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BUS 503 - Group 3

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BUS 503 - Group 3

  1. 1. Analysis on recent Economic and Financial issues of Bangladesh BUS 503 : Business Environment 7/29/2013 BRAC University
  2. 2. Analysis on recent Economic and Financial issues of Bangladesh 2 | P a g e Prepared For: Professor Dr. Akbar Ali Khan Course instructor Business Environment (BUS 503) MBA Program BRAC Business School BRAC University Prepared By: Group 3 Summer 2013, MBA Program 29 July 2013 STUDENT NAME STUDENT ID ATTEMPTED TOPICS SIGNATURE Muhammad Tanvir Hossain 13164042 Global brands opting for sourcing B'desh footwear Sayed Mohammad Amin Faysal 13164083 The herd behaviour in capital market Rossi Norman Dias 13164082 Highest rise in FDI last year Md. Rajibul Haque 13164096 E-banking : The benefits and challenges
  3. 3. Analysis on recent Economic and Financial issues of Bangladesh 3 | P a g e Letter of transmittal 29 July 2012 Professor Dr. Akbar Ali Khan Course Instructor Business Environment MBA Program BRAC Business School BRAC University Sub: Analysis on recent Economic and Financial issues of Bangladesh Dear Sir, With the great pleasure we would like to submit our report on the 'Analysis on recent Economic and Financial issues of Bangladesh' as we were assigned for BUS 503 course for the month of June and July. Preparing the report and study was quite motivational, beneficial & useful. We have added some knowledge and experience with our existing ones as we tried our level best for this report. In the report we provided the analysis of current economic and financial issues presented in the daily ‘Financial Express’ a prominent financial daily in Bangladesh. We provided these from using of different methodologies like- websites visit, newspaper study. We desire that this study will obviously help us to be acquainted with advantages and disadvantages of different financial and economic decisions taken in recent times. We expect your warm reception of this report for our hard work and therefore, we mostly want you to enquire anything about the given information from reference part. Your acceptance and appreciation would surely inspire us. For any further explanations about the report, we will gladly available to clarify the ins and outs. Any suggestions regarding this term paper will be inevitable. Sincerely yours Muhammad Tanvir Hossain ID : 13164042 Rossi Norman Dias ID : 13164082 Md. Rajibul Haque ID : 13164096 Sayed Mohammad Amin Faysal ID : 13164083
  4. 4. Analysis on recent Economic and Financial issues of Bangladesh 4 | P a g e Acknowledgment Firstly, all gratefulness goes to almighty Allah who has given us the strength and perseverance to make this report. Secondly, for making this report we all would like to give special thanks to our dear course instructor Professor Dr. Akbar Ali Khan for assigning us to make this report and providing us enough help to design the report. Under his guidance, in this report we have analyzed the recent Economic and Financial issues of Bangladesh. Thirdly, it is mandatory to give special thanks to all people who have helped us directly and indirectly to make this report by giving important times and efforts. internet data, newspapers and websites also were pretty helpful for collecting information and completing the report. The entire team put utmost efforts in researching data from different articles which are finally analyzed and interpreted are presented in this report. We have followed secondary research methodology.
  5. 5. Analysis on recent Economic and Financial issues of Bangladesh 5 | P a g e Executive Summary This term paper discusses about the current economic and financial issues of Bangladesh. In recent times, our political factors, global economic factors has impact on the economy of Bangladesh. We have tried to gathered ideas to have a conclusion on how those incident effecting our business environment is by analysing the internal and external factors. In order to do that, we have analyzed the business reports from "The Financial Express" (a very popular Bangladeshi English Daily Business Newspaper) for the month of June and July, besides that we have also analyzed several relevant articles and other web sites. In the first section we will briefly discuss about 16 important issues, which have direct impact on the business environment of Bangladesh. In the second section, we will discuss about 4 major issues, which has both positive and negative impacts on our business environment. Which are given below: 1. Global brands opting for sourcing B'desh footwear 2. The herd behaviour in capital market 3. Highest rise in FDI last year 4. E-banking: The benefits and challenges This paper has also studies some alternative measures to overcome the tribulations and the ways to exploit the opportunities created. Finally, the paper recommends some measures to meet and overcome the current pressure on the overall economy of Bangladesh.
  6. 6. Analysis on recent Economic and Financial issues of Bangladesh 6 | P a g e Table of Contents Introduction:............................................................................................................................... 7 CHAPTER 1 ............................................................................................................................. 8 CHAPTER 2 ........................................................................................................................... 11 2.1 Global brands opting for sourcing B’desh footwear: 08 July 2013 by Yasir Wardad................ 12 Analysis:............................................................................................................................. 12 Advantages:........................................................................................................................ 15 Disadvantages:.................................................................................................................... 15 2.2 The herd behaviour in capital market: 21 June 2013 by Md. Sajib Hossain............................ 16 Analysis:............................................................................................................................. 16 Findings:............................................................................................................................. 20 2.3 Highest rise in FDI last year: 27 June, 2013 by UNCTAD Report............................................. 21 Analysis:............................................................................................................................. 21 Major determinants of FDI inflowin Bangladesh................................................................... 24 Disadvantages of Foreign Direct Investment (Host Country)................................................... 24 Major obstacles of FDI inflowin Bangladesh ......................................................................... 24 2.4 E-banking: The benefits and challenges: 13 June, 2013 by Lipon Mustafiz............................. 25 Here we divide the electronic banks in to two categories....................................................... 26 Benefit of E-banking:........................................................................................................... 26 E-banking challenges:.......................................................................................................... 27 Here we have some other challenges: .................................................................................. 27 Analysis:............................................................................................................................. 28 3. Recommendation:............................................................................................................... 28 4. Conclusion:......................................................................................................................... 29 5. References:......................................................................................................................... 30 6. Appendices:........................................................................................................................ 31 Appendices 1: ..................................................................................................................... 31 Appendices 2: ..................................................................................................................... 33 Appendices 3: ..................................................................................................................... 33
  7. 7. Analysis on recent Economic and Financial issues of Bangladesh 7 | P a g e Introduction: Business is derived from the term ‘busy’’. Webster’s Dictionary defines business as follows: “a commercial or mercantile activity customarily engaged as a means of livelihood and typically involving some independence of judgment and power of decision”. 'A business is any enterprise which makes, distributes or provides any article or service which the other members of the community need and are able and willing to pay for', Urwick and Hunt. Environment may be defined as a set of conditions – Social, Legal, Economical, Political or Institutional that are uncontrollable in nature and affects the functioning of organization. The course helps us to know about or to understand the business environment of a country. To do business in a country we need to understand the country first and its environment regarding every issue. This report contains lot of Business Environment related issue covered in past two months in the Daily Financial Express as per the instructions of our course instructor. The news that we have covered are like the export of leather goods of our country, why global bands are opting to outsource. The herd behaviour in capital market and its effects on our country. The rises of FDI and advantages and disadvantages. And finally the E-Banking, why it is important and what impact it will bring to our business environment. Bangladesh is currently expecting to increase of leather goods, which has very high demand in foreign market. The export of leather goods has increased by 25 percent as the demand from Europe, USA and Asia are increasing day by day reached $377.5 million in July-May period of the last fiscal year (FY '13) which was nearly $302 million in the corresponding period of FY '12. As estimated, it is possible to fetch 2.0 per cent of the global supply in three years which could help reach our export to $ 2.0 billion. Another report shows that, we are facing challenges to implementing the E-banking which is very important to continuous growth of our economy and stable banking service.
  8. 8. Analysis on recent Economic and Financial issues of Bangladesh 8 | P a g e CHAPTER 1_______________________________________________________
  9. 9. Analysis on recent Economic and Financial issues of Bangladesh 9 | P a g e 1.1 News: Destitute woman prosper through micro-credit in Rangpur Reporter: FE Report, Date: June 13, 2013 This report shows how micro-credit helped a good number of poor women become financially self-reliant in Rangpur district in recent years. 1.2 News: Simplifying EEF policy for ICT financing Reporter: Ferdaus Ara Begum, Date: June 15, 2013 As ICT business mostly depend on the demands of the outsourcing country and are time-bound in nature, easy and quick disbursement of Equity and Entrepreneurship Fund(EEF) will help provide necessary momentum to business by catering to their financial needs. 1.3 News: Extension of TRIPS accord to benefit Bangladesh Reporter: Shahiduzzaman Khan, Date: June 16, 2013 The author shows how extension of Trade Related Aspects of Intellectual Property Rights (TRIPS) will benefit least developed countries like us. 1.4 News: The disappearing rice varieties Reporter: Shamsul Huq Zahid, Date: June 17, 2013 In this report the writer pointed out of disappearing varieties of our traditional rice and created some fake rice such as Mini Cat. 1.5 News: What is to be sacrificed for Padma Bridge? Reporter: Abdul Basher, Date: June 18, 2013 This report covers, whether the economic cost of pursuing a particular goal is acceptable or not is a question of value judgment. Since we now know the costs of the Padma Bridge in terms of sectoral effects, the debate between the groups for and against the construction of the bridge with own resources can be an informed one. 1.6 News: ITU assigns orbital slot for Bangabandhu satellite Reporter: Jamal Uddin, Date: June 19, 2013 In this reports shows Bangladesh has been allowed to get an orbital slot in '119.1e' longitude to place its first satellite 'Bangabandhu-1' in orbit by 2015 at a cost of around Tk. 32.48 billion. 1.7 News: Mango trading makes Rajshahi region's agro-based economy vibrant Reporter: FE Report, Date: June 20, 2013 This report covers how mango business everywhere in Rajshahi and Chapainawabgonj region has become vibrant. 1.8 News: 43 problems linked to labour unrest in RMG sector Reporter: Monira Munni, Date: June 21, 2013 The report highlighted the 43 problems linked to labour unrest in RGM sector and has sent to highest authorities.
  10. 10. Analysis on recent Economic and Financial issues of Bangladesh 10 | P a g e 1.9 News: B'desh among other countries to enjoy cotton bonanza in FY '14 Reporter: Nazim Ahmed, Date: June 22, 2013 Consumption of cotton in Bangladesh will rise by 2 percent and its immediate competitor in RMG sector Vietnam is also likely to have 2.5 million bales in the FY 2013-14 stated in this report. 1.10 News: Frozen fish sector facing negative growth in FY 13 Reporter: Monira Munni, Date: June 23, 2013 Frozen fish sector has been experiencing a chronic negative growth since the beginning of the current fiscal year, mainly due to lack of government initiatives. 1.11 News: China considering preferential trade benefits for Bangladesh Reporter: FE Report, Date: June 30, 2013 This report covers, China is considering expansion of preferential trade arrangments which will cover almost 95 percent of Bangladesh goods. 1.12 News: BRAC USA to take over 90 per cent shares of Nanda Reporter: FE Report, Date: July 1, 2013 BRAC USA is taking over 90 percent shares of Nanda, LOLC Microcredit Limited of Sri Lanka. 1.13 News: $50 million likely to be earned from more ceramic exports this year Reporter: Shah Alam Nur, Date: July 8, 2013 The ceramic industry of Bangladesh has set its eyes to fetch $50 million from exports of different products by the end of the current FY 2013-14. 1.14 News: CCH falls short of revenue target by Tk 25.40 billion Reporter: Pankaj Dastider, Date: July 17, 2013 This report highlights how Chittagong Custom House (CCH) falling short by Tk 25.40 billion, against the target of Tk 258.90 billion set by NBR. 1.15 News: KSA likely to resume recruitment of Bangladeshis after six years Reporter: FE Report, Date: July 18, 2013 Saudi Arabia is expected to resume recruitment of Bangladeshi workers after the expiry of general amnesty period, which they stopped hiring of workers from Bangladesh in 2007 to stem in flow of illegal workers. 1.16 News: Demand for Bangladeshi female workers abroad increasing reporter: Shah Alam Nur, Date: July 28, 2013 Demand for Bangladeshi female workers has been increasing in foreign countries, especially for readymade garment (RMG) factories and house-keeping, industry insiders said. They also said the demands mainly come from Jordan, Lebanon, Mauritius and Singapore. In last six months country's female manpower export increased significantly to those countries
  11. 11. Analysis on recent Economic and Financial issues of Bangladesh 11 | P a g e CHAPTER 2_________________________________________________________
  12. 12. Analysis on recent Economic and Financial issues of Bangladesh 12 | P a g e 2.1 Global brands opting for sourcing B’desh footwear: 08 July 2013 by Yasir Wardad The world's renowned shoe brands are opting for Bangladesh to source their footwear because of rising cost and environment concerns of Chinese products. Gucci of Italy, Nike and Timberland of the US, Reebok of Germany, and the ABC-Mart Incorporate of Japan are now sourcing shoes from Bangladesh which is likely to help boost our export. Analysis: During Pakistan period (1947-1971), the industry was dominated by non-Bengali migrants from India, who had the knowledge and the know-how of leather processing industry. At that time, leather processing was limited to the production of wet blue leather (semi-processed tanned leather) and the non-Bengali traders exported a large part of the produce to West Pakistan for further processing and production of leather goods. After the independence of Bangladesh, the government took over the tannery industry abandoned by the departing non-Bengali entrepreneurs but had limited success in operating them under the public sector. Export of processed leather consisted almost entirely of wet blue leather till 1980-81. After 1981, a number of policy support measures aimed at raising the level of value addition in the industry provided incentive for new private investment in leather industry. The ban on export of wet blue leather in June 1990 led to the setting up of modern leather tanning units for the production of crust leather (tanned leather after further processing of wet blue leather) and finished leather and this was followed by new investment in leather goods industry, particularly leather footwear. However, till now leather industry occupies only a modest position in Bangladesh economy way below its true potential. In 2007-08, export of leather and leather products amounted to $463 million, which was around 3.3 percent of total export earnings in that year (Source: Bangladesh Finished Leather, Leathergoods & Footwear Exporters' Association(BFLLFEA)). 2.1.1 Export Figure (2001 - 2011 in Million USD): Years Products Total Leather Footwear Leather Products 2001 – 2002 207.33 48.49 - 255.82 2002 – 2003 191.23 46.60 0.12 237.95 2003 – 2004 211.41 68.3 3.64 283.35 2004 – 2005 220.93 87.55 7.35 315.83 2005 – 2006 257.27 95.44 7.12 359.83 2006 – 2007 266.08 135.94 11.03 413.05 2007 – 2008 284.41 169.60 8.87 462.88 2008 – 2009 178.20 182.92 18.78 379.90 2009 – 2010 226.10 204.09 28.96 459.15 2010 – 2011 297.83 297.80 55.40 651.03 2011 – 2012 (July – Dec) 155.22 191.62 35.39 382.23 Source: Bangladesh Finished Leather, Leathergoods & Footwear Exporters' Association (BFLLFEA)
  13. 13. Analysis on recent Economic and Financial issues of Bangladesh 13 | P a g e As we can see from the above figure 1.1 after 2008-09 the export of total leather products fall from 462.88 million USD to 379.90 USD in the following year. But again rises in a continues growth from FY 2009-10 to 2011-12(July-Dec), 459.15 million USD to 382.23 million USD respectively. The leather industry in Bangladesh has always been considered as having two natural comparative advantages over its competitors: the domestic livestock population and the low cost available labour that can help transform this raw material into products suitable for export. The leather sector is the 2nd export earner of the country, next to readymade garments. 2.1.2 Product wise Export: Sl. Products Year 2007-08 2008-09 2009-10 01. Woven Garments 36.62% 38.02% 37.11% 02. Knitwear 39.21% 41.34% 40.01% 03. Frozen Food 3.78% 2.92% 2.73% 04. Jute Goods 2.26% 1.73% 4.86% 05. Leather 2.02% 1.13% 1.40% 06. Raw Jute 1.17% 0.95% 1.50% 07. Chemical Products 1.53% 1.80% 1.92% 08. Footwear 0.11% 0.08% 1.26% 09. Other 13.30% 12.04% 9.21% Source: BFLLFEA, 2013 Hides and skins of Bangladesh have well reputation and good demand in world market for the fine fibre structure and good grains. The annual domestic supply of hides and skins is around 200 million square feet, of which 20% is consumed locally and 80 percent is exported to 53 countries in the form of semi-finished & finished leather, footwear, handbags, accessories, and leather goods. The leather goods industry includes 2,000 to 2,500 SMEs, but a handful of large companies control more than 90 percent of the export market. Most of the enterprises are located in Dhaka and Chittagong. The sector generates direct and indirect employment for about 740,000 people, including a significant number of women, particularly in the footwear and leather goods industries. The hides and skins consisting of 63.98% cow hides, 32.74% goat skins, 1.09%, sheep skins, 2.19% buffalo hides. Hardly 20% of the total stock is required to meet domestic demands and the rest is exported (Source: BFLLFEA).
  14. 14. Analysis on recent Economic and Financial issues of Bangladesh 14 | P a g e Source: BFLLFEA A large number of hides and skins of Bangladesh is depending on imported Indian cattle. Its exports about 10 million cattle to Bangladesh annually out of which around 4 million are dispatched during the Eid ul Azha (Source: Import of cattle from India, FE Report Wednesday, 24 October 2012). By increasing exporting leather goods, Bangladesh can generate foreign currency and improve balance of trade. $191.88 million has increased from FY2009-10 to FY2010-2011, which shoes a very positive face for the economy of Bangladesh. As more global brands opting to source Bangladeshi leather goods it is possible to fetch 2.0 per cent of the global supply(please see more in appendices 1) in three years which could help to reach our export to $ 2.0 billion, quoted from former Chairman of BFLLFEA Mr. Tipu Sultan. World largest shoe company Clarks also has a manufacturing plant in Chittagong EPZ, which brings shoe technology like Gore-tex, the unique combination of durably waterproof protection and breathable comfort. As Bangladesh exporting more leather goods in European, Asian and Middle East region, they are facing stiff competition from top leather goods exporting countries (please see more in appendices 3). Ireland in the market leader followed by Germany and France, which is 16.4, 4.2 and 3.4 pairs respectively. But Bangladeshi leather goods competitive advantages are at lower cost with high quality. Bangladesh also lacking technological advantages compare to competitors such as Ireland, Germany and France. They have brought some famous footwear technologies such as Active Air, Gore-Tex, adizero etc. Some of the technologies work with iPod and it allows the runner check his/her pulse rate, blood pressure etc.
  15. 15. Analysis on recent Economic and Financial issues of Bangladesh 15 | P a g e 2.1.3 Region wise export: Sl. Products Year 2007-08 2008-09 2009-10 01. European Union (E-U) 52.69% 52.3 52.3 02. American Region 31.61% 33.3 33.3 03. Asian Region 7.34% 8.8% 8.8% 04. Middle East Region 1.52% 2.5% 2.5% 05. African Region 0.97% 0.6% 0.6% 06. Oceania Region 0.62% 0.3% 0.3% 07. East European Region 2.51% 0.3% 0.3% 08. Other 2.74% 1.8% 1.8% Source: BFLLFEA, 2013 Advantages: 1. Basic raw materials for leather goods as well as for the production of leather footwear. 2. A large pool of cheap but trainable labour force. 3. Tariff concession facility to major importing countries under GSP coverage. 4. Bangladesh can be a potential offshore location for leather, leather goods, footwear and allied products. 5. Manufacturing with competitive cost but high quality. 6. New potential markets, such as China and Hong Kong (for details, please see more in appendices 2). 7. Growing export in traditional markets such as Italy, Germany, UK, Japan and USA etc. 8. New Industrial Estate in Savar, equipped with all infrastructural facilities including setting up of a modern Central Effluent Treatment Plant (CETP) and Solid Waste Dumping Yard (DY) on an area of 200 acres of land. 8. Imports of new technologies. Disadvantages: 1. Causes environmental pollution. Recently the department of environment fined a number of tanneries for causing environment pollution in Rayer bazaar area. 2. The government stopped paying incentives to the manufacturing units. 3. High interest in bank loan. 4. Prices of hides and skins have declined in international market due to recession in EU countries.
  16. 16. Analysis on recent Economic and Financial issues of Bangladesh 16 | P a g e 5. Crisis of the salt. The government has been urged to allow duty-free import of 40,000 tons of salt in the interest of overcoming any ploy salt traders' syndicate might resort to in hiking price. 6. Bangladesh imports a good volume of cattle from India. It's about 10 million cattle annually. 7. Eid ul Azha cattle market has no direction. It is left to the traders and smugglers. 8. Lack of R&D facilities in Bangladesh. 2.2 The herd behaviour in capital market: 21 June 2013 by Md. Sajib Hossain Investors' identical behaviour in the capital market of Bangladesh against the backdrop of no significant shift in economic fundamentals can be termed herd behaviour. In such a situation the investors are guided more by watching others' actions than the information they have about risks and growth prospects. Such 'herders' deliberately act against the information they have and follow the crowd. The term 'herd behaviour' in the stock market denotes the inclination of institutions or individual investors to show resemblance in their investment behaviour instead of being guided by their own opinions, beliefs and the information. In our market many investors think some particular stocks carry high risk or low risk, the stocks are undervalued or overvalued and the investors buy or sell the stocks disregarding their personal opinions. Analysis: This report shows several types of causes for which current stock market goes up & down which are given bellow: Investors Behaviour: Investor’s identical behaviour in the capital market of Bangladesh again the backdrop of no significant shift in economic fundamentals. Investors are guided more by watching others rather than following the information about risks & growth prospects. And this become more evident when the stock market goes down without any shift in the economic fundamentals & all the market participants,& the so –called financially illiterate individual investors also follow the path & resultantly the path prolongs. Through sometime the index experience an upward trend during 1st 20-30 minutes of the start of day to day trading without any significant shift in the economic fundamental, but this pattern does not stay for longer and end of the day to day trading loses the point. In our market many investors think some particular stock carry high risk or low risk the undervalued or overvalued and the investors buy or sell their stock disregarding their personal opinions. And investors do not seem to have taken a good lesson from the recent burst episode of the share market. The other hand rational investor’s behaviour is overshadowed by the resulting in irrational behaviour in the overall market. Herd behaviour can be an efficient outcome, provided it results from the simultaneous reaction to fundamental values. In this case, it speeds up the
  17. 17. Analysis on recent Economic and Financial issues of Bangladesh 17 | P a g e adjustment of prices and makes the market more efficient. However, herd behaviour not based on fundamental values may drive prices away from fundamentals, which results in subsequent return reversals. In this case, asset prices fail to reflect fundamental information. Herd behaviour of investors, especially the retail investors in Bangladesh, who are dominant in the daily trade, causes destabilization of markets, thus having the potential to create, or at least contribute to, bubbles and market crashes like the ones that happened very recently. There are some other factors which are overvalued & undervalued the stock market such as: political issues, market information, market liquidity, IPO etc. Investor’s knowledge about the share market, share trade, ability to understand the company’s weight, growth, risk & profitability & over all companies’ fundamental strength are important issues to evaluate the market position and buy & sell the shares. Recent Market Performance Date Total Trade Total Volume Total Value in Taka(mn) Total Market Cap. in Taka(mn) DSEX Index DS30 Index DGEN Index 2013-07-25 94555 90954929 4038.083 2499298.156 3979.19659 1478.26899 4312.20569 2013-07-24 98030 90323005 4640.750 2544261.313 4076.50422 1511.26862 4408.79463 2013-07-23 95846 81745941 4389.018 2458020.267 3929.57237 1435.06699 4224.36019 2013-07-22 96070 77986845 4327.825 2519169.828 4054.745 1495.80075 4358.64732 2013-07-21 121686 104164110 6069.122 2538593.373 4090.02336 1519.35069 4405.161 2013-07-18 149124 130255495 8520.173 2611102.623 4223.61598 1598.68256 4568.46905 2013-07-17 167918 151748320 9867.814 2688247.058 4284.13179 1640.69929 4754.12427 2013-07-16 179379 155310110 10241.492 2698384.194 4295.83481 1654.22023 4775.20494 2013-07-15 141272 118903715 8324.672 2679585.973 4275.49736 1650.74167 4736.0383 2013-07-14 127972 90901527 5816.174 2624782.190 4206.60709 1605.8943 4603.45906 2013-07-11 149549 118546624 7304.249 2662417.006 4262.93246 1620.17706 4684.47741 2013-07-10 203845 185828424 10401.074 2702330.138 4345.45728 1643.47027 4770.48959 2013-07-09 223008 240925332 12946.159 2670612.003 4321.31549 1634.14643 4683.75953 2013-07-08 195854 206344283 9918.639 2615271.806 4263.23762 1600.32164 4559.38857 2013-07-07 182016 185911996 8582.540 2616650.965 4278.09955 1599.14579 4558.67241 2013-07-04 194922 195339099 9131.952 2608180.257 4270.42589 1594.7675 4542.32065 2013-07-03 172873 159585620 8051.983 2587884.393 4231.9587 1584.97176 4503.27436 2013-07-02 147430 133368970 7625.333 2588158.321 4224.16216 1578.38507 4505.37166 2013-06-30 126636 105737563 5682.204 2530245.993 4104.646 1532.54768 4385.76949 2013-06-27 139127 116693247 6441.534 2548996.411 4149.16093 1547.54868 4425.47574 2013-06-26 145985 138399277 7868.136 2571058.810 4190.09027 1567.57334 4465.4733 2013-06-24 117204 104697486 5118.641 2545273.968 4146.5562 1546.73633 4410.12279 2013-06-23 149683 135757434 6600.942 2551826.225 4170.15559 1550.21846 4427.99316 2013-06-20 160996 163378117 6855.768 2558522.881 4213.92411 1553.00236 4429.6331 2013-06-19 211876 238292208 10722.631 2579056.502 4259.21744 1570.34808 4477.08942 2013-06-18 199952 230011931 8473.919 2543713.443 4184.46723 1535.96397 4386.49585 2013-06-17 186281 216902517 8216.917 2523631.268 4165.70523 1526.26938 4373.62028 2013-06-16 166710 190639980 8149.723 2526947.764 4179.67607 1536.28087 4385.88791 2013-06-13 155151 155403412 5934.961 2484071.155 4079.80402 1505.58804 4299.66331 2013-06-12 178137 197211529 7523.019 2496594.188 4103.39237 1512.37997 4328.48298 2013-06-11 149886 157720412 6451.749 2486858.224 4062.74509 1513.974 4309.6923
  18. 18. Analysis on recent Economic and Financial issues of Bangladesh 18 | P a g e 2013-06-10 118833 120477285 4734.439 2465382.818 4006.83106 1496.89266 4266.62817 2013-06-09 120133 119691460 4317.426 2401384.316 3882.81177 1443.90809 4133.60158 Source: Dhaka Stock Exchange Ltd. From this schedule we can see that the monthly (June & July) daily basis trade, Trade volume, market capitalization, index change of Dhaka Stock Exchange. This schedule shows that the DSE general index increase from 6th June to 17th July and index increase from 4133 point to 4754 point. But from 17th July to 25th July Share market again goes to down trend because of political instability. Source: Dhaka Stock Exchange Ltd. This chart shows the market performance of DSE at June 2013.from this chart we can see that the 1st half of the month, the turnover of DSEX increase from Tk. 8000mn to Tk. 9000mn but the last half of the June month turnover of DSEX was slightly up & down. And the index of DSEX was increase from 4000 point to 4200 point. And the DGEN index, market turnover increase above the tk 10000mn within 20th June but 30th June market turnover decrease to Tk. 9000mn and also market index increase from point 4000 to 4500 point during the month. This chart shows the overall raising position of the DSE market during the June month year 2013.from this analysis we can said that the DSE market rapidly increases day by day which shows the positive attitude of the investor, day by day confidence of the investor became again which is possible for the recent city corporation election without any kind of violence. And in CSE Average monthly turnover above Tk.5000mn and market capitalization up & down between 1885412mn to 1965995.22mn. Tax benefit from Share market:
  19. 19. Analysis on recent Economic and Financial issues of Bangladesh 19 | P a g e The government received Tk 13.23 corer in tax from stock trading in June this year, the highest in last nine months. Transaction in the market was on the rise last month with a recovering tone from the prolonged downtrend in share prices since the market debacle two and a half years ago. The daily average turnover in June was Tk.661 corer, which was low in the previous months, according to data from the Dhaka Stock Exchange. Source: Stock Bangladesh Limited Month of July 2013 Source: Dhaka Stock Exchange Ltd. This chart shows that the rapid down & up trend of DSE index. Poor corporate declaration of Grameen phone & and the false news about the approval of creating Tk 9 billion capital market fund & the political violence are main cause of the market down. This week we can see that the DSE General index, decrease 4405 to 4224 point from 21th July to 23th July. But when the governments approve the capital market fund then market index also increase 4223 point to 4321 point after the 2 days of down trend. In this case we can say that the market is depending on news which is not good for market. 1st week of the month of July CSE index fall to 19.48% and market capitalization also fall down to 0.77%. Source: Dhaka Stock Exchange Ltd. This chart shows that the rapid down & up trend of DSE turnover value & volume. . This week we can see that the DSE turnover decrease Tk 6069.12mn to Tk 4327.83 to 4038mn from 22th July to 25th July & But when the governments approve the capital market fund then market turnover volume increase. From this analysis we can see that the market situation of DSE is not same trend day by day this trend is change rapidly. That means market is not stable. In month of June DSE & CSE stock market were follow upward trend
  20. 20. Analysis on recent Economic and Financial issues of Bangladesh 20 | P a g e but the month of July this trend is not stable. Market is going to down ward after the 21th July 2013.at 22th July we can see that the CSE index fall down 25.44% from previous week. Findings: After analyzing the dominants factors of both Dhaka Stock Exchange (DSE) & Chittagong Stock Exchange (CSE) we found the following some problems or lacks which is greatly obstacle to intensifying the stock market in Bangladesh whish are shown below: 1. Lack of market skilfulness: The general characteristics of the skill market do not exist here. The demand and its controlling management system of securities influence the skilfulness of market. But they are not very satisfactory. 2. Lack of confidence of the new investors: The devastating fall down of share market in 1996 has shattered the confidence of the new investors. Thus, the challenges ahead for Bangladesh stock market are to revamp the share market by restoring confidence among investors. 2. Rise share prices inconsistently: The stock market bubbles up but such rises in the shares prices are not consistent with the share market fundamentals. 4. Complexity of tax structure: The tax structure of our country is complex. Sometimes companies hide their real income because of sickness of industrial sector. As a result, the potential investors can’t take appropriate investment decision because of hidden income. 5. The problems of product market: In our country, the industrialists suffer a lot of problems. They lost their eagerness for the unequal Market positions. As a result, the rolling of capital decreases. 6. Scarcity of foreign investment: The flow of foreign investment in our country is not satisfactory. But foreign investment is essential for development of the stock market. 7. The lack of entrepreneur: The demand of capital increases if the sufficient creative entrepreneur exists. But we have want of creative entrepreneur. 8. Lack of quality securities: For active stock market high quality of stock is essential. But most of the listed companies are in bad position. 9. Sickness of industrial Sector: The complexity of the capital market increases because of the sickness of industrial sector. 10. Lack of more efficient manpower in monitoring department:
  21. 21. Analysis on recent Economic and Financial issues of Bangladesh 21 | P a g e There is little expert manpower in this department to monitor the whole member firms of Dhaka Stock Exchange Limited. 11. Complexity of compliance rules & CDBL Bye-Laws: The compliance rules and CDBL Bye-Laws are more complicated to understand for the employees of the member firm 12. Lack of awareness of existing rules and regulations: Most of the member firm of Dhaka Stock Exchange Limited is not aware of the Securities Exchange Rules, 1987, Securities Exchange Ordinance 1969 and CDBL Bye-Laws 2000. 2.3 Highest rise in FDI last year: 27 June, 2013 by UNCTAD Report Foreign direct investment (FDI) in Bangladesh last year rose by 13.75 per cent to US$ 1.29 billion, the highest in its history, according to UNCTAD's (United Nations Conference on Trade and Development) World Investment Report-2013. The country received $ 1.13 billion FDI in 2011, the second highest, and $ 1.08 billion as its third highest FDI in 2008. The report was released in Bangladesh by SA Samad, executive chairman of Board of Investment (BoI), at his office in the city Wednesday. Analysis: During 1980s, FDI to Bangladesh was very little and mostly focused in banking and a few other sectors. Bangladesh started attracting FDI since 1996 in energy and power sector because of favourable and supportive policies for foreign investment, economic reform as well as unexplored gas and oil resources. In 1972, annual FDI inflow was 0.09 million USD and in 1996, it became 231.61 million USD which rose significantly in 2008 to 1086 million USD which declined to 913.32 million USD in 2010 (source: Bangladesh Board of Investment). Bit it rose again in 2011, the inflows of foreign direct investment recorded to $1136.38m. The country received $ 1.13 billion FDI in 2011, the second highest, and $ 1.08 billion as its third highest FDI in 2008. The Foreign Direct Investment (FDI) in Bangladesh has gone up by 13.75 percent in 2012, despite a weak global investment climate. The Board of Investment said that foreign investment in 2012 for Bangladesh amounted to $1.29 billion, which was 13.75 percent more than in 2011. Last year, Bangladesh got the most of its FDI from Malaysia, Egypt, United Kingdom, South Korea, Netherlands, Thailand and Hong Kong. It included $347 million for telecommunications sector, $307 million for textiles, $137 million for banks, $126 for energy and petroleum, and $60 million for agriculture. The highest investment of $ 247.3 million came from Malaysia, $ 136.94 million from the UK, $ 97.59 million from the Netherlands and $ 54 million from Thailand.
  22. 22. Analysis on recent Economic and Financial issues of Bangladesh 22 | P a g e FDI inflows by countries Bangladesh receives FDI from both developed and developing countries across the globe. The major investors come from 36 different countries. Among the 36 countries 21countries are from developing and transition economies and Bangladesh received 70 per cent of total FDI inflow from only 11 countries. Figure shows the 7 major developed country-wise sources of FDI inflow to Bangladesh in various years. It is clear from the Figure that the UK and the USA are the major investors. In case of Singapore a fluctuating trend is observable while investment of Hong Kong has increased steadily. From FY 2000-01 to FY 2004-05 South Korea had shown a decreasing trend and after one year South Korea and Netherlands have increased gradually. Source: Bangladesh Bank,2012 FDI position of Bangladesh in South Asia Among the eight economies of South Asia, Bangladesh ranked fifth in FDI inflow, Maldives ranks to top and Sri Lanka, Pakistan, Nepal ranked 2nd, 3rd and 4th respectively. Bangladesh has a better position than India and Pakistan in getting Construction permits and starting business. Bangladesh takes highest time for getting electricity and registering property and ranked eighth in South Asia. If the government of Bangladesh takes initiative and provides more facilities to get electricity and register property, the position of Bangladesh in South Asian countries will go up. Table: Position of Bangladesh in South Asian countries
  23. 23. Analysis on recent Economic and Financial issues of Bangladesh 23 | P a g e Source: Doing Business, The World Bank, 2012 On the report the FDI of last year was $374.97mill that came to telecommunication sector and it was highest investment next the second biggest FDI was $307.48 million to the textile and wearing sector; due to this investment the impacts are: Economic Growth: According to the World Bank, an extra 10 mobile phones per 100 people in a typical developing country added 0.6 percentage points of growth in GDP per capita , and this impact is about twice as large in developing countries than in developed countries. Employment Creation: including direct and indirect employment, more than 11,790 jobs have been created by the industry to date. The gap between the inflow of FDI in textile–wearing and telecommunication is increasing in recent years. It creates a negative impact on our economy. FDI inflow increases only in those areas that are highly profitable. At the same time, it creates lower employment. There creates a lower opportunity of employment in telecommunication sector than that of manufacturing sector. The third, $126.63 million FDI went to power, gas and petroleum sectors. In the FY 2003 -04 to FY 2006-07, FDI inflow in power, gas & petroleum increased due to the investment of “Asia Energy” in Fulbari coal mining project. However, FDI in power, gas and petroleum in FY2006-07 was USD 229.93million and after that year, it started to decline
  24. 24. Analysis on recent Economic and Financial issues of Bangladesh 24 | P a g e and might follow an increasing trend in the fiscal year with an FDI flow of only USD 128.40 million. Three years ago Bangladesh power generation capacity was nearly 4000mw a day, which has short up to 6500mw now. In 2015 the generation capacity is expected to cross 15000mw a day. (Source: Energy and Power Report of Bangladesh. Website: ep-bd.com) Major determinants of FDI inflow in Bangladesh FDI is considered as a crucial ingredient for economic development of a developing country like Bangladesh. The determinants which play an important role for attracting FDI more are macroeconomic environment, geographical location, cheap labour cost, incentives for investors, existing laws of the host country, skilled manpower and exemption of taxes etc. Majority of the policy makers and the foreign investors mentioned that low cost of labour is the major motivational factor for attracting investment to Bangladesh. The other focused on the government incentives and friendly policy of investment as motivational factors. On the other hand, FDI inflows mostly depend on the quality of good infrastructure such as roads and highways, power, telecommunications and so on, because better infrastructure of the host country attracts foreign investor to invest. Investors choose a location where there is a suitable macroeconomic condition exist. Macroeconomic factors such as monetary policy, fiscal policy, business climate etc. have an impact on FDI to attract. Taxation system and tax rate, Bank interest rate of the host country are related with the cost of business and profit which have a serious influence for FDI. Foreign investors very consciously consider the policy of the governance of the host country to invest, because enter and exit in a market mainly depends on this. Political stability makes foreign investors to invest. Foreign investors seriously consider the political factors like change of government, transparency, attitude of opposition party, corruption, terrorism etc. in their pre-investment decision. Major obstacles of FDI inflow in Bangladesh Previous literature indicated that productive physical infrastructure is a key factor to influence the inflow of FDI. Good transportation and communication are essential for both industrialization and attracting investment. Most of the investors identified infrastructural constraint as one of the significant barriers to FDI inflow in Bangladesh. Political unrest is one of the most important obstacles to flow of FDI in Bangladesh. The political situation is extremely worse because of the continuous hostility among the political parties. Both parties change their policy when they gain the power without focusing on the development of the country. Society has become corrupted by sick politics. As a result the bureaucrats and regulatory bodies are steeped in corruption. Corruption works as a lubrication cost or taxation for business enterprise and show this as legitimate business expenses. Country’s inefficient and dishonest bureaucratic system is not compatible with an investment environment and extensively responsible for the absence of FDI. Apart from the factors mentioned above there are some other factors which discourage the foreign investors to invest. Among them insufficient power supply, high inefficiency cost, inconsistent policy implementation, absence of autonomous regulatory bodies, tax authority’s discretion, lack of effective cooperation of Board of Investment, disrupting Fiscal policy, time wasting customs processing, legal absurdity, administrative coordination problem etc. are responsible for failing to attract FDI.
  25. 25. Analysis on recent Economic and Financial issues of Bangladesh 25 | P a g e Disadvantages of Foreign Direct Investment (Host Country) Political Lobbying: In the past, there have been many instances in which MNCs have resorted to political lobbying in order to get certain policies and laws implemented in their favour. At times, these MNCs are so large that their revenues even exceeded the Gross Domestic Product (GDP) of some smaller nations and compel or threaten them to pass judgments and policies in their favour. Exploitation of Resources: Exploitation of natural resources of a host country is not a very uncommon phenomenon in the case of FDI. MNCs of other countries have been known to indiscriminately exploit the resources of hosts’ countries in order to get short run gains and profits and have even chosen to ignore the sustainability factors associated with the local communities and local habitat Threaten Small Scale Industries: MNCs have large economic and pricing power due to their large sizes. They do not have much problem with regards to financial capital and can hence resort to using advertising which is a costly affair. Also, these companies are global players who have their operations spread across countries and have effective supply chains which enable them to have economies of scale which smaller players in the domestic market of the host country cannot compete with. All this results in the MNC having cheaper products and more visibility due to the higher amounts of advertising and have been known to push out smaller industries out of business. Technology: Although, the MNCs have access to new and cutting edge technology, they do not transfer the latest technology to the host country with a fear that their home country may lose its competitive advantage, hence the maximum potential of the host economy cannot be achieved as a result of old technology transferred. Foreign direct investment may be very advantageous to the host country that is the country which receives the investment flows in terms of helping the country progress economically and financially. However, foreign direct investment can remain beneficial only when the governments of the host countries put in needed regulations so as to prevent the country from being exploited and used as a profit generating machine for such corporate giants. 2.4 E-banking: The benefits and challenges: 13 June, 2013 by Lipon Mustafiz E- Banking also known as electronic funds transfer (EFT), is simply the use of electronic means to transfer funds directly from one account to another, rather than by cheque or cash.
  26. 26. Analysis on recent Economic and Financial issues of Bangladesh 26 | P a g e Here we divide the electronic banks into two categories. a. Local Electronic Commercial banks: 1. Eastern Bank Ltd. 2. BRAC Bank Ltd. 3. Bank Asia ltd 4. Dutch Bangla Bank Ltd 5. Jamuna Bank 6. Islami Bank Bangladesh Ltd. b. Foreign Electronic Commercial banks: 1. Standard Chartered Bank ltd. (SCB) 2. HSBC 3. Citi bank NA 4. Commercial Bank of Ceylon Ltd. 5. Woori Bank 6. Bank Alfalah Benefit of E-banking: 1. The banks offering e-banking services are better branding and better responsiveness to the market. 2. The other benefit is the potential to be measures in monetary terms. The main goal of every company is to maximize profits for its owners and banks are no exception. Automated e-banking services offer a perfect opportunity for maximizing profits. 3. The main benefits of e-banking for customers are as follows:
  27. 27. Analysis on recent Economic and Financial issues of Bangladesh 27 | P a g e a) Reduced costs, b) Convenience, c) Speedy d) Better fund management e) Increased comfort and time-saving, f) Quick and continuous access to information, g) Better cash management E-banking challenges: E-banking challenges can be identified as follows  Technological,  Managerial and  Business-related.  Technological challenges: Technological challenges are related to reaching out to the clients as well as installation and maintenance of necessary hardware and software. These challenges also involve the security and website issues. The banks' data may face threats from hackers and loss of the data may be caused by things like viruses. Hackers may also transfer money from one account to another and this may make both customers and the bank itself lose money.  Managerial challenges: When it comes to managerial challenges and organizational issues, the people in an organization may struggle to opt for the new technology, as they may feel it would lead to loss of jobs. They may also be reluctant to adopt new approaches out of fear. Another thing to consider is that the authority of an organization may need to restructure it and this may be a challenge in itself.  Business challenges: Business challenges include the customer service. If a bank goes for e-banking, it will lose the personalized service it offered to its customers. In such a situation customers' loyalty may be reduced or entirely lost. Customers may cling onto their old habits and may not be ready to adopt any change. They may even lack the trust and hence the e-banking or e-commerce system may be under-utilized. Here we have some other challenges: • Huge Number of branches all over the Bangladesh even outside the country and for the purpose of automation huge investment is necessary. • Most of the branches are in the rural areas where there are no modern digital communication facilities.
  28. 28. Analysis on recent Economic and Financial issues of Bangladesh 28 | P a g e • Most of the users or clients of the banks are poor and uneducated village people having no knowledge about electronic banking and cannot afford it at the current cost level. • Most of the officials of these banks in the classical stage especially the state owned ones are aggie and cannot understand and are reluctant to accept modern electronic banking. To turn around these banks at first the outdated mentality of these officials of the classical banks. • Illiteracy is a great problem in consideration of E-Banking activities execution. Analysis: 1. Unemployment will rise in banking sector. At present the unemployment rate of Bangladesh is 5%. If e-banking is fully introduced the unemployment rate will rise because one to one service is reduced. 2. Employment will rise in Technological sector. As E banking is growing very faster, we need more advance technology to support this. As a result more employment opportunity is created. 3. As e-banking expands, financial transaction costs can decline significantly and the effectiveness of the domestic monetary policy may also be affected. 4. Debit Point- of-Sale. An advanced payment system which enables consumers to use an AT M Card to pay for goods and services, electronically debiting the cardholders account and crediting the account of the merchant. 5. E-banking offers some smart services benefiting both banks and customers compared with traditional banking system, it has become imperative to make necessary room for the scheduled banks to flourish e- banking. Among others, attractiveness of e-banking includes: it lowers transaction cost; provide 24-hour services; ensure increased security and control over transactions; reduces fraud risk; performs higher volume of transactions with less time; increases number and volume of value payment through banks; allows remote transactions facilities that replace physical presence of a customer in a bank branch and; increases transaction speed and accuracy. On the other hand, traditional banking is time-consuming and more costly and therefore, e-banking is replacing traditional banking all over the world. In Bangladesh, e-banking facilities are yet to be fully developed although some technology driven products and services have been in operation over the last few years. 3. Recommendation: We had the exposure of current economy of our country through The 'Financial Express' newspaper for just two months, with our little knowledge in this sector in comparison with vast and complex economic conditions; it is not so easy to recommend some suggestion to develop the economic situation of our country. We have observed some shortcomings regarding operational and other aspects of our current business environment. On the basis of our observation we would like to present the following recommendations:
  29. 29. Analysis on recent Economic and Financial issues of Bangladesh 29 | P a g e 1. Good governance is a pre-requisite for any development. It can bring necessary reformation and qualitative development in judiciary, legislation and administration of a country which will help to reduce corruption, complicacy in bureaucracy and dishonesty of human resources of a government body. 2. The government agencies should be well co-ordinate to make better business environment, smooth and efficient activities for the investors. 3. Accountability and transparency must be ensured. 4. Political stability required in order to attract more FDI. 5. To make to rules to easy to pay income tax. 6. To provide tax benefit of the listed companies in order to encourage non-listed companies to be listed with the stock exchange. 7. Proper implementation of E-governance required for E-Banking. 8. Government should take steps to import more salt to likely to cover up the off season and meet the demand required by leather Goods Company. 9. Government should take pre-caution during Eid ul Azha to prevent smuggling of hides and skins. 4. Conclusion: Business environment is very much important to know for doing business. We found a lot business issues but covered only a few due to the time constraint. We have focused in the recent economic and financial issues in which we have covered the highest FDI we have received last FY, potential leather goods sector and vast international market for our leather goods which attracting global brands to come and invest locally, E-banking a very demanding service which we are lacking at the moment due to government rules and regulations and herd behaviour on capital market. These things will help us to know the current business situation of the country. While covering the issues we have found positive and negative impact of those incidents. If we can take necessary measures in correct time, we will be able make the negative impacts in to positive ones.
  30. 30. Analysis on recent Economic and Financial issues of Bangladesh 30 | P a g e 5. References: Bangladesh Finished Leather, Leathergoods & Footwear Exporters' Association. [Online] available from <www.bfllfea.org/index.php/top-blocks/item/45-bfllfea-profile> Dhaka Stock Exchange Ltd. [Online] available from <www.dsebd.org/recent_market_information.php> Eurostat. [Online] available from <epp.eurostat.ec.europa.eu> R.P. Maheshwari (2012) Principles of Business Studies. New Delhi: Pitambar Publishing Company LTD. Stock Bangladesh Limited. [Online] available from <www.stockbanglanews.com>[July, 2013] The World Bank. [Online] available from <www.worldbank.org> [July, 2013] Webster Dictionary. [Online] available from <www.webster-dictionary.org> [July, 2013]
  31. 31. Analysis on recent Economic and Financial issues of Bangladesh 31 | P a g e 6. Appendices: Appendices 1: Leather Production: Top 30 Countries: Million Square Feet: Country 1998 1999 2000 2001 2002 2003 2004 2005 2006 China 3285. 9 3892. 8 4138. 5 4487. 1 4525. 3 4893. 5 6124. 1 6382. 5 6599. 3 Italy 1981. 6 1918. 7 2055. 3 2060. 6 2013. 2 1934. 8 2218. 3 2219. 1 2146. 9 India 1377. 7 1403. 5 1448. 3 1460. 7 1460. 1 1458. 5 1233. 8 1248. 2 1738. 6 Brazil 690.8 760 829.1 814.2 863 883.1 1326. 8 1433. 4 1647. 3 Korea 1369. 2 1336. 4 1286. 4 1373 1394 1367. 9 1659. 5 1641. 9 1446. 4
  32. 32. Analysis on recent Economic and Financial issues of Bangladesh 32 | P a g e Former USSR 917.9 998.5 1061. 3 1216. 4 1361. 2 1612. 9 1640. 1 1651. 7 1224. 5 Argentina 423.7 460.1 509.4 516.5 468.3 508.3 653.2 690.5 712.7 Mexico 683 680.5 719.8 759.8 756.9 780.9 535.1 555.9 591.8 Turkey 448.9 343.2 420.1 436.4 502.4 616.8 557.3 584.6 547.7 USA 845.7 933.1 862.6 819.9 786.2 813.6 563.2 475.0 477.0 Spain 534.8 489.3 542.2 551.2 528.5 521.9 484.4 464.0 442.0 Pakistan 288.8 297.8 327.3 339.7 357.1 358.2 336.0 357.2 363.0 Japan 282.5 268.7 280.9 284.9 262.6 270.7 398.8 318.3 315.1 Germany 266.3 297.8 316.8 322 287 280.4 288.0 253.0 280.9 Iran 128.3 133.2 133.6 133.1 146.3 158.2 323.5 265.0 250.2 Thailand 292.5 293.3 314.4 329.5 324.2 298.4 243.3 236.9 220.8 Uruguay 140 136.7 138 136.2 136 142.5 163.4 169.3 172.0 New Zealand 99.1 134 167.4 158 149.6 137.7 167.2 161.7 164.2 Egypt 117.3 124.8 147 157.7 163.4 167.8 155.3 156.1 155.5 Bangladesh 148.1 148.9 150.1 150.9 157 157.6 148.1 148.1 148.0 France 185.8 175.3 160 140.5 133.5 131.5 149.5 169.2 143.7 Sudan 82.4 84.9 91.1 90 90.9 89.2 130.4 136.2 139.2 Indonesia 121.2 131.9 132.7 132.1 135.5 140.6 139.0 135.0 138.5 United Kingdom 150 170 156.2 165.2 163.0 152.0 137.0 133.0 137.8 Australia 167.4 196.6 189.9 191.6 156.9 159.8 173.8 160.2 134.4 Colombia 96 90 99.54 92.84 93.68 95.12 101.2 102.1 115.5 Nigeria 112.1 114.3 118.5 102.2 103.8 108.4 99.7 99.8 102.7 Algeria 69.3 79.7 82.9 81.8 84.8 83.5 87.1 89.5 92.5 Morocco 88.9 90.6 89.04 89.94 86.58 84.08 79.9 83.1 80.7 Poland 89.5 87.7 92.7 91.7 88.9 90.6 83.9 79.6 79.6 Top 30 Countries 15484 .8 16272 .2 17061 .3 17685 .7 17707 .3 18435 .6 20355 .7 20545 .0 20808 .5
  33. 33. Analysis on recent Economic and Financial issues of Bangladesh 33 | P a g e Others 3084. 2 2760. 8 3254. 7 3346. 5 3370. 2 3487. 0 1681. 2 1761. 6 1892. 0 World Total 18569 .0 19033 .0 20316 .0 21032 .2 21078 21922 .6 22036 .8 22306 .6 22700 .5 Source: BFLLFEA, 2013 Appendices 2: Top 5 Footwear Importing Countries: 2005 2006 2007 2008 Value (£Million ) Pairs (Million ) Value (£Million ) Pairs (Million ) Value (£Million ) Pairs (Million ) Value (£Million ) Pairs (Million ) China 636.1 179.1 700.9 204.8 695.0 244.8 684.3 236.8 Vietna m 404.1 80.2 399.9 72.5 353.1 71.2 345.2 65.6 Italy 315.0 26.2 283.3 18.9 315.1 20.5 269.5 16.2 Belgiu m 132.1 7.9 242.0 16.9 160.0 10.6 130.9 9.0 India 111.4 16.9 116.4 16.8 131.3 18.7 128.6 19.4 All others 1,018.4 98.7 1,025.0 98.5 997.7 97.2 861.2 86.3 Total 2,617.1 409.0 2,767.5 428.4 2,652.2 463.0 2,419.7 433.3 Source: Eurostat Appendices 3: Top 5 Footwear Exporting countries: 2005 2006 2007 2008 Value (£Million ) Pairs (Million ) Value (£Million ) Pairs (Million ) Value (£Million ) Pairs (Million ) Value (£Million ) Pairs (Million ) Ireland 146.3 14.4 160.7 15.2 171.2 16.8 152.1 16.4
  34. 34. Analysis on recent Economic and Financial issues of Bangladesh 34 | P a g e Germany 67.9 3.2 80.1 3.9 74.2 3.8 75.9 4.2 France 42.0 2.8 46.5 3.1 48.0 3.1 49.6 3.4 Netherland s 28.5 1.7 39.1 2.3 40.0 2.3 46.6 3.0 Italy 28.7 1.2 33.4 1.5 34.9 1.7 37.9 2.1 All others 146.9 8.7 166.2 11.1 172.8 11.0 179.2 12.9 Total 460.3 32.0 526.0 37.1 541.1 38.7 541.3 42.0 Source: Eurostat