Bangladesh Country Report 2009 Table of Contents 1) Basic Information of Bangladesh 2) World Economic Recession and Bangladesh 3) Bangladesh Economy 4) Packaging Industry in Bangladesh 5) Government Incentives 6) Export Performance 7) Role of Packaging Sector in Bangladesh 8) Different Kinds of Packaging 9) Future Growth of Packaging Industries in Bangladesh 10) To Setup A Packaging Institute in Bangladesh 11) Conclusion Presented by Safiullah Chowdhury 1° Vice-President, Asian Packaging Federation (APF) President Bangladesh Corrugated Carton & Accessories Manufacturers & Exporters Association (BCCAMEA) Office: Sonartori Tower (3" Floor), Plot # 12, Sonargaon Link Road, Banglamotor, Dhaka, Bangladesh Tel: 8621200, 9666763 Fax: 8621200 Ex. 108, e-mail: becamea@gmail.com, bccamea-2@gmail.comBangladesh Country Report Basic information of Bangladesh: Bangladesh emerged as an independent and sovereign country in 1971 following 9 (nine) months war of liberation. It is one of the largest deltas in the world with a total area of 147570 square kilometers. With a unique communal harmony, Bangladesh has population cover 150 million in 2007, making it one of the densely populated countries of the world. Over 98% of the people speak in Bangla, English however Is widely spoken. The country is covered with a network of river and cannels. Dhaka Is its capital city and Chittagong is the main seaport. In two thousand or more years of its chequered history, many illustrious dynasties of king and sultan ruled the country and have led their mark in the shape of magnificent cities and monuments, apart from this the century old cultural tradition. The people of Bangladesh are very simple and friendly. Bangladesh has a tropical monsoon climate with three main seasons-the hot and summer (March-May), rainy season were (June-September) and the mild and relatively dry winter (December-February). Spring and Autumn (October- November) are brief. Average annual temperature is 260c. and rain for 2540 mm. Bangladesh is located in the tropics between 20034 and 26038 north latitude and 88001/92041/east longitudes in South Asia. The main rivers are Padma (Ganges), Jamuna, Meghna, Brahmaputra, Karnafully and Surma. The coastal line of the Bay of Bengal is 66,400 kilometers. The only hilly parts are in the northeast and south east of the country. Bangladesh has the world largest mangrove forest. The world heritage sundarban, which houses flora and fauna of innumerable species. World econo! recession and Bangladesh: World economic recession is going on from 2007. It is the result of fall of world’s financial and capital market. The main reason of this recession is the crisis of mortgage loans in the USA. Initially it is started in the housing sector. This recession hit America as a result approximately six lacs have lost their jobs in 2008. This economic melt down in Europe and most of the Asian countries affected. Bangladesh is not free from this recession. It is likely that three million people may loss their jobs, resulting poverty will be increased. The recession has also affected our export sectors like raw jute, jute goods, leather goods and frozen foods as per report Export Promotion Bureau (EPB). As per Bangladesh Garment Manufacturers & Exporters Association (BGMEA) reports exports of ready-made garment (RMG) decreased 4.98% in January and 17.58% in February 2009 as most RMG goes to USA and Europe. Page 1 to 2The recession affected our manpower export. In recent time workers have come back from Malaysia, Saudi Arabia, Kuwait, UAE and other gulf countries. All the countries that import ‘our manpower are going to cut the jobs of our manpower. As the world recession effected our manpower export its impact will fall our remittance earning, Bangladesh Economy: In spite of the economic melt down the overall economy of Bangladesh registered a steady improvement with more than 6% percent average growth during last five years. The country has particularly achieved remarkable progress in women empowerment and poverty reduction in the last few years. Bangladesh is now one of the leading manpower exporting countries of the world. There are about 2.5 million expatriate or non-resident Bangladeshis now working outside the country. The export earnings also have been experiencing increase especially in the ready-made garments, medicine, leather, shrimp and jute & jute goods. The revenue earning is also increasing which was more than 16 percent higher than the last fiscal year 2007-2008. In the last concluded fiscal 2008-09 the whole world has witnessed economic melt down. In spite of that economy of Bangladesh has showed positive signs in most of its economic indicators achieving a growth of 5.6 percent. At the end of last fiscal year 2008-2009 GDP of the country stood at US$ 68 billion. Total Export of 2008-2009 earning stood at- US$ 15665.19 million, which was 10.31% percent higher than the previous year. The garment sector has continued its growth where knitwear wasi6.21 percent and oven 14.54 percent compares to previous year. With a tremendous pressure and challenges from fuel import cost, the country is maintaining a balanced and stable BOP situation. The foreign exchange reserve now stands about US$ 7 billion, which is at the highest level in country’s history. GDP per capita crossed US$ 560, which registered US$ 520 at the end of last fiscal year. The manufacturing sector recorded more than 11 percent growth and contribution of greater service sector to the economy was around 49 percent. Country's economy mostly depends on agriculture. Agriculture sector including fisheries accounted for 21% of the GDP in 2008-2009. The sector employs the largest proportion about 51% of Bangladesh economically active population. Key activities in this sector are food crapping, life stock, fisheries production and marketing, forestry, jute, tea, frozen food export are the most important cash crops providing a significant proportion of revenue. The Export Processing Zones (EPZ) are playing significant role in expanding rapid industrialization and inviting more FDI in the country. Government has extended all its support and eased investment procedures such as offering tax holiday up to 10 years, tax exemption and duty import of capital machinery and spare parts for export-oriented industries. The export-oriented industries are entitled to receive additional foreign exchange on a case-to-case basis for publicity; campaign in opening oversees offices and participating in international trade fairs. (Source: Economic review of Bangladesh) Page 2 to 3