Chinese team in city to explore RMG outsourcing

[idune]

Chinese team in city to explore RMG outsourcing
MoU to be signed

Published : Wednesday, 05 December 2012

Monira Munni

Bangladesh's apparel export to China is expected to get a boost, as an 18-member high- powered delegation from the country arrived in the city Tuesday to explore apparel outsouring here. Another 15 members will join the team tomorrow (Thursday), industry insiders said.

The delegation, headed by Lin Yunfeng, vice-chairman of the Sub-council of Textile Industry, CCPIT, is visiting the country at a time when Bangladesh's apparel industry is facing an image crisis after the worst ever fire incident at Tazreen Fashions Ltd that claimed 112 lives and injured several others.

They termed the visit as a great opportunity and also important for Bangladesh, as it will help increase the country's export volume."China is a big, potential and emerging market for Bangladesh," managing director of Giant Group Faruque Hassan told the FE.

Cost of RMG production in China has increased significantly, which forces the country to switch to other sectors, though their local apparel demand is also gradually increasing.

Moreover, all top global brands are opening their sales centres in China following the increased local demand. So, China is now looking for an alternative, both for its local market and exporting to other countries.

"Bangladesh has the potentiality to grab this opportunity." Global buyers are now depending on Bangladesh for long-term apparel out sourcing, as the country can provide timely shipment of quality garment products, he added.

"This is the third visit of Chinese manufacturers to Bangladesh. Earlier, two important delegations from China visited the country in March and September this year," said chairman of Sterling Group Md Siddiqur Rahman.

High officials of many top global retailers, including H & M, Inditex, Tesco and Gap, also visited Bangladesh recently to out source more apparel products to the country, he added.

The delegation will visit some RMG factories today (Wednesday), hold meetings with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

A memorandum of understanding (MoU) would also be signed to increase bilateral relation between the countries, said Mr Rahman, also the vice-president of BGMEA.

Replying to a question Mr Hassan said the recent fire incident at Tazreen had definitely damaged the image of the country, the second largest apparel exporter in the world.

But he hoped that they would be able to overcome the image crisis, as they are working hard to ensure compliance issues, especially regarding fire safety at all factories.

Apparel export to China saw a robust growth of 27.02 per cent in the first quarter of the current fiscal year (FY 2012-13) compared to the corresponding period of the previous fiscal.

Bangladesh exported apparel products, both knit and woven, worth $ 31.0 million during July-September of the FY 13, against $ 24.40 million during the same period of the previous fiscal.

The country's export to China was only $ 9.49 million in the FY 2008-09.

Local RMG manufacturers and exporters said it was likely to take only five years to earn $4.0 to $5.0 billion from apparel export to China, as Bangladeshi RMG products are now enjoying duty-free access to the market.

Financial Express :: Financial Newspaper of Bangladesh

 

[UKBengali]

China could greatly reduce the around 80% of BD apparel exports to Western markets.

It is vital that BD grabs a large chunk of this market as quickly as possible.

No less than BD's geopolitical independence depends on it.

 

[idune]

This is significant move and initiative by Chinese govt and business that will enhance Bangladesh export. At the same time indians instead of removing trade barrier and providing market access are contemplating (in last two days) exploiting Bangladesh market access to earn money. That is the stark contrast us to note - indian mentality and way of looting and exploiting intention vs Chinese help to enhance Bangladesh export and people in general. China and Bangladesh should make sure none of indian squatter and exploiter in the name of investment CAN get to Chinese market.

 

[animelive]

This is significant move and initiative by Chinese govt and business that will enhance Bangladesh export. At the same time indians instead of removing trade barrier and providing market access are contemplating (in last two days) exploiting Bangladesh market access to earn money. That is the stark contrast us to note - indian mentality and way of looting and exploiting intention vs Chinese help to enhance Bangladesh export and people in general. China and Bangladesh should make sure none of indian squatter and exploiter in the name of investment CAN get to Chinese market.

No need of Indian investment, they should stay in their super duper richest country ever

 

[scholseys]

Foreigners should be barred from using our RMG sector. Bangladeshi RMG sector for Bangladeshis, built by the hard working businessmen of Bangladesh.

 

[idune]

China could greatly reduce the around 80% of BD apparel exports to Western markets.

It is vital that BD grabs a large chunk of this market as quickly as possible.

No less than BD's geopolitical independence depends on it.

We don't need to reduce export to western market but Chinese market access could be bigger than western market. China will give us alternative market and because of which western countries would loose unilateral leverage over our policy and export.

 

[idune]

Foreigners should be barred from using our RMG sector. Bangladeshi RMG sector for Bangladeshis, built by the hard working businessmen of Bangladesh.

Exactly, 110% agreed.

But this how indians wants to exploit and takeover Bangladesh garments and textile sectors. We are dealing with thief, looters and colonial benyas.

India's Commerce Secretary SR Rao said the balance of trade in favour of India could be addressed by investing in Bangladesh.
Indian companies can also have access to western markets like EU and the US where Bangladesh enjoys zero duty especially for textiles.

Source: http://www.defence.pk/forums/bangla...ral-visa-policy-bangladesh.html#ixzz2E3teLTSu

 

[scholseys]

Exactly, 110% agreed.

But this how indians wants to exploit and takeover Bangladesh garments and textile sectors. We are dealing with thief, looters and colonial benyas.

An ownership system like the ME should be established where a local partner must own atleast 51%

 

[idune]

An ownership system like the ME should be established where a local partner must own atleast 51%

Bangladesh domestic industry has not matured enough to deal with ME type of joint ownership. Besides, in ME in most cases locals are just owner in paper indians and others looting their wealth out. Bangladesh should keep sectors currently not allowing foreign investors same way for another 10-15 years so we can mature and diversify our industrial base.

 

[UKBengali]

We don't need to reduce export to western market but Chinese market access could be bigger than western market. China will give us alternative market and because of which western countries would loose unilateral leverage over our policy and export.

I think you misunderstood me.

It is a reduction in the percentage of exports that I am talking about.

So it is possible to increase the total value of exports to the West while at the same time reducing the % of exports that goes to the West.

BD should aim to sell as much garments to China as the rest of the West combined within 10 years time. It is an ambitious target but I think achieveable.

 

[idune]

I think you misunderstood me.

It is a reduction in the percentage of exports that I am talking about.

So it is possible to increase the total value of exports to the West while at the same time reducing the % of exports that goes to the West.

BD should aim to sell as much garments to China as the rest of the West combined within 10 years time. It is an ambitious target but I think achieveable.

yes, the way you explained is very much possible and that is what Bangladesh should target.

 

[Hammer-fist]

1. We need to reduce our economic dependence on the west e.g. exports to the west and diversify our exports to:

a: China
b: India (if possible)
c: South American states (Brazil, Chile, Colombia, Argentina are all growing).
d: All others etc.

The west including the US and Europe are getting weaker economically, even today here in London on the front page of a free newspaper called the metro they were saying how people in some parts of Britain travel 20 miles to get free food from food banks.

The BRIC, ASEAN and South American states are all growing economically.

2. Reduce economic dependence on the gulf Arab states where we have millions of expatriate workers.

The GCC states want to find employment for their own people and thus the jobs now being done by foreigners such as Bangladeshis and others may have to be done by Gulf Arabs.

Plus it is also dangerous for national security for us to have so much economic dependence on unstable and backwards Arab regimes. This is also an issue of national security.

 

[nacholibre]

No need of Indian investment, they should stay in their super duper richest country ever

also export those bangldeshis jump the fence to india to escape barbaric condition back to china, and china should facilitate special condition for bangladeshis and pakistanis to immigrate to china ..

 

[idune]

also export those bangldeshis jump the fence to india to escape barbaric condition back to china, and china should facilitate special condition for bangladeshis and pakistanis to immigrate to china ..

Why indians have so much heart burn when Bangladesh develop better relation with China, Pakistan or even Myanmar for that matter? This very attitude pushed india into isolation in south asia.

 

[idune]

1. We need to reduce our economic dependence on the west e.g. exports to the west and diversify our exports to:
b: India (if possible)

Will never be possible anyone say and try otherwise is up for something else. We have 43 years of record to prove that.

2. Reduce economic dependence on the gulf Arab states where we have millions of expatriate workers.
The GCC states want to find employment for their own people and thus the jobs now being done by foreigners such as Bangladeshis and others may have to be done by Gulf Arabs.

Plus it is also dangerous for national security for us to have so much economic dependence on unstable and backwards Arab regimes. This is also an issue of national security.

That is I would call one sided and fickle view based on attitude of arabs but from economic, logical and strategic sense disengagement from Arab countries will not serve Bangladesh interest. Yes, Arabs are trying to put more of their own people at work but they would always need outside help and market would be there. Instead of sending thousands of unskilled workers we should train and send specialized workers. That is the way we can capitalize. Besides, because of whole host of other reason we should have close relation with middle eastern countries as oppose to many india centric mindset who like Bangladesh to be isolated and indian dependent. Just as an example Islamic Development Bank which loans more than $2 billion /year to Bangladesh for our oil import. Bulk of our remittance comes from that region and there opportunity to get more given there are right and timely initiative. These examples show economic relations in middle east are very important.

Anycase dont want to prolong this offtopic discussion. We can have another thread for such discussion.