Present Scenario of Indentive Firms of Bangladesh

Topics: Wage, Economics, Minimum wage Pages: 13 (4624 words) Published: December 18, 2012

There are many incentive firms in Bangladesh. In Bangladesh incentives firms mean buying house and merchandising house. It means order for goods (placed often through a local or foreign agent of a foreign supplier) under specified conditions of sale, the acceptance of which by the supplier (or the agent) constitutes a contract of sale. As RMG (ready Made Garment) sector earn a lot of foreign currency through exporting so buying house has a vital role to manage order from abroad buyer. But there is no sound policy to make buying or merchandising house helpful in our country. There are a lot of problem to operate this house in our country. Government should come forward with a helping hand toward incentive firms by proper monitoring and roles & regulation. Because if RMG sectors are gone down, our economy will fall down. Incentive firms are the way to reach foreign buyer till garments producer.

Readymade garments (RMG) buying houses, both local and foreign, now grow rapidly in Bangladesh, as the country has become a lucrative place for RMG outsourcing on the appreciation of Chinese currency against the greenback. As part of their business expansion, foreign buying houses are eying to set up more liaison offices here. The buying houses including M&S, Adidas and Tesco have already published advertisements in newspapers to recruit experienced merchandisers for such liaison offices to collect RMG products at a competitive price from local garment units. Industry insiders said many Chinese apparel manufacturers have either changed their businesses or stopped production following the decline in foreign buying orders and higher cost of doing business due to a hike in workers' wages. Buying house is a hub for sellers comprising of leading manufacturers, exporters and suppliers, displaying their latest and trendiest collection of apparels to a huge audience round the year. Buyers from across the world can meet sellers at this permanent showroom and source their products as per their exact specifications. Bangladesh is the world's 5th largest producer of textiles and garments. Talking to The Daily Star, Kazi Iftequer Hossain, the owner of Total Apparel, a local buying house, said the number of buying houses that have sprang up in 2008 is 200, while the number was 150 last year. "Of the total outsourcing of apparel items from the local market, 60 percent is done through foreign buying houses and 40 percent by the local ones," Hossain said. He said in every month at least 6 buying houses are coming into operation now. ________________________________________The Daily Star Thursday, May 29, 2008 Business, Article of Refayet Ullah Mirdha.( RMG buying houses boom as China business cost up,200 buying houses spring up in five months in Bangladesh) BACKGROUND OF THE STUDY:

President of Bangladesh Buying House Association (BGBA) Qayum Reza Chowdhury said there are more than 1000 local and foreign buying houses in the country."Many Chinese manufacturers stopped exporting apparel items as they can hardly make profit at more than 2 percent. Rather they can make profit at 10 percent if they sell the RMG products in their local market," Chowdhury said. He said Russia and Uzbekistan are going to be major destinations for Bangladeshi RMG products as the buyers of those countries are moving to Bangladesh instead of China to place huge orders. Meanwhile, Nurul Islam, managing director of Noman Group, country's one of the largest home textile producing companies, said the demand for RMG products from foreign buyers has marked a 30 per cent rise in the first 11 months of the current fiscal, compared to the corresponding period last year."We have a target to export RMG products, especially home textile worth US$20 million a month from 2009. At present the group is exporting products worth $12 million a month," Islam said The overall orders for RMG products also increased...
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