business
BGMEA chief urges EU to support Bangladesh in smoother LDC graduation with extended transition period
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan has urged the European Union to extend the transition period of GSP from the current three years to six years.
He said the extension would help Bangladesh to prepare well for smooth graduation from the LDC category and continue the growth momentum even in the post-LDC era.
The BGMEA chief made the request during a meeting with Helena König, Deputy Secretary General for Economic and Global Issues, European External Action Service (EEAS) in Dhaka on May 10.
Monika Bylaite, Deputy Head of Delegation, South Asia, EEAS; Charles Whiteley, Ambassador and Head of the Delegation of the European Union to Bangladesh; Dr. Bernd Spanier, Deputy Head of EU Delegation in Bangladesh; Maurizio Cian, Minister Counsellor and Head of Cooperation; and Jurate Smalskyte Merville, Counsellor and Team Leader- Education, Human Development and PFM at the Delegation of the European Union to Bangladesh; and Sameer Sattar, President of Dhaka Chamber of Commerce and Industry (DCCI) were also present at the meeting.
During the meeting, they discussed various issues including trade and investment, Everything But Arms (EBA), Bangladesh relations with the EU in the post-LDC era, and other issues of bilateral importance.
BGMEA President Faruque Hassan apprised Helena König of the major developments of Bangladesh’s apparel industry, particularly in terms of workplace safety, environmental sustainability and workers’ rights and welfare.
He also gave an overview of how the RMG industry had been making vital contributions to the socioeconomic development of Bangladesh, especially in terms of poverty alleviation employment generation for millions of people in the country, women empowerment, increasing girls schooling enrolment, and reducing early marriages, according to BGMEA.
Faruque Hassan highlighted the importance of continued growth of the industry to sustain the achievements made so far in these areas.
Terming the EU as the very important market for Bangladesh’s RMG exports, he highlighted the importance of extension of the specific trade preferences under EU’s GSP scheme to sustain the growth of the industry, thus contributing to the socioeconomic development of Bangladesh.
The BGMEA President also urged the EU to consider waiving the EU's safeguard textile threshold criteria or redesigning the mechanism for Bangladesh in the proposed GSP scheme for 2024-2034 so that Bangladesh could benefit from GSP Plus after the LDC graduation.
Grameen UNIQLO set to close its all stores by June 18
Announcing closure of its operations in Bangladesh by June 18, Grameen UNIQLO has said they have determined that their company has fulfilled a certain role.
"In view of Bangladesh’s significant economic development in recent years, as well as changes to its business environment, we have determined that our company has fulfilled a certain role and has decided to conclude its business activities," said the company in an announcement shared on its website.
The clothing brand regretted that they will close all ten Grameen UNIQLO stores by 18 June in 2023, and the business will be closed down.
“We sincerely thank our customers in Bangladesh for their ongoing support to Grameen UNIQLO over its period of operation,” reads the notice.
In 2010, Fast Retailing Co. Ltd, parent company of Grameen UNIQLO, started the social business together with the Grameen Bank Group with the aim of responding to social issues such as poverty, health and education in Bangladesh through a clothing business.
Since 2013, Grameen UNIQLO has opened stores mainly in the capital of Dhaka and conducted business with the aim of improving the lives of the people of Bangladesh by providing clothing to meet the needs of local daily lives and by creating opportunities for employment in safe environments.
Unilever partners with Orange Corners to support young entrepreneurs
Unilever Bangladesh Ltd. (UBL), the country’s largest fast moving consumer goods companies, has signed an agreement with Orange Corners, an initiative of the Ministry of Foreign Affairs of the Netherlands, to support young entrepreneurs in Bangladesh.
Implemented by YY Ventures, BYLC Ventures, and SAJIDA Foundation, and supported by the DBL Group and Unilever, the Orange Corners program in Bangladesh aims to create opportunities for the next generation of Bangladeshi business leaders by providing them with the necessary tools and resources to succeed, said a press relesae.
With a strong presence in 17 Hubs across Africa and the Middle East, Orange Corners launched its 18th Hub in Bangladesh - its first Asian nation, in early February 2023.
The Orange Corners program in Bangladesh will equip youth, aged between 18 and 35 years, with skills, funding, and resources to build sustainable businesses, particularly those that address the UN’s Sustainable Development Goals; all while the program partners combine their strengths to create an inclusive and equitable entrepreneurship ecosystem in Bangladesh.
The program has a strong focus on inspiring Bangladeshi youth to participate in solving local challenges, and ensuring gender equity across all phases of the program.
Speaking on the partnership, Unilever Bangladesh’s CEO and Managing Director, Zaved Akhtar, said, “ As part of Unilever’s Compass priorities and commitment to youth skills development, we have committed to helping 10 million young people aged between 15 and 24 years to gain employment skills that will help them find meaningful work opportunities and prepare for the future of work. Our collaboration with Orange Corner will allow us to reach a larger group of youth. I believe our combined strengths will create an inclusive and equitable entrepreneurship ecosystem in Bangladesh."
Orange Corners Bangladesh is gearing up for its first hackathon to be held in May 2023. For additional information on the Orange Corners program in Bangladesh, please contact the team through [email protected].
Speakers call for fairer labour practices in digital platform-based economy in Asia
Speakers at a seminar emphasized the importance of promoting fair labour practices in the digital platform-based economy across Asia.
As a more equitable economic platform, they noted that digital platforms will enhance connectivity among Asian countries.
The speakers made the remarks at an international seminar titled ‘Digital Platform-based Economy: Policy and Regulatory Landscape in Asia,’ held in a Dhaka hotel on Wednesday.
DataSense at iSocial, a research institution for digital economy, in association with Fairwork Foundation at Oxford Internet Institute, UK, and Berlin Institute for Social Science, Germany, organized the seminar.
The seminar aimed at bringing Bangladeshi stakeholders and researchers from different countries in Asia together to discuss the labour practices in the digital platform-based gig economy in Asia, according to a press release.
The event featured presentations and panel discussions by distinguished speakers, including Dr. Balaji Parthasarathy, Principal Investigator of Fairwork India; Nur Huda, Principal Investigator, Fairwork Indonesia; Margreta Lanzador Medina, Researcher from Fairwork Philippines, who provided insights on the opportunities and challenges presented by the digital platform-based economy in Asia and the policy and regulatory frameworks necessary to support its growth.
Dr. Syed Muntasir Mamun, Director General of International Trade, Investment and Technology at the ICT wing of Ministry of Foreign Affairs also attended the seminar.
Dr. Ananya Raihan, Chief Imaginator, DataSense at iSocial said, "We are proud to have organized this important seminar, which provided a platform for researchers to share their findings and engage in conversations about creating a fairer platform economy in Asia. We believe that such collaborative efforts will help us achieve our aim towards a more equitable and sustainable future for the platform economy."
Bangladesh has seen an exponential growth in gig economy. According to a study by BBF Digital, a 27% increase in its gig workforce was observed in Bangladesh in 2021.
The study estimated that Bangladesh will be the 24th largest economy in the world due to its substantial contribution to the gig economy by 2030.
At the seminar, representatives from Bangladesh, India, Indonesia, and Philippines presented the policy landscape of the digital platform-based economy in these countries. The insights presented by the countries gave a strong basis for the open discussion.
Among the the discussants were Razequzzaman Ratan, member-secretary at the National Coordination Committee for Workers' Education; Fahim Mashroor, CEO at Delivery Tiger; Arfan Ali, Chairperson of Zaytoon Business Solutions; and Mahmudul Hasan Likhon, CEO at HelloTask.
Dr. Murali Shanmugavelan, a researcher at Oxford Internet Institute, also spoke in the seminar -- highlighting the importance of such digital platforms-based economy.
During his speech, Dr. Shanmugavelan also called on all the parties concerned to keep the discussion going.
“It’s solidarity with workers, together we prosper. Let's keep the discussion going!” He said.
Multiple stakeholders, including government officials, social and digital platform workers, researchers, and independent think tanks were present at the seminar.
Working to reduce gender inequality in workplace: FBCCI
The Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) is working to reduce gender inequality in the workplace and supporting the economic empowerment of women, said its acting President Mostofa Azad Chowdhury on Wednesday.
He said this while having a meeting with the IFC delegation at the FBCCI office, said a press release.
Women have come a long way in Bangladesh, but the destination of gender equality and economic empowerment is still far. Under the committed and visionary leadership of our Hon’ble Prime Minister of Bangladesh, I am confident that Bangladeshi women will continue to be successful in every area in the next decade and beyond – and FBCCI on behalf of the private sector is always ready to support this journey, said Mostofa.
Creating an enabling environment for women to get gainful employment will help Bangladesh achieve its growth aspirations. Making public spaces safe for women will be critical to enabling their full participation in the economy, he added.
The government’s successive Five Year Plans emphasized gender equality and sought to promote women’s entrepreneurship and participation in regional and international trade. As a result of this long walk towards equality, many women are benefiting from an environment that enables business startups and greater access to a digital economy, he also said.
IFC Bangladesh is currently designing private sector engagement on advancing women’s employment in Bangladesh including workplace, gender, climate, job, among others, said IFC representative Shabnam Hameed.
FBCCI Director Hafez Harun, Naaz Farhana Ahmed, Priti Chakraborty, Dr Nadia Binte Amin, Abu Hossain Bhuiyan (Ranu), and Program Coordinator of Gender and Economic Inclusion of the IFC Zareen Tasnim were present at the meeting, among others, the release added.
Bangladesh will be more attractive to global apparel buyers: BGMEA President
Bangladesh would be more attractive to international buyers as an apparel-sourcing destination in the coming days due to its ongoing efforts and initiatives to adapt to changing demand patterns in the global fashion market, said Faruque Hassan, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
He said the readymade garment industry of Bangladesh had been continuously making efforts and investment to build up its capability through product diversification, innovation, efficiency improvement, skill development while strengthening compliance and sustainability.
“Our industry has now greater capacity to produce garments made from manmade fibers and manufacture more complex and high-value products,” he added.
Faruque Hassan made the observations while exchanging views with the members of Buyers Forum, a group of the representatives of major apparel brands, at BGMEA Complex in Uttara, Dhaka on May 10.
He urged the global apparel brands and retailers to partner with their Bangladeshi suppliers and support them in enhancing their capacity in product development and improving efficiency and sustainability.
Bangladesh has made huge strides in the area of environmental sustainability, becoming a global leader with the highest number of green garment factories in the world, said the BGMEA chief.
The meeting was attended by Ziaur Rahman, Country Manager, H&M, and also spokesperson of Buyers Forum; Shantanu Singh, Regional Head, C&A; Mohammad Rukanuzzaman, Compliance Manager, Tom Tailor; Sharif Nehal Rahman, Sustainability Manager, Stanley/Stella; Dishan Karunaratne, Country Manager, BESTSELLER ; Raky Bashey, Country Head, Newtimes; Najeeb Sayed, Country Manager, PVH; Amit Ahuja, Op. Director, Columbia; Brunhilde Descamps, Country Manager, Auchan; Peter Gerard Mckenna, Office Manager, the Warehouse Group.; Lucie Charlotte ABT, General Manager, Celio; Stephanie Wong Tung, Country Manager, Tape à l'oeil; Ghislain Christian Henno, Category Director and Office Manager, GBO; Rezwan Murshed, Country Head, Carrefour; Jessica Nursoo, Regional Director South Asia, VF Corporation; Meral Mirik, Country Manager, Jennyfer; Vivek Kunwar, Country Leader, Decathlon; Cedric Bourlet, Country Director, Groupe Beaumanoir; Gery Emonds, General Manager, Triton Textile Ltd; Steven Kruit, Country Manager, OVS; and Md. Mohammed Shahul Sally, Associate Director, Next Sourcing Services Ltd.
BGMEA First Vice President Syed Nazrul Islalm, Vice President Miran Ali, Vice President Rakibul Alam Chowdhury, Directors Asif Ashraf, Barrister Vidiya Amrit Khan, Inamul Haq Khan (Bablu), Md. Imranur Rahman, and Neela Hosna Ara were present at the meeting.
In the meeting, he updated the Buyers Forum’s members on the current situation of the RMG industry including its prospects and vision to enhance its competitiveness in the global apparel market.
He also briefed them about the initiatives taken by the industry to meet future challenges and enhance capability in line with market demands.
Faruque Hassan said the RMG industry had been making investments in productivity improvement, digitization, automation, and sustainability.
Bangladeshi garment factories operate according to international best practices, he further said.
He also highlighted the initiatives of BGMEA including the Center of Innovation, Efficiency and Occupational Health and Safety (CIEOSH) which aims to support the RMG industry of Bangladesh with knowledge, skills and technological know-how in becoming more advanced and competitive in the global market.
BGMEA was currently working on to develop recycling capacity in Bangladesh and make the country a global hub of recycling with the collaboration and partnership with global initiatives and companies specialized in recycling industry, he informed the representatives of the buyers at the meeting, Faruque Hassan said.
“Besides, Bangladesh has also made significant improvements in strengthening transport, energy, and digitization infrastructure alongside building capacity in port,” he said adding that several major infrastructure projects including the Padma Bridge, the country’s first deep-sea port at Matarbari, airport upgradation would help to meet future demand of trade and contribute to further economic growth in Bangladesh.
Tariff Commission recommends fixing loose sugar price at Tk 120, packaged Tk 125 per kg
Bangladesh Trade and Tariff Commission (BTTC) on Wednesday sent a proposal to the Ministry of Commerce to fix the new price of sugar.
In response to the price hike proposal of the sugar refiners’ association, the BTTC recommended raising loose sugar price by Tk 16 from Tk 104 per kg to Tk 120 and packaged sugar price to Tk 125 per kg from Tk 109, according to the Commerce Secretary Tapan Kanti Ghosh.
The secretary said this while speaking with media personnel after a workshop on informing the stakeholders about the Import Policy Order-2021-2024 to ensure the quality of imported food at the conference room of the ministry.
Tapan Kanti said that Bangladesh Trade and Tariff Commission was asked to take a decision to adjust the sugar price following a letter sent by Bangladesh Sugar Refiners Association a few days ago as the price of sugar and dollar in the international market increased which caused reduction in sugar imports.
Boeing predicts air travel in Bangladesh will double in next 10 years
US aircraft manufacturer giant Boeing has predicted that air travel in Bangladesh will double in the next decade – driven by the country’s growing population, expanding economy and the middleclass.
Boeing provided details about the increasing demand and capacity for air travel in Bangladesh in a briefing today in Dhaka, on its Commercial Market Outlook (CMO), a yearly forecast of global and regional demand for aircraft.
Through 2032, Bangladesh is expected to achieve an annual economic growth rate of more than 5% -- double the global average, supporting air traffic growth at nearly 8.5% annually, according to Boeing.
Read More: NOVOAIR launches direct flight on Jashore-Cox’s Bazar route
“As travel restrictions were relaxed over the past year, capacity growth in Bangladesh has increased by 11% year-over-year,” said Dave Schulte, Boeing Commercial Marketing Managing Director for Asia Pacific and India, on Wednesday (May 10, 2023).
Led by regional traffic to the Middle East and India, Bangladesh’s air travel could double over the next 10 years, he said.
To meet strong demands in passenger travel and air cargo, Boeing anticipates South Asia’s carriers will need more than 2,300 new commercial airplanes over the next 20 years, more than tripling South Asia’s current in-service fleet of 700 airplanes.
Read: US-Bangla Airlines to operate Boeing 737 Max 8
“We see tremendous opportunity in South Asia, with more than 80% of new deliveries supporting air travel growth and 20% replacing older, less fuel-efficient airplanes,” said Schulte.
Single-aisle airplanes like the Boeing 737 family will make up nearly 90% of South Asia’s future fleet, while 10% of the regional fleet will be widebody airplanes like the Boeing 787 Dreamliner. Both airplane models are currently in operation with Biman Bangladesh Airlines and US-Bangla Airlines.
“Boeing airplanes have played a tremendous role in the rapid growth of commercial aviation in Bangladesh. Commonality across the fleet will continue to play a major role in furthering growth, especially as it enables our airline customers to reduce operating costs and expenditures associated with training and maintenance,” added the Boeing Commercial Marketing Managing Director for Asia Pacific and India.
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Top 10 Strongest Currencies in the World in 2023
Currencies are the backbone of the global economy, providing a means of exchange and facilitating international trade. Some currencies, however, are considered stronger and more valuable than others, which makes them particularly attractive to investors and traders. These are the top ten most valuable currencies in the world in 2023, based on their exchange rates against the US dollar.
How is foreign currency priced?
Foreign currency is priced based on its exchange rate, which represents the value of one currency in terms of another currency. Exchange rates are determined by the supply and demand of each currency in the foreign exchange market. The value of a currency can fluctuate based on a variety of factors, including economic conditions, political events, and changes in interest rates.
In general, when a currency is in high demand, its value will increase relative to other currencies, and when it is in low demand, its value will decrease. For example, if there is a high demand for U.S. dollars, its exchange rate will likely rise compared to other currencies, and vice versa.
Exchange rates can be quoted in two different ways: as a direct or an indirect quote. In a direct quotation, the foreign currency is the base currency; while in an indirect quote, the domestic currency is the base currency. For example, in Bangladesh, the exchange rate between the U.S. dollar and BDT is 107.52. This means that 1 U.S. dollar can be exchanged for BDT 107.52 (direct quote) or BDT 1 can be exchanged for 0.0093 U.S. dollars (indirect quote).
Foreign currency can be purchased and sold in the foreign exchange market through banks, brokers, or online platforms. The exchange rate at the time of the transaction will determine the cost or value of the currency being exchanged.
Read More: How to Identify Fake Currency Notes in Bangladesh
Which are the Top 10 Strongest Currencies in 2023?
Whether you are a seasoned investor or simply curious about the global financial landscape, the world's 10 strongest currencies will provide you with valuable insight.
Kuwaiti Dinar
The Kuwaiti Dinar (KWD) is considered the strongest currency in the world with a value of 1 KWD equaling 3.26 USD and 347.65 BDT. The KWD is unpegged, allowing it to move freely, and is supported by Kuwait's sizable sovereign wealth fund managed by the Kuwait Investment Authority.
The economy of Kuwait is heavily dependent on oil and gas exports, making it vulnerable to fluctuations in global crude oil prices. However, the KIA has drawn up a plan to counter this and ensure the value of the KWD remains strong and stable.
Read More: How to safely send remittance to Bangladesh?
ICCB-ADB’s workshop for women entrepreneurs held in Dhaka
A workshop on “Women Entrepreneurs How to Best Engage in International Trade” was held in Dhaka on Tuesday.
The International Chamber of Commerce Bangladesh jointly organized the workshop with Asian Development Bank (ADB) at a hotel in Dhaka, according to a press release.
Around 100 women entrepreneurs attended the programme.
ICCB Vice President AK Azad; Former Chairman and Director of MIDAS Parveen Mahmud FCA ; ADB Advisor and Head of Trade and Supply Chain Finance Steven Beck and ICCB Secretary General Ataur Rahman and ICC UAE Director Vincent O’Brien, were present at the workshop, among others, said the release.