Lack of connectivity hinders business with Myanmar

The high potentials of bilateral trade with neighbouring Myanmar have apparently remained untapped for four major hurdles-lack of air, water and road connectivity, and required formal trade channel, said a leading businessman Wednesday, reports UNB. "If connectivity is ensured, Bangladesh's export will definitely make a big jump," SM Nurul Hoque, vice president of Bangladesh-Myanmar Chamber of Commerce and Industry (BMCCI), told the news agency over phone Wednesday. According to the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Bangladesh exported to Myanmar goods worth US$ 9.65 million in fiscal 2010-11 and imported items worth US$ 175.72 million. Mr Hoque, however, said, export to Myanmar will get a boost this fiscal since trade through formal channel has started with limited scale. "After long negotiations, Sonali Bank is now opening LCs (letter of credit). Other banks need to come forward to make the trade easier," he added. He said any businessman first thinks of benefit. "So, quick shipping and good connectivity are a must.entrance of non-conventional vessels (around 3000 tonnes) in Bangladesh will play a big role," he observed. The business leader, also an FBCCI director, said Bangladesh-Myanmar air-link is very important and demanded Chittagong-Bangkok flight operational. BMCCI joint secretary Enayet Ullah Siddiqui said the bilateral trade between the two countries remained low as there was an absence of formal trading. "Progress is there to ensure formal trading," he mentioned Siddiqui, also chairman of FBCCI standing committee on backward linkage industries, said trade items are being accessed through informal trading and if trade is done through formal channel, both countries will be mutually benefited. He also laid emphasis on connectivity - road, air and shipping - for boosting the bilateral trade. Bangladesh mainly imports food items like rice and lentils, fish and timber from Myanmar. Bangladesh exports mainly cement, pharmaceuticals, condensed milk and electric cables to Myanmar, according to business leaders. Bangladesh, being a next-door neighbour, has mainly been doing business with Myanmar through informal channels over the years for problems in international banking system transactions. Even though trade volumes are low, the potential is very high. In November, Commerce Minister Faruk Khan visited Myanmar and discussed issues related to bilateral trade. Later, a 38-member business delegation accompanied the Prime Minister Sheikh Hasina on a two-day visit to Myanmar. Bangladesh signed several memoranda of understanding with Myanmar during the visit following cabinet approval of Bangladesh-Myanmar bilateral agreement on capital investment, development and preservation. Myanmar has come in the limelight for the country's reformist steps taken by the newly elected civilian government.