Bangladesh Sayeeful Islam
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Bangladesh Sayeeful Islam Bangladesh Sayeeful Islam Presentation Transcript

  • Welcomes to All 47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
  • Seminar on Enhancing Competitiveness through Regional Cooperation in a Post-MFA Environment 1-2, June, Beijing, China Presentation By Mr. Sayeeful Islam, President, DCCI on Benefits of Regional Cooperation In the Post-MFA Environment-Bangladesh Perspective Dated: June 2, 2005 47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
    • Developed Countries expanded and deepened regional and preferential trade arrangements(PTAs) among themselves which increased during MFA Phase-out period
    • PTAs have strict rules of origin and other conditions.
    • Countries with less backward linkages face increase in costs and decrease in of PTAs
    • Countries having proximity with USA gained more
    47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
    • Tremendous fall of prices of T&C at the Post-MFA period eroded other preferential accesses, e.g, EBA
    • Export value of woven RMG from Bangladesh fell 5%(Jan-March 05) despite duty free & quota free access in the EU market
    • More flexible Rules Of Origin(RO) in the EU market is required
    • Duty Free Access to US Market needed
    47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
          • Stiff competition with cheap priced products Because of non- proximity & absence of direct shipping to USA and EU
          • Major Markets are not growing-Some Cys are taking over market share of others
          • Structurally weak Cys are losing market share
          • Buyers are now sourcing from fewer Cys and larger companies
          • Buyers are passing responsibilities of sourcing raw materials & other inputs to suppliers
          • Speed to market & Reduced Lead Time
    Regional Countries would face: 47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
          • Safeguard measures by USA against some Asian Countries
          • New EU members are taking greater market share in T&C, EU is also likely to invoke safeguard measures
          • Increase in prices of cotton due to erosion of domestic subsidies under DDR
    Regional Threats 47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
        • Asian countries have developed fundamental strength in certain categories
        • Regional cooperation needed to seize benefits to be cost effective for production & export
        • Manufacturing and marketing experiences can be shared
        • Asian SMEs are the most dynamic sector of the economy in terms of product development, innovation and adaptation.
        • Enhance regional negotiating capabilities by sharing information and knowledge base
        • For developing high- value added items and diversification, regional expertise can be shared to get dividends for all parties concerned
        • Setting up regional SEZ in facilitating cooperation.
        • Achieve the MDG target of reducing poverty–regional cooperation can also be strengthened.
    Can we keep T&C in Asia 47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
    • Countries in Asia like :
    • Bangladesh
    • China
    • Pakistan
    • Sri Lanka
    • Vietnam
    • India
    • Can come closer and cooperate to contribute more in diversifying export in general and T&C in particular.
    47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
    • It contributes about 77% of the total export
    • About 2 million work force(80% are female) directly and 30 million people are indirectly involved in this sector.
    • A large number of backward linkages has already been established to feed the RMG sector and some more are coming up
    • Infrastructure are supportive
    • A “critical mass” & Synergy have been developed to further augment the sector
    • People are aware about the potential and risks of the sector
    • In the quota-phase out period Knit sector has been progressing with 40% growth
    • Other components of T&C sector such as; Home Textile, Terry Towel, Handloom & Grameen Check have also been flourishing in both domestic and export markets.
    T&C sector of Bangladesh 47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
  • Export of RMG in EU, Canada & USA absorbing 98% of total RMG of Bangladesh Value in Million US $ 47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY Countries Item Year   Remarks July-March 2004-05 July-March 2003-04 Increase/decrease     EU Woven Knit Total 1305.70 1614.73 1374.38 1225.13 -5% + 24%   No quantitative restriction or tariff barriers, only EU RO has to be maintained 2920.43 2599.51 Canada Woven Knit Total 144.16 85.54 129.43 46.11 +10.21% +46.09%   Duty free quota free market access facilities with effect from Jan, 2003 to all exports originating in LDC 229.7 175.54 USA Woven Knit Total 1161.19 306.73 1012.76 174.62 + 13% +43% US remained a restrictive market for Bangladesh neither quota free nor any tariff concessions 1467.92   1187.38
        • Considering at least 12% growth of global T&C, regional countries should chalk out their Country-Specific and Region-Specific Programme of action to exploit and sustain the market share.
        • Cooperation and coordination between government and private sector to avoid discrepancies in the field of lobbying with the international players/countries.
        • Preferential Agreements should be studied/examine both at regional and domestic levels before taking actions and preparation to avail the benefits of these agreements and access to the markets.
        • Some of the regional countries have build up their strengthen in some specific T&C Categories. These could also be shared and distributed based on the comparative advantages.
    Future of T&C and Public Private Partnership 47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
        • Regional Supply Chain Management
        • South Asia as a leader in world production of natural and man made fibres(mmf) may play a significant role
        • About 56% of cotton, 70% of the MMF are produced in Asia
        • China, India , Pakistan and Indonesia have got tremendous spinning capacities.
        • China, India, Indonesia, Thailand, Japan are good in weaving
        • Bangladesh, China, India, Pakistan Sri Lanka & Indonesia have got advantages in producing apparel.
    47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
        • Post-MFA Policies initiated by the govt
        • Industrial Policy(IP) 2005 has withdrawn the RMG sector from the restricted list to facilitate FDI
        • Further liberalized Export(2003-06) and Import(2003-06) policies
        • Custom Modernization projects have been completed, stages have shortened from 34 to 4 in case of RMG and 44 to 6 in others in respect of clearance.
        • E-Government has been implementing partially, BOI Online Service Tracking(BOST) is in operation.
        • Tax Holiday for Textile & Clothing
        • IP-2005 has identified 33 Thrust sector including Textile & Clothing
        • Cash incentives for T&C is allowed
        • Excellent investment opportunities in Bangladesh
        • Full repatriation of profit
    47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
        • Actions to be taken:
        • Continue its lobby to get duty free and quota free market access like other LDCs in the US market
        • Flexible Rules of origin and preferential scheme like Canada would be helpful for LDCs like Bangladesh. Two-stage transformation under EBA requirements will not be helpful for LDCs as they do not have enough textile to feed their apparel.
        • Public –Private partnership in developing strategies for lobbying, formulating rules & regulations and strengthening market share in the region.
        • Jointly develop Training Institute & sharing Technology
        • Regional Special Economic Zone
    47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
        • Reduce Lead time through the "purchase order to delivery" and strengthen supply chain management.
        • Large & vertically integrated industry
        • Safeguard measures for SMEs to protect the interest of the SME based countries
        • Global System of Regional Tariff preferences.
        • Explore market for Ethnic Textile Clothing & Exports with in region
        • Trade facilitation to increase trade logistics, custom facilitation, national infrastructure and port handling
        • Modernization of Custom procedures
        • Infrastructural support including utilities
        • Attract FDI
        • Governance
        • Cooperation with China in the Post-MFA regime
    47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
        • At Enterprise level
        • Benchmarking individual Performance
        • Learn accommodating compliances
        • Take more responsibility from the buyers
        • Develop high value added products for niche markets
        • Explore and tap markets in other developing countries
        • Establish steady and dependable sources for the fabric from the region
        • Practice of E-commerce
    47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
  • For more information please visit www.dhakachamber.com www.dhakachamber.org e-mail : president@dhakachamber.com Thank you for listening 47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY