Political stability, productivity rise preconditions for RMG growth
Saturday, 27 November 2010
Speakers at a business seminar on Friday in Dhaka emphasised the need for maintenance of political stability and making concerted efforts for enhancing productivity and diversifying export markets in order to ensure sustained and promising growth of the Bangladesh's readymade garments (RMG) sector and to attain the goal of reaching the status of a middle-income country in the foreseeable future.
They identified improvement of mid-level management, strengthening of market research facilities and adherence to compliance issues as critical matters in this connection.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) organised the seminar -- Implication of Trade Liberalisation for Bangladesh -- at Bangabandhu International Conference Center.
BGMEA President Abdus Salam Murshedy was in the chair in the seminar arranged on the occasion of the three-day 21st Bangladesh Apparel and Textile Exposition-2010 that began on Friday.
Commerce Minister Faruk Khan was the chief guest at the seminar.
Bangladesh Tariff Commission joint chief Dr Mostafa Abid Khan presented the keynote paper at it.
Tariff Commission Chairman Dr M Mozibur Rahman, WTO Cell director general Amitav Chakraborty and Executive Director of Policy Research Institute of Bangladesh Dr Ahsan H Mansur took part in the seminar, moderated by BGMEA second vice president M Shafiul Islam Mohiuddin.
The discussants at the seminar observed that, in the context of liberalised global trade, Bangladesh would need improvements in its negotiation capacity, productivity and market diversification to overcome the challenges ahead in order to remain competitive in world market.
Addressing the seminar, Commerce Minister Mohammad Faruk Khan urged the entrepreneurs in the apparel sector to make efforts for enhancing their negotiating capacity to reap more benefits from the global market and ensure higher prices for RMG products from the foreign buyers.
"You (garments manufacturers) should reach a consensus over a minimum price for selling your products to the foreign buyers," he said.
The buyers take the advantage when they find you are offering different prices, he pointed out to the offers made by of other manufacturers," he said, asserting "It's our time to take a bold position as we are no longer weaker".
Faruk Khan said in order to ensure its competitive strength in global market, the country would have to enhance productivity and improve its workers' skills.
"We're facing some challenges since trade is now liberalised…we must understand global politics and also need a proper political strategy to overcome the challenges," he said.
He suggested that the businesses should themselves explore new markets and come up with new products to ensure an increased share in the future global market.
"The government is also negotiating with different countries in this regard. We should keep ourselves ready to make investments at abroad in such sectors in which we've gained experiences," the commerce minister said.
The RMG owners, he further suggested, may give their attention to Africa, Cambodia and Vietnam for future investment.
Criticising the opposition for calling hartals, the Commerce Minister said: "We need political and economic stability for growth. The opposition should understand this. They've also a responsibility, too. I hope they'll soon withdraw the hartal."
The commerce minister said the garment industry should be diversified and new high-yield products should be manufactured for exploring new markets as well.
The present government has been continuing negotiations with the governments of several countries for expanding Bangladesh's external trade, he said.
"Through talks, we have secured duty free access for 4,750 items to China and India has allowed duty free export of 8 million pieces of Bangladeshi apparels by 2011", he added.
Prime Minister Sheikh Hasina during her visit to Japan would also negotiate for getting similar trade facility for Bangladesh's export products to that country, the minister said.
Japan's trade market is US$10 billion, and if Bangladesh can take a part of it -- between $3.00 and $4.00 -- then Bangladesh's export would mark a significant rise, he added.
The government has been negotiating with South Africa for reducing its tax to 20 per cent from the existing 45 per cent for the Bangladeshi apparels and other exportables, he mentioned.
Stressing the need for popularising Bangladeshi fashions at abroad, he said "Our people are making people of other countries look smarter and beautiful."
Fashion of this country should be spread to all corners of the globe through adding values to apparels in accordance with our heritage as fashion, he said.
Designing requires a large amount of money which mostly goes to foreign Designers, he said. "This fund could be tapped by our designers," he added.
He said as Bangladesh apparel sector is not dependent on foreign investment and its entrepreneurs have gained experiences, they (entrepreneurs) should initiate overseas ventures to reap the trade benefits in different regions.
"Since the labour costs are comparatively cheaper in Combodia, we can take the advantage by setting up factories there," he stated. "Investors can also open ventures in South Africa," he added.
"Our companies are manufacturing ships and exporting to many countries and two ships were sold to Germany," the minister said, adding "Bangladesh has a strong tradition in shipbuilding sector and the country used to export ships 500 years ago".
"Every year, over 7,000 youths are graduating in information communication technology (ICT) in the country, he pointed out, while calling upon the entrepreneurs for taking initiatives to make proper use of such human assets through outsourcing.
The government is providing supports to the growth of all sectors including the RMG and it would continue to do so, he said.
The Chairman Tariff Commission, Mozibur Rahman said at the seminar the RMG owners should invest a portion of their fund for improvement of human skill and efficiency. This will be a key factor to keep the export sector competitive, he noted.
The Bangladeshi entrepreneurs should be allowed to make investments at abroad and the central bank should introduce an international payment system," he said.
Rahman emphasised the need for making collective efforts for reaching the next stage of global trade.
Dr Ahsan S Mansur identified power infrastructure, labour management and political instability as major problems that might hinder export growth. "Political will and concerted efforts are needed to ensure a middle-income country-status for Bangladesh," he observed.
They identified improvement of mid-level management, strengthening of market research facilities and adherence to compliance issues as critical matters in this connection.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) organised the seminar -- Implication of Trade Liberalisation for Bangladesh -- at Bangabandhu International Conference Center.
BGMEA President Abdus Salam Murshedy was in the chair in the seminar arranged on the occasion of the three-day 21st Bangladesh Apparel and Textile Exposition-2010 that began on Friday.
Commerce Minister Faruk Khan was the chief guest at the seminar.
Bangladesh Tariff Commission joint chief Dr Mostafa Abid Khan presented the keynote paper at it.
Tariff Commission Chairman Dr M Mozibur Rahman, WTO Cell director general Amitav Chakraborty and Executive Director of Policy Research Institute of Bangladesh Dr Ahsan H Mansur took part in the seminar, moderated by BGMEA second vice president M Shafiul Islam Mohiuddin.
The discussants at the seminar observed that, in the context of liberalised global trade, Bangladesh would need improvements in its negotiation capacity, productivity and market diversification to overcome the challenges ahead in order to remain competitive in world market.
Addressing the seminar, Commerce Minister Mohammad Faruk Khan urged the entrepreneurs in the apparel sector to make efforts for enhancing their negotiating capacity to reap more benefits from the global market and ensure higher prices for RMG products from the foreign buyers.
"You (garments manufacturers) should reach a consensus over a minimum price for selling your products to the foreign buyers," he said.
The buyers take the advantage when they find you are offering different prices, he pointed out to the offers made by of other manufacturers," he said, asserting "It's our time to take a bold position as we are no longer weaker".
Faruk Khan said in order to ensure its competitive strength in global market, the country would have to enhance productivity and improve its workers' skills.
"We're facing some challenges since trade is now liberalised…we must understand global politics and also need a proper political strategy to overcome the challenges," he said.
He suggested that the businesses should themselves explore new markets and come up with new products to ensure an increased share in the future global market.
"The government is also negotiating with different countries in this regard. We should keep ourselves ready to make investments at abroad in such sectors in which we've gained experiences," the commerce minister said.
The RMG owners, he further suggested, may give their attention to Africa, Cambodia and Vietnam for future investment.
Criticising the opposition for calling hartals, the Commerce Minister said: "We need political and economic stability for growth. The opposition should understand this. They've also a responsibility, too. I hope they'll soon withdraw the hartal."
The commerce minister said the garment industry should be diversified and new high-yield products should be manufactured for exploring new markets as well.
The present government has been continuing negotiations with the governments of several countries for expanding Bangladesh's external trade, he said.
"Through talks, we have secured duty free access for 4,750 items to China and India has allowed duty free export of 8 million pieces of Bangladeshi apparels by 2011", he added.
Prime Minister Sheikh Hasina during her visit to Japan would also negotiate for getting similar trade facility for Bangladesh's export products to that country, the minister said.
Japan's trade market is US$10 billion, and if Bangladesh can take a part of it -- between $3.00 and $4.00 -- then Bangladesh's export would mark a significant rise, he added.
The government has been negotiating with South Africa for reducing its tax to 20 per cent from the existing 45 per cent for the Bangladeshi apparels and other exportables, he mentioned.
Stressing the need for popularising Bangladeshi fashions at abroad, he said "Our people are making people of other countries look smarter and beautiful."
Fashion of this country should be spread to all corners of the globe through adding values to apparels in accordance with our heritage as fashion, he said.
Designing requires a large amount of money which mostly goes to foreign Designers, he said. "This fund could be tapped by our designers," he added.
He said as Bangladesh apparel sector is not dependent on foreign investment and its entrepreneurs have gained experiences, they (entrepreneurs) should initiate overseas ventures to reap the trade benefits in different regions.
"Since the labour costs are comparatively cheaper in Combodia, we can take the advantage by setting up factories there," he stated. "Investors can also open ventures in South Africa," he added.
"Our companies are manufacturing ships and exporting to many countries and two ships were sold to Germany," the minister said, adding "Bangladesh has a strong tradition in shipbuilding sector and the country used to export ships 500 years ago".
"Every year, over 7,000 youths are graduating in information communication technology (ICT) in the country, he pointed out, while calling upon the entrepreneurs for taking initiatives to make proper use of such human assets through outsourcing.
The government is providing supports to the growth of all sectors including the RMG and it would continue to do so, he said.
The Chairman Tariff Commission, Mozibur Rahman said at the seminar the RMG owners should invest a portion of their fund for improvement of human skill and efficiency. This will be a key factor to keep the export sector competitive, he noted.
The Bangladeshi entrepreneurs should be allowed to make investments at abroad and the central bank should introduce an international payment system," he said.
Rahman emphasised the need for making collective efforts for reaching the next stage of global trade.
Dr Ahsan S Mansur identified power infrastructure, labour management and political instability as major problems that might hinder export growth. "Political will and concerted efforts are needed to ensure a middle-income country-status for Bangladesh," he observed.