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Bangladesh remains the second biggest apparel exporter

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Bangladesh remains the second biggest apparel exporter

Refayet Ullah Mirdha

Bangladesh held on to its status as the second biggest apparel supplier in the world in 2017, accounting for 6.5 percent share of the market, according to data from the World Trade Organisation (WTO).

In 2017, Bangladesh exported garment items worth $29 billion, the data said. In 2016, Bangladesh’s share of the global apparel market was 6.4 percent.  China remained the largest apparel supplier globally, although its share shrank to 34.9 percent. The value of exported clothing items from China last year was $158 billion.

Vietnam came in third with its 5.9 percent market share, the WTO data said. It exported $27 billion worth of garment products in 2017.

Neighbouring India, with its garment exports of $18 billion in 2017, ranked fourth. Turkey came fifth with a 3.3 percent market share.

The WTO data also showed that in 2017 the top 10 exporting nations’ share was 87.8 percent and the value was $457 billion.

“We have a bright future in apparel business but we need to do a lot more homework,” said Siddiqur Rahman, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the garment makers’ platform.

He went on to call for improvements in roads and highways, airport and sea port in Chittagong for faster movement of goods and reducing the cost of doing business. In so doing, the country will maintain its competitive edge over Vietnam, Turkey, India and the rest.

Another factor that consolidated Bangladesh’s position in global apparel trade is its bulk order for value-added items in recent times.

As much as 40 percent of Bangladesh’s garment exports comprise value-added items, which fetch more money for exporters.

In the immediate past fiscal year, garment shipments brought home $30.61 billion, up 8.76 percent year-on-year, according to data from the Export Promotion Bureau. It also beat the target of $30.16 billion.

The buyers are coming here with bulk of work orders as the country’s image has now brightened after the near-completion of factory remediation as per the recommendations by the Accord and Alliance.

Almost all top clothing retailers like H&M, Walmart, JC Penney, Inditex, Zara, Gap, M&S, Uniqlo, C&A, Tesco, Hugo Boss and adidas have been souring billions worth of garment items from Bangladesh every year.

Rising garment shipments to new and emerging Asian markets such as India, China and Japan have also contributed to the higher earnings.

Research students decreasing at RU

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Research students decreasing at RU

RU Correspondent

RAJSHAHI, Aug 04: The number of research students and fellows has been decreasing as the administration made the condition difficult for admission at the Rajshahi University (RU) campus recently.

Although, the number of research students and fellows admitted was double earlier.

Many of them are not able to get admission in the higher studies including M.Phil and PhD level due to lack of qualifications.

As a result, the path of research in this second highest educational institution is going to decline for tough conditions, sources claimed.

Earlier, the requirement for admission to M.Phil and PhD in the University was GPA 3.00 in SSC and HSC, CGPA 3.25 in anyone of the graduation and post-graduation 3.00 and CGPA 3.00.

However, it is increased to GPA 4.25 from GPA 3.00 in SSC and HSC, CGPA-3.25 at anyone of graduation and post-graduation level for arts/social science/Fine Arts faculty while CGPA 3.00 in the other.

The students’ of law and science faculties have to CGPA 3.25 in the both graduation and post-graduation level, and the requirement is CGPA 3.50 for the students of MBBS/BDS to get admission for M.Phil and PhD.

Sources said in the last six years in the academic year of 2012-13, maximum number of research students and fellow were admitted at the university.

In that year, 119 and 55 students were admitted for M.Phil and PhD level respectively.

It can be seen the review of information, until the condition is tightened till the academic sessions of 2015-16 some 116 students admitted for M.Phil while 51 students for PhD.

Later, the students’ number has decreased from the academic sessions of 2016-17. Since, then the rate of researchers’ admission at RU reduced about 58 per cent which is one-third than previous years.

Zohurul Mon, a thesis group student of Geography Department expressed about the problem that the students who can be admitted in higher studies in other universities or abroad in the same results.

Due to the difficult requirements in RU, the same student cannot be admitted here.

He demanded to relax the conditions to increase the research student.

While talking with a high official of the administration remarked that conditions are hard to defend for the quality of research work.

BRRI chief for expanding commercial rice production

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BRRI chief for expanding commercial rice production

BMDA brings 0.89m hectares of land under irrigation

RANGPUR, Aug 04 (BSS): Director General of the Bangladesh Rice Research Institute (BRRI) Md Shahjahan Kabir said the government is working relentlessly for the development of the country’s agriculture sector.

“The BRRI scientists are always with the farmers for making commercial-basis farm activities, especially rice cultivation, more profitable by resolving any problem being faced by them,” he said

Kabir said this while addressing the ‘Harvesting of Aus rice, farmers’ field-day and training on modern technologies of rice cultivation’ programme held at village Balata under Sadar upazila in Gaibandha on Saturday as the chief guest, said a press release.

Principal Scientific Officer and Chief of Rangpur Regional Station of BRRI Agriculturist Dr Md Abu Bakar Siddique Sarker presided over the event jointly organised by Rangpur Regional Station of BRRI and Department of Agricultural Extension (DAE).

More than 200 male and female farmers, scientists of BRRI and officials of Gaibandha district and Sadar upazila offices of DAE, public representatives and elite were present.

Shahjahan Kabir suggested farmers to contact BRRI scientists for all information related to cultivation and production of rice, new seed, latest technologies, agronomical management methods and technical assistance.

On the occasion, the farmers harvested their cultivated BRRI-evolved BR 26, BRRI Dhan48 and BRRI Dhan65 varieties of Aus rice on their exhibition plots and got yield rates of 17, 15 and 14 maunds of Aus crop in terms of paddy respectively.

While expressing his experience about cultivation Aus rice, farmer Aynal Haque said that farming of the BRRI-evolved BR26, BRRI Dhan48 and BRRI Dhan65 Aus rice varieties needed less time, fertiliser and irrigation water.

“The farming cost of these rice varieties is low and profit is more. Rice of BRRI Dhan48 is tasty and fine in quality. Moreover, attack of blast and BLB diseases was very low,” he said.

He expressed the hope that he would cultivate the rice varieties on more land next time.

Agriculturist Sarker, in his concluding remarks, highlighted different aspects of agronomical managements of cultivation to get more yield from these varieties of Aus rice.

He said, “Planting of seedlings aged between 20 and 25 days should be done maintaining recommended distance between second week of April and second week of May.”

Besides, the Barind Multipurpose Development Authority (BMDA) has brought over 0.89 million hectares of croplands including 0.31 million hectares Irri-Boro fields under irrigation in almost 16 districts of Rajshahi and Rangpur divisions.

The huge croplands get the irrigation facilities through operating 15,517 power-driven deep tube wells (DTWs) and 417 low lift pumps in almost round the year.

Through this initiative, the BMDA, ever largest irrigation-providing state organisation in the country’s northwest region, has realised around Tk 1.52 billion as irrigation charge during the last 2017-18 fiscal, up by Tk 22.7 million over the 2016-17 fiscal.

Engineer Abdur Rashid, Executive Director of BMDA, told the news agency that the irrigated lands have yielded more than 3.5 million tonnes including 2.67 million tonnes of additional crops especially food grain in the region especially the vast Barind tract yearly.

The region scored significant progress in the crop production sector following the expansion of irrigation facilities along with supplying water from the re-excavated canals and ponds.

Even around 30 to 35 years back, only a single crop could be produced in the areas depending on the rainfall. But, at present, at least three crops are being harvested by dint of the expanded irrigation facilities.

Around 57.57 per cent area of the total cultivable land of the region has, so far, been brought under the irrigation facilities.

Prior to the inception of BMDA the number of DTWs was only 500 in total irrigated area of about 5,000 hectares. At that time, the farmers had to depend on the mercy of rainwater for the cultivation.

Now, the number of DTWs has increased to 15,517 in the command areas irrigating 0.33 million hectares of crop lands round the year benefiting more than 0.54 million farming families.

Most MNCs register increased EPS in H1

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Most MNCs register increased EPS in H1

FE Report

The earnings of most of the multinational companies (MNCs) listed with the country’s capital market increased during the first half (H1) of this year as compared to the same period of previous year.

According to the un-audited financial statements for January-June 2018, the consolidated earnings per share (EPS) of seven companies, out of 11, increased during the period under review.

The EPS is a portion of a company’s profit allocated to each outstanding share of common stock. In short, it serves as an indicator of a company’s profitability.

The EPS of LafargeHolcim, BATBC, Singer Bangladesh, Bata Shoe, Grameenphone (GP), Marico Bangladesh and Linde Bangladesh increased in the H1.

Market operators said that the MNCs earn more as the companies are well-managed and have reputation of their product quality.

The brand value, profitability and future prospects have also driven up the share prices of the companies, which rose on their corporate performance, said a leading broker.

“Investors put their fund in those companies hoping for higher returns as their financial indicators are very strong,” he added.

However, EPS of Berger, Glaxo SmithKline, Reckitt Benckiser and Heidelberg Cement declined during the period under review.

The consolidated EPS of Heidelberg Cement declined to Tk 9.55 for January-June 2018 as against Tk 12.71 for January-June 2017.

The company noted the EPS was declined by Tk 3.16 due to higher cost of goods sold.

The EPS of Reckitt Benckiser also fell to Tk 19.37 for January-June, 2018 as against Tk 25.65 for January-June, 2017.

The company’s EPS declined by Tk 6.28 or 24 per cent in the H1 of 2018 as compared to the same period of last year because the company maintained its long term marketing investment strategy behind the key brands, said the company.

The listed MNCs, which account for approximately 28 per cent of the total market cap of DSE, also declare a significant amount of cash dividends every year after their listing with the bourses.

Among the top MNCs in terms of dividend declarations, Reckitt Benckiser disbursed highest 790 per cent cash dividend for the period ended on December 31, 2017.

BATBC and Marico Bangladesh disbursed 600 per cent cash dividends each, followed by Glaxo SmithKline 550 per cent cash dividend in 2017.

Linde BD disbursed 340 per cent cash dividend, followed by Bata Shoe 335 per cent and Grameenphone 205 per cent.

Inks Tk 936m deal with BREB

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Inks Tk 936m deal with BREB

FE Report

BBS Cables topped the turnover chart of the Dhaka Stock Exchange (DSE) on Wednesday following investors’ increased participation.

On the day, the premier bourse featured a turnover of above Tk 9.54 billion.

Of the total turnover, 28.2 per cent came from aggregate turnover featured by top 10 turnover leaders.

BBS Cables on Wednesday featured a turnover of Tk 374.9 million and grabbed 3.9 per cent of market turnover featured by the DSE.

Meanwhile, the company informed the DSE that it has inked an agreement with Bangladesh Rural Electrification Board (BREB) under “Distribution Network Expansion for 100 per cent Rural Electrification” projects for supply of conductor, insulated 600V for a total amount of above Tk. 936.06 million.

The goods will have to be delivered within four months from the date of signing of the contract on July 24 this year.

Bangladesh Building Systems Limited holds 16.67 per cent stake in the BBS Cables Limited, which will eventually have a prospective on the profitability of the company after completion of the job, said the disclosure.

The share price of BBS Cables on Wednesday closed at Tk 106 each with a marginal rise of 0.48 per cent or Tk 0.5.

Of other top turnover leaders, United Power Generation & Distribution Company Limited (UPGDCL) featured a turnover of Tk 370.9 million. The company grabbed around 3.9 per cent of the market turnover.

The share price of UPGDCL closed at Tk 318.50 each on Wednesday with a marginal rise of 3.18 per cent or Tk 9.8.

Pacific Denims featured a turnover of Tk 329.3 billion and grabbed 3.4 per cent of the market turnover.

Singer Bangladesh grabbed 2.9 per cent of market after featuring a turnover of Tk 278 million.

Of other turnover leaders, Active Fine Chemicals featured a turnover of Tk 267.3 million, followed by Usmania Glass Sheet Factory Tk 255.2 million, IFAD Autos Tk 235.5 million, Fu-Wang Food Tk 202 million, The Peninsula Chittagong Tk 195.1 million and Social Islami Bank Tk 194.6 million.

Thrust on formation of powerful RMG body

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Thrust on formation of powerful RMG body

Our Correspondent

CHATTOGRAM, July 25: Experts at a seminar on apparel industry said Bangladesh government should promote establishment of environment-friendly apparel factories by ensuring 9.0 per cent interest on loans.

They said the loans will be disbursed to entrepreneurs who intend to establish green factories, raise local textile plants with modern machinery, management practices, infrastructure development and enhance port facilities for efficient logistics in this fiscal year.

As the skill levels of the RMG workers have improved significantly over the years there has been a significant rise in the production of specialised items – a shift from the basic categories, the experts said.

They observed that with the introduction of advanced technology and machinery along with skilled labour Bangladesh is manufacturing everything and anything in the apparel industry.

They said this at the seminar on Driving Transformation in Bangladesh’s Apparel Industry jointly organised by the PricewaterhouseCoopers BD Private Ltd and the BGMEA at the Radisson Blu Chittagong Bay View hotel in the city today.

Mamun Rashid, Managing Partner of PwC Bangladesh made the welcome address while Dr Hossain Zillur Rahman, Chairman, PPRC and former advisor to a Caretaker Government addressed the seminar as the chief guest.

Former BKMEA president Fazlul Haque made the keynote address while Pallab De, Partner, Management Consulting PwC, presented PwC Insights into the Bangladesh apparel industry.

PwC Partner Advisory Arijit Chakrabarti, Director Advisory Arun Ray Chaudhuri, BGMEA former first vice president MA Salam and former first vice president SM Abu Tayyab presented overview of the port city-based RMG industry.

Dr Hossain Zillur Rahman said the RMG sector is the key growth driver of Bangladesh and the industry now becomes the distant second largest global export sector after China due to the efforts of the individual entrepreneurs.

He said development of Chittagong Port is very critical and the government seems to have lack of attention on the issue. He suggested formation of a Better Business Forum-like body of the BGMEA, BKMEA and FBCCI to work out plans for the development of the RMG sector.

SM Abu Tayyab came down heavily on TV channel talk shows about the wages of the RMG workers. He said that the RMG industries are relentlessly working to improve the life standard of the workers and have ensured healthcare services for the workers.

But the vested quarters are playing foul with the industry and sending the videos of the talk-shows to the BBC and CNN to malign the RMG industry of Bangladesh.

This was the first ever PwC-organised seminar in the port city and the event was attended by many RMG industrialists from the region.

The experts said the target to achieve $ 50 billion export earning from apparel industry by 2021 is possible but very challenging as the growth rate remains in the noticeable declining trend over the years.

There is no significant change in the market share of RMG (readymade garments) exports in the EU countries over the last few years and the export diversification to non-traditional markets including India and Russia can provide a big opportunity of growth.

Frame separate policy for SMEs: FBCCI

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Frame separate policy for SMEs: FBCCI

FE Report

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has called on the government to formulate a separate policy for the small and medium-sized enterprises (SMEs).

It strongly suggested bringing down the interest rate on loans for the SMEs to a single digit for their development.

The apex trade body also called for proper monitoring to ensure that the SMEs receive funds allocated for them.

The trade body leaders made the call at a meeting of the FBCCI standing committee relating to the ministry of industries (SMEs) at its conference room in the city on Wednesday.

They said SME entrepreneurs are now manufacturing technology-based modern products alongside traditional products.

They suggested conducting a survey to identify the demand and production base of the SME items being produced in the country.

They urged big entrepreneurs to refrain from producing and marketing SME products, as such activity may affect SME businesses badly.

Chairman of the standing committee Shamim Ahmed presided over the meeting and its director in-charge Md Abu Naser presented detailed future plan of the committee.

Representatives of the Bangladesh Standards and Testing Institution and different finance institutions attended the meeting.

FBCCI directors Khandaker Ruhul Amin, Abu Motaleb and Hafez Harun-Or-Roshid were also present.

 

BD eyes global halal meat market

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BD eyes global halal meat market

Talha Bin Habib

With the global halal economy booming, public and private-sector stakeholders have made a move to increase halal meat exports abroad, according to sector insiders.

The fisheries and livestock ministry has already urged Brazil to invest in halal meat products in Bangladesh for export to different global destinations.

Recently, fisheries and livestock minister Narayan Chandra Chanda sat in a meeting with Brazilian ambassador in Dhaka Joao Tabajara Oliveira.

Mr Chanda proposed the South American country through the envoy to set up a joint venture in Bangladesh for exporting halal meat, a ministry official told the FE.

To grab a big share of the global market, the Dhaka Chamber of Commerce and Industry (DCCI) has also taken an initiative to increase exports of halal products, including meat.

“We are planning to expand our export market for halal meat and other product,” DCCI president Abul Kasem Khan told the FE.

Ossama Imam, a halal food expert of a quality certification company in the United Arab Emirates (UAE), will arrive in Dhaka next month, he said.

The DCCI will seek his suggestions on how to increase exports of halal meat products.

“We will sit with the UAE expert in the second week of August,” said the DCCI chief.

Countries like Brazil, Thailand, Australia and New Zealand are dominating the halal market globally.

Currently, Bangladesh exports an insignificant volume of halal meat abroad.

Insiders said the predominantly Muslim country can grab a sizable share of the global halal market, especially in the Middle East countries.

But this calls for application of modern technology and government policy support, they added.

Chinese giant Tiens to expand business in Bangladesh

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Chinese giant Tiens to expand business in Bangladesh

Tiens Group, a Chinese conglomerate, has chosen Bangladesh as the first country to implement its flagship business project ‘One body-Multiple wings’.

Under a major investment move, the company will set up a manufacturing base of healthcare products.

It will also establish an e-commerce platform and an R&D (research and development) centre in collaboration with local education and research institutions.

The group plans to build world-class hotel and hospital, and cooperate with local universities to create scope for quality higher education.

Li Jinyuan, chairman of the Tianjin-based corporation, made the disclosure at a press briefing at a city hotel on Friday.

Tiens Group has successfully experienced two journeys since its inception in 1995.

‘One body-Multiple wings’ is the third entrepreneurial journey of the group, Mr Li said.

“Our first choice is Bangladesh as it offers excellent potential for such businesses,” he mentioned.

After Bangladesh, they will later enter other South and Southeast Asian, African, North and South American countries, Mr Li said.

A production base aside, he said, the firm has planned to introduce its cross-border e-commerce platform Maya.

Under a new global branding strategy, Tiens wants to expand its other key projects like All-legend International Hotel and Tai Ji Sun Hospital in Bangladesh.

“We call it ‘One body-Multiple wings’ strategy. Wings mean areas of services,” said the business leader.

Tiens has stake in areas like biotechnology, finance, logistics, property, education, retail and tourism.

According to Mr Li, his company has laid the groundwork globally for the past three years before choosing Bangladesh as their next outbound investment hub.

“It (the project) not only helps create jobs and vibrate economic wheels but also ensures healthy life of the people,” he asserted.

The founder of the firm said they have established Tianshi College and Tianyuan University at ¥30 billion.

They have also collaborated with 40 global entities where the students will get job opportunities.

Mr Li said they want to give such an education that will enable graduates to get returns from their investment for education within three years.

“We want to have such collaboration with Bangladeshi universities as well. This will give the students quality education with job facility,” he stated.

About future job prospects, Mr Li said Tiens wants to open at least 1.0 million outlets globally in the next three years.

“The owners need to recruit people to operate the stores. The number will be quite big,” he added.

Launched in northeastern Chinese port city of Tianjin, Tiens Group expanded its business operation in more than 190 countries and regions of the world.

The multinational came to Bangladesh in 2004. It has so far established three branches with over 40 franchises.

ECNEC okays nine projects involving Tk 75.39b

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ECNEC okays nine projects involving Tk 75.39b

The Executive Committee of the National Economic Council (ECNEC) approved on Sunday nine projects with the total estimated cost of Tk 75.39 billion, including a Tk 25.11 billion project to expand the scope for science education in some 200 government colleges across the country, reports UNB.

The approval came from an ECNEC meeting held at the NEC conference room in the city with EECNEC chairperson and Prime Minister Sheikh Hasina in the chair.

Briefing reporters after the meeting, Planning Minister AHM Mustafa Kamal said, “A total of nine projects were approved today involving an overall cost of Tk 75.39 billion.”

Of the total estimated cost, he said, Tk 67.51 billion will come from the national exchequer, while Tk 5.28 billion as project assistance and Tk 2.85 billion from the own funds of the organisations concerned.

Eight of the projects are new while another is revised one.

In terms of cost, the biggest project is ‘Expansion of Science Education’s Scope in Government Colleges Project’ involving Tk 25.11 billion. The entire cost will come from government funds.

About the project, the Planning Minister said the Secondary and Higher Education Division under the Ministry of Education will implement the project by June 2021.

The goals of the project are to extend infrastructures, expand scope for ICT and science research and enhance skills of teachers with a view to expanding scope for science education.

The interest of students and the youth for science education has declined in recent times, though science and technology are indispensable in the current world, the minister said.

The other projects are ‘Construction of Chittagong Hill Tracts Complex on Bailey Road in Dhaka (1st revised) Project’ with an estimated cost of Tk 1.94 billion, ‘Collection of 35 commercial and eight supportive water vessels for BIWTC and Construction of two new slip ways’ with Tk 13.19 billion, ‘Establishment and Commissioning of Optical Fibre Based Telecommunications in 575-kilometre secondary line of Bangladesh Railways’ with Tk 6.87 billion, and Preparation of Master plan and Development of Basic Infrastructures in Upazila Towns (non-municipal)’ with Tk 13.80 billion.

The projects also include ‘Development of Physical Infrastructures (Roads and Drains) of Gazipur City Corporation’ with Tk 6.60 billion, ‘Construction of Residences for Cleaning Workers under Chattogram City Corporation’ with Tk 2.31 billion, ‘Enhancing Tolerance of destitute community (Provati) by Development of Infrastructural skills and Information’ with Tk 7.57 billion, and Installation of 0.5 million smart pre-paid metres in the areas under Northern Electricity Supply Company’ with Tk 4.14 billion.