Transcript Document

Bangladesh Textile Mills Association
(BTMA)
Presents
Opportunities in Bangladesh
Textile Industry
for
Investment
from
BTMA, Dhaka
Taiwan
22 November, 2004
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Distance Bangladesh to Taiwan 3,000 Km Only.
WE ARE CLOSE TO YOU
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Bangladesh Textile Mills Association
Extends its thanks to
H.E Dr. Chii Ming Yiin
Vice Minister
Ministry of Economic Affairs of
Taiwan
&
The distinguished delegates for
attending this briefing.
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We plan to cover the following :
1. Location wise concentration of Textile
Industry in Bangladesh
2. Size and growth of textile and RMG
industries in Bangladesh.
3. Advantages for the Bangladesh textile
industry.
4. Opportunities for co- operation between
Bangladeshi & Taiwanese textile industries.
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Location wise
concentration of
Textile Industry in
Bangladesh
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Concentration of Textile in 1983
9
8
4
8
3
3
4
Dhaka
CTG
Comilla
Others
6
Concentration of Textile in 1994
54
54
5
9
5
7
9
Dhaka
CTG
Comilla
Others
7
Concentration of Textile in 2004
637
637
7
41
41
7
Dhaka
CTG
15
Comilla
Others
8
Comparative picture of Textile Mills
637
637
7
41
54
41
8
4 9
Dhaka
Ctg.
1983
3 5
Comilla
1994
7
9
7 15
Others
2004
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Comparative picture of Textile Mills in (%) area basis
91.00%
72.00%
637
7
37.50%
33.33%
16.67%
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12.00%
12.50%
9.33%
6.67%
5.86%
1.00%
Dhaka
Ctg.
1983
Comilla
1994
2.14%
Others
2004
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Comparative picture of Textile Mills in (%) area basis
1994
1983
7%
33%
37%
9%
12%
72%
13%
17%
2004
637
2%
1%
7
6%
41
91%
Dhaka
Ctg.
Comilla
Others
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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
-ICD Kamalapur enables goods to arrive/export directly
-Utilities such as gas, electricity, water availability better
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SIZE AND GROWTH
OF
BANGLADESH TEXTILE
INDUSTRY
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Size and Membership of BTMA
• Membership : 700 Mills
Spinning, Weaving, Dyeing and
Finishing Mills.
• Investment : Euro 2.50 billion.
• Employment : 3 million people.
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Developments in the Textile Industry since 1994
BTMA mills planned for export market in 1994, and since then
the development has been as follows:
Description
1994
Spinning Capacity
1.4 million
Export using local
Fabric
Value addition on
Knit and woven
Lead time
Negligible
2004
4.2 million
46% of the export
US$ 2.20 billion
25%
75%
16 weeks
4 weeks
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Demand Supply Position of Yarn up to 2007
Total Demand of Yarn
Item
Knit
Woven
Domestic
Export
-
459 Million
Kgs.
270 Million
Kgs.
130 Million
Kgs.
Existing production of
Yarn
Domestic
Export
200 Million
Kgs.
90 Million
Kgs.
60 Million
Kgs.
GAP of Yarn
Domestic
Export
259 Million
Kgs.
180 Million
Kgs.
70 Million
Kgs.
Demand Supply Position of Fabrics up to 2007
Total Demand of Fabric
Item
Knit
Woven
Domestic
Export
-
2271
Million mtrs
1606 Million
mtrs.
717 Million
mtrs.
Existing production of
Fabric
Domestic
1100 Million
mtrs
Export
990 Million
mtrs.
330 Million
mtrs.
GAP of Fabric
Domestic
506 Million
mtrs.
Export
1281 Million
mtrs.
387 Million
mtrs.
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Market Segments
Domestic :
With a population of 135 million the market is already big and
the consumption per capita is growing. Although the
domestic production is growing, with increased demand,
gap is widening.
Fabric demand 2003, 1.50 billion meters expected
growth 2010, 2.14 billion meters
Most fabrics are now cotton based – enormous
scope for synthetic and blended fabrics.
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Growth of RMG Exports
RMG Products by value (in Million US$)
Year
Knit Garments
Woven Garments
93 - 94
98 - 99
2003 - 04
264
1,035
2,148
1,292
2,984
3,538
Export of RMG Products by volume (in mln. dozen)
Year
Knit Garments
Woven Garments
93 - 94
98 - 99
2003 - 04
129.78
439.98
1,099.20
412.21
777.47
1,085.86
Most woven export are with imported fabric
hence large opportunity for woven mills.
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Growth of RMG Exports
1,200.00
4000
3538
3500
1,000.00
(in Mln. US$)
3000
2500
2148
2000
1500
1292
1035
1000
500
Year
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Knit Garments
800.00
600.00
400.00
200.00
0
93-94
(in million Dozens)
2984
98-99
2003-04
Woven Garments
0.00
Year
93-94
Knit Garments
98-99
2003-04
Woven Garments
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ADVANTAGES
OF THE BANGLADESH
TEXTILE INDUSTRY
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Transition from MFA to WTO
Under MFA, importing countries (i.e., developed countries)
have quota and duty to protect their industry. With phasing
of MFA their industry will become uncompetitive and open to
competition from developing and LDC countries. As such
there is apprehension that RMG industries in developed
countries will close down, thus creating supply gap which
will be filled by developing countries. Bangladesh is a
strong contender for this.
A study by Gherzi Textil of Switzerland has shown that the
global textile and clothing exports are expected to increase
from $199 billion (2000) to $ 350 billion in 2006-07.
Bangladesh has 2.6% (US $ 5bn) of global market share now
with increased global export this volume will increase to US
$ 10bn approx.
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Potential of Textile Production
1.
In Bangladesh fabric used for domestic and export market, 80% Cotton and
20% Synthetic.
2.
Ratio between use of Cotton/Synthetic or Blended fabric varies as per demand
globally.
3.
In Bangladesh local production of Woven fabric is not substantial.
4.
Therefore, a large potential for Cotton, Synthetic, Blended fabrics & MMF
exists in Bangladesh for both domestic and export market.
5.
Taiwan has big capacity for production of Synthetic, blended fabrics & MMF
has advantages in fabric production.
6.
Therefore, Taiwan can take advantage of the gaps available in Bangladesh by
setting up Production facilities under 100% owned, or Joint Venture or
relocation.
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Market Access Advantages for Bangladesh
In the EU under GSP Scheme and also under EBA
agreement, Bangladesh textile products are quota free and
duty free. This is a great advantage over other competitors,
which will continue even after MFA.
Export to EU under GSP facility:
In the last few years the volume of export to EU under GSP (export
using local fabric) has increased from EURO 399 mln to US$ 2,015 mln.
Year
1999
2000
2001
2002
2003
Value in mln. EURO
574
1,047
1,319
1,585
2,015 US$
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Market Access Advantages for Bangladesh
(cont.)
• Has recently obtained quota-free and dutyfree access to Canada, Norway, Japan, New
Zealand and Australia.
• As an LDC, favorable market access to
continue in the post-MFA era.
• This facilities will continue until per capita
income reaches to US $ 1000.
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Taiwan Textile Industry
• Taiwan has a well-developed textile industry.
• Taiwan is one of the most developed manufacturers of
Synthetic yarn, Fabric and Garments.
• Taiwan has good image and presence in global textile
markets.
• With high economic growth Taiwanese per capita
income is also increasing.
• Now Taiwan is concentrating on high value added
products.
• Taiwan can keep her market of Textile products by
using Bangladesh as a manufacturing base.
• This would benefit both the countries.
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BANGLADESH-TAIWAN
CO-OPERATION
OPPORTUNITIES
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Opportunities
Bangladesh and Taiwan can co-operate in following areas :
1.
2.
3.
4.
5.
Synthetic Yarn and Synthetic fibre and fabric manufacturing.
Retain Taiwanese global market for Garments by using high
technology in production of Taiwanese yarn and fabrics in Bangladesh.
Taking advantage of Taiwanese presence in the market place, promote
and develop Bangladeshi products for high value and high fashion
market.
Taiwan can come up with their technical know how for capacity
building.
Taiwan can invest in 100% owned, or joint venture and relocation of
Taiwanese textile industries in Bangladesh under present liberal
investment package.
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Unique Advantages of Bangladesh Textile
Industry
• Currently one of the top five RMG exporters in the
world with annual exports of US$5.70 billion.
• Apart from the major players, it is the only country
with fairly big backward linkages.
• It is by far the largest exporter of RMG amongst
LDCs.
• It has a large population, which has mastered the
garment trade with high productivity and low cost.
• Textile being the largest export item of the country, we
are very focused on this sector.
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Why Bangladesh?
Bangladesh also offers the following competitive advantages for
such investment/ relocation.
• Ready market :
* domestic market of 135 million peoples.
* US$ 5.700 bn. Present RMG export market.
* US$ 7.500 bn. RMG Export target within 2007.
* US$ 10.000 bn. RMG Export target within 2010.
• Abundant skilled and easily trainable labour force at an
extremely competitive rate. Monthly total wages of US$52.00.
• Very competitive utilities charges for textiles industry– Power: US$.033/KWH by captive generation.
– Water: No cost - abundantly available from own deep tube
well.
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Why Bangladesh? (Cont.)
 As textile and RMG are the largest export sectors and
employers, the government support will continue.
 Operating mills have necessary infrastructure (i.e.,
buildings and utilities) which can offer accelerated
implementation of investment plan.
 No restriction on repatriation of profit and capital.
 Tax free import of machinery and raw materials for
export.
 Work permit for expatriates liberally given.
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Contact Information
BTMA would be most pleased to assist in any enquiries.
Please contact us atBangladesh Textile Mills Association
Unique Trade Centre (8th Floor)
8, Panthapath, Karwan Bazar
Dhaka, Bangladesh
Phone: 8802-8112361, 9143461
Fax: 8802-9125338
E-mail: [email protected], [email protected]
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THANK YOU FOR YOUR
KIND ATTENTION
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