CPD RMG Study Stitching a better future for Bangladesh
Every day, CPD RMG Study team reveals what’s on our economic and apparel radar and curates a selection of the best reports, opinion, and analysis you may have missed.
Dhaka may lose edge as Colombo enjoys EU benefit
Bangladesh’s apparel export to the EU market is likely to face stiff competition with Sri Lanka’s following the latter regaining trade benefit from the important bloc, Bangladesh’s English language daily the Financial Express reported. The report said the European Union recently reinstated GSP (generalised scheme of preferences)-plus to Sri Lanka with effect from May 19, about seven years after the suspension in 2010. The report quoted Khondaker Golam Moazzem, research director of Centre for Policy Dialogue, as saying that 60 per cent of Lanka’s garment goes to the EU and would enjoy 5.0 to 10 per cent tariff advantage following the EU’s reinstatement of GSP-plus facility. Khondaker Golam Moazzem said that competition might be faced on account of both price and product, he said, adding not only Bangladesh but also all the exporting countries would face the same competition. He said that both Bangladesh and Sri Lanka produce some similar main products.
Bepza eyes $4.5b investment from Mirsarai economic zone
Bangladesh Export Processing Zones Authority (Bepza) will set up an economic zone at Mirsarai of Chittagong with an eye to attracting $4.5 billion in investment, the daily Star reported.
The report said that Bepza and Bangladesh Economic Zones Authority (Beza) signed a memorandum of understanding on the planned zone at the Prime Minister’s Office in Dhaka on May 18.
Fund dearth hinders inspection of 1,000 small apparel units
The Department of Inspection for Factories and Establishments (DIFE) cannot start the inspection of nearly 1,000 small-sized garment factories for a lack of funds, the daily Star newspaper reported.
The report quoted Md Shamsuzzaman Bhuiyan, inspector-general of the government agency, as saying that those factories are small and not included in any of the three inspection agencies, namely the Accord, the Alliance and the National Initiative, said.
The report said that since the Rana Plaza building collapse in April 2013, the three initiatives have been inspecting nearly 3,800 factories to fix structural, fire and electrical loopholes in the factories.
Govt to finalise uniform VAT rate by this week
Finance Minister A M A Muhith said on Sunday the new VAT (value added tax) rate will be fixed by this week, and the rate will be a uniform one, the Financial Express reported.
“The VAT rate will be finalised on 25th or 26th of May,” the report quoted the finance minister as saying.
