Abu Sazzad :
Infrastructure development is the main challenge to the country’s readymade garment exporters for reaching $50 billion export by 2021, said leaders of the manufacturing sector.
They said, lack of productivity and efficiency, shortage of skilled manpower, scarcity of land and high rate of interest of bank loan are the challenges for reaching the target.
Moreover, gas and electricity connection is also one of the major hindrances for running the operation of many factories. More than, 350 factories have been shut down for want of gas and electricity connection and the investment of about Tk 12,000 have been wasted.
Mostafa Golam Quddus, Former President of the BGMEA said, the entrepreneurs of the country had been facing severe competition in the international market due to high service charge and interest on bank loan. ‘Our entrepreneurs are paying 16-22 per cent interest which is higher than that in the other countries,’ he said.
‘To achieve the target of $50 billion export earnings from the RMG by 2021, the government will have to ensue investment in developing infrastructure’, said Exporters Association of Bangladesh (EAB) President Abdus Salam Murshedy.
He demanded withdrawal of the tax at source imposed on the manufacturing sector in the proposed national budget for the fiscal 2015-16.
“It will hinder the natural growth of the country’s readymade sector”, said the EAB President. Justifying his demand for withdrawal of the increased tax at source, Salam Murshedy said, the readymade garment sector is passing through a transformation as various reforms are being taken in the sector following fire at Tazreen Fashions and the Rana Plaza collapse for which entrepreneurs are investing crores of taka.
The EAB president said, one per cent export duty imposed on capital machineries will discourage businessmen. The decisions of imposing or increasing new taxes will contradict the projected seven per cent GDP growth and the export target of $50 billion by 2021, he said. “One per cent tax at source will put the knit and woven sectors at risk anew,” he added.
He further demanded of creating a fund of Tk 100 crore with a view to developing the skill of manpower in the name of ‘National Human Resource Development Fund’.
First Vice-President of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) Shafiul Islam Mohiuddin said, the manufacturing sector is passing a crucial time. “We are very worried for the newly shifted garment factories, because these factories are not getting sufficient gas and electricity connection to start its production”, he said.
Although, the manufacturing sector has got India, China and Vietnam as rivals to grab the international market, the sector has potentiality to overcome the situation, he explained.
“We are not worried about our rival countries because we are getting comparatively low cost labour, which is an extra advantage for the sector”, he said.
The FBCCI leader urged the government to provide adequate gas and electricity connection for reopening the shut down factories.”If we ensure the development of infrastructure, definitely the RGM sector can achieve its set export target $50 billion by 2021″, he said.
Infrastructure development is the main challenge to the country’s readymade garment exporters for reaching $50 billion export by 2021, said leaders of the manufacturing sector.
They said, lack of productivity and efficiency, shortage of skilled manpower, scarcity of land and high rate of interest of bank loan are the challenges for reaching the target.
Moreover, gas and electricity connection is also one of the major hindrances for running the operation of many factories. More than, 350 factories have been shut down for want of gas and electricity connection and the investment of about Tk 12,000 have been wasted.
Mostafa Golam Quddus, Former President of the BGMEA said, the entrepreneurs of the country had been facing severe competition in the international market due to high service charge and interest on bank loan. ‘Our entrepreneurs are paying 16-22 per cent interest which is higher than that in the other countries,’ he said.
‘To achieve the target of $50 billion export earnings from the RMG by 2021, the government will have to ensue investment in developing infrastructure’, said Exporters Association of Bangladesh (EAB) President Abdus Salam Murshedy.
He demanded withdrawal of the tax at source imposed on the manufacturing sector in the proposed national budget for the fiscal 2015-16.
“It will hinder the natural growth of the country’s readymade sector”, said the EAB President. Justifying his demand for withdrawal of the increased tax at source, Salam Murshedy said, the readymade garment sector is passing through a transformation as various reforms are being taken in the sector following fire at Tazreen Fashions and the Rana Plaza collapse for which entrepreneurs are investing crores of taka.
The EAB president said, one per cent export duty imposed on capital machineries will discourage businessmen. The decisions of imposing or increasing new taxes will contradict the projected seven per cent GDP growth and the export target of $50 billion by 2021, he said. “One per cent tax at source will put the knit and woven sectors at risk anew,” he added.
He further demanded of creating a fund of Tk 100 crore with a view to developing the skill of manpower in the name of ‘National Human Resource Development Fund’.
First Vice-President of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) Shafiul Islam Mohiuddin said, the manufacturing sector is passing a crucial time. “We are very worried for the newly shifted garment factories, because these factories are not getting sufficient gas and electricity connection to start its production”, he said.
Although, the manufacturing sector has got India, China and Vietnam as rivals to grab the international market, the sector has potentiality to overcome the situation, he explained.
“We are not worried about our rival countries because we are getting comparatively low cost labour, which is an extra advantage for the sector”, he said.
The FBCCI leader urged the government to provide adequate gas and electricity connection for reopening the shut down factories.”If we ensure the development of infrastructure, definitely the RGM sector can achieve its set export target $50 billion by 2021″, he said.
