A breakthrough in the textile sector
Monday, 29 November 2010
Quamrul Ahsan
On the eve of a pivotal Cotton Season, 2010-11, the Bangladesh textile industry faces stark choices on the supply chain: maintain a status quo or stay ahead of time. The latter offers the most prolific choice. One must understand that Bangladesh is uniquely placed in the textile world and possesses tremendous advantages over its competitors, mainly India, China and Pakistan. It is unique in a sense that the Bangladesh textile industry is fairly new and it has shown unprecedented growth in last 20 years, which is distinctive to any other industries in the world. It is unique because the industry has been supported by a group of dynamic entrepreneurs, millions of hard working, innovative and skill labour forces who earn the lowest wages, and, above all, an industry-friendly government which offers substantial support to the industry.
Bangladesh is also unique because it is the only textile country among other major textile producers which does not produce any raw cotton. This Achilles' heel provides a deadly weakness in spite of our considerable strength that can potentially lead the textile industry to a vulnerable stage. Therefore, the Bangladesh textile industry must look beyond the horizon, think bigger than our conventional world, and share a passionate vision with our next generations that would transcend beyond our boundary and put us ahead of our time.
The Sheikh Hasina administration demonstrated a strong leadership by ensuring supplies of raw cotton to our textile industry. Commerce Minister Mr. Faruk Khan's visit to Uzbekistan is a milestone achieved by the present administration that will have a long-term impact on our textile industry. Minister Khan led a team of government officials and industry leaders representing Bangladesh Textile Mills Association (BJMA) and Bangladesh Cotton Association (BCA). For the first time in the history, Bangladesh has asked a foreign country for allowing direct investments from Bangladesh in cotton production and textile manufacturing. A proposal for investment in cotton production will move Bangladesh textile industry ahead of its current state. Minister Faruk Khan showed a strong leadership while conciliating with the Deputy Prime Minister, Mr. Elyor Ganiyev, Minister of Foreign Economic Relations, Investment and Trade, Republic of Uzbekistan. After an hour and a half-long meeting between the two delegations at the Ministry of Foreign Economic Relations, Investment and Trade, Minister Elyor Ganiyev offered his Bangladesh counter-part of what considered to be a win-win proposal for both the countries. The Government of Uzbekistan agreed to provide a secured supply of 200,000 MT of raw cotton to Bangladesh every year.
In addition, Minister Ganiyev asked for Bangladeshi investments in the development of spinning industry of Uzbekistan. The Government of Uzbekistan will allow Bangladesh investors to produce about 200,000 MT of yarns, of which 100,000 MT can be brought back to Bangladesh and the rest 100,000 MT can be exported to countries of Commonwealth of Independent States (CIS), also a emerging market for textile products. Bangladeshi investors will receive a favourable treatment from the Uzbekistan Government, including a 15 per cent discount in raw cotton prices and seven-year tax holidays. Bangladeshi investors will also have access to the CIS countries under a six-billion-dollar free trade regime.
The Uzbekistan government holds Bangladeshi entrepreneurs and experts with high regards due to their enormous success in the textile sector. The Uzbekistan Government is willing to replicate our successes in textile sectors in Uzbekistan. This would be a win-win situation for both the nations to become an integral part of the development of the textile industries of the two countries. Great opportunities exist for Bangladesh entrepreneurs to get involved in textile industries in this emerging Central Asian country, where the infrastructure is well developed and the government support is very much favourable to industrial development. In addition, Bangladesh can export a highly skilled labour force, including managers and engineers, to Uzbekistan.
Above all, Bangladeshi entrepreneurs will have an opportunity to invest in Uzbekistan where other competing countries, mainly China, India and Turkey, have moved faster to consolidate their position. Bangladesh cannot afford wasting time and should move quickly to earn its fair share in the development of Uzbekistan textile industry.
In this regard, Minister Faruk Khan proposed a joint commission to be formed representing both the countries. The commission will study the investment proposal and recommend to the respective ministers shortly. The delegations from both the countries recognised that a air link between the two countries must be restored without any delay. A direct air link will provide an easy traveling opportunity for the entrepreneurs of both the countries. The proposed joint commission should start its work immediately and study the proposal thoroughly so that cooperation between the two countries many flourish.
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Dr. Quamrul Ahsan is the Editor-in-Chief of Cotton Bangladesh, an international cotton magazine published from Bangladesh. The author can be reached at editorinchief@cottonbangladesh.com
On the eve of a pivotal Cotton Season, 2010-11, the Bangladesh textile industry faces stark choices on the supply chain: maintain a status quo or stay ahead of time. The latter offers the most prolific choice. One must understand that Bangladesh is uniquely placed in the textile world and possesses tremendous advantages over its competitors, mainly India, China and Pakistan. It is unique in a sense that the Bangladesh textile industry is fairly new and it has shown unprecedented growth in last 20 years, which is distinctive to any other industries in the world. It is unique because the industry has been supported by a group of dynamic entrepreneurs, millions of hard working, innovative and skill labour forces who earn the lowest wages, and, above all, an industry-friendly government which offers substantial support to the industry.
Bangladesh is also unique because it is the only textile country among other major textile producers which does not produce any raw cotton. This Achilles' heel provides a deadly weakness in spite of our considerable strength that can potentially lead the textile industry to a vulnerable stage. Therefore, the Bangladesh textile industry must look beyond the horizon, think bigger than our conventional world, and share a passionate vision with our next generations that would transcend beyond our boundary and put us ahead of our time.
The Sheikh Hasina administration demonstrated a strong leadership by ensuring supplies of raw cotton to our textile industry. Commerce Minister Mr. Faruk Khan's visit to Uzbekistan is a milestone achieved by the present administration that will have a long-term impact on our textile industry. Minister Khan led a team of government officials and industry leaders representing Bangladesh Textile Mills Association (BJMA) and Bangladesh Cotton Association (BCA). For the first time in the history, Bangladesh has asked a foreign country for allowing direct investments from Bangladesh in cotton production and textile manufacturing. A proposal for investment in cotton production will move Bangladesh textile industry ahead of its current state. Minister Faruk Khan showed a strong leadership while conciliating with the Deputy Prime Minister, Mr. Elyor Ganiyev, Minister of Foreign Economic Relations, Investment and Trade, Republic of Uzbekistan. After an hour and a half-long meeting between the two delegations at the Ministry of Foreign Economic Relations, Investment and Trade, Minister Elyor Ganiyev offered his Bangladesh counter-part of what considered to be a win-win proposal for both the countries. The Government of Uzbekistan agreed to provide a secured supply of 200,000 MT of raw cotton to Bangladesh every year.
In addition, Minister Ganiyev asked for Bangladeshi investments in the development of spinning industry of Uzbekistan. The Government of Uzbekistan will allow Bangladesh investors to produce about 200,000 MT of yarns, of which 100,000 MT can be brought back to Bangladesh and the rest 100,000 MT can be exported to countries of Commonwealth of Independent States (CIS), also a emerging market for textile products. Bangladeshi investors will receive a favourable treatment from the Uzbekistan Government, including a 15 per cent discount in raw cotton prices and seven-year tax holidays. Bangladeshi investors will also have access to the CIS countries under a six-billion-dollar free trade regime.
The Uzbekistan government holds Bangladeshi entrepreneurs and experts with high regards due to their enormous success in the textile sector. The Uzbekistan Government is willing to replicate our successes in textile sectors in Uzbekistan. This would be a win-win situation for both the nations to become an integral part of the development of the textile industries of the two countries. Great opportunities exist for Bangladesh entrepreneurs to get involved in textile industries in this emerging Central Asian country, where the infrastructure is well developed and the government support is very much favourable to industrial development. In addition, Bangladesh can export a highly skilled labour force, including managers and engineers, to Uzbekistan.
Above all, Bangladeshi entrepreneurs will have an opportunity to invest in Uzbekistan where other competing countries, mainly China, India and Turkey, have moved faster to consolidate their position. Bangladesh cannot afford wasting time and should move quickly to earn its fair share in the development of Uzbekistan textile industry.
In this regard, Minister Faruk Khan proposed a joint commission to be formed representing both the countries. The commission will study the investment proposal and recommend to the respective ministers shortly. The delegations from both the countries recognised that a air link between the two countries must be restored without any delay. A direct air link will provide an easy traveling opportunity for the entrepreneurs of both the countries. The proposed joint commission should start its work immediately and study the proposal thoroughly so that cooperation between the two countries many flourish.
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Dr. Quamrul Ahsan is the Editor-in-Chief of Cotton Bangladesh, an international cotton magazine published from Bangladesh. The author can be reached at editorinchief@cottonbangladesh.com