bangladesh textile industry
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Subject:Business
envoirnment
Prof: Ganpat Prajapati
Group membersName
Pooja V. Desai
Stevie X. Vales
Pooja A. Desai
Jigar M. Solanki
Deepika V. Jethwani
Bangladesh Textile Mills Association (BTMA)
Presents Opportunities in Bangladesh
Textile Industry for
Investment From MNC’s
Introduction
Tremendous industrial growthAvailability of lowest manpowerSourcing world class fabrics and
finished clothes
Objectives
To promote trade in textile and apparelsTo expand market access To establish a market information systemTo promote the development of policies
supportive to trade To provide an institutional framework for
the development of textile industryTo enhance private sector involvement in
regional policy formulation and implementation
Ready Made Garments Industry
•Growth oriented.
•Largest exporting industry.
•Contribution towards GDP.
•Employment generation.
•Social development.
New Markets
•The RMG started exporting to new market.
•Growth opportunity.
•WTO listed Bangladesh as 5th clothing exporter.
Uniqueness
•Highest RMG exporting country.
•Competitive pricing is the unique revenue strategy.
•Competitive advantage on cost of labor.
•EPZ manufacturing and lower cost of energy.
• back-end bottlenecks • supply of gas for electricity generation • welfare schemes and participatory decision• technology and skill upgrading • EU GSP rules• Governsment policies for Foreign
Investments
GOVERNMENT
•48th largest economy •Economy growth rate by 6-7%•Deposit rate 9.65%
ECONOMIC
BANGLADESH CORPORATE TAX POLICIES
Standard rate of corporate tax in Bangladesh is 27.5%
Publicly Traded Company 27.5%Non-publicly Traded Company 37.5%10% rebate on tax
Technological
National science and technology policyIt gives direction to Science and technologyThe National Council for Science and
Technology (NCST)
Export policy
The sector share of RMG export
In 1980 EPZ was established76% of country’s export earning from textile
and apparel.export worth nearly $5billion p.a.6th largest apparel supplier to US and EU
countries.
Year Approx %
1995 17
2003 40
Human Resources
45% of all industrial employmentContribute 5% to the total national income4 million people are employed mostly
women
Geography
Textile and apparel firms in Bangladesh are mostly concentrated around the capital city of Dhaka
Why in Dhaka Region ?•International Communication available
• Easy for buyers to visit, inspect etc.
•Trained technical manpower easily available
• All financial institutions H.Q in Dhaka
•Five to six hours travel time to Chittagong by
road
•Utilities such as gas, electricity, water availability
better
The Stand Out Factors
• The world's second biggest exporter of clothing
• Excellent transportation
• Availability of raw materials
• Adequate sources of energy
• EPZ- primary objective, 8 EPZ’s, benefits and BEPZA
• Market coverage's – duty free access to Canada,
Norway, Japan, New Zealand and Australia
• Cheapest labour force
8.Duty Free Access to US 9. Investment Guarantee : Foreign Private
Investment (Promotion and Projection) Act 1980 , OPIC"s (Overseas Private Investment Corporation, USA) , Multi-national Investment Guarantee Agency (MIGA)
10. The International Centre for Settlement of Investment Disputes (ICSID)
11. FDI- in 2011, FDI was $1136.38m.. 13.75% up in 2012
12. Bank interest@ 7% for financing exports
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