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Bangladesh Newsflash May 2018

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Bangladesh Newsflash May 2018 Bangladesh Newsflash Edition 80, May 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 in terms of 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 • Bangladesh overtook China and India in ethical compliance in the apparel segment due to improved workplace safety following pressure from international inspection and remediation agencies, according to a new survey. • The government has decided to allow labour inspection in conformity with the labour law in factories located in Bangladesh's eight export processing zones to ensure workers’ rights. • The Bangladesh Railway signed a contract with a Korean company to procure 10 meter-gauge locomotives for its fleet at a cost of US$37 million. • Bangladesh struck a 10-year deal with Oman to import 1 million tonnes of liquefied natural gas annually. • The second unit of Summit power plant in Gazipur has started supplying electricity to the national grid commercially. • Shrimp sector launches e-traceability system in Khulna to improve consumers' acceptance of Bangladesh shrimp export. • Bangladesh entered the space era with the launch of Bangabandhu-1 satellite. • Dutch Development Bank FMO signed 5-year Term Loan deal for US$80 million, largest syndication with ONE bank. 1 Newsflash May 2018 Political update • Bangladesh law enforcement agencies launched an aggressive war on drugs to prevent the surging trade in yaba. According to media reports, more than 120 alleged drug dealers have been killed since the operation began. • Prime Minister Sheikh Hasina paid a two day visit to India from 25-26 May. The visit saw meetings with Indian Prime Minister Narendra Modi and Chief Minister of West Bengal Mamata Banerjee, discussing sbilateral issues including the Teesta Water Sharing deal and the Rohingya crisis. • Princess Maha Chakri Sirindhorn of Thailand paid a four-day visit to Bangladesh from 28-31 May. She lead an 11-member high-profile government delegation and met with Prime Minister Sheikh Hasina and Foreign Minister Mahmood Ali. Textile and Ready Made Garments (RMG) Denim makers cut use of water (The Daily Star) Garment Manufacturers and Exporters Association Water consumption by denim fabric makers has (BGMEA) and the Bangladesh Knitwear fallen dramatically over the last few years thanks to Manufacturers and Exporters Association (BKMEA) adoption of the latest technologies in production. will get an extended foreign currency loan facility Previously, denim fabric makers in Bangladesh used from the Bangladesh Bank’s (BB) export 270 litres of water for washing a kilogramme of development fund. A central bank circular issued in denim fabrics, for which the ground water level in its regard said that the members who have mills of Dhaka and its BGMEA and BKMEA would get up to US$25 million adjacent areas in loan finance from the EDF instead of the previous has been limit of US$20 million. The BB in phases had depleting at increased the limit to US$20 million from US$12 three metres million following demands from the members of the every year. associations. Under the existing provision, the EDF The global financing is allowed for input procurements against standard for back-to-back import letters of credit or inland back- washing a to-back LCs in foreign exchange by manufactures kilogramme of denim fabrics is 70 litres. Some of the producing final output for direct export and also by companies in Bangladesh can produce a kilogramme producers of local deliveries to manufacturers of the of denim fabrics with only 15 to 16 litres of water on final export. an average, said Jordi Juani, director for the Asia Division of Jeanologia, a Spanish garment finishing Survey on Ethical Compliance in Apparel- machinery manufacturer. Such low levels of water Bangladesh tops China, India (The Daily Star) consumption were enabled by Jeanologia's state-of- Bangladesh overtook China and India in ethical the-art technology, which not only cuts down on compliance in apparel segment on the back of water consumption but also the time needed. “We improved workplace safety following pressure from are replacing the traditional stone wash method international inspection and remediation agencies, that requires a lot of water.” “But the number of according to a new survey. “In particular, ethical such companies is still low,” he said at the eighth scores in Bangladesh rose by an average of 15 edition of the Bangladesh Denim Expo in Dhaka. percent during the past 12 months,” said Jeanologia supplies the technologies and also AsiaInspection in its first quarterly report of 2018 provides consultation to denim fabric makers of released last month. This was likely reflecting the about 150 factories out of the 2,000 that continuous pressure put on Bangladesh's textile and manufacture denim. apparel manufacturers by the industry groups to improve, formed after the Rana Plaza collapse. Hong Bangladesh Bank raises EDF loan limit for apparel Kong-based AsiaInspection is a global leading quality businesses (New Age) Members of the Bangladesh control and compliance service provider that 2 Newsflash May 2018 partners with brands, retailers, and importers Board of Development and economic zones and around the world to secure, manage and optimise Board of Investment of Thailand. “We have a good their supply chain. Particularly, after the collapse, scope to participate in these big infrastructure there is no scope to run businesses without ensuring projects,” he told reporters after a meeting with the quality and ethics, said Mahmud Hasan Khan, vice officials of Bangladesh Economic Zones Authority president of Bangladesh Garment Manufacturers (Beza) in Dhaka. A high profile 32-member and Exporters Association, while commenting on delegation led by Pootrakool arrived in Dhaka on a the survey. three-day visit to explore trade and investment opportunities. As Bangladesh's economy and its Government to allow inspection in EPZs by DIFE consumer base are growing steadily, the Thai (The Financial Express) The government recently minister sees scopes for investments in renewable decided to allow labour inspection in conformity energy, household equipment, electronics and with the labour law in factories located in automobiles. Bangladesh's eight export processing zones (EPZs) to ensure workers’ rights. The workers' representation Korean company to supply 10 MG locomotives to requirement for trade union registration is also set BR (The Financial Express) The Bangladesh Railway to be reduced to 20 per cent from the existing 30 (BR) signed a contract with a Korean company on percent for factories both in and outside the EPZs. Thursday to procure 10 metre-gauge (MG) The move came to meet International Labour locomotives for its fleet at a cost of US$37 million Organisation (ILO)'s recommendation that included (Tk 2.97 billion). bringing the draft of Export Processing Zones Labour As per the deal, Act in line with the ILO conventions to provide equal Hyundai Rotem rights of freedom of association to all workers and Company will bring the EPZs within the purview of the labour supply 10 MG inspectorate. The government is currently working diesel electric for further amendment of the Bangladesh Labour engines in the Act (BLA) as well as to improve the draft EPZ Labour next two years. Act, State Minister for Labour and Employment Additional Mujibul Haque Chunnu said on Tuesday. "We Director General of Bangladesh Railway Mohammad recently decided to incorporate the provisions for Shamsuzzaman and Director, Global Rail Group 2 labour inspection in the EPZs by the Inspector (Asia) of Hyundai Rotem, Kwang-Kyun Yoon signed General along with other Inspectors under the the agreement at a ceremony at Rail Bhaban. BR will Bangladesh Labour Act, 2006 with the existing soon procure 70 locomotives from the same robust inspection system of BEPZA," he added. company, as the cabinet committee on government Currently, inspection in EPZ factories is carried out purchase approved the supplier's credit proposal. by BEPZA. Once amended, the EPZ Labour Act will The 10 locomotives are being procured with the allow inspection by Department of Inspection for financial assistance from
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