World Trade Expo, October 29-30, 2018

World Trade Centre, Mumbai

Bangladesh

The World’s Competitive Supply Source

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Geographical Location of Bangladesh

Bangladesh

Name : The People’s Republic of Bangladesh

Capital : Dhaka

Location : South Asia (20º34‘ - 26º38‘) N La. 88º01'- 92º42‘ E Long

Boarders : India on the east, west and north ; on the south side covered by the Bay of Bengal and a small border strip with Myanmar on the south-east.

Area/Land : 147,570 square km.

Population : 163 million

GDP : US$ 246.00 billion (Nominal,2017)

GDP per capita : US$ 1602.00 (May,2017)

Annual Export : US$ 34.19 billion (2016-2017)(excluding service sector)

Annual Import : US$ 43.49 billion (2016-2017) 4

Bangladesh has been cited as one of the next eleven countries that are likely to follow the BRICS ;

Bangladesh, the 77th largest trading nation in the world, has now emerged as a trading hub with prosperous and sustainable growth ;

73% of our population are at the age of 40 or below 40 years;

Bangladesh has a young population compared to regional countries;

Homogeneous population;

Homogeneous language; English is widely spoken;

Strategically located;

Eight Export Processing Zones already in operation;

10 Special zones are being established;

2 private Export Processing Zones are under process of development;

Bangladesh has principally developed labor-intensive industries but she is now going for labour-cum- capital intensive industries.

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Bangladesh and India are the members of WTO SARRC,

BIMSTEC and other important bilateral and multilateral trade

organization.

The two way trade between two countries stood at US$

6834.00 ;

Bangladesh’s export to India is US$ 672.40 mn.

Bangladesh’s import from India is US$ 6162.20 mn.

The major export items of Bangladesh to India are Raw jute,

Jute manufactures, Jute yarn and twine,Sacks and Bags ,Cut

flower,Rice bran oil,Copper wire,Agro processed food, Soap

and Toiletries , Cement , betel nuts ,Jamdani Sharee, Cane

molasses, Woven garments, Knitwear, Leather, Footwear,

Frozen fish,, Engineering goods, Mosquito net, Furnace oil,

accumulator Battery etc.

Bangladesh imports from India are Live Animal, Prepared

food stuffs, vegetables, mineral products, products of the

chemical or allied industries ,plastic and article thereof

,textile and textile articles, Articles of stone, base metals

,vehicles and transport equipment etc.

BD export to India

US$ 672.40

mn and

import from

India US$ 6162.20

mn) in the

fiscal year 2016-17

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RMG (Knit & Woven Garments);

Pharmaceuticals;

Ship Building;

Light Engineering;

Environment friendly Jute Goods;

Frozen foods (Fish & Shrimps);

Furniture;

Footwear;

Ceramic.

Products Name 2013-

2014

2014-2015 2015-2016

All products 30186.62 31208.94 34257.18

RMG (Knit & Woven) 24491.88 25491.4 28094.16

Pharmaceuticals 69.24 72.64 82.11

Ship Building 0.44 15.92 19.89

Light Engineering 366.63 447.04 510.08

Jute & Jute Goods 824.49 868.53 919.58

Frozen foods (Fish & Shrimps) 638.19 568.03 535.77

Furniture 42.58 38.94 46.26

Footwear 550.11 523.65 468.77

Ceramic 47.58 42.92 37.69

Vegetables 147.55 103.24 104.34 8

Million US$

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01. RMG 28094.16

Six Items constitute

93.21% of the total

export figure .

02. Frozen Foods 535.77

03. Jute & Jute Goods 919.58

04. Home textiles 753.01

05. Footwear 468.77

06. Leather 1160.95

Total: 31932.24

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Shares of major exportables of

Bangladesh:

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Regional Export Market Share

Bangladesh exports to 198 countries on the Globe. Region–wise shares

are:

European Region 55.54 %

American Region 21.07%

Asian Region 11.95 %

Middle-east region 2.02 %

African region 0.93%

East European Region 3.25 %

Oceania Region 2.11 %

Other Region 3.13 %

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Where we were ?

Where we are now ?

Trend in Export Trade

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1972-73 2015-16

No. of Products 25 744 (H.S. Code 4 digit)

No. of Markets 68 198

Export value 348.00 Mln. 34,257.18 Mln US$

(Product & market wise)

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0

5000

10000

15000

20000

25000

30000

35000

40000

Mn

.US

$

Export From Bangladesh During 1972-73 to 2015-2016

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Export as a percentage of Import (2007-2008 to 2015-2016 )

FY Exports Imports Contribution

2007-2008 14,111 21,630 65.23%

2008-2009 15,565 22,507 69.16%

2009-2010 16204.65 23738.00 68.26%

2010-2011 22928.22 33657.40 68.12%

2011-2012 24301.90 35516.30 68.42%

2012-2013 27027.36 33969.00 79.56%

2013-2014 30186.62 40692.90 74.18%

2014-2015 31208.94 40638.50 76.80%

2015-2016 34257.18 40097.40 85.43%

(Value in million US$)

Limited Products

(1) only six products dominate the export;

Limited Market :

(1) EU – 54.55%

(2) U.S.A – 18.16%

(3) Other countries – 27.29%

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Largest cotton t-shirt exporter in the world;

Second largest knitwear exporter of the world;

Third largest Apparel exporter in the world;

6,500 garment factories in Bangladesh;

4.50 million workers are employed in Apparel sector;

80% of the workers are women;

Workers are loyal, adaptible, trainable & committed

GSP facilities for the Apparel sector to EU, Japan, Australia, New Zealand, Canada;

Duty Free Market Access to China, S. Korea, India.

US$ 28.29 billion worth of Apparel export from Bangladesh;

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Continued…..

Available backward linkage Industry in the apparel sector;

Composite Textile Mills on the rise;

Japanese Importers are planning to source 10% of their Apparel requirements from Bangladesh;

Reputed world chain stores like Wal-Mart, C&A,H&M, Marks & Spencer, Zara, Mango, Matalon, GAP , Tesco, Puma are sourcing from Bangladesh;

High value Apparel Production on the rise ;

Fashion University has been in operation ;

Own brands are developing in Bangladesh;

Apparel export will rise to 45 billion US$ as predicted by Mcenzie Report;

Positive growth in Knit & Woven Sector.

246 companies registered with food & drug administration of Bangladesh;

US$ 82.11 million worth of medicine export from Bangladesh;

Export to 156 countries in the world;

Quality & Price Competitive products;

Maintain GMP (Good Manufacturing Practice);

Second largest contributors to the National Exchequer ;

Only LDC in the world to produce generic medicine;

License to produce patent medicine;

Good number of products registered with EU, Latin America & African Countries;

97% total domestic demand met from local production;

3% imported for domestic consumption;

Multinational companies exist;

Bangladesh successfully exporting APIs (Active Pharmaceutical Ingredients) and a wide range of products covering all major therapeutic classes and doses ;

Besides regular dosage forms like Tablets, Capsules & Syrups, Bangladesh is also exporting high-tech specialized products like HFA Inhalers, CFC Inhalers, Suppositories, Nasal Sprays , Injectables, IV Infusions etc.

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Ship building emerged as an important export sector in Bangladesh;

Bangladesh has the potential to earn US$2.0 billion by exporting ships and vessels in the next five years;

Shipyards of Bangladesh are capable to make ships of about 10,000 DWT as per international standard, and performance of three of those has been highly appreciated;

Bangladesh has been exporting new ships to European Union market, especially to Denmark, Finland, Germany and Pakistan, Mozambique;

The Government of Bangladesh has declared shipping industry as one of the driving forces of our economy.

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Light Engineering Products include Spare Parts of paper & cement mills, Bicycle, Motor cycles, Automotive maintenance free sealed batteries, Fancy light fittings, Construction equipments, Battery, Voltage stabilizer, Carbon rod, Automobile spares, Electronic items, etc;

Bangladesh exports Light Engineering Products to E.U, USA, Middle East, Japan and India;

About 0.60 million workers are employed in this sector.

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Jute is an environment friendly product whose use as a good alternative to the use of synthetic fibers such as carbon or ceramic fibers which are subject to environmental concerns;

Bangladesh is one of the largest jute goods exporters of the world;

Demand for Jute goods has been growing in developed market such as USA, Canada, Japan, Australia where consumer groups are conscious about carbon footprint of consumer goods. Jute is a natural fiber and biodegradable. Bangladesh is in a unique position to take advantage of this growing consumer concern.

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Supplier of world’s reputed tasty salted & fresh water Shrimps & Fishes;

Strictly maintain quality following HACCP & Traceability;

Exporter of Consumer packets and value added products;

Approved processing plants by the EU are 74.

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Bangladesh declared furniture as priority sector for

expanding export ;

Exporting furniture to Japan, Singapore, Australia, USA and

other markets;

Furniture factories are committed to developing design and

quality;

Supplier to Shipbuilding Industry.

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Bangladesh is in the spotlight now for shoe due to western importers are looking for new sourcing destinations;

Due to quick domestic market expansion in the EU, USA & Japan. They are becoming worried over future supply from china;

US$ 494.83 million worth of shoe exported from Bangladesh.

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There are 36 industries in Bangladesh which are as follows:

a) Ceramic Tableware – 12

b) Ceramic Tiles – 16

c) Sanitary Ware – 8

Bangladesh exports Ceramic & Porcelain tableware Bone China tableware and Stone tableware, Ceramic Tiles, Ceramic Sanitary Ware;

Available Sulphur free Gas;

Skilled Workers, Artisans, Designers are available;

Export to Europe, U.S.A, Canada, Japan, S.Korea, China, India, Singapore, Middle East, Russia, Turkey & other countries.

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Bangladesh is gifted with a fertile land;

Favorable climate for the production of

various agricultural products;

Huge supply of raw materials;

Cheap labour force;

Demand of local and

export market;

Strong supply chain;

Eco-friendly production

process;

Export earning

stood at US$

596.05 million;

Bangladesh has been recognized as the 26th

best destination for IT out-sourcing

globally by leading US companies;

500 software companies with more than

75,000 knowledgeable workers are

operating in the country;

100 companies exporting software and

outsourcing jobs to more than 30 countries;

Export earning already crossed 151.83 million US$;

More than 30 thousand employments are

generated from this sector;

Many developed countries are conducting

their business in joint venture with

Bangladeshi firms;

More than 200 IT

firms are directly

and 800 IT firms

are indirectly

involved in this

sector;

Product diversification

Market Development

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Export Policy (2015-2018) has identified

three categories of products for product

diversification:

Highest priority sector

Special development sector

Special Development Service sector

High end readymade garments and garments accessories;

Software & IT enable Services, ICT products;

Pharmaceutical Products;

Ocean going Ship & fishing trawlers building;

Shoes & Leather Products;

Jute goods;

Plastic products;

Agro-products & and Agro-processing products;

Furniture Industry;

Home textiles & Terry Towel;

Terry Towel; and

Luggage.

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Highest priority sector

Jute diversified products;

Electric and Electronic products;

Ceramic products;

Light engineering products including auto-parts & bicycles;

Value added Frozen fish;

Papadum;

Printing & Packaging;

Rough Diamond & Jewellery;

Paper & paper products;

Rubber;

Silk products;

Handicrafts;

Handloom products including Lungi; and

Coconut coir. 33

Special development sector

Potential

sectors with

strong

production &

supply base

Tourism;

Architecture, Engineering and Consultancy

Services.

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Special Development Service

sectors are:

Bangladesh offers the most lucrative incentives both in the

form of fiscal & non fiscal. These are-

Availability of very competitive, adaptive & peaceful

labour force;

Access to credit facility;

Availability of utility & power;

Availability of special economic zone;

Low cost based production.

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Remittance of royalty;

Repatriation facilities of dividend & capital;

Tax Holidays;

Depreciation allowances;

Cash & added incentives to exporting industries;

Investment is protected by law.

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10 years tax holiday for the Industries to be established before

1st January, 2012 and Industries to set up after 31st December, 2011

tax holiday period will be, Duty free import of construction materials

Duty free import of machineries, office equipment & spare parts etc.

Duty free import and export of raw materials and finished goods

Relief from double taxation 6. Exemption from divident tax

GSP facility available

Accelerated depreciation on machinery or plant allowed

Remittance of royalty, technical and consultancy fees allowed

Duty & quota free access to EU, Canada, Norway, Australia etc.

28 countries of European Union, Australia, New Zealand, Norway, Switzerland and Liechtenstein are giving GSP facilities for all products except Arms & Ammunition (EBA Scheme);

Japan (except Arms & Ammunition including hand gloves)

Turkey (except RMG and Arms & Ammunition)

Canada (except Poultry, Diary, Egg, Arms & Ammunition)

Russia (71 products)

Belarus (71 products)

Armenia (71 products)

Kirgizstan (71 products)

Kazakhstan (71 products)

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Duty Free and Quota Free Country for

Bangladesh

South korea is giving us duty free market access on 4802

products;

China is giving us duty free market access on 5054 products;

India is giving us duty free market access on all products under

SAFTA (except Tobacco & Drugs);

Other SAARC countries are giving us duty free market access

on some products under SAFTA/SAPTA;

Thailand is giving us duty free market access on 6998 products;

Malaysia is giving us duty free market access on 525 products;

Chile is giving us duty free market access on all Bangladeshi

products.

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Continued…..

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