Chapter One

Introduction

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Introduction

A chamber of commerce is a form of business network, for example, a local organization of

businesses whose goal is to further the interests of businesses. Business owners in towns and
cities form these local societies to advocate on behalf of the business community. Local
businesses are members, and they elect a board of directors or executive council to set policy
for the chamber. The board or council then hires a President, CEO or Executive Director, plus
staffing appropriate to size, to run the organization.

A chamber of commerce is a voluntary association of business firms belonging to different

trades and industries. They serve as spokespeople and representatives of a business
community. They differ from country to country.

Origin

A report is essential and a vital for the BBA program. Every student has to prepare a report
on the practical knowledge of what he or she earned from the BBA program. So, I was
grateful to get an opportunity to do my report on Chamber of Commerce. The title name of
my report is “The Contribution of MCCI in the Development of Economy in Bangladesh.” I
have prepared this report under the guidance of Mohammad Mosharraf Hossain, Asst.
Professor of Dhaka City College.

Objectives

I. Broad Objectives

To know the performance of different trades and industries.

II. Specific Objectives

 To know the interests of businesses.

 To learn the overall activities of Chamber of Commerce.

 To analyze the form of business network.

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Methodology

I. Primary Sources

N/A

II. Secondary Sources

 Collected Information from the Chamber of Commerce website.

 Received data from Annual report.

 Collected data by browsing Internet and different Web sites.

 Documentary

Limitations of the study

There are some limitations I have found during my study. Now I am going to mention all the
limitations -

 I learned very little about prospects of Chamber of Commerce.

 It was not possible for physical observation.

 Lack of sufficient information.

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 Chapter Two

Company Overview

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Company Profile

The Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) is the oldest and the
pre-eminent trade organization of Bangladesh which is founded in 1904. Its membership roll
encompasses leading commercial and large industrial organizations of the country, including
public sector corporations and local as well as multinational companies. Presently, almost all
major enterprises of the manufacturing and service sector are among its members. The
Chamber provides a wide range of professional services to its members.

The Chamber’s services, developed over a long period, are comprehensive and cover
specialized areas such as taxation, import-export, tariff and non-tariff measures, investment,
WTO matters and other national and international economic and commercial concerns. The
Chamber maintains a secretariat manned by professional staff. It offers secretarial services to
the Bangladesh Employers’ Federation (BEF), the lone national level organization of
employers in the country dealing with industrial relations, occupational safety and health,
workplace cooperation, skills development, labor law and other labor-related issues.

The Chamber’s policy recommendations and inputs related to ongoing reforms have gained
wide acceptance amongst government and policy makers. MCCI has earned recognition at
home and abroad by offering services such as issuing certificate of origin, through conducting
economic research and sector surveys, offering trade and investment facilitation services,
legal services, information management and dissemination, and with publications related to
trade and commerce.

The Chamber is represented in many Advisory Councils as well as Committees formed by

various ministries of the government of Bangladesh. MCCI also maintains effective working
relations with development partners, e.g., the World Bank Group, Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ), the Asian Development Bank (ADB), Japan External
Trade Organization (JETRO), Japan International Cooperation Agency (JICA), and the Asia
Foundation. MCCI has a long history of joint collaboration and corporate understanding. It
interacts regularly with major international trade bodies and many private sector
organizations located all over the world.

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Vision

Be the leading voice serving responsible business

Mission

 Become the leading Chamber for providing research and analysis related to business
in Bangladesh

 Attract quality membership, representative of a cross section of business

 Effectively respond to changing business environment

 Collaborate with local and international institutions

 Engage and communicate regularly with our stakeholders

 Promote best practices that benefit business and society

Values

 Fairness

 Integrity

 Respect

 Equal Opportunity

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Core Competencies – Organization

 Research based Policy Advocacy

 Networking

 Business Intelligence

Core Competencies – People

 Professional

 Innovative

 Adaptable

 Team Player

 Proactive

 Communication and Interpersonal Skills

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 Organizational Structure of MCCI

President

Vice President

Board Members

Secretary - General

Manager

Assistant Officer

Junior Officer

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 Chapter Three

Contribution of MCCI in the

Development of Economy in
Bangladesh

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Contribution of Metropolitan Chamber of Commerce and Industry

In 1904, when the region was going through an industrial growth spurt, that the seed of the
Metropolitan Chamber of Commerce and Industry was sown. Known as the Narayanganj
Chamber of Commerce, it was established by the European entrepreneurs of Narayanganj and
Dhaka with the sole aim of championing trade and commerce in the East Bengal and Assam
province. The chamber, first of its kind in the region, was utilized mainly by British
businessmen to facilitate jute trade.

In 1950, the chamber was renamed as the Dhaka-Narayanganj Chamber of Commerce, and
for the next two years, its extensive work led to an increase in exports of jute.

In order to deal with the increasing tempo of industrialization in the eastern part of the Indian
subcontinent, the chamber realized that it should be authorized by the constitution to deal
with industrial as well as commercial matters. Subsequently in 1952, it was renamed the
Dhaka-Narayanganj Chamber of Commerce and Industry.

The chamber segued to its current form in 1979, a platform to influence decision-makers and
ensure the best possible environment for trade and commerce for its members and the nation
at large.

Today, it is poised not only to proactively assist its members, who are more than 300, in their
business dealings but also to contribute positively to the nation.

MCCI's member companies, hailing from all sectors and representing most of the large
enterprises in Bangladesh, including multinationals, have created hundreds of thousands of
job opportunities for the economy.

The chamber is represented in 16 advisory committees of the government, ranging from

exports and consultative committees of industries, commerce, communications, jute, textiles,
power ministries, Chittagong port, Customs House, the National Board of Revenue,
Bangladesh Standards and Testing Institution and Bangladesh Securities and Exchange
Commission. Also a former caretaker government adviser, Rahman said the chamber firmly
pursued an objective approach to socio-economic issues, which successive governments
appreciated.

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Its suggestions and recommendations were given much weight by all governments, and in
recent years, they were included in the Companies Act, Bankruptcy Act, Consumer
Protection Act, industrial policy, pre-shipment inspection, formation of Bangladesh Energy
Regulatory Commission, alternative dispute resolution, VAT and customs and financial
reporting acts.

The socially responsible views often help the business community and the government found
a common path of fulfilment. And in the process, MCCI sealed its reputation as the most
effective channel of communication between the country's business community and the
government.

The chamber has been always a non-political organization, but it made an exception in 1971.
It covertly offered whole-hearted support for the cause of independence, and on the night of
March 26, 1971, it hoisted the flag of Bangladesh at the rooftop of its office.

It donated food and money to the freedom fighters during the country's nine-month struggle
and supported the formation of the new government.

The chamber's role became much more important after independence. It helped the
government with the privatization process through research and actively participating in
policymaking.

Today, the MCCI performs a leading role in trade policy formulation, facilitates trade and
investment, assists in business start-ups, settles trade disputes, issues certificates mandatory
for business, encourages members to carry out corporate social responsibility activities and so
forth.

The MCCI contributed to the establishment of sectors such as education, health and
environment as well.

It became a member of the International Chamber of Commerce in 1984 and since then, has
forged new links. It signs protocols and memorandum of understandings with foreign
chambers for promoting international trade. It also plays a vital role in areas of bilateral
relationships, diplomatic negotiations and representation of Bangladesh in the outside world.

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The MCCI also has great interests in social and humanitarian causes -- and just about
anything that enhances the well-being of people in Bangladesh. It played key roles in setting
up Tolaram Women College in Narayanganj, Viqarunnisa Noon School in Dhaka, Udayan
School, Chittagong Public School and the Institute of Business Administration of Dhaka
University.

In the health sector, it had extended financial assistance towards the development of
Narayanganj Victoria Hospital, Holy Family Red Crescent Hospital and Dhaka Shishu
Hospital. The chamber's motive is to promote inclusive and responsible business always, she
said.

For the last one decade, the MCCI has been trying to disseminate the philosophy of corporate
social responsibility in a much more systemic and comprehensive manner than ever before.

Going forward, the country's oldest and most representative trade chamber is bent on
continuing to play a leading role in the business affairs and in pioneering paths to prosperity
and development in alliance with governmental and non-governmental agencies.

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Economic Indicators

According to the Metropolitan Chamber of Commerce and Industry, Bangladesh’s economy

is progressing well despite inflationary pressure, slower growth in export and imports, lack of
investor confidence and a lower rate of investment.

In its review of the economic situation for July-September, the chamber said the overall
economic situation was positive as indicated by steady improvements in the major economic
indicators in the quarter under the review.

 Agriculture, manufacturing and

services sectors all performed well,
but continuous government support of
various types will be needed to
sustain their growth.

 Infrastructure deficits and gas and

power supply problems along with
faulty transmission capacity are now
undermining the performance of all
productive sectors of the economy.

The MCCI said it is assumed that the political situation will remain stable and peaceful in the
coming days. It said major macroeconomic indicators like the growth rate of GDP, per capital
income, remittances, foreign currency reserves, and foreign direct investment show a positive
trend.

 Merchandise exports slipped 2.95 percent year-on-year to $9.65 billion in the first
quarter. The earnings also fell short of the strategic target by 11.06 percent.

 Import payments during the first two months, for which data are available, stood at
$9.32 billion, which is 2.29 percent lower than the payments made during the
corresponding months in the last fiscal year, mainly due to lower imports of
petroleum and petroleum products and capital machinery.

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  The inflow of remittances in the quarter rose 17.58 percent to $4.55 billion year-on-
year, on the back of the government’s 2 percent incentive on remittance receipts and
better exchange rates.

 Disbursement of foreign aid decreased by 5.62 percent to $940.80 million in the first
quarter. Foreign aid commitment stood at $2.01 billion against $1.82 billion in the
same period a year ago. In the first two months of the fiscal year, net FDI was up by 7
percent to $428 million year-on-year.

 Trade deficit narrowed by 6.16 percent year-on-year to $1.98 billion in July and
August.

“FDI inflow to Bangladesh is low compared to that in many countries at similar level of
development,” the chamber said.

The stock markets continued to suffer mainly due to a confidence crisis during most of the
time in the first quarter. Key indicators at both Dhaka and Chattogram stock exchanges –
broad index, turnover and market capitalization – declined markedly.

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Graphical Representation

Balance of Payment

Export earnings of the following major commodities increased during July-October

2019-20

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Top Ten Export Destinations (July-October 2019-20)

Import Payments of major commodities in July-August 2019-20

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MAJOR ECONOMIC INDICATORS - BANGLADESH

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 Chapter Four

Findings & Conclusion

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Findings

After analyzing and evaluating the information and data about MCCI, I have found many
positive sides as well as negative sides of MCCI. Those are mentioned below:

 Infrastructure deficit

 Shortage of power and energy

 Lower rate of investment

 Faulty transmission capacity which is undermining the performance

 Failed to achieve the strategic target of export earnings

 Lower import of capital machinery

 Lack of remittances

 Need more professional staffs

 Limited number of shares

 Decreased rate of disbursement of foreign aid

 Trade deficit narrowed by 6.16%

 Slower growth in export and import

 Lack of investor confidence

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Conclusion

The Metropolitan Chamber of Commerce and Industry is the pre-eminent trade organization
of Bangladesh. It encompasses leading commercial and large industrial organizations of the
country. The Chamber’s services, developed over a long period, are comprehensive and cover
specialized areas such as taxation, import-export, tariff and non-tariff measures, investment,
WTO matters and other national and international economic and commercial concerns. The
Chamber’s policy recommendations and inputs related to ongoing reforms have gained wide
acceptance amongst government and policy makers. MCCI has earned recognition at home
and abroad by offering services such as issuing certificate of origin, through conducting
economic research and sector surveys, offering trade and investment facilitation services,
legal services, information management and dissemination, and with publications related to
trade and commerce. Going forward, the country's oldest and most representative trade
chamber is bent on continuing to play a leading role in the business affairs and in pioneering
paths to prosperity and development in alliance with governmental and non-governmental
agencies.

Websites

www.mccibd.org

en.wikipedia.org

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