Tag Archives: Exports

Bangladesh exports software to 30 countries: Abul Hossain

http://www1.bssnews.net/newsDetails.php?cat=7&id=255842&date=2012-06-10

Bangladesh exports software to 30 countries: Abul Hossain

SANGSAD BHABAN, June 10 (BSS) – Bangladesh software industry is expected to see a robust growth despite global economic recession.

Replying to a tabled question from treasury bench Bazlul Haque Harun of Jhalakathi-1, Information and Communication Technology (ICT) Minister Syed Abul Hossain said the country has earned US$ 31 million in fiscal 2009-10 and US$ 27 million in fiscal 2010-11 against the export of software in the world market.

At present Bangladesh is exporting software to 30 countries including Europe, America, Canada, Denmark, Japan, Australia and South Asia, he said.

The ICT minister said local IT professionals are producing and developing international standard software under the supervision of Bangladesh Association of Software and Information Services (BASIS) with assistance from the government.

Answering to another tabled question of Benzir Ahmad, MP of Dhaka-20, the ICT minister said the government is implementing a project to set up computer lab with Internet facility in the country’s 3,172 educational institutions aimed at developing IT literate human resource.

Besides, initiative has been taken to formulate necessary policy and guideline for introducing digital signature while office of the Controller of Certifying Authorities (CCA) has been established for issuing electronic signature.

To make the government’s services available for the mass people, the government has installed National Data Centre at Bangladesh Computer Council, he added.

How to bring in more FDI

http://www.thedailystar.net/newDesign/news-details.php?nid=237086

How to bring in more FDI

Fahmida Khatun

Foreign direct investment (FDI) has made enormous leaps since the 1990s in terms of its growth in the global economic landscape. Due to paucity of resources in developing and least developed countries, FDI has become an important component of their development strategies and in many cases it proved to be a win-win situation to both host and home countries. Host countries want to gain from FDI in multiple ways such as through having capital, technology and knowledge. Home countries also benefit through investing as they can penetrate into markets, gain access to raw materials and diversify business activities. They can also overcome trade barriers and reduce transport costs.

Bangladesh is considered to be one of the potential economies despite being besieged by multi-faceted adversities such as frequent natural disasters, high density of population, political turmoil and a low production capacity. The resilience and inherent strength of the economy, mainly due to its robust sectors such as agriculture, readymade garments and remittances, have been the basis of such optimism. However, in order to make its graduation to the next level of growth and fully exploit the growth potential, the country’s investment scenario has to be improved. The lack of adequate investment is one of the important reasons for the growth below the potential of the economy. The domestic investment rate has been stagnant at around 24 percent to 25 percent of the country’s gross domestic product (GDP) for the last ten years which is far below the level required for a country aiming to be become a middle-income country by 2021 with a growth rate of 10 percent. The sixth five-year plan (2011-15) of Bangladesh targets a GDP growth of 8 percent by the end of the plan period. This requires that the total investment has to grow by 8.1 percent per year and the share of investment in GDP has to be 32.5 percent by fiscal 2015. Low domestic investment has been a matter of concern as it holds back foreign investment as well.

Even though Bangladesh has been trying to bring in FDI since its independence and put in place FDI friendly policies in the early 1980s (Foreign Investment Promotion and Protection Act 1980 was such an attempt) much before some of its neighbours, it has been unable to accelerate FDI at the expected level. In the 1990s, there was an attraction for the East Asian and European investors to invest in the readymade garments industry of Bangladesh, thanks to the Generalised System of Preferences (GSP) and the availability of labour at a competitive price. Currently, the concentration of FDI is mainly on transport, storage and communication, manufacturing and power, gas and petroleum. Other sectors such as agriculture, trade and commerce and, services receive nominal FDI. In 2010, manufacturing sector was the highest recipient at 27.82 percent of total FDI, while the construction sector received the lowest with a share of 0.01 percent. The growth of FDI in Bangladesh has, however, been very inconsistent. A major inflow of FDI was observed in the mid 2000s and rose to $913.32 million in 2010.

While discussing the impediments to bringing FDI into the country, a host of issues have been raised ranging from infrastructural constraints to bureaucratic complexities to image building. However, the crux of the problem does, in fact, lie in three broad areas. First is the limited access to physical infrastructure, particularly supply of gas and electricity. This has emerged as a binding constraint on investment promotion in Bangladesh. For example, the supply of gas between December 2008 and December 2011 has increased only marginally from 1,606 million cubic feet to 1,960 million cubic feet, indicating an average growth of 7.4 percent. On the other hand, the demand for gas rose by 12.3 percent during this period, leading to a wide gap between demand and supply. At present, the demand for power in Bangladesh is around 6,500 megawatt, while the supply is 4,699 megawatt. In the recent times, the FDI rise has been observed mainly in the export processing zones (EPZ) as there is little or no gas and electricity supply constraint like the domestic tariff area. In order to overcome infrastructural bottlenecks, aid for productive capacity needs to be enhanced significantly. However, effective use of these funds has to be ensured. Public-private infrastructure development policy can also be a powerful tool to tackle the supply side constraints.

The second bottleneck is the culture of confrontational politics, which poses a serious threat for the safety of property and resources of prospective investors. Acrimony and bitterness among political parties often lead to destruction and affect lives and properties of people which in turn deter not only foreign investment but also local private investment. Many investors are even willing to spend on infrastructure to facilitate their investment in other sectors, only if there are political stability and predictability of return on their investment.

The third constraint is the lack of good governance and prevalence of corruption, which have put a scar on the reputation of the country at the global level. Because of advantages such as competitive prices for labour and other services, investors may find Bangladesh a lucrative investment destination. However, predicaments such as delay and a lack of transparency in decision making process, a dearth of effective implementation of regulations and policies, and discriminatory incentive packages act as stumbling blocks in bringing in FDI to the country.

FDI is not a panacea for slow growth, and it has several negative implications too. These include capital flight and repatriation of profit, dependency on technologies and limited transfer of technology and transfer pricing. With effective regulatory and oversight mechanism such issues can be addressed. FDI can supplement the local effort to produce goods and services and create jobs. If local businesses flourish, foreign investors will have confidence to bring their resources. Promotion of local businesses through access to adequate finance and creation of an enabling environment should also be a key target. Economic diplomacy is vital at this day and age to attract foreign resources. This has to be accompanied by good marketing skill which in other words is called ‘branding’. Such image building task has to be done primarily by the government but complemented by the private sector and all citizens of the country.

The writer is an economist and head of research at the Centre for Policy Dialogue.

13th Textech Bangladesh Intl Expo begins July 3

http://www1.bssnews.net/newsDetails.php?cat=2&id=254592&date=2012-06-05

13th Textech Bangladesh Intl Expo begins July 3

DHAKA, June 5 (BSS) – A four-day 13th Textech Bangladesh- 2012 International Expo, largest of its kind in textile and apparel industry, will begin in the city on July 3.

The annual exhibition on textile and apparel technology, machinery and allied services would be held at Bangabandhu International Conference Centre (BICC).

CEMS-Global, USA-Conference and Exhibition Management Services Ltd in association with CEMS Bangladesh is organizing the expo.

Textech series of exhibitions, has become a brand, held every year in Bangladesh, Indonesia and Sri lanka.

Commerce Minister GM Quader will be the chief guest at the inaugural session of this year’s show, organizers said today.

Over 450 exhibitors from various countries including the US, UK, China, India, Pakistan and Japan are expected to take part in the exposition.

Members of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) take part in the show.

The Textech aims to introduce local stakeholders of Readymade Garments (RMG) and knitwear sectors with the latest development and the global trend of the industries so they can survive in the global competition.

Two more exhibitions — 12th Dye+Chem Bangladesh- 2012 International Expo’ and 6th Dhaka International Yarn and Fabric Show-2012′ — would also be held besides the 13th Textech.

Organizers say the expo would not only create a scope for Bangladeshi apparel and knitwear exporters to display their unique aspects of the products but also shed light on its progress to the global garment and textile community.

The 13th Textech will bring many decision makers and qualified buyers under one roof resulting in business transactions worth millions.

Bangladesh, being the second largest destination for RMG outsourcing after China, exported apparel merchandise worth $17.91b last year.

FTA with Malaysia to boost apparel, medicine export

http://www.thefinancialexpress-bd.com/more.php?news_id=132021&date=2012-06-06

FTA with Malaysia to boost apparel, medicine export
Nizam Ahmed

Bangladesh is expecting to boost its exports of garment and pharmaceutical products to Malaysia once a free trade agreement (FTA) is signed between the two countries, officials said on Tuesday.

Meanwhile, the far eastern Muslim country, which employs more than 400,000 Bangladeshi expatriate workers, is expected to approve the FTA proposal submitted by Bangladesh, soon.

“The two countries will start negotiations on the proposed FTA, immediately after the approval, which is expected to come, ahead of the upcoming exposition of Bangladeshi products titled Showcase Bangladesh 2012, in Kuala Lumpur,” a senior official at the ministry of foreign affairs (MoFA) told the FE.

Once the FTA is inked, there will be vast potential in trade and investment areas of both the countries, the officials said.

The three-day second exposition of Bangladeshi products to be held from July 13, after the first one held in 2010 is also likely to solve problems faced by Bangladeshi expatriate workers in remitting their earnings to Bangladesh.

“Besides manpower, we are looking for exporting ready-made garments (RMG), pharmaceutical products and several other non-traditional items to Malaysia,” Mostafa Azad Chowdhury Babu, vice president of Federation of Bangladesh Chambers of Commerce and Industry told the FE.

Malaysia with a population of some 28.5 million in an area of some 330,000 sq km and with a GDP of $238 billion, is now a solvent country and meets its apparel and medicinal demands by importing from different countries in Asia, Europe and the USA.

Import by Malaysia from Bangladesh is nominal at present while it exports mainly palm oil, petroleum products worth some 950 million euro to Bangladesh annually, according to a Malaysian government website.

Malaysia has recently come forward to cooperate with Bangladesh in its efforts to boost its economy.

It is the first country that offered Bangladesh necessary assistance in building a proposed bridge over the river Padma when the World Bank and other financers backed out from their commitment of funding, the government officials in Dhaka said.

Malaysia has so far pledged some $9.0 billion including $6.0 billion for a new international airport and the rest for the proposed 6.15-kilometre multi-purpose bridge across the river Padma.

Malaysia also legalised some 267,000 Bangladeshi workers recently who had been victim of unscrupulous manpower agents.

Presently there are some 400,000 Bangladeshis working in Malaysia, mostly in manufacturing, construction, plantations, agriculture and service sector.

Expatriate workers in Malaysia send some $13 billion every year.