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Youngone chairman explains how Bangladesh can take apparel exports to $30b

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Youngone chairman explains how Bangladesh can take apparel exports to $30b

January 11, 2011

Seize the day or lose

Seize the day or lose
Youngone chairman explains how Bangladesh can take apparel exports to $30b

Kihak Sung

Sajjadur Rahman

Bangladesh might double its apparel exports to $30 billion within three years, but limited capacity and a poor business environment could foil the opportunity, said Kihak Sung, chairman of Youngone.

The Youngone boss talked about Bangladesh’s export potential, in a recent interview with The Daily Star at his Uttara home. He spoke about the speculation of restricting foreign investment in the RMG sector, Bangladesh’s move for duty- and quota-free access to the US market and Korean Export Processing Zone in Chittagong.

Relaxation of generalised system of preferences (GSP) rules by the European Union and access to East Asian markets can become a major springboard for Bangladesh’s garment exports.

“Garment exports to Europe may double to $14 billion due to flexible GSP rules. Another $4 billion income is possible from exports to East Asian countries,” said Sung.

Sung is optimistic, particularly about the export potential in South Korea, Japan and China. However, it will not be easy for Bangladesh to cash in on the opportunity, he said.

Downside risks lie with four core areas: energy constraint, labour issues, port capacity and general law and order situation.

Seoul-based Youngone, the largest manufacturers and exporters of readymade garments in Bangladesh, had a business turnover of $1.2 billion in 2010. Nearly half — 45 percent — of it came from Bangladesh operations.

Youngone started business in Bangladesh in early 1980s and presently, it has 47,000 employees with some 4,500 in officer rank. Ninety-nine percent of them are locals as the company’s philosophy is to run enterprises by local people.

Sung said Bangladesh has an excellent opportunity to increase its garment exports in few years. Besides Europe, he sees East Asia as a major export destination as China gradually shifted to high-end products from low-end ones.

The European Union relaxed rules for the least developed countries (LDC) under GSP in textile trade. The new rules of origin (RoO), effective from January 1, allowed most apparel items from all LDCs would get duty-free access, no matter where the raw materials originated.

Korea has recently allowed Bangladesh duty-free export of some items including jackets. More items will follow, said Sung who is believed to be the main architect behind this duty free access.

“If four issues are resolved, at least reasonably, Bangladesh will have an enormous export opportunity.” They must be addressed simultaneously without specific prioritising, he noted.

Without building capacity in the areas such as energy and infrastructure, including ports, Bangladesh might lose the chance to its competitors, he added.

“The energy problem is looming over and disrupting business seriously,” said Sung. The unnecessary delay in the port cause huge business losses.

On the issue of minimum wage, Sung said: “It’s not enough, but agitation cannot ensure it.” He said his company gives Eid bonuses, rice subsidy and medical services for the workers.

About the recent agitation at Youngone factories in Chittagong, he said the company wanted to merge rice subsidy with the wages, but workers misunderstood it as a cancellation move.

Sung, a Korean national, blamed outsiders for the agitation. “Ninety percent of the agitators were outsiders,” he claimed.

Youngone invested Tk 130 crore to develop Korean EPZ in Chittagong, but the government took almost one decade to issue permit. In the meantime, he shifted some of his planned factories to China and Vietnam. The EPZ, if developed, would employ some 50,000 workers.

Foreigners were given special facilities at the EPZs in Bangladesh so that they would transfer technology and their skills to Bangladeshis but some raised questions about it.

He said technology has been transferred and it is one of the main reasons for flourishing apparel factories in Bangladesh. “Some 50 Bangladeshis run our factories in Vietnam and another five work in China,” he added.

However, the garment maker hailed local entrepreneurs for their relentless efforts to go forward amid lot of limitations.

Restricting foreign investment in garment sector in Bangladesh will not be a wise decision, Sung said. It will give bad signals to the global markets, he added.

The Youngone chairman said it is very unlikely that Bangladesh would get duty- and quota-free market access to the US, which he believes cannot negate the same facilities to Africa, Jordan and Israel.

sajjad@thedailystar.net
 
I think bangladesh government will take appropriate measure so that RAW of India can not destabilize garment sector through creating riot and violence...and bd government should take tough measure against the local agent of RAW ... who try to implement the riot and violence on behalf of RAW...
 
I think bangladesh government will take appropriate measure so that RAW of India can not destabilize garment sector through creating riot and violence...and bd government should take tough measure against the local agent of RAW ... who try to implement the riot and violence on behalf of RAW...

That is exactly right. Since youngone announced big investment plan these enemies attacked youngone factories in EPZ. Yet this company pay more than others.
 
That is exactly right. Since youngone announced big investment plan these enemies attacked youngone factories in EPZ. Yet this company pay more than others.

Yes you are right... these are nothing but to create a negative image of bd by showing violation of labor rights ... so that western countries do not buy from bd... in the last couple of weeks I am seeing a smear campaign against bd garment sector in different western media... even we have seen a movement in the USA to impose extra duty on bd product... their claim is that bd is gaining sleeping bag market and if no tax is imposed than that company will loss market and will have to close the factory of 70 worker... but interesting thing is that bds market share is merely 2% and Chinese market share around 98% but there is no hue and cry for this.. It is quite clear that it is India who is masterminding all these... as the market share Bd is gaining it is the direct loss of Indian market share...
 
I think bangladesh government will take appropriate measure so that RAW of India can not destabilize garment sector through creating riot and violence...and bd government should take tough measure against the local agent of RAW ... who try to implement the riot and violence on behalf of RAW...

buhahaha..... :rofl: :rofl: :rofl: :lol: :lol: :lol:

RAW destabilizing BD RMG!!!! While begging for duty free export you talk like this!! I can see India made your life hell!!! Can't think beyond us!

Wat India did only mistake is during 1971 war by not eliminating the jamatis from BD. Otherwise BD would have been much better shape!!!
 
Yes you are right... these are nothing but to create a negative image of bd by showing violation of labor rights ... so that western countries do not buy from bd... in the last couple of weeks I am seeing a smear campaign against bd garment sector in different western media... even we have seen a movement in the USA to impose extra duty on bd product... their claim is that bd is gaining sleeping bag market and if no tax is imposed than that company will loss market and will have to close the factory of 70 worker... but interesting thing is that bds market share is merely 2% and Chinese market share around 98% but there is no hue and cry for this.. It is quite clear that it is India who is masterminding all these... as the market share Bd is gaining it is the direct loss of Indian market share...

You deserve nothing less than laugh! Before shouting BS learn that BD is getting quota as well as duty free export RMG to India. Your India-phobia is making yourself laughable. lol

RMG products to get duty waiver from India
December 31, 2010


According to the deal signed in 2007, the country, currently, enjoys zero-duty facility in shipping eight million garment pieces to India.




Bangladesh : RMG products to get duty waiver from India - Apparel News Bangladesh
 
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buhahaha..... :rofl: :rofl: :rofl: :lol: :lol: :lol:

RAW destabilizing BD RMG!!!! While begging for duty free export you talk like this!! I can see India made your life hell!!! Can't think beyond us!

Wat India did only mistake is during 1971 war by not eliminating the jamatis from BD. Otherwise BD would have been much better shape!!!

Jamaat is as good as Shiv Sena politically speaking.

The begging is no different then the begging India is doing to keep the seven sisters togather.

Let me put things in perspective for you. It takes an Indian truck weeks after driving through infested Maoist and other insurgency to reach the seven sisters

A transit through BD cuts it down to days with almost no risk factor. Choice is yours buddy.
 
Jamaat is as good as Shiv Sena politically speaking.

The begging is no different then the begging India is doing to keep the seven sisters togather.

Let me put things in perspective for you. It takes an Indian truck weeks after driving through infested Maoist and other insurgency to reach the seven sisters

A transit through BD cuts it down to days with almost no risk factor. Choice is yours buddy.

That's not the point. India has better things to do than meddle with your economy which is anything but enviable :lol:. All your countrymen harping about BD being a garment export superpower is pathetic. You can be patriotic all you want without making yourself look like a cheap joke!
 
That's not the point. India has better things to do than meddle with your economy which is anything but enviable :lol:. All your countrymen harping about BD being a garment export superpower is pathetic. You can be patriotic all you want without making yourself look like a cheap joke!
crap words coming out from a crappy loaded head
 
That's not the point. India has better things to do than meddle with your economy which is anything but enviable :lol:. All your countrymen harping about BD being a garment export superpower is pathetic. You can be patriotic all you want without making yourself look like a cheap joke!


Go n search Internet.... Bd is the 3rd biggest exporter of ready made garment.... N in the coming year .....bd has the potential to capture majority of the 200 billion usd diversified business from china... Even bd has a grand plan for Indian market... Bd has already knocked out India in the international stage....all the external share that bd is gaining outside is loss for India... India is so worried that it even protested pakistans duty free access in eu.. Though bd also did... Even if India does not provide duty free access to bd... It will continue to loss internal market of it self... Only bd need to concentrate on capacity building, introducing more efficient and modern technology and provide smooth power.... It makes absolute sense for India to destabilise Bds garment sector...n thats what they
have done...
 
Go n search Internet.... Bd is the 3rd biggest exporter of ready made garment.... N in the coming year .....bd has the potential to capture majority of the 200 billion usd diversified business from china... Even bd has a grand plan for Indian market... Bd has already knocked out India in the international stage....all the external share that bd is gaining outside is loss for India... India is so worried that it even protested pakistans duty free access in eu.. Though bd also did... Even if India does not provide duty free access to bd... It will continue to loss internal market of it self... Only bd need to concentrate on capacity building, introducing more efficient and modern technology and provide smooth power.... It makes absolute sense for India to destabilise Bds garment sector...n thats what they
have done...

This ill found arrogance is what boggling my mind. Just because you guys have started exporting more garments doesn't mean the Indians are going to envy you. seriously Bangaldesh is the last country Indians will envy.
The problem is Bangladesh doesn't have a real enemy. So you guys are making out of India to make your life interesting. Other than that all the hate that you guys spew on us doesn't deserve a serious reply.
 
Jamaat is as good as Shiv Sena politically speaking.

The begging is no different then the begging India is doing to keep the seven sisters togather.

Let me put things in perspective for you. It takes an Indian truck weeks after driving through infested Maoist and other insurgency to reach the seven sisters

A transit through BD cuts it down to days with almost no risk factor. Choice is yours buddy.

Yes, India is begging us for a transit to its NE. Assam belongs to us. Muslims are always a dominant force there. We should support the Muslims there. Let India keep on begging us.
 
That's not the point. India has better things to do than meddle with your economy which is anything but enviable :lol:. All your countrymen harping about BD being a garment export superpower is pathetic. You can be patriotic all you want without making yourself look like a cheap joke!

The claim of RAW meddling is debatable. BD, a garment powerhouse is not debatable. You can be patriotic without looking belligerent.
 

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