Friday, July 22, 2016 BUSINESS

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Garments export to continue steady despite so many shortcomings

Business Report
 
Despite growing fear of negative effect on garment exports following militants 
attack on the Holy Artisan Restaurant in Gulshan diplomatic zone that killed 28 including 18 foreign and Sholakia, indications suggest that the country would be able to stay the rising course of exports overcoming the shadow. 
North America based Alliance and the EU based Accord – two platforms monitoring Bangladesh’s safety compliance in garment factories after the Rana Plaza aaccident that killed over 1100 garment workers- said they would continue to work for their major brands which engaged them to work for them. 
 
Growing fear despite rising exports
Meanwhile reports said garment export registered a growth of $3 billion earning in hitting total exports to over $28 billion despite many speculation of a bad yea through political crisis and a cloud of rising militancy in the country. Exports continued to rise in its traditional US and EU market, EPB sources said.
But despite the words of hope local manufacturers and exports are facing new setback after the Gulshan attack as many buyers are reluctant to visit Bangladesh and put new buying orders. They are asking exporters to meet them in third country like Singapore, Hong Kong and Dubai, because they are farad of safety. Particularly after the killing of Italian buying house managers in Gulshan attack, they are really afraid as militancy in Bangladesh is capturing global headlines. Many of them have cancelled their scheduled visit and the situation is still dominated by uncertainty. It is yet to be seen how the new situation is going to dominate the trade.
 
Strong export to Japan, China
Meanwhile growing market in China, Japan and India is bringing new impetus to garment export, although export to Indian market is remaining at low level because of counter-veiling duty to keep Bangladesh’s merchandise as much away as possible. 
But export to China and Japan soared in fiscal 2015-16 highlighting the strongest sign yet of growing position of Bangladesh’s apparel sector in global trade.
IN 2015-16 garment exports to Japan stood at $774.47 million, up 18.68 percent year-on-year, according to data from the Export Promotion Bureau. During this time garment exports worth $341.22 million were shipped to China which is a rise of 11.9 percent from a year earlier.
The reason for the rise is the recent relaxation of the rules of origin (RoO) by the governments of the two countries. The RoOs determines the national source of raw materials used in the product and they vary from country to country. 
Bangladesh has duty-free access for its garment products for items made of local textile and also from imported fabrics to the Japanese market.
The country has been enjoying duty benefits on its woven garment exports to Japan for many years now and from April last year, Bangladesh’s knitwear shipments were also  given the same privilege.
Japan’s apparel market is worth about $40 billion a year, and traditionally nearly 80 percent of it is catered by Chinese imports, media reports said. In 2008, the Japanese government adopted the ‘China plus One’ policy to reduce the overdependence on China, following which its traders started sourcing garment items from other countries such as Bangladesh, Vietnam and Cambodia.
On the other hand, Bangladesh’s garment exports to China also increased last fiscal year as the Chinese government awarded duty-free facility to 4,721 items.
China, despite being the largest apparel manufacturer in the world, is emerging as a major export destination for Bangladesh owing to its fast-expanding middle-class population.
At present, the majority of the Chinese garment makers produce high-end products for Western retailers, as they do not deem the $150 billion local market to be lucrative enough. The development has opened doors for Bangladeshi garment manufacturers to grab a larger share of the Chinese market.
 
Global focus on Asian markets
Reports said the International Textile Manufacturers Federation also recently 
advised Bangladesh to focus more on the growing Asian markets of India and China, where the retail value of garment and textile consumption will more than double to $750 billion by 2020.
However, garment exports to India is not been increasing much because of countervailing duty imposed on Bangladesh’s apparel products. Although garment exports to India soared 30.86 percent to $136.42 million in fiscal 2015-16 from a year earlier, the export in terms of value is not enough. 
Bangladesh considers the EU, the US and Canada as its traditional export destinations; and shipments to these markets have been increasing for many years now. Since 2009, Bangladesh has seen increased garment exports to 11 new destinations. The trend is expected to continue.

Comment

Business Report
 
Despite growing fear of negative effect on garment exports following militants 
attack on the Holy Artisan Restaurant in Gulshan diplomatic zone that killed 28 including 18 foreign and Sholakia, indications suggest that the country would be able to stay the rising course of exports overcoming the shadow. 
North America based Alliance and the EU based Accord – two platforms monitoring Bangladesh’s safety compliance in garment factories after the Rana Plaza aaccident that killed over 1100 garment workers- said they would continue to work for their major brands which engaged them to work for them. 
 
Growing fear despite rising exports
Meanwhile reports said garment export registered a growth of $3 billion earning in hitting total exports to over $28 billion despite many speculation of a bad yea through political crisis and a cloud of rising militancy in the country. Exports continued to rise in its traditional US and EU market, EPB sources said.
But despite the words of hope local manufacturers and exports are facing new setback after the Gulshan attack as many buyers are reluctant to visit Bangladesh and put new buying orders. They are asking exporters to meet them in third country like Singapore, Hong Kong and Dubai, because they are farad of safety. Particularly after the killing of Italian buying house managers in Gulshan attack, they are really afraid as militancy in Bangladesh is capturing global headlines. Many of them have cancelled their scheduled visit and the situation is still dominated by uncertainty. It is yet to be seen how the new situation is going to dominate the trade.
 
Strong export to Japan, China
Meanwhile growing market in China, Japan and India is bringing new impetus to garment export, although export to Indian market is remaining at low level because of counter-veiling duty to keep Bangladesh’s merchandise as much away as possible. 
But export to China and Japan soared in fiscal 2015-16 highlighting the strongest sign yet of growing position of Bangladesh’s apparel sector in global trade.
IN 2015-16 garment exports to Japan stood at $774.47 million, up 18.68 percent year-on-year, according to data from the Export Promotion Bureau. During this time garment exports worth $341.22 million were shipped to China which is a rise of 11.9 percent from a year earlier.
The reason for the rise is the recent relaxation of the rules of origin (RoO) by the governments of the two countries. The RoOs determines the national source of raw materials used in the product and they vary from country to country. 
Bangladesh has duty-free access for its garment products for items made of local textile and also from imported fabrics to the Japanese market.
The country has been enjoying duty benefits on its woven garment exports to Japan for many years now and from April last year, Bangladesh’s knitwear shipments were also  given the same privilege.
Japan’s apparel market is worth about $40 billion a year, and traditionally nearly 80 percent of it is catered by Chinese imports, media reports said. In 2008, the Japanese government adopted the ‘China plus One’ policy to reduce the overdependence on China, following which its traders started sourcing garment items from other countries such as Bangladesh, Vietnam and Cambodia.
On the other hand, Bangladesh’s garment exports to China also increased last fiscal year as the Chinese government awarded duty-free facility to 4,721 items.
China, despite being the largest apparel manufacturer in the world, is emerging as a major export destination for Bangladesh owing to its fast-expanding middle-class population.
At present, the majority of the Chinese garment makers produce high-end products for Western retailers, as they do not deem the $150 billion local market to be lucrative enough. The development has opened doors for Bangladeshi garment manufacturers to grab a larger share of the Chinese market.
 
Global focus on Asian markets
Reports said the International Textile Manufacturers Federation also recently 
advised Bangladesh to focus more on the growing Asian markets of India and China, where the retail value of garment and textile consumption will more than double to $750 billion by 2020.
However, garment exports to India is not been increasing much because of countervailing duty imposed on Bangladesh’s apparel products. Although garment exports to India soared 30.86 percent to $136.42 million in fiscal 2015-16 from a year earlier, the export in terms of value is not enough. 
Bangladesh considers the EU, the US and Canada as its traditional export destinations; and shipments to these markets have been increasing for many years now. Since 2009, Bangladesh has seen increased garment exports to 11 new destinations. The trend is expected to continue.

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LNG terminal deal signed with US firm
Supply to start from 2018
Business Report
 
Petrobangla and US-based Excelerate Energy last week signed the final deals to set up Bangladesh’s first LNG terminal, which will handle imported liquefied natural gas and supply those to the national grid from early 2018.
“We expect to start supplying gas by the end of 2017,” said Tawfiq-e-Elahi Chowdhury, energy adviser to the prime minister, after two separate agreements were signed to set up the LNG terminal at Moheshkhali in the Bay of Bengal. Known as Moheshkhali Floating LNG Terminal, the scheme was taken in 2010. 
The terminal is now one of the fast-track projects that the government took to strengthen infrastructure. “This is a very critical project for us. A lot of people are waiting for gas to run their factories,” Chowdhury said.
The LNG terminal, also called floating storage and re-gasification unit, will have the capacity to supply 500 million cubic feet (MMCF) of gas per day. Petrobangla will have to spend $1.56 billion a year to import the LNG from Qatar. In March this year, Petrobangla and Excelerate inked an initial agreement to set up the terminal. The unit will supply gas to Chittagong region that has been suffering from an acute gas crisis for a long time. Bangladesh now produces 2,700 MMCF of gas a day against the demand for 3,300 MMCF. Insiders said gas prices may go up once the supply of imported LNG starts. Chowdhury suggested users, particularly industrial units, should increase energy efficiency.
State Minister for Power and Energy Nasrul Hamid said the government plans to set up four land-based LNG terminals and one or two floating storage and re-gasification units. An additional 3,500 MMCF of gas will be required in the coming years, especially for power generation and industrial purposes, he said. Zanendra Nath Sarker, deputy secretary of the Energy and Mineral Resources Division, and Daniel Bustos, chief development officer of Excelerate Energy Bangladesh, signed the contracts. Marcia Bernicat, US ambassador to Bangladesh, was also present.

Comment

Business Report
 
Petrobangla and US-based Excelerate Energy last week signed the final deals to set up Bangladesh’s first LNG terminal, which will handle imported liquefied natural gas and supply those to the national grid from early 2018.
“We expect to start supplying gas by the end of 2017,” said Tawfiq-e-Elahi Chowdhury, energy adviser to the prime minister, after two separate agreements were signed to set up the LNG terminal at Moheshkhali in the Bay of Bengal. Known as Moheshkhali Floating LNG Terminal, the scheme was taken in 2010. 
The terminal is now one of the fast-track projects that the government took to strengthen infrastructure. “This is a very critical project for us. A lot of people are waiting for gas to run their factories,” Chowdhury said.
The LNG terminal, also called floating storage and re-gasification unit, will have the capacity to supply 500 million cubic feet (MMCF) of gas per day. Petrobangla will have to spend $1.56 billion a year to import the LNG from Qatar. In March this year, Petrobangla and Excelerate inked an initial agreement to set up the terminal. The unit will supply gas to Chittagong region that has been suffering from an acute gas crisis for a long time. Bangladesh now produces 2,700 MMCF of gas a day against the demand for 3,300 MMCF. Insiders said gas prices may go up once the supply of imported LNG starts. Chowdhury suggested users, particularly industrial units, should increase energy efficiency.
State Minister for Power and Energy Nasrul Hamid said the government plans to set up four land-based LNG terminals and one or two floating storage and re-gasification units. An additional 3,500 MMCF of gas will be required in the coming years, especially for power generation and industrial purposes, he said. Zanendra Nath Sarker, deputy secretary of the Energy and Mineral Resources Division, and Daniel Bustos, chief development officer of Excelerate Energy Bangladesh, signed the contracts. Marcia Bernicat, US ambassador to Bangladesh, was also present.

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IBBL awards scholarship to underprivileged students

Business Report
 
Bogra Zone of Islami Bank Bangladesh Limited arranged scholarship awarding ceremony for the underprivileged meritorious students on July 17 at Bogra Convention Center. 
Mohammad Abdul Mannan, Managing Director & CEO of the Bank distributed scholarship and academic instruments to 287 as chief guest to underprivileged  students who passed with GPA-5 in the SSC and equivalent examinations this year. 
Presided over by Md. Motiar Rahman, Executive Vice President & Head of Bogra Zone, the program was attended by senior bank officials from the gead office and local offices. 
Md. Habibur Rahman Bhuiyan, FCA, Deputy Managing Director, Abu Reza Md. Yeahia, Executive Vice President and Company Secretary, Md. Mosharraf Hossain, Executive Vice President & Head of Development Wing of the bank, Md. Masudur Rahman Milon.
President, Bogra Chamber of Commerce and Industries, Former President Fazlur Rahman Paikar, Prof. Md. Rezaunnabi of Govt. Azizul Haq College, Dr. Hosne Ara Begum, Executive Director, TMSS, Monira Sultana, ASP, Bogra along with heads of different educational institutions and guardians of the students attended the event, said a press release.

Comment

Business Report
 
Bogra Zone of Islami Bank Bangladesh Limited arranged scholarship awarding ceremony for the underprivileged meritorious students on July 17 at Bogra Convention Center. 
Mohammad Abdul Mannan, Managing Director & CEO of the Bank distributed scholarship and academic instruments to 287 as chief guest to underprivileged  students who passed with GPA-5 in the SSC and equivalent examinations this year. 
Presided over by Md. Motiar Rahman, Executive Vice President & Head of Bogra Zone, the program was attended by senior bank officials from the gead office and local offices. 
Md. Habibur Rahman Bhuiyan, FCA, Deputy Managing Director, Abu Reza Md. Yeahia, Executive Vice President and Company Secretary, Md. Mosharraf Hossain, Executive Vice President & Head of Development Wing of the bank, Md. Masudur Rahman Milon.
President, Bogra Chamber of Commerce and Industries, Former President Fazlur Rahman Paikar, Prof. Md. Rezaunnabi of Govt. Azizul Haq College, Dr. Hosne Ara Begum, Executive Director, TMSS, Monira Sultana, ASP, Bogra along with heads of different educational institutions and guardians of the students attended the event, said a press release.

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US moves to seize $1b in assets of Malaysian 1MDB fund

Afp, Washington
 
In a stunning blow to Malaysia’s political establishment, the US Justice Department said Wednesday it was moving to seize more than $1 billion in assets allegedly tied to corruption at a state-owned investment fund.
In court papers filed in California, federal prosecutors listed the Hollywood financial crime caper “The Wolf of Wall Street” and nearly twenty other assets to be seized, including lavish real estate from Beverly Hills to a penthouse in New York’s Time Warner Center to London’s high-end Belgravia neighborhood.
Also included were artworks by the painters Monet and Van Gogh as well as a Bombardier Global 5000 business jet. All were the tainted proceeds of the misappropriation of billions of dollars from the scandal-tarred 1Malaysia Development Berhad investment fund.
The development was likely to prove particularly embarrassing for Malaysian Prime Minister Najib Razak, who, in his concurrent position as finance minister, controlled the company until its dissolution in May.
The Wall Street Journal reported last year that investigators had tied nearly $700 million to Najib’s personal bank accounts. Najib had previously denied wrongdoing.
Subsequent reports said the money originated from 1MDB and may have exceeded $1 billion, which 1MDB.

Comment

Afp, Washington
 
In a stunning blow to Malaysia’s political establishment, the US Justice Department said Wednesday it was moving to seize more than $1 billion in assets allegedly tied to corruption at a state-owned investment fund.
In court papers filed in California, federal prosecutors listed the Hollywood financial crime caper “The Wolf of Wall Street” and nearly twenty other assets to be seized, including lavish real estate from Beverly Hills to a penthouse in New York’s Time Warner Center to London’s high-end Belgravia neighborhood.
Also included were artworks by the painters Monet and Van Gogh as well as a Bombardier Global 5000 business jet. All were the tainted proceeds of the misappropriation of billions of dollars from the scandal-tarred 1Malaysia Development Berhad investment fund.
The development was likely to prove particularly embarrassing for Malaysian Prime Minister Najib Razak, who, in his concurrent position as finance minister, controlled the company until its dissolution in May.
The Wall Street Journal reported last year that investigators had tied nearly $700 million to Najib’s personal bank accounts. Najib had previously denied wrongdoing.
Subsequent reports said the money originated from 1MDB and may have exceeded $1 billion, which 1MDB.

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Nabil promoted as Dy MD of BRAC Bank

Mr. Nabil Mustafizur Rahman has been promoted to the post of Deputy Managing Director of BRAC Bank Limited with effect from July 1, 2016. Prior to this, he was Chief Risk Officer and Senior Executive Vice President of the bank. His portfolio covers Credit Risk Management and Risk Management Divisions. 
Mr. Nabil joined BRAC Bank in January 2009 as Chief Credit Officer. Earlier he worked with AB Bank as Head of Structured Finance. He also served as Head of Investment with IPDC. He had worked with HSBC, Credit Agricole Indosuez, ANZ Grindlays Bank and Beximco Group. 
He started his career with Joyful Miles Ltd. in Hong Kong. His expertise and exposure are primarily in Risk Management and Corporate Finance, and adequate exposure in SME and Retail banking. He has also experience in Islamic Banking with HSBC Amanah and short involvement with ANZ Investment bank in London, UK.
He has 23 years of working experience in banking and commercial sector. He is an MBA from Institute of Business Administration of Dhaka University, said a press release.

Comment

Mr. Nabil Mustafizur Rahman has been promoted to the post of Deputy Managing Director of BRAC Bank Limited with effect from July 1, 2016. Prior to this, he was Chief Risk Officer and Senior Executive Vice President of the bank. His portfolio covers Credit Risk Management and Risk Management Divisions. 
Mr. Nabil joined BRAC Bank in January 2009 as Chief Credit Officer. Earlier he worked with AB Bank as Head of Structured Finance. He also served as Head of Investment with IPDC. He had worked with HSBC, Credit Agricole Indosuez, ANZ Grindlays Bank and Beximco Group. 
He started his career with Joyful Miles Ltd. in Hong Kong. His expertise and exposure are primarily in Risk Management and Corporate Finance, and adequate exposure in SME and Retail banking. He has also experience in Islamic Banking with HSBC Amanah and short involvement with ANZ Investment bank in London, UK.
He has 23 years of working experience in banking and commercial sector. He is an MBA from Institute of Business Administration of Dhaka University, said a press release.

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All MTB Cardholders to enjoy 10pc discount 

Business Report

 
Mutual Trust Bank Limited (MTB) cardholders will enjoy 10pc discount on Microsoft Lumia Phones from selected outlets of Cellular Mobile (Pte) Limited (CMPL). A signing ceremony was held in this regard between MTB and CMPL at the bank’s Corporate Head Office at Gulshan 1 last week. 
Saad M Milkan, Head of Corporate Sales, Mobile Division, Union Group and Mohammad Anwar Hossain, Head of Cards, MTB signed the agreement on behalf of their organization.
 Sabab Ahsan, Chief Strategy Officer, Union Group, Irfan Islam, Head of Privilege Banking, Sami Al Hafiz, Group Chief Communications Officer of MTB, other senior officials from both organizations were present along with sales officials of Microsoft Mobile Devices on the occasion, said a press release.

Comment

Business Report

 
Mutual Trust Bank Limited (MTB) cardholders will enjoy 10pc discount on Microsoft Lumia Phones from selected outlets of Cellular Mobile (Pte) Limited (CMPL). A signing ceremony was held in this regard between MTB and CMPL at the bank’s Corporate Head Office at Gulshan 1 last week. 
Saad M Milkan, Head of Corporate Sales, Mobile Division, Union Group and Mohammad Anwar Hossain, Head of Cards, MTB signed the agreement on behalf of their organization.
 Sabab Ahsan, Chief Strategy Officer, Union Group, Irfan Islam, Head of Privilege Banking, Sami Al Hafiz, Group Chief Communications Officer of MTB, other senior officials from both organizations were present along with sales officials of Microsoft Mobile Devices on the occasion, said a press release.

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Shahjalal Islami Bank held Half-Yearly Managers’ Confc

Business Report
 
Shahjalal Islami Bank Limited (SJIBL) organized Shahjalal Islami Bank Limited organized the half yearly business conference 2016 in a city hotel on July 16 participated by 90 branch managers from all over the country. 
The inaugural event was presided over by its’ Managing Director & CEO Farman R Chowdhury. Chairman of the Board of Directors of the Bank Engineer Md. Towhidur Rahman was present as chief guest. 
The meeting evaluated the business performance of last 6 months of the current year and adopted necessary strategies and plan of action to achieve the business targets of the remaining time of the year.
Engineer Md. Towhidur Rahman said, Shahjalal Islami Bank is playing significant role in the country’s socio-economic development to attain higher economic growth. He urges all branch managers to reduce classified loans and to increase export financing. The bank is investing in new productive sectors which will increase employment and generate income in the economy, he said. 
Farman R Chowdhury reviewed last six months business performance  and urged every one to take necessary steps to achieve business target of the year.
Vice-Chairman Mr. Mohiuddin Ahmed, Directors Deputy Managing Directors  executives of the head offices and branch managers were present.

Comment

Business Report
 
Shahjalal Islami Bank Limited (SJIBL) organized Shahjalal Islami Bank Limited organized the half yearly business conference 2016 in a city hotel on July 16 participated by 90 branch managers from all over the country. 
The inaugural event was presided over by its’ Managing Director & CEO Farman R Chowdhury. Chairman of the Board of Directors of the Bank Engineer Md. Towhidur Rahman was present as chief guest. 
The meeting evaluated the business performance of last 6 months of the current year and adopted necessary strategies and plan of action to achieve the business targets of the remaining time of the year.
Engineer Md. Towhidur Rahman said, Shahjalal Islami Bank is playing significant role in the country’s socio-economic development to attain higher economic growth. He urges all branch managers to reduce classified loans and to increase export financing. The bank is investing in new productive sectors which will increase employment and generate income in the economy, he said. 
Farman R Chowdhury reviewed last six months business performance  and urged every one to take necessary steps to achieve business target of the year.
Vice-Chairman Mr. Mohiuddin Ahmed, Directors Deputy Managing Directors  executives of the head offices and branch managers were present.

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