ข่ าวเด่ นประจาสั ปดาห์ จากบังกลาเทศ
8-14 December 2014
รวบรวมโดย สำนักงำนส่งเสริมกำรค้ำระหว่ำงประเทศ ณ กรุงธำกำ
Business News
Headlines:
1. Road to apparel export excellence
2. Govt to import 50,000 tonnes of wheat
3. Inflation hits two-year low
4. Govt sweetens deals for economic zones
5. Rice imports by traders soar
6. Meeting on reforms in import policy
Road to apparel export excellence
Infrastructure and political calm are crucial to the $50b garment export target, analysts say at
Dhaka Apparel Summit
The Daily Star
Published: 12:00 am Monday, December 08, 2014
Link: http://www.thedailystar.net/road-to-apparel-export-excellence-54071
Bangladesh will need between $74 billion and $100 billion in the next decade to improve
infrastructure which, coupled with political stability, is key to attaining $50 billion in annual
apparel exports in seven years from now.
Experts, policymakers and entrepreneurs shared a common view yesterday at a discussion on
“Infrastructure -- the Road to Chittagong & Beyond” at Dhaka Apparel Summit.
Bangladesh Garment Manufacturers and Exporters Association organised the three-day summit
at Bangabandhu International Conference Centre in Dhaka.
Organisers ran a mobile SMS poll where more than half of the participants expressed that
better infrastructure is mostly needed for an efficient business supply chain. Maintaining
political stability came in second.
To improve infrastructure in order to raise apparel exports from nearly $25 billion now to $50
billion by 2021, it will be vital to gather required resources and give pace to project
implementation, they added.
Garment exports will have to grow by 10 percent a year from now to fetch $50 billion, said Zaidi
Sattar, chairman of Policy Research Institute (PRI).
"It is feasible but infrastructure will be the binding constraint."
Citing a World Bank study on infrastructure requirements in South Asian states, Zahid Hussain,
lead economist of World Bank Bangladesh, said the countries need to improve six key areas of
infrastructure -- transportation, electricity, water supply and sanitation, solid waste
management, telecoms and irrigation.
To improve these areas, Bangladesh will need a minimum of $74 billion to a maximum of $100
billion in ten years. “It means we have to invest 7.4 percent to 10 percent of GDP in the next
ten years.”
“Currently, we are spending about 2-3 percent of GDP for infrastructure development;
financing and implementation are the constraints.”
Hussain said the government should first maintain existing infrastructure, moving away from a
tendency of neglect.
"Our tendency is to build, neglect and rehabilitate. That is really a big problem."
Abdul Moyeen Khan, member of national standing committee of BNP, said achieving the $50
billion export target will not be possible. The main challenge will be to manage resources to
develop infrastructure, he added.
Khan said BNP has kept the garment industry out of the purview of strikes in the past. “No
political party should block the development of the garment industry.”
Towfiq-e-Elahi Chowdhury, power, energy and mineral resources adviser to the prime minister,
said: "We will be by your side to make $50 billion plus in apparel exports."
Bangladesh's electricity generation capacity doubled from 5,000 MW to 11,000 MW in the
current government's last tenure, he said.
James F Moriarty, a board member of the Alliance for Bangladesh Worker Safety and senior
adviser for South Asia Bower Group, said there is a push to establish transportation links
between China, India via Bangladesh to Southeast Asia.
Bangladesh will serve as a hub once transportation links between China, India and Southeast
Asia are established, he said.
SM Fazlul Hoque, former president of BGMEA, said businesses will need political stability to
achieve the vision for exports.
Mikio Hataeda, chief representative of Japan International Cooperation Agency, said it is
helping Bangladesh to develop various infrastructure, including the elevated expressway in
Dhaka, and supporting initiatives for a reliable supply of electricity.
It is also helping Bangladesh with the three pillars identified under the Bay of Bengal Industrial
Growth Belt (BIG-B) initiative, which are -- developing economic infrastructure, improving
investment environment and fostering connectivity.
Japan International Cooperation Agency has also identified a few sites to support establishing
special economic zones, he added.
Asif Ibrahim, former president of Dhaka Chamber of Commerce and Industry, moderated the
session.
Govt to import 50,000 tonnes of wheat
The Daily Star
Published: 12:00 am Tuesday, December 09, 2014
Link: http://www.thedailystar.net/govt-to-import-50-000-tonnes-of-wheat-54314
The government will import 50,000 tonnes of wheat at $270 a tonne as the cabinet committee
on purchase approved a proposal of the food ministry on Sunday.
The import price will be lower than a previous estimate at $288 to $298 a tonne.
The government, in this fiscal year's budget, has set a target to collect nine lakh tonnes of
wheat through import.
On December 2, the government's stock of food grain was 12.47 lakh tonnes, of which 1.46 lakh
tonnes were wheat, according to the ministry.
Inflation hits two-year low
Food inflation was the biggest driver behind the drop in Nov
The Daily Star
Published: 12:00 am Wednesday, December 10, 2014
Link: http://www.thedailystar.net/inflation-hits-two-year-low-54559
Inflation continued its fall in November, coming down to 6.21 percent -- the lowest in 24
months.
The inflation rate, which has been showing a downward trend for the last several months, was
6.60 percent in October.
In October 2012, inflation was 5.16 percent, which rose to 6.55 percent in November the same
year.
Food inflation was the biggest driver behind the drop in overall inflation last month, sliding to
6.44 percent from 7.16 percent in October, according to the Bangladesh Bureau of Statistics
(BBS) data.
Non-food inflation, however, continued to rise. It reached 5.84 percent in November from 5.74
percent in the previous month, due to a rise in house rent, transportation costs, education and
medical expenses and other non-food items.
The continuous decline in food prices on the international markets also helped food inflation
come down.
Prices of edible oil and petroleum products decreased on the global markets, BBS officials said.
Central bank officials said a recent surge in bank loans was one of the reasons behind the rise in
non-food inflation in November.
In October, non-food inflation went up as two major religious festivals took place at the
beginning of the month. People's movement and consumption of non-food items increased
ahead of the festivals.
Inflation declined in both urban and rural areas last month. In rural areas, it dropped to 6.05
percent from 6.49 percent in October, and in urban areas to 6.51 percent from 6.79 percent.
The government has set the inflation target at 6.5 percent, on average, for the current fiscal
year. On an average basis, inflation was slightly above 7 percent in November.
Planning Minister AHM Mustafa Kamal and BBS officials had earlier said they were hopeful of
hitting the inflation target this fiscal year.
Govt sweetens deals for economic zones
The Daily Star
Published: 12:00 am Wednesday, December 10, 2014
Link: http://www.thedailystar.net/govt-sweetens-deals-for-economic-zones-54563
The government plans to provide numerous tax benefits in the proposed five economic zones
to attract both foreign and domestic investments.
The land developers and unit investors in the economic zones will get very competitive
packages, said Paban Chowdhury, executive chairman of the Bangladesh Economic Zones
Autho-rity, adding that they would be better than those offered by the other countries in the
region.
Incentives include tax holiday and duty-free import of vehicles, he said, adding that the
investors will not need to pay income taxes for their employees for at least ten years.
Chowdhury's comments came at a pre-bid meeting for the selection of a developer to design,
build, finance, own, operate and transfer Mongla Economic Zone, held at Sonargaon Hotel in
Dhaka yesterday.
The proposed economic zone would be built on 205 acres of land situated in close proximity to
Mongla Export Processing Zone in Bagherhat district on a public-private partnership model. The
land will be leased by BEZA for a period of 30 years.
Six large national firms and four firms from India, China, Korea and Dubai have expressed their
interest in participating in the bidding for development of the economic zone.
During the pre-bid meeting yesterday, Chowdhury assured the prospective bidders that the
BEZA would not practise any red tape or bureaucracy.
BEZA will develop the off-site infrastructure. The tenders for approach road, administrative
building, boundary wall and bridge have already been floated, with those for water supply,
electric works and land filling on the way, according to Harunur Rashid, project director of
BEZA.
The government will invest around $6.41 million to develop the off-site infrastructure.
Economic zones are the newest version of export processing zones, Nazrul Islam, managing
director of Infrastructure Investment Facilitation Company, said, adding that the government is
focusing on the development of economic zones to bring in more private investment.
IIFC is a government-owned company that provides professional services to line ministries and
agencies to develop infrastructure projects for private sector participation.
In export processing zones, only products for the export market can be manufactured, while in
economic zones all types of goods can be produced.
The government will provide land and utility, while the investing companies will develop the
infrastructure on their own, Nurannabi Mridha, executive member of BEZA's Planning &
Development division, said.
The main objective of the projects is to encourage local investors, attract foreign investors,
improve the overall investment climate and generate employment, he said.
The government aims to develop five special economic zones in Mongla, Moulvibazar, Sirajganj
and Chittagong's Anwara and Mirersorai areas in the next two years.
All the five projects may create jobs for 1.5 crore people by 2021. The five economic zones will
be developed on 8,827.99 acres of land, according to the BEZA website.
Meanwhile, BEZA has already handed over the pre-qualification licence to AK Khan Company,
the local conglomerate, for building a 200-acre special economic zone in Narsingdi, the first
under the private sector.
The development of the zone is expected to be complete by 2015, said Paban Chowdhury,
executive chairman of BEZA.
Once completed, foreign investment especially from Japan will increase significantly, he said,
while citing a recent survey of JETRO which said that Japanese investors are considering
Bangladesh as their first choice for investment.
Rice imports by traders soar
The Daily Star
Published: 12:00 am Sunday, December 14, 2014
Link: http://www.thedailystar.net/rice-imports-by-traders-soar-55194
Rice imports in just five months this year crossed last year's total as businessmen found foreign
produce, mainly from India, cheaper than local output.
Bangladesh's private importers brought in 4.05 lakh tonnes of rice from July to December 9,
which is 8 percent higher than in the same period last fiscal year, according to food ministry
data.
Surging rice imports supported by the absence of duty and the aman harvest, the year's second
largest rice crop, have lowered prices in the domestic market, affecting both farmers and local
millers.
“Many millers are avoiding milling due to stiff competition from imports,” said Md Abdur
Rashid, president of Bangladesh Auto, Major and Husking Mills Association.
During the aman harvest season, farmers usually sell a part of their produce while millers
increase processing.
But the large-scale arrival of low quality and cheaper rice put local millers and farmers in a tight
corner, Rashid said.
Prices of parboiled rice (5-percent broken) were $385 a tonne in India, compared to $422 in
wholesale prices for coarse rice in Dhaka.
Imports are likely to fall in January due to the weakening of the taka against the dollar, as
witnessed by a smaller number of new LCs, said Sarwar Alam Kazol, a rice importer.
Retail prices of all types of rice fell in Dhaka over the last month, according to the Trading
Corporation of Bangladesh.
"Farmers will be discouraged from growing rice if the import continues," said Rashid, also
managing director of Rashid Agro and Food Products, a leading rice miller.
"We have long urged the government to impose duty on rice imports. Rice imports should be
discouraged for the sake of farmers and local millers.”
The soaring imports came after Bangladesh harvested a record crop last fiscal year, and the
government is set to export 50,000 tonnes of rice to Sri Lanka.
Production rose to 3.44 crore tonnes in fiscal 2013-14, from 3.38 crore tonnes a year ago,
according to Bangladesh Bureau of Statistics.
"It's a contradiction. On the one hand, huge quantity of rice is imported. On the other,
government is going to export," said Nirod Boron Saha, president of rice and paddy stockists'
and wholesalers' association in Naogaon.
"There are no buyers (retailers from cities). It seems that all of them are purchasing imported
rice from border areas," he said.
“They are not getting fair prices for their produce, and it will affect boro acreage in the next
season," Saha said.
“Farmers are the ultimate losers.”
Meeting on reforms in import policy
The Daily Star
Published: 12:00 am Sunday, December 14, 2014
Link: http://www.thedailystar.net/meeting-on-reforms-in-import-policy-55192
The sixth Private Sector Development Policy Coordination Committee meeting discussed the
need for reforms in import policy and sanitary certification.
The PSDPCC is comprised of 10 secretaries of the ministries relevant to private sector
development.
Business Initiative Leading Development (BUILD), the first ever public private dialogue platform
in Bangladesh, presented some reform cases on import policy during the meeting.
The meeting was held at the Prime Minister's Office recently. Principle Secretary Abdus Sobhan
Sikder chaired the meeting, BUILD said in a statement.
The BUILD's proposed reforms included issues like value addition for all export sectors in the
Import Policy Order, and sanitary and phytosanitary certification for agro-exporters.
The principal secretary emphasised categorisation of cold stores. He also underlined the issue
of enhancing the list of imported food that need certification from the Bangladesh Standards
and Testing Institution (BSTI), to ensure food quality.
Sikder also highlighted the impediments to getting back security moneys deposited to the
government for availing different utility and public services, according to the statement.
Representatives from the finance, commerce and industries ministries, the Board of
Investment, the Export Promotion Bureau, Bangladesh Bank, BSTI, Public Private Partnership
(PPP) office, SME Foundation and PMO attended the meeting.
The BUILD is a joint initiative of DCCI, CCCI, and MCCI.