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Download PDF Due to narrow export basket, Bangladesh will face heightened competition in readymade garment (RMG) export as the EU and US restrictions on Chinese garments are withdrawn from January next, International Chamber of Commerce-Bangladesh (ICC-B) president cautioned yesterday.
In this new competitive scenario, Mahbubur Rahman said, sustaining the current high export growth will be an uphill challenge in the coming years. “We should, therefore, not only look for alternative markets for our readymade garments but at the same time diversify our products,” he said.
To be competitive, Bangladesh must have a long-term strategy to create an industrial base, which will not only help support export diversification but will also help establish a smooth supply chain and control the present price spiral that is seriously affecting the low and middle income groups, the ICC-B president said.
Mahbubur Rahman was addressing the inaugural function of a daylong workshop titled ‘Incoterms 2000: Interpretation and Correct Selection of Delivery Terms’ organised by the ICC-B in collaboration with German Technical Cooperation (GTZ) in Dhaka.
The workshop was meant for commercial executives of RMG sector and export-oriented industries to make them aware of the latest tools used for exporting goods.
Mahbubur Rahman pointed out that the International Commercial Terms, known as ‘Incoterms’, are a set of uniform rules codifying interpretation of trade terms defining rights and obligations of both buyers and sellers in international transactions where commercial, legal and insurance responsibilities pass from one party to the other.
Incoterms are periodically revised by the ICC, and Incoterms 2000 is a revised version of Incoterms 1990 which clearly and accurately reflects trade practice.
Foreign direct investment (FDI) inflow to Bangladesh declined in the past year and the country is falling behind compared to other developing countries in terms of attracting FDI. “Diversifying the FDI basket is also emerging as a major challenge,” Mahbubur Rahman said.
He also suggested that the Board of Investment should change its decision-making procedures and take quick decisions. Otherwise, whatever worthwhile proposals are in the basket will be diverted to other countries, he said.
Mamun Rashid, chairman of the ICC-B Standing Committee on Banking Technique and Practice, said using Incoterms correctly saves time, money and needless litigation. Incorrect application or outdated use of the terms has contributed to the bulk of disputes involving commercial terms.
Mamun, also managing director of Citibank, NA, Bangladesh, urged all concerned to read the full text of Incoterms 2000 to ensure that the terms are applied correctly.
Mentioning that every nation is pursuing new market niche with an unleashing effort, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Anwar-ul-Alam Chowdhury said Bangladesh needs to explore new market to increase productivity as well as to sustain in the competitive world market.
He also said global business and trade scenario are very competitive and basically depend on 4 Ps such as product, place, price and promotion.
“The manifestation of globalisation has made business more dynamic in nature and competitive advantage-oriented. As a result, liberalisation of trade and providing equal opportunities to disadvantageous economies have been getting growing concerns in the global community,” Anwar said.
ICC expert on Incoterms from Europe Pavel Andrle also spoke at the inaugural session.
Some 160 participants from apparel and knitwear industries attended the workshop.
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