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Bangladesh Newsflash Edition 75 and 76, December 2017 & January 2018

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Bangladesh Newsflash Edition 75 and 76, December 2017 & January 2018 Bangladesh Newsflash Edition 75 and 76, December 2017 & January 2018 Newsflash Bangladesh is a publication by the give us your comments, please feel free to send a Embassy of the Kingdom of the Netherlands in message to [email protected]. For further Dhaka. The newsflash provides an update on practical economic information about Bangladesh, economic developments, the most important tenders please refer to the Netherlands Bangladesh Business and a selection of other relevant business news Platform – www.nbbp.org developed by the Embassy related to Bangladesh. This newsflash is shared with of the Kingdom of the Netherlands in Bangladesh in a distinctive group of Dutch businesses with special collaboration with Dutch Business University interests in Bangladesh. It is put together on the basis Nyenrode for the Dutch-Bangladeshi business of publicly available information from various community. The platform bundles information on all sources such as news articles, press releases, and that is relevant for doing business in Bangladesh, third party information. The Embassy of the Kingdom providing targeted sector analysis, insights into risks of the Netherlands in Dhaka is not responsible for the and opportunities of doing business, including accuracy of the published information. If you do not concrete advice on good business practices, an wish to receive the Newsflash Bangladesh, or would overview of the most relevant government policies like to add a person to the distribution list, or if you for intending investors and much more. would like to Highlights • A new ‘wage board’ was formed to review the existing wages of the garment industry workers. • IndustriALL Global Union and UNI Global Union have reached a $2.3 million settlement with a multinational apparel brand to fix life-threatening workplace hazards in Bangladesh's garment factories. • The country’s first-ever six-lane flyover on Dhaka-Chittagong highway at Mohipal in Feni was opened. • World Bank gives $150m to modernise trade related infrastructure, systems and procedures, including setting up a National Single Window to facilitate faster and more transparent international trade procedures and to reduce transaction time and cost for the private sector With the loan also four land ports will be developed and improved. • The construction of the first-ever nuclear plant in Bangladesh, Rooppur Nuclear Power Plant, has started.. • The Payra Port Authority signed a deal with a Belgium-based company to start capital dredging of the port's main channel to facilitate the entry of large ships. • The Chittagong Port Authority (CPA) signed a contract with the Netherlands-based consultancy firm ‘Public Domain Architecten’ to conduct a techno-economic feasibility study on a floating harbour at the port's outer anchorage. 1 Newsflash Dec 2017 & Jan 2018 • Scientists in Bangladesh have developed the country's first biotech rice variety with strong and stout stems making it easier to reap by mechanical harvesters. • Bangladesh Bank has made it mandatory for foreign enterprises to get approval from the Bangladesh Investment Development Authority (BIDA) for transferring funds from Bangladesh to another country. • Dhaka WASA signed a 'Water Operators Partnership-2’ (WOP-2) with the Dutch firm ‘Vitens Evides International’ to strengthen DWASA's recently introduced District Meter Area (DMA) technology for pressurized water supply. • Bangladesh is ahead of its neighbors in the Inclusive Development Index 2018 from the World Economic Forum (WEF) that placed the country in 34th position among emerging economies. Political update • The verdict in the Zia Orphanage Trust corruption case, filed against BNP Chairperson Khaleda Zia, her son Tarique Rahman and four others, will be delivered on February 8. In case of a condemnation, protests and demonstrations with possible violence could be expected. • More than 600.000 Rohingya have fled Myanmar since August 2017, when security forces launched a violent crackdown in Northern Rakhine State. Bangladesh will soon sign a document with the UNHCR, the UN refugee agency, to carry forward the repatriation process. The international community reiterated its call for ‘safe, voluntary and dignified’ return of Rohingyas from Bangladesh to Myanmar. However, it is unclear when the first Rohingya will be able to return to Myanmar Textile and Ready Made Garments (RMG) Suits, blazers emerging as strong export items (The Daily Star) Suits and blazers have emerged as one of BKMEA signs deal on health services for factory the most promising value-added apparel items from workers (The Financial Express) The Bangladesh Bangladesh as local entrepreneurs train their focus Knitwear Manufacturers and Exporters Association on grabbing a share of the $52 billion tailoring (BKMEA) has signed a Memorandum of market. Bangladesh's men's tailoring industry now Understanding (MoU) with the Marie Stopes exports $200 million worth of products, up from Bangladesh and the Directorate General of Family about $20 million even 3-4 years ago. Even five years Planning ago, there was only one suit manufacturing factory (GDFP) on in Bangladesh. Now, the number is more than six, health services said Humayun Rashid, managing director of to garment Energypac Fashions, one of the leading suit workers and exporters from Bangladesh. The company ships suits their family worth $26 million a year. “The value addition in the members. suits segment is very high,” he said. The cutting and They signed making charges for suits range between $6 and $8 the trilateral MOU in association with the per unit whereas sometimes a dozen of T-shirts Netherlands embassy. They inked the deal with the from Bangladesh are sold at $6. The retailers pay aim to extend health services to the readymade between $15 and $30 for a piece of suit from garment (RMG) workers and employees working in Bangladesh. Apart from China, Vietnam, India and factories under the BKMEA. The deal will play a vital Turkey, European countries like Italy, France, role in providing health services like family planning Portugal, Bulgaria and Romania manufacture suits and reproductive health care to the RMG family. on an industrial scale. The UK, the US, Japan and Germany are the major export destinations for suits RMG export to India sees stellar growth, China falls and blazers from Bangladesh. Swedish retail giant in Jul-Nov (The New Age) Country’s readymade H&M and British retailer Marks & Spencer are the garment export to India in the July-November major customers of suits and blazers from period of the current financial year grew by 56.35 Bangladesh, exporters said. per cent riding on an impressive performance by 2 Newsflash Dec 2017 & Jan 2018 knitwear products, while RMG export to China fell Industries Ltd started producing PSF for the first by 10.93 per cent during the period. RMG export to time in Bangladesh with an aim to reduce pollution India in the five months of FY 2017-18 increased to caused by plastic and contribute to the national $87.43 million from $55.92 million in the same economy. PSF is kind of polyester fiber made period of FY 2016-17, according to the Export directly from recycled bottle flakes and the fiber is Promotion Bureau data. In the period, knitwear used widely in spinning to make polyester spun yarn export to India grew by 68.70 per cent to $30.12 which is then knitted or weaved into fabrics. ‘More million from $17.85 million. EPB data showed that than three years ago, I visited a PSF producing export earnings from India in the July-November factory in China and the technology inspired me to period of FY18 set up the same plant in Bangladesh as millions of grew by 4 per plastic pet bottles are affecting our environment for cent to lack of recycling,’ said Abul Kalam Mohammad $288.20 Musa, managing director of Mumanu Polyester million Industries Ltd. He informed that production in his compared factory started in October this year and was with that of producing 40 tonnes of recycled PSF every day, $277.12 which meant that more than 40 tonnes of plastic million in the same period of FY17. Export earnings bottles were being recycled in the units. from China in the five months fell by 26.42 per cent to $283.96 million from $385.95 million. Country’s New wage board for RMG sector formed (The Daily export earnings from most of the major destinations Star) The government has formed a new wage board except United States and Germany registered a to review the existing wages of the garment industry significant growth in the five months of this financial workers on January 14, 2018. Bangladesh Garment year. Country’s export earnings witnessed a slight Manufacturers and Exporters Association (BGMEA) positive growth in the US market, overcoming the made a request to form the wage board. BGMEA negative growth in the largest destination for President Siddiqur Rahman and Women's Affairs Bangladesh’s exports. According to the EPB data, Secretary of Jatiya Sramik League Shamsunnahar export earnings from the US grew by 1.58 per cent Bhuiyan have been included in the board with four to $2.33 billion in the five months of FY18 from other permanent members. The committee will $2.29 billion in the same period of FY17. Apparel submit a report with recommendations within six products fetched $1.55 billion in export earnings months after scrutinizing the present salary with a 22.18-per cent growth in the period. Export structure of the RMG workers. The government will earnings from Spain in July-November in FY18 grew finalize the salary structure following their report. by 25.59 per cent to $1 billion from $800.93 million in the same period of FY17. From the Netherlands, Global apparel brand agrees to fix Bangladesh export earnings rose by 33.52 per cent to $508.19 factory flaws (The Financial Express) IndustriALL million in the five months of FY18.
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