressed transporting containers through waterways to reduce transport cost.

Citing a World Bank report, he said one gallon of fuel moves one tonne of cargo 59 miles by road, 202 miles by train and 514 miles by waterways.

Afriqiyah launches Dhaka-Tripoli-Dhaka direct flights

http://www.thefinancialexpress-bd.com/2009/10/28/82746.html

Afriqiyah launches Dhaka-Tripoli-Dhaka direct flights

FE Report

Afriqiyah Airways – the national airlines of Libya on Tuesday introduced Dhaka-Tripoli-Dhaka direct flights acting as the gateway to Africa and East Europe.

A 300 seater Airbus 330 aircraft of the Afriqiyah Airways landed at Zia International Airport as the first ever African based airlines. It was scheduled to take-off for Tripoli at mid-night on the same day.

With Airbus 320-200, 319-11 and 330-200 category aircraft, the national flag carrier of the North African oil-rich state would initially operate one direct flight per week, catching-up Bangladeshi travellers on their way to Africa and East Europe, official said.

Banani Travels and Tours, a local travel agency, has been assigned as the General Sales Agents (GSA) for the airlines in Bangladesh.

A modest inauguration ceremony was organized at the Zia International Airport in presence of high officials of the Civil Aviation Authority of Bangladesh (CAAB) and Afriqiyah Airways’ delegation from Libya.

Dr. H. B.M. lqbal, chairman of Banani Travels & Tours was present on the occasion.

Speakers at the inauguration ceremony said the introduction of non-stop Dhaka-Tripoli-Dhaka flight would open a new horizon in the development of relations among African countries and Bangladesh.

“Bangladesh can take advantage of Libya’s strategic position to move into the African and East European countries,” they said.

Vice versa Libyan entrepreneurs to take the advantage of expertise of Bangladeshi experience in garments, textile, IT & Pharmaceuticals and light machinery, he added.

Moreover, Libya has already emerged as potential employment destinations for Bangladeshi semi-skilled and skilled workers. The direct flight is likely to appear as their most proffered choice, speakers added.

Dhaka to sign key regional deal to boost trade ties with Asian giants

http://www.thefinancialexpress-bd.com/2009/10/26/82596.html

Dhaka to sign key regional deal to boost trade ties with Asian giants

Nazmul Ahsan

Bangladesh will sign a major regional deal in December in an effort to boost its trade with fast booming economies of China, South Korea and three other nations, officials said Sunday.

The three countries and India, Sri Lanka and Laos are the member of the Asia Pacific Trade Agreement (APTA) signed in a low-key manner in November 2005 and came into effect from July 1 2006.

The six countries would now hold a ministerial meeting in South Korean capital Seoul on December 15 and sign a ground-breaking Framework Agreements on Trade Facilitation (AFT) during the meet, officials told the FE.

Commerce ministry officials said the APTA Standing Committee, comprising trade diplomats of member countries in its latest round of negotiations finalised the draft deal in Bangkok.

“The agreement will be a major boost to our trade as it will pave the way for increased market access to China, the world’s third largest economy, and South Korea, the third largest Asian economy,” an official said.

“It will also benefit us in the areas of enhancing capacity in trade, modernising customs department and containing cross-border smuggling,” the official who has seen the draft framework agreements said.

Commerce Minister Faruk Khan will attend the Ministerial Council as the head of Bangladesh delegation.

The APTA was formerly known as Bangkok Agreement, with officials holding infrequent

meetings to discuss trade and economic ties among the six Asian nations.

Presently, trade of more than 4,000 items originating from APTA member countries including those from Bangladesh enjoys tariff concessions under the deal.

Particularly, South Korea and China have granted duty free market access to 139 and 83 Bangladeshi products under the APTA. It is expected that the new deal would lead to further tariff cuts.

In the proposed new agreement, the six countries would also enhance cooperation in 10 major areas including market access and speedy release of goods from the ports.

In addition, it would cover other key areas such as harmonisation of HS Codes, handling foreign passengers in airports, and exchange of best practices to contain customs corruption.

“The proposed agreement for the first time will strengthen trade related capacity both for Bangladeshi officials and departments involved in trade facilitation,’ the commerce ministry said.

“Technical cooperation in formulating country’s export-import policies is also on the list of cooperation finalised in the trade facilitation agreements,” he said.

Trade experts said the trade related expertise among Chinese and Korean officials have increased to global standard, where Bangladesh still lags behind most of Asian nations.

The two countries could also become big markets for Bangladeshi goods, as the country’s manufacturers look for alternative destinations in the wake of the worst recession in the West.

“The framework agreements can play crucial role in transferring best trade practices and know how to Bangladesh,” the official said,

He added the ministry of commerce and the National Board of Revenue (NBR) would be enormously benefited by the proposed deal.