Free Essay

Business Report

In: Business and Management

Submitted By anikajaber
Words 6148
Pages 25
Report On

“News Paper Article of Business Environment of Bangladesh”

Submitted To:
Dr. Akbar Ali Khan
Professor
Environment & Business (Bus 503-1)
MBA programme
BRAC Business School
BRAC University

Submitted By: Anika Zaber (13164108) Sharmila Gupta (13164121)
Joynub Sultana (11164034)
Shabnam Alam (13364086)

Date of Submission: 29 July2013 Letter of Transmittal
29 July 2013
Dr. Akbar Ali Khan Professor
Environment & Business
MBA Programme
BRAC University

Subject: Submission of report on news paper article
Dear Sir
We have prepared a Group Report on “Newspaper article of Business Environment of Bangladesh” which we are submitting along with this letter. It was a delightful experience and preparing this report further enhanced my insight about how to prepare a report.
We are confident that this report will help you to understand the reason about our selection of the articles. We have tried our best to follow your guidelines in preparing this report. We have presented what we believe to be most important information to make our report as specific & coherent as possible.
We hope that this report will fulfill your requirements. Thank you for your kind consideration and guidance. We hope our effort would satisfy you.
Sincerely yours
Anika Zaber (13164108) …………………………………
Sharmila Gupta(13164121) ………………………………..
Joynub Sultana (11164034) ………………………………..
Shabnam Alam(13364086) ………………………………..
Acknowledgement
We would like to thank two people with due respect and honor who have really helped us in preparing our report. They have helped us with the procedure and always answer our question if we had any. In this connection, we would like to thank our honorable course instructor Dr. Akbar Ali Khan (Professor, BRAC Business School, BRAC University) who has guided and supported us a lot which brings out an outcome of this report. I appreciate his co-operation and knowledgeable advice about how we can improve our report.
We would like to thank Our TA. Mr Chandan Roy who was always there to help and support us by providing the previous report as outline which really did a great help. While preparing this reportt we have really enjoyed because it gave us the total scenario of the business environment of Bangladesh like: what sector is in growth stage, what sector is suffering, what sector is ready to be flourish etc. It was very enlightening as well as educational. And lastly we would like to thank our group members who were equally cooperative in completing our report on time and make it an effective one.
.

Executive Summary
Business refers as the combination of internal and external factors that influence a company's operating situation. The business environment can include factors such as: clients and suppliers; its competition and owners; improvements in technology; laws and government activities; and market, social and trends. As the report was based on the newspaper article so we have visited the website of the most popular English Daily News paper of Bangladesh “The Daily Star”. We have also covered newsformbangladesh.net. From the business section we have chosen various types of important business news of the month May, June & July of 2013. Among that news articles we have selected important four reports and discussed and provide some recommendations accordingly. The first report is about “Issue more WiMax license to increase the use of internet” that is newly emerged in Bangladesh and taking the country by storm and the second report is about “Lower import duty of shipbuilding” which is also new in Bangladesh but it is full of potential. If the Government can reduce the import duty properly then it can go in the long run. The third report is that, “28 missions are failed to achieve export target from July to may in this fiscal year (2012-13)” which report is taken from unbconnect. The last one is about “Demand of duty waiver”. In this report BGMEA demanded duty waiver for apparel exports to the US markets and they are also trying to get back the GSP privilege.

Table of Contents

Contents Page Numbers
The Introduction * 1.1 Introduction………………………………………………………………………..1

Chapter 1 * News Article 1-4………………………………………………………………………3 * News Article 5-8…………………………………………………………………........4 * News Article 9-12……….…………………………………………………………….5 * News Article 13-16………………….………………………………………………...6 * News Article 17-18……………………………………………………………………7

Chapter 2
ARTICLE: 1 * BTRC to provide more WiMAX licenses…………………………………………………………………9-10 * * Analysis of the report………………………………………………………………10-11 * Advantage……....…………………………………………………………………..12-13 * Disadvantage…………………………………………………….…………………..15
ARTICLE: 2 * Government to lower import duty for Shipbuilding…………….………………….......17

* Analysis of the report…………………………………………………………………… * Advantage…………..………………………………………………………………. * Disadvantages………………………………………………………………………. ARTICLE: 3 * 28 missions are failed to achieve export target from july to may in 2013……………………………. * Analysis of the report………………………………………………………………. * Advantage………………………………………………………………………….. ARTICLE: 4 * BGMEA demands duty waiver for garment exports to US……………………………………. * Analysis of the report………………………………………………………………. * Advantage………………………………………………………………………….. * Recommendations…………………………………………………………… * Conclusion……………………………………………………………………

Bibliography……………………………………………………………………………

Introduction:
The word “Business” is used to imply any type of organization, whether it can be a commercial profit-making enterprise, a government agency or a non-profit-making charitable trust. In simple terms person remains busy is known as Business. Environment refers to the external conditions in which a person or organization lives. Environment is composed of two words 'Business' and 'Environment’. The word “environment” does not only refer to the natural or ecological environment. It is a general concept which holds the whole of external environmental forces which may influence any aspect of organizational activity. Study of business environment helps to identify strength, weakness, opportunities & threats. It is also very important for the survival and growth of the business enterprises.

To do a business in a country we need to know the country and its environment .This report contains business environment related issues which covered in May, June & July 2013 in the Daily Star newspaper and also unbconnect.com as per the instructions of our course instructor. In this report we have covered that Garment workers demand cash for lunch, new business news site begins journey etc. We have also discussed welfare package planned for factory workers, it means that civil society members will develop a comprehensive welfare package for industrial workers to ensure their rights. Another report shows that express Money offers free insurance to Bangladeshi users in Saudi Arabia It contains that Xpress Money, a money transfer brand, in association with Union Insurance launched free life-insurance for Bangladeshi migrants in Saudi Arabia. We have also covered that the telecommunication sector wants to provide more WiFi license to widen the use of internet in Bangladesh, Government to lower import duty for Shipbuilding. By reducing import duty it can also continue in the long run.

A good business environment is the precondition for economic development. We have focused in the recent economic and financial issues in Bangladesh. Through analyzing the report we have come to know that the current business environmental issues and their impact on the country.

CHAPER 1

1. Xpress Money offers free insurance to Bangladeshi users in Saudi Arabia
Star Business Desk, Dated: May 22 2013
Xpress Money, a money transfer brand, in association with Union Insurance launched free life-insurance for Bangladeshi migrants in Saudi Arabia. This scheme will provide a life insurance protection of 15,000 Saudi riyals. 2. Bangladesh may get duty-free access to Thailand
Star Business Desk, Dated: May 22 2013
Thailand plans to give duty-free and quota-free access to Bangladeshi products. The highlighted part of the report is that emphasizes further cooperation between the businessmen of the two countries, increasing Thai investment in infrastructure, textile, pharmaceuticals, and agriculture. 3. Malaysian entrepreneurs seek special economic zone
News from bangladesh.net, Dated: 22 may 2013
A visiting business delegation comprising Malaysia based Chinese entrepreneurs requested the government to set up an exclusive economic zone to offer logistic support to the entrepreneurs from Kuala Lumpur. 4. EU countries keen to invest in ship recycling industry
News from bangladesh.net. Dated: 23th may, 2013
Countries of European Union are keen to invest in ship recycling industry of Bangladesh. Roger Hennekens, senior investment officer of Financial Institutions – Asia said it at a pre-roundtable meeting at CCCI office in the port city. 5. NBR decides to discontinue carnet facility
News from bangladesh.net, Dated: 26 may 2013
The National Board of Revenue has decided to discontinue the facility of importing luxury cars in the country by tourists under the Carnet De Passage. In most cases foreign nationals of Bangladeshi origin do not re-export the cars imported under the facility, violating rules. 6. GOVT to raise floor price of gas for deep sea exploration
Source: Special correspondent, Dated: Monday, 26 may 2013
The government will increase the floor price of natural gas for deep sea exploration to make it friendly to investors, announced energy adviser Dr. Tawfiq-e-Elahi Chowdhury to the Prime Minister. He also urged US investors and entrepreneurs to invest in Bangladesh as the country offers continuity in policies, at least for foreign investors. 7. GAP renews pledge to stay in Bangladesh
Star business report, Dated: Monday, 27 may 2013
GAP Inc will continue buy garments from Bangladesh and help improve working conditions at factories, a spokesman for the US retailer, said yesterday. 8. Buyers should increase prices of Bangladesh RMG: French official
New age, Dated: 28 May 2013
The French ambassador at large on human rights, François Zimeray, on Tuesday said he would ask the European buyers of Bangladeshi apparels to increase their prices so that rights of the workers could be ensured.

9. Africa is future source of food, energy: Yunus
Star Business Desk, Dated: 5 June 2013
Nobel Laureate Professor Muhammad Yunus attends a seminar on social business organized by the human development department of the African Development Bank, in Africa recently. He said that Africa will be the future source of food and energy for the whole world.

10. Garment workers demand cash for lunch
Star Business report, Dated: 12 June 2013
Workers of Nadia Garments demonstrated in Dhaka, demanding an allowance for lunch. Workers said management is unwilling to pay for their lunch bills, although they agreed on three demands including the lunch bill. Main part of this article is that if management fulfills their demand, they will join work. Otherwise they will continue to demonstrate.

11. Mobile internet on pay-per-use to get cheaper from next month
Star Business report, Dated: 12 June 2013
The report covers that Mobile operators will have to roll out the reduced internet tariff on pay-per-use packages by June 30.

12. BlackBerry may set up server in Bangladesh
Report prepared by Abdullah Mamun, Dated: 12 June 2013
The Canadian smart phone brand BlackBerry has expressed interest in setting up a server farm in Bangladesh. Here the reporter highlighted that once the server is set up; prepaid subscribers will also be able to use BlackBerry handsets in Bangladesh. 13. Welfare package planned for factory workers
Star Business report, Dated: 16 June 2013
The report is about Civil society members will develop a comprehensive welfare package for industrial workers to ensure their rights. The package will cover compensation, rehabilitation and rights. 14. New business news site begins journey
Star Business report, Dated: 16 June 2013
A financial online news portal — arthosuchak.com — starts its formal journey to provide fast and accurate economy. They will also provide news on IT, real estate, tourism, and shipping. Here the reporter focus on that reader can access Arthoshuchak at www.arthosuchak.com or www.asbd.biz. 15. Emirates appoints senior vice president for cargo
Report prepared by ASM Feroz Alam, Dated: 1July 2013
Nabil Sultan has recently been appointed divisional senior vice president of cargo for Emirates. The report covers that Sultan was the divisional senior vice president for revenue optimization and distribution for the airline. 16. JICA to provide $10cr for RMG compliance programme
News from bangladesh.net, Dated: 11 JULY 2013
Japan International Cooperation Agency (JICA) has decided to provide US$ 10cr financial support from its project on financing small and medium enterprise (SME) Bangladesh for a special programme to improve the building safety in the readymade garment (RMG) sector across the country. 17. Japan found huge potential market in Bangladesh RMG New from bangladesh.net, Dated: 22 JULY 2013
Japan has huge potential market for Bangladesh as a growing number of Japanese consumers are choosing Readymade Garment (RMG) products from Bangladesh. The highlighted part of the report is that they found here the product with low price and high quality. 18. Govt. project to boost agricultural mechanization process
News from bangladesh.net, Dated: 23 JULY 2013
Our Govt. wants to start a project to boost our agricultural mechanization process in Bangladesh. This report covers that under the project titled “Increasing crop production through farm mechanization”, nearly 32 thousand modern agricultural equipments would be distributed.

CHAPER 2

BTRC to provide more WiMAX licenses
Report prepared by Abdullah Mamun,dated 15 May 2013 The telecom regulator is set to provide more WiMAX licenses, in a bid to spread the use of internet. At present, there are two active WiMAX license holders, Banglalion Communications and Augere Wireless, both of whom paid Tk 215 crore each at the auction held in September 2008.
However, last month, Bangladesh Internet Exchange Ltd (BIEL), an internet service provider who came fifth in the auction, reapplied for one of the two spare WiMAX licenses, which Bangladesh Telecommunication Regulatory Commission is likely to grant.
“It’s time to dispose of the idle WiMAX licenses, as it would not be possible to hold another auction,” said Sunil Kanti Bose, chairman of BTRC.“If any party is willing to pay the amount, sure, they can have the license,” he added.
BIEL, a subsidiary of Multinet Group, said in its application it is prepared to pay the sum the other two private bidders paid in the auction. The Daily Star could not reach BIEL for comments.
The government, currently, have two WiMAX license at its disposal: one which was reserved for the state-owned BTCL, who have now refunded, and the other which remained unsold.
There are other interested parties at present for the remaining WiMAX license, according to BTRC officials. WiMAX, short for Worldwide Interoperability for Microwave Access, essentially, provides high-quality broadband access and has a very high penetrability, in that the microwaves it emits can be accessed at every nook and corner of its large coverage area.

Analysis of the report:
Internet in Bangladesh has witnessed phenomenal growth. Earlier, Bangladesh had dialup access to e-mail. Due to high costs, little local content, limited or poor service quality, lack of infrastructure with the last mile often limited to dial-up, too many providers competing in a small market and low literacy rates has limited Internet penetration till 2009 .By seeing and observing the demand of internet three companies, BanglaLion Communications Ltd., Brac Bdmail Network Ltd. and Augere Wireless Broadband Bangladesh Ltd has.won licenses to operate WiMAX in September 2008. WiMax (Worldwide Interoperability for Microwave Access) is a modern telecommunications technology that provides wireless transmission of data using a variety of transmission modes, from point-to-multipoint links to portable and fully mobile internet access that provides up to 10 Mbit/s broadband speed. They purchased the licenses at auction for 31 million USD from the BTRC (Bangladesh Telecommunication Regulatory Commission) under an agreement that pays 27.50% of revenue to the government. BanglaLion and Augere (branded as Qubee) launched commercial WiMax services by the end of 2009 but Brac Bdmail declined to start the service. As a result the demand for the internet was not fully covered as it should have been. That’s why telecom regulator is providing more WiMAX licenses. So, an internet service provider which came fifth in the auction BIEL(Bangladesh Internet Exchange Ltd ) subsidiary of Multinet Group reapplied stating that they are prepare to pay the amount that the other two bidder have been paid for one of the WiMAX licenses.
In this report we can see that Sunil Kanti Bose, chairman of BTRC granted as he wants to quickly dispose the license without holding an auction. The government has two WiMAX license ready for disposal, one is reserved for BTCL, now refunded, and the other remained unsold which means BTCL wants to offer the licenses to interested parties to spread and increase the access of internet. Now the number of Internet users reached to 33 million.

Advantages:
WiMax has become a powerful tool for development. If more WiMAX licenses are permitted then Bangladesh is needed to make the best use of it if following steps are taken: I) Wimax may draw the great benefit at the time of natural disaster in our country. II) Although this sector is facing many constraints in expanding Internet access, development of the Internet and Information Technology are high government priorities. III) Establishment of more Wimax is a sign of positive technology in upbringing the life standard of rural people in Bangladesh. IV) If the people get more Wimax access in Bangladesh then they can get better health facilities, education and do well business. V) BCL will provide different kinds of services using WiMAX technology which will help the people in the grassroots level. VI) The biggest Advantage of WiMax internet connection is that it is wireless which is why people can access and be connected with internet by sitting anywhere as the WiMax network is almost everywhere.

Disadvantages:
If more WiMax technology is not set up then existing WiMax and people will face different kinds of problems because of some factors. These are given below: I) As the Internet’s speed in Bangladesh is among the slowest in the world Internet connectivity if more WiMax connections are not set up then Bangladesh will remain backward in comparison with the world.
II) The WiMax acceptable quality and reliability is generally quite expensive in Bangladesh. III) Though WiMax Technology has been set up but in comparison the progress is limited due to deficiencies in the regulatory framework and infrastructure development. IV) Though there are lots of WiFi internet connections are available in the neighborhood but due to lack of more WiMax Technology connection the browsing and downloading speed of internet is not that fast and remarkable as it should have been. IV) The charges for high speed connections are higher than in other south Asian countries.

Government to lower import duty for Shipbuilding Report prepared by Gazi towhid Ahmed, date: 7 June 2013 Finance Minister AMA Muhith has proposed to reduce the duty on imports of shipbuilding accessories and raw materials to 5 percent from existing 25 percent to bolster the local shipbuilding industry. In his budget speech yesterday, Muhith said the reduced duty will boost the growing export industry of our country as soon as possible.

The government move will help the sector grow as international orders are falling due to the world economic meltdown, said Afruja Bari, managing director of Ananda Shipyard.
Local shipbuilders will be able to offer low prices to the local entrepreneurs with the cut on import duty, she said. Shipbuilding is a modern, comprehensive industry that produces technical equipment for transportation, maritime development and national defense, she said.

The government step will help the sector flourish further, said Md Sakhawat Hossain, managing director of Western Marine Shipyard. The government should increase duties on import of new or used ships to 25 percent, which will compel businessmen to look to domestic shipbuilders, Hossain said. “We can save a lot of foreign currency if the country reduces its dependence on imported ships. It will also create more employment opportunities”

Analysis of the report:
Shipbuilding is a developing sector of Bangladesh. Shipbuilding industry faced lots of problem to establish this sector. Now they are producing and exporting good quality products. But there are lots of barriers still creating problem like capital, import duty, transportation etc. Import duty is one of the main problems of shipbuilding industries.
In this report we can see that Finance Minister A.M.A Muhith has proposed to reduce the duty on imports of shipbuilding accessories and raw materials to 5 percent from existing 25 percent. Because he thinks that it will be helpful for growing export industry of our country. Managing director of Ananda Shipyard Afruja Bari also said that local shipbuilders will be able to offer low prices to the local entrepreneurs with the cut on import duty. Managing director of Western Marine Shipyard also thinks that the government step will help the sector to do well. In that way we can save lots of foreign currency & create employment opportunities.
Shipbuilding industry is new in Bangladesh but it is full of potential. This sector can develop very smoothly if the Government can reduce the import duty of materials, like steel plate, machinery, engine, generator, pump etc. By reducing import duty cost of production will be low and it can also continue in the long run.

Advantages:
Shipbuilding is a developing sector. By reducing import duty it can grow and earn more profit if the following steps are taken: I) The Government will have to be very careful in this sector to develop. The government must make very easy policy which should be accepted all over the world. II) Bank loan should be available and guarantee system should be easy. Government must take the responsibility of the both bank loan and guarantee. III) By reducing import duty and taxes the product cost becomes low and we can sell the ships at a very low cost than other countries. IV) We can save lots of foreign currency & create employment opportunities. V) The government must increase the production of electricity; make more power plants so that the shipbuilders can invest more in this sector.

Disadvantages of import duty of shipbuilding:

The local shipyards are facing different kinds of problems because of import duty. These are given below: I) Financing is one of the major problems of this sector. Because of import duty banks are suffering from liquidity crisis. II) Lack of comprehensive policy is another problem faced by shipbuilders. III) The overall import duty of materials, like steel plate, machinery, engine from 25 to 85 per cent, which is on an average 25 per cent. This causes the high production cost. IV) As we are developing country we need foreign currency but we cannot save it because of import duty. V) Many foreigners are now working in this sector in Bangladesh. That’s why we are losing employment opportunities.

So, after saying all these things we can come up with the idea that if the Government reduces this import duty of shipbuilding industry properly then it can go very long run. 28 missions are failed to achieve export target from (may-july) this year
Reported by: UNB connect on July 12th, 2013 03:44:47 pm
Twenty-eight Bangladesh missions abroad failed to achieve their respective export targets set for the July-May period of the last fiscal year (2012-13) mostly because of moderate export growth. The key missions like ones in Washington, London, Berlin, Rome, Madrid and Paris failed to achieve their July-May export targets while some other important missions –- Stockholm, The Hague and Ankara — achieved their targets during the period. The overall export earnings during the July-May period of the last fiscal year totalled $ 24,321.90 million against the strategic target of $ 25,161.00 million, posting a growth of 10.67 percent. The overall export earnings in 2011-12 fiscal amounted to US$ 24,287.66 million, 8.35 percent down than the strategic target of $ 26,500 million. Of the 44 Bangladesh missions, 16 reached their export targets of the July-May period of the last fiscal, according to the latest statistics provided by the Export Promotion Bureau (EPB). The 16 well-performing missions are in The Hague, Stockholm, Ankara, Canberra, Hong Kong, Dubai, Moscow, Kualalampur, Cairo, Jakarta, Muscat, Bangkok, Riyadh, Manila, Kuwait and Tashkent.Of the 28 Bangladesh missions that could not achieve their 11-month targets, exports still marked a rise for 15 of them over the corresponding period of the 2011-12 fiscal. These missions are in Tokyo, New Delhi, Yangon, Manama, Madrid, Rome, Ottawa, Beijing, Paris, Washington, London, Berlin, Seoul, Doha and Katmandu. However, 13 missions — Tehran, Rabat, Brussels, Singapore, Islamabad, Colombo, Hanoi, Nairobi, Brunei, Pretoria, Amman, Tripoli and Thimpu — saw exports decline during the July-May period of the last fiscal compared to the same period of the previous fiscal (2011-12). The EPB figures revealed that out of the 16 Bangladesh missions having commercial wings, only four had achieved the export targets set for them while 12 others could not achieve their targets. The four missions with commercial wings, which had achieved the export targets, are in Canberra, Dubai, Kuala Lumpur and Moscow. Although the remaining 12 commercial wings could not achieve the targets, the earnings of 10 still saw increase over the 2011-12 fiscal. These are in Washington, Berlin, London, Madrid, Ottawa, New Delhi, Yangon, Tokyo, Paris and Beijing. The 16 Bangladesh missions that succeeded in achieving their targets for the July-May period of last fiscal accounted for $ 4,288.96 million while the export earnings of the remaining 28 missions, which failed to achieve the targets, totalled $ 19,300.16 million. The highest earnings over the 11-month period, some $ 5,190.09 million — almost one-fifth of total exports — were registered by the Washington mission, followed by the mission in Berlin, which accounted for $ 3,793.15 million and London $ 2,709.50 million. The strong showing from EU member states continued with the Madrid mission fetching $ 1,167.29 million during the July-May period. The next was the Bangladesh mission in Italy, which earned almost $ 943.33 million, followed by missions in Ottawa and The Hague, with approximately $ 980.15 million and $ 1,021.06 million respectively. The New Delhi mission managed to fetch $ 536.09 million.

Analysis:
In the current fiscal year priority has been given to readymade garment, woven, knitwear, leather, agricultural products, shrimp, jute and jute-goods in achieving export target. In my analysis from the article and also from the research I have came up with some important points. The initial stage should be the infrastructural development with increased port facilities like-The authority is planning to establish a firm base for prosperous Bangladesh which can become an international gateway for traders of 7 states of Eastern India, Nepal, Myanmar, Bhutan and south-western province of China. The proposed port will contribute greatly to enhance the life style and fate of the people of this region through attaining economic release. For providing backyard facilities for the port, vast land can be developed inside the same embankment. As a result of which, the existing industrial activities in the city may be upgraded and modernized. Development specialists, policy makers, port users and related agencies should put their heads together for these developments.

Training are essential for woven and knitwear workers like- There are about 5,500 woven garment factories while the number of knitwear factories is nearly 1,500 in the country. At present there are about 4.0 million workers employed in the RMG (readymade garment) sector.There are 80% women workers in RMG. About 25 per cent workers of the garment factories are unskilled. The need for trained workers at the entry level of different garments factories appears due mainly to surging demand for Bangladeshi RMG products considering their price competitiveness and quality. Already 1819 workers got training on management level officials of RMG sector.

Thirdly the important point is to remove constraints in shrimp culture and continuation of incentives to enhance export growth. Due to political upheaval, labor unrests and global economic slowdown it fell 3.5% short of the target set for fiscal year 2012-13 ended on June 30, according to latest data of Export Promotion Bureau (EPB) of Bangladesh. The growth of the fiscal year was driven by woven garments that surged 14.96% to over $11bn and knitwear garment exports 10.43% to over $10bn. For the current fiscal year, the export growth for knitwear estimated at 15.5%, woven garments13.87%, frozen foods at 6.42%, shrimps at 5%, agriculture products 20.17%, manufactured commodities at12.83%, leather at 15%, leather products at 30%, jute and jute products at 12.89%, footwear 25%, ships, boats, and floating structures at 10%, and home textile 5%. Another thing is Government should maintain strict monitoring along the border to stop smuggling of Hilsa fish to achieve the export target. The export target is attainable, if the government extends hands to cooperate in relocating tanneries and to set up effluent treatment plant. The big challenge for us is to ensure compliance in all sectors, including workers safety as we are on pressure from international buyers and rights organizations. Proper implementation of the policy supports should taken by the government.

Advantages:
The advantages that probably the EPB might work with-

I) Our Government has already started planning for export target which is an advantage for EPB. II) Although jute was our main export earnings but now RMG are playing an important role for earnings which is facing a huge challenge and EPB has already taken initiative for attracting international buyers by ensuring quality.

III) RMG sector will get special priority for export target.

IV) New plan is proposed for Port improvement.

V) Around 70-80 per cent of the factories based in Khulna and Chittagong have now set up modern machinery to cook and process shrimps.

BGMEA demands duty waiver for garment exports to US
Mozena advises Bangladesh to prepare well for next GSP hearing in December
Star Business Report, Dated: 26 July 2013
Garment owners yesterday demanded duty waiver for apparel exports to the US markets, which they said would improve labor standards and working conditions in Bangladesh. “If they allow duty-free access for Bangladesh garments, we can invest the money saved from duty in worker welfare,” said Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association. Garment exporters paid $750 million in duty on exports to the US in 2012. The demand came at a meeting at the BGMEA office with US Ambassador Dan W Mozena on the generalised system of preferences for Bangladesh, which the United States suspended on June 27 citing inadequate progress in labor standards. Islam, the chief of the garment trade body, also demanded a unified code of conduct for building safety, and workplace and labor standards to regain GSP privileges. The suspension of GSP privileges sent out a negative signal all over the world, he said. The government should help develop the largest foreign currency earning sector with low interest bank loans, he said. Mozena said their entire focus was on following up on the GSP action plan for reinstatement of Bangladesh’s GSP. “We all should work together to avoid disasters like Rana Plaza and Tazreen fire again in Bangladesh,” said Mozena adding that Bangladesh could be the best brand for international buyers. North American retailers including Wal-Mart and GAP have formed an alliance of their own for factory inspection in Bangladesh.
Earlier, more than 70 retailers, mostly European, signed a legally binding agreement in May to finance upgrades in factory standards in the garment sector. “I have also met with the secretaries of foreign, commerce and labor ministries to discuss how Bangladesh could regain GSP privileges,” Mozena said. The envoy asked the BGMEA to be well-prepared before appearing for the hearing due in December on the reinstatement of trade preferences for Bangladesh products in the US market. Bangladesh Foreign Secretary Md Shahidul Haque recently said the US would review the reinstatement of GSP facility for Bangladesh in December.
Analysis of the report
The report is about Ready–Made Garments (RMG) sector of Bangladesh. This has emerged as the biggest earner of foreign currency. The ready-made garment (RMG) sector has experienced an exponential growth since the 1980s. The sector contributes significantly to the GDP. It also provides employment to around 4.2 million Bangladeshis, mainly women from low income families which affect their social status.

In this report Bangladesh Garment Manufactures & Exporters Association (BGMEA) demanded duty waiver for apparel exports to the US markets. And they demand this facility to improve labor standards and working conditions in Bangladesh. In year 2012 Bangladesh paid $750 as export duty to US. If they do not have to give this money to US BGMEA can easily spend this on worker safety for Bangladesh. Along with this issue here a code of conduct for building safety, and workplace and labor standards also demanded. Because BGMEA want to regain GPS privilege which they lost in June, 2013. As we know some previous incident point on these issues of worker safety and labor violations in our country. And this is the main reason of lost of GSM privilege. We have lost this facility from US but it which gives negative signal all over the world. North American retailers have formed an alliance of their own for factory inspection in Bangladesh. According to the US Ambassador Dan W Mozena Bangladesh could be the best brand for international buyers if we can avoid disasters like Rana Plaza and Tazreen fire again in Bangladesh. He also said BGMEA to work for reinstatement of trade preferences for Bangladesh products in the US market. Because US would review the reinstatement of GSP facility for Bangladesh in December.

Advantages: * If the demand is fulfilled it will give a positive signal towards the world mainly the European Union. Because lost of GPS privilege may influence the European Union to take similar action, which would have a much bigger impact on Bangladesh and its garment sector. The European Union buys more than $12 billion in Bangladeshi garments each year, or roughly three-fifths of the country’s production. * It will help to improve labor standards and working conditions in Bangladesh. * A code of conduct for building safety will also be made to secure labors life. * The common problems of the RMG workers are low wage, irregular payment, forceful overtime, poor working environment, physical and sexual harassment, termination; more importantly accidents and deaths for safety and security failures will be solved

Recommendation:
After analyzing the news article we would like to give some recommendations. These are given below: * For shipbuilding report we can say that Government should take some necessary steps to implement lower import duty as soon as possible. * Bank loan should be available and guarantee system should be easy. * Taxes must be reduced so the product cost becomes low and we can sell the ships at a very low cost. * The government must increase the production of electricity & supply of gas so that the shipbuilders can invest more in this sector. * The authority must take care of labor of all sectors & also maintain products quality. * Government proceed with country but EPB preceed with business, so proper maintenance and improvement should be done for better quality and bulk production. * EPB should take initiative for new product with diversity and potential market for it. * For more WiMax license report we can say that WiMax could open new window of opportunity for the technology sector in Bangladesh. * WiMax had a very bright prospect in Bangladesh and it would help to transform the economy of the country. * The high speed WiMax connection acceptable quality,charges and reliability should be reduced in Bangladesh. * More regulatory framework and infrastructure should be established and developed for the progress of faster internet access in Bangladesh. * BGMEA and government should take some necessary steps to change the labor standard and working condition within 6 months along with the building safety for whole RMG sector.
Conclusion:
Business environment is very much important to know for doing business. Before doing this report we did not have any clear idea about the business environment of Bangladesh. As we have analyzed last three months news article on business we have come to a conclusion that business is now diversified all over the world. At this age, Business is affected by some unavoidable circumstances in environment. But fortunately the business of Bangladesh now a day is flourishing, that’s why foreign investors are coming in our country for business purpose. In this report we have covered that Government to lower import duty for Shipbuilding, 28 missions has failed to fulfill export targets on recent GSPA issue in RMG, more WiMax license should provide to spread the use of internet . By reducing import duty it can also continue in the long run .During preparing the report, we have found many positive and negative aspects. By taking necessary steps in right time we will be able to overcome as much as possible. Finally, we would like to recommend that if we make business strategy more powerful then business can cope up with any adverse environmental situation.

Bibliography: Newspaper: 1) The Daily Star (15 May- 20 July) Internet: 1) http://unbconnect.com/export-missions-2/#&panel1-9 2) http://www.thedailystar.net/beta2/newspaper/…...

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