Bangladesh Sayeeful Islam

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  • Bangladesh Sayeeful Islam

    1. 1. Welcomes to All 47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
    2. 2. 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
    3. 3. <ul><li>Developed Countries expanded and deepened regional and preferential trade arrangements(PTAs) among themselves which increased during MFA Phase-out period </li></ul><ul><li>PTAs have strict rules of origin and other conditions. </li></ul><ul><li>Countries with less backward linkages face increase in costs and decrease in of PTAs </li></ul><ul><li>Countries having proximity with USA gained more </li></ul>47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
    4. 4. <ul><li>Tremendous fall of prices of T&C at the Post-MFA period eroded other preferential accesses, e.g, EBA </li></ul><ul><li>Export value of woven RMG from Bangladesh fell 5%(Jan-March 05) despite duty free & quota free access in the EU market </li></ul><ul><li>More flexible Rules Of Origin(RO) in the EU market is required </li></ul><ul><li>Duty Free Access to US Market needed </li></ul>47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
    5. 5. <ul><ul><ul><ul><li>Stiff competition with cheap priced products Because of non- proximity & absence of direct shipping to USA and EU </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Major Markets are not growing-Some Cys are taking over market share of others </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Structurally weak Cys are losing market share </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Buyers are now sourcing from fewer Cys and larger companies </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Buyers are passing responsibilities of sourcing raw materials & other inputs to suppliers </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Speed to market & Reduced Lead Time </li></ul></ul></ul></ul>Regional Countries would face: 47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
    6. 6. <ul><ul><ul><ul><li>Safeguard measures by USA against some Asian Countries </li></ul></ul></ul></ul><ul><ul><ul><ul><li>New EU members are taking greater market share in T&C, EU is also likely to invoke safeguard measures </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Increase in prices of cotton due to erosion of domestic subsidies under DDR </li></ul></ul></ul></ul>Regional Threats 47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
    7. 7. <ul><ul><ul><li>Asian countries have developed fundamental strength in certain categories </li></ul></ul></ul><ul><ul><ul><li>Regional cooperation needed to seize benefits to be cost effective for production & export </li></ul></ul></ul><ul><ul><ul><li>Manufacturing and marketing experiences can be shared </li></ul></ul></ul><ul><ul><ul><li>Asian SMEs are the most dynamic sector of the economy in terms of product development, innovation and adaptation. </li></ul></ul></ul><ul><ul><ul><li>Enhance regional negotiating capabilities by sharing information and knowledge base </li></ul></ul></ul><ul><ul><ul><li>For developing high- value added items and diversification, regional expertise can be shared to get dividends for all parties concerned </li></ul></ul></ul><ul><ul><ul><li>Setting up regional SEZ in facilitating cooperation. </li></ul></ul></ul><ul><ul><ul><li>Achieve the MDG target of reducing poverty–regional cooperation can also be strengthened. </li></ul></ul></ul>Can we keep T&C in Asia 47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
    8. 8. <ul><li>Countries in Asia like : </li></ul><ul><li>Bangladesh </li></ul><ul><li>China </li></ul><ul><li>Pakistan </li></ul><ul><li>Sri Lanka </li></ul><ul><li>Vietnam </li></ul><ul><li>India </li></ul><ul><li>Can come closer and cooperate to contribute more in diversifying export in general and T&C in particular. </li></ul>47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
    9. 9. <ul><li>It contributes about 77% of the total export </li></ul><ul><li>About 2 million work force(80% are female) directly and 30 million people are indirectly involved in this sector. </li></ul><ul><li>A large number of backward linkages has already been established to feed the RMG sector and some more are coming up </li></ul><ul><li>Infrastructure are supportive </li></ul><ul><li>A “critical mass” & Synergy have been developed to further augment the sector </li></ul><ul><li>People are aware about the potential and risks of the sector </li></ul><ul><li>In the quota-phase out period Knit sector has been progressing with 40% growth </li></ul><ul><li>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. </li></ul>T&C sector of Bangladesh 47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
    10. 10. 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
    11. 11. <ul><ul><ul><li>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. </li></ul></ul></ul><ul><ul><ul><li>Cooperation and coordination between government and private sector to avoid discrepancies in the field of lobbying with the international players/countries. </li></ul></ul></ul><ul><ul><ul><li>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. </li></ul></ul></ul><ul><ul><ul><li>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. </li></ul></ul></ul>Future of T&C and Public Private Partnership 47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
    12. 12. <ul><ul><ul><li>Regional Supply Chain Management </li></ul></ul></ul><ul><ul><ul><li>South Asia as a leader in world production of natural and man made fibres(mmf) may play a significant role </li></ul></ul></ul><ul><ul><ul><li>About 56% of cotton, 70% of the MMF are produced in Asia </li></ul></ul></ul><ul><ul><ul><li>China, India , Pakistan and Indonesia have got tremendous spinning capacities. </li></ul></ul></ul><ul><ul><ul><li>China, India, Indonesia, Thailand, Japan are good in weaving </li></ul></ul></ul><ul><ul><ul><li>Bangladesh, China, India, Pakistan Sri Lanka & Indonesia have got advantages in producing apparel. </li></ul></ul></ul>47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
    13. 13. <ul><ul><ul><li>Post-MFA Policies initiated by the govt </li></ul></ul></ul><ul><ul><ul><li>Industrial Policy(IP) 2005 has withdrawn the RMG sector from the restricted list to facilitate FDI </li></ul></ul></ul><ul><ul><ul><li>Further liberalized Export(2003-06) and Import(2003-06) policies </li></ul></ul></ul><ul><ul><ul><li>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. </li></ul></ul></ul><ul><ul><ul><li>E-Government has been implementing partially, BOI Online Service Tracking(BOST) is in operation. </li></ul></ul></ul><ul><ul><ul><li>Tax Holiday for Textile & Clothing </li></ul></ul></ul><ul><ul><ul><li>IP-2005 has identified 33 Thrust sector including Textile & Clothing </li></ul></ul></ul><ul><ul><ul><li>Cash incentives for T&C is allowed </li></ul></ul></ul><ul><ul><ul><li>Excellent investment opportunities in Bangladesh </li></ul></ul></ul><ul><ul><ul><li>Full repatriation of profit </li></ul></ul></ul>47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
    14. 14. <ul><ul><ul><li>Actions to be taken: </li></ul></ul></ul><ul><ul><ul><li>Continue its lobby to get duty free and quota free market access like other LDCs in the US market </li></ul></ul></ul><ul><ul><ul><li>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. </li></ul></ul></ul><ul><ul><ul><li>Public –Private partnership in developing strategies for lobbying, formulating rules & regulations and strengthening market share in the region. </li></ul></ul></ul><ul><ul><ul><li>Jointly develop Training Institute & sharing Technology </li></ul></ul></ul><ul><ul><ul><li>Regional Special Economic Zone </li></ul></ul></ul>47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
    15. 15. <ul><ul><ul><li>Reduce Lead time through the &quot;purchase order to delivery&quot; and strengthen supply chain management. </li></ul></ul></ul><ul><ul><ul><li>Large & vertically integrated industry </li></ul></ul></ul><ul><ul><ul><li>Safeguard measures for SMEs to protect the interest of the SME based countries </li></ul></ul></ul><ul><ul><ul><li>Global System of Regional Tariff preferences. </li></ul></ul></ul><ul><ul><ul><li>Explore market for Ethnic Textile Clothing & Exports with in region </li></ul></ul></ul><ul><ul><ul><li>Trade facilitation to increase trade logistics, custom facilitation, national infrastructure and port handling </li></ul></ul></ul><ul><ul><ul><li>Modernization of Custom procedures </li></ul></ul></ul><ul><ul><ul><li>Infrastructural support including utilities </li></ul></ul></ul><ul><ul><ul><li>Attract FDI </li></ul></ul></ul><ul><ul><ul><li>Governance </li></ul></ul></ul><ul><ul><ul><li>Cooperation with China in the Post-MFA regime </li></ul></ul></ul>47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
    16. 16. <ul><ul><ul><li>At Enterprise level </li></ul></ul></ul><ul><ul><ul><li>Benchmarking individual Performance </li></ul></ul></ul><ul><ul><ul><li>Learn accommodating compliances </li></ul></ul></ul><ul><ul><ul><li>Take more responsibility from the buyers </li></ul></ul></ul><ul><ul><ul><li>Develop high value added products for niche markets </li></ul></ul></ul><ul><ul><ul><li>Explore and tap markets in other developing countries </li></ul></ul></ul><ul><ul><ul><li>Establish steady and dependable sources for the fabric from the region </li></ul></ul></ul><ul><ul><ul><li>Practice of E-commerce </li></ul></ul></ul>47 YEARS OF SERVICE TO THE BUSINESS COMMUNITY THE DHAKA CHAMBER OF COMMERCE & INDUSTRY
    17. 17. 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

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