BD loses 50pc investment share of relocated China footwear industries
Thursday, 28 April 2011
FE Report
Bangladesh has failed to achieve at least 50 per cent investment share of the relocated Chinese footwear industries due to shortage of skilled labour force, said a leading entrepreneur of the country. India has won 80 per cent share of it, he added. "Bangladesh and India became the ultimate investment destinations for Taiwanese investors in garments and footwear sectors who have started relocating their businesses and as much as 80 per cent of the investment went to India as they have skilled footwear labourers," said Chairman of Apex Adelchi Footwear Ltd Syed Manzur Elahi at a seminar Wednesday. He was speaking as the chief guest at Bangladesh Social and Economic Forum 2011 seminar on 'Approaches to Skills Development' at Bangabandhu International Conference Centre in the city with former Bangladesh Bank governor Dr Muhammad Farashuddin as the main discussant of the programme. Managing Director of AK Khan and Co Ltd Salahuddin Kasem Khan presented the key-note paper at the seminar organised by Dhaka School of Economics in association with Bangladesh Economic Association and co-organised by Institution of Diploma Engineers, Bangladesh. Mr Manzur, also a former adviser to the caretaker government, said investments in garments and footwear sectors in China mainly were done by the Taiwanese entrepreneurs due to the conservative Chinese economic policy. "After some time the Taiwanese companies faced shortage of labour force due to Chinese 'one child' policy and they relocated their industries to Vietnam. But Vietnam had a revolution in agriculture and totally eradicated poverty for which they were unwilling to leave their villagers to work in the factories," said the veteran businessperson. He said after experimenting in countries like Indonesia and searching for feasible destinations, the investors in Chinese footwear industries finally chose Bangladesh as their suitable investment hub due to its low-paid labour. "But India was able to attract 80 per cent of the investment as they have excellent skills development programmes for footwear sector. We have an immense potential for this labour-intensive industry but we are losing as we do not have skilled footwear labourers," Mr Manzur added. Dr Farashuddin said Bangladesh still bears the legacy of public-private partnership concept from the former Pakistan. "PPP was elaborated in former Pakistan as it was a planner's paradise as there was no implementation of any idea," he said. "It's still happening in Bangladesh as there is no progress in implementing the PPP concept for skill development of the country's vast unemployed population for getting employed in both local and international labour markets." He cited the example of opening of a nursing department at East West University where no qualified person was found to be employed as teacher. "There is tremendous demand of nurses not only in the overseas countries but also in Bangladesh where there is acute shortage of trained nurses," he said adding "the vibrant private sector has to take the initiative of skill development programmes under PPP concept". Experts say Bangladesh could have raised its annual remittance income from the present US$ 11 billion to $ 20 billion just by sending skilled manpower abroad. At present the per capita income of Sri Lankan expatriate workers is $ 3,000 whereas that of Indian and Pakistani workers is $ 2,000 and of Bangladeshi workers $ 1,000 per annum. There are 400 training institutes in the public sector and 4,500 institutes in the private sector in Bangladesh for skill development.
Bangladesh has failed to achieve at least 50 per cent investment share of the relocated Chinese footwear industries due to shortage of skilled labour force, said a leading entrepreneur of the country. India has won 80 per cent share of it, he added. "Bangladesh and India became the ultimate investment destinations for Taiwanese investors in garments and footwear sectors who have started relocating their businesses and as much as 80 per cent of the investment went to India as they have skilled footwear labourers," said Chairman of Apex Adelchi Footwear Ltd Syed Manzur Elahi at a seminar Wednesday. He was speaking as the chief guest at Bangladesh Social and Economic Forum 2011 seminar on 'Approaches to Skills Development' at Bangabandhu International Conference Centre in the city with former Bangladesh Bank governor Dr Muhammad Farashuddin as the main discussant of the programme. Managing Director of AK Khan and Co Ltd Salahuddin Kasem Khan presented the key-note paper at the seminar organised by Dhaka School of Economics in association with Bangladesh Economic Association and co-organised by Institution of Diploma Engineers, Bangladesh. Mr Manzur, also a former adviser to the caretaker government, said investments in garments and footwear sectors in China mainly were done by the Taiwanese entrepreneurs due to the conservative Chinese economic policy. "After some time the Taiwanese companies faced shortage of labour force due to Chinese 'one child' policy and they relocated their industries to Vietnam. But Vietnam had a revolution in agriculture and totally eradicated poverty for which they were unwilling to leave their villagers to work in the factories," said the veteran businessperson. He said after experimenting in countries like Indonesia and searching for feasible destinations, the investors in Chinese footwear industries finally chose Bangladesh as their suitable investment hub due to its low-paid labour. "But India was able to attract 80 per cent of the investment as they have excellent skills development programmes for footwear sector. We have an immense potential for this labour-intensive industry but we are losing as we do not have skilled footwear labourers," Mr Manzur added. Dr Farashuddin said Bangladesh still bears the legacy of public-private partnership concept from the former Pakistan. "PPP was elaborated in former Pakistan as it was a planner's paradise as there was no implementation of any idea," he said. "It's still happening in Bangladesh as there is no progress in implementing the PPP concept for skill development of the country's vast unemployed population for getting employed in both local and international labour markets." He cited the example of opening of a nursing department at East West University where no qualified person was found to be employed as teacher. "There is tremendous demand of nurses not only in the overseas countries but also in Bangladesh where there is acute shortage of trained nurses," he said adding "the vibrant private sector has to take the initiative of skill development programmes under PPP concept". Experts say Bangladesh could have raised its annual remittance income from the present US$ 11 billion to $ 20 billion just by sending skilled manpower abroad. At present the per capita income of Sri Lankan expatriate workers is $ 3,000 whereas that of Indian and Pakistani workers is $ 2,000 and of Bangladeshi workers $ 1,000 per annum. There are 400 training institutes in the public sector and 4,500 institutes in the private sector in Bangladesh for skill development.