Develop infrastructure to reap more benefit
Monday, 13 December 2010
FE Report
Viyellatex Group chief has put emphasis on creating an enabling environment to ensure proper growth of country's economy.
Viyellatex Group Chairman & CEO David Hasanat put the emphasis in an interview with the FE recently and said as the new rules of origin (RoO) adopted by the European Union will be effective from January 1, the Bangladesh government should ensure an adequate supply of gas and power to the backward linkage industries so that they can produce fabrics and yarn in time to tackle the growing competition.
"Apparel exports to the EU will increase manifold for the new move," he said adding "It may also provide opportunities for the local exporters to go for the higher end of the EU market as Bangladesh could not benefit from the GSP under the existing rules, as a high quality fabric is not sufficiently manufactured locally."
Bangladesh's apparel exports will benefit from Europe's relaxed rules for the least developed countries (LDCs) under the generalised system of preferences (GSP) in textile trade, experts said.
The new rules of origin (RoO) adopted by the European Union will be effective from January 1.
The biggest change is that single-stage processing (manufactured from fabric) will be allowed in many cases, instead of only two-stage processing (manufactured from yarn).
It means most apparel items from all LDCs will get duty-free access, no matter where the raw materials originate. The standard import duty for readymade garments in the EU is 12 percent.
The GSP is a trade arrangement allowing reduced or zero tariff on imports from developing countries; and the RoO determines whether imported goods really do originate in the countries covered by the GSP.
"My industry has succeed in keeping the growth rate at 18 to 20 per cent annually. With a 13,000 working force last year (2009-10), our annual turnover was $175 million, this year I am expecting it would cross $190 million," Mr David Hasanat said.
Commenting on the 'green technology' adopted by his conglomerate, he said "We are aiming to reduce our carbon footprint 25 per cent by 2013 comparing the 2010 benchmark, we have a target to introduce a carbon neutral factory within 2011. We have planned a six million tree plantation by 2016 to neutralize our carbon emission and make our entire business carbon neutral".
In addition to Textile and Garments Viyellatex Group has opened new business in Logistics (LMS Limited) and Tea Plantation (Ruthna Tea Estate).
Viyellatex Group chief has put emphasis on creating an enabling environment to ensure proper growth of country's economy.
Viyellatex Group Chairman & CEO David Hasanat put the emphasis in an interview with the FE recently and said as the new rules of origin (RoO) adopted by the European Union will be effective from January 1, the Bangladesh government should ensure an adequate supply of gas and power to the backward linkage industries so that they can produce fabrics and yarn in time to tackle the growing competition.
"Apparel exports to the EU will increase manifold for the new move," he said adding "It may also provide opportunities for the local exporters to go for the higher end of the EU market as Bangladesh could not benefit from the GSP under the existing rules, as a high quality fabric is not sufficiently manufactured locally."
Bangladesh's apparel exports will benefit from Europe's relaxed rules for the least developed countries (LDCs) under the generalised system of preferences (GSP) in textile trade, experts said.
The new rules of origin (RoO) adopted by the European Union will be effective from January 1.
The biggest change is that single-stage processing (manufactured from fabric) will be allowed in many cases, instead of only two-stage processing (manufactured from yarn).
It means most apparel items from all LDCs will get duty-free access, no matter where the raw materials originate. The standard import duty for readymade garments in the EU is 12 percent.
The GSP is a trade arrangement allowing reduced or zero tariff on imports from developing countries; and the RoO determines whether imported goods really do originate in the countries covered by the GSP.
"My industry has succeed in keeping the growth rate at 18 to 20 per cent annually. With a 13,000 working force last year (2009-10), our annual turnover was $175 million, this year I am expecting it would cross $190 million," Mr David Hasanat said.
Commenting on the 'green technology' adopted by his conglomerate, he said "We are aiming to reduce our carbon footprint 25 per cent by 2013 comparing the 2010 benchmark, we have a target to introduce a carbon neutral factory within 2011. We have planned a six million tree plantation by 2016 to neutralize our carbon emission and make our entire business carbon neutral".
In addition to Textile and Garments Viyellatex Group has opened new business in Logistics (LMS Limited) and Tea Plantation (Ruthna Tea Estate).