Weekly News Clippings (7 February, 2013)

Investment to drop further: study (The Daily Star, February 03, 2013)

Private investment in the economy declined 19.1 percent year-on-year in fiscal 2011-12. According to a study of Policy Research Institute (PRI), private investment is likely to drop at a higher rate this year. In a discussion some speakers said that high interest rate of bank loans are affecting investment; however, others noted that once inflation is taken into account the real interest rate is not excessively high.  Also noted was the continued problems in the global economy, which has constricted the growth of the export sector.   PRI Chairman Zaidi Sattar said trade policy needs to be reoriented to deliver high growth in the manufacturing sector.

Export may face challenge over FTA between EU, Vietnam (The New Age, February 04, 2013)

Bangladesh's apparel export sector will face a big challenge in the EU market if the European Union and Vietnam sign a proposed free trade agreement.  Presently Bangladesh’s apparel items enjoy duty-free and quota-free market access to the European countries under the generalized system of preference while Vietnam has to pay 9% duty.  Removing this duty will make Vietnam more competitive with Bangladesh and cut into Bangladesh’s market share.  

Dozens of high rises make HSAIA air traffic hazardous  (The Financial Express, February 04, 2013)

The Civil Aviation Authority of Bangladesh (CAAB) said dozen new high rise buildings near the Hazrat Shahjalal International Airport posing a serious threat to aircraft. CAAB took the initiative to form a committee with Rajuk and Dhaka City Corporation north to prepare a list of those high rises and to demolish all those structures that violating the civil aviation law of the country. If needed CAAB would also seek assistance of ICAO in identifying risky buildings. Rajuk in 2009 identified 300 structures including 46 high rises and took the initiative to demolish 17 of them, but due to legal barriers, eight of them could not be knocked down.  Rajuk also could not demolish several illegal structures as the owners had the stay orders from high court.

Garment subcontracts avoidable? Far from it (The Daily Star, February 04, 2013)

According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) there are about 3500-odd active garment factories and of these 3000 odd factories produce on subcontract basis at the time when they have no orders of their own. Industry people claiming that poor infrastructure, political unrest and pressure to meet the deadline force many garment exporters to resort to subcontracts. Subcontracting garnered greater attention after Wal-Mart cancelled its entire order worth nearly $5 million (Tk 40 crore) with the local firm after the fire incident of Tazreen garments because of several layer of subcontracting.  

Four women entrepreneurs win SME awards (The Daily Star, February 05, 2013)

The SME Foundation awarded three women entrepreneurs for micro, small- and medium enterprises and a fourth for lifetime achievement among 90 applicants. The speakers urged government to provide loans with lower interest rate and for the exemptions of tax and VAT for new entrepreneurs as the SME sector accounts 40% for the national economy.  The awards went to a fashion designer, a restaurant owner, and handicraft goods vendor, and a boutique clothing store owner.