6. Objectives
To promote trade in textile and apparels
To expand market access
To establish a market information system
To promote the development of policies
supportive to trade
To provide an institutional framework for the
development of textile industry
To enhance private sector involvement in
regional policy formulation and implementation
8. Ready Made Garments
Industry
•Growth oriented.
•Largest exporting industry.
•Contribution towards GDP.
•Employment generation.
•Social development.
9. New Markets
•The RMG started exporting to new market.
•Growth opportunity.
•WTO listed Bangladesh as 5th clothing exporter.
10. Uniqueness
•Highest RMG exporting country.
•Competitive pricing is the unique revenue strategy.
•Competitive advantage on cost of labor.
•EPZ manufacturing and lower cost of energy.
11. • back-end bottlenecks
• supply of gas for electricity generation
• welfare schemes and participatory decision
• technology and skill upgrading
• EU GSP rules
• Governsment policies for Foreign Investments
GOVERNMENT
13. BANGLADESH CORPORATE TAX POLICIES
Standard rate of corporate tax in Bangladesh is
27.5%
Publicly Traded Company 27.5%
Non-publicly Traded Company 37.5%
10% rebate on tax
14. Technological
National science and technology policy
It gives direction to Science and technology
The National Council for Science and Technology
(NCST)
15. Export policy
The sector share of RMG export
In 1980 EPZ was established
76% of country’s export earning from textile and
apparel.
export worth nearly $5billion p.a.
6th largest apparel supplier to US and EU
countries.
Year Approx %
1995 17
2003 40
16. Human Resources
45% of all industrial employment
Contribute 5% to the total national income
4 million people are employed mostly women
17. Geography
Textile and apparel firms in Bangladesh are mostly
concentrated around the capital city of Dhaka
18. Why in Dhaka Region ?
•International Communication available
• Easy for buyers to visit, inspect etc.
•Trained technical manpower easily available
• All financial institutions H.Q in Dhaka
•Five to six hours travel time to Chittagong by road
•Utilities such as gas, electricity, water availability better
19. The Stand Out Factors
• The world's second biggest exporter of clothing
• Excellent transportation
• Availability of raw materials
• Adequate sources of energy
• EPZ- primary objective, 8 EPZ’s, benefits and BEPZA
• Market coverage's – duty free access to Canada,
Norway, Japan, New Zealand and Australia
• Cheapest labour force
20. 8.Duty Free Access to US
9. Investment Guarantee : Foreign Private
Investment (Promotion and Projection) Act
1980 , OPIC"s (Overseas Private Investment
Corporation, USA) , Multi-national Investment
Guarantee Agency (MIGA)
10. The International Centre for Settlement of
Investment Disputes (ICSID)
11. FDI- in 2011, FDI was $1136.38m.. 13.75%
up in 2012
12. Bank interest@ 7% for financing exports