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Assignment On INTERNATIONAL TRADE AND ECONOMY

ASEAN (1)

Submitted to: - Md. Bakhtiar Rana Chairman Dept. of Marketing Jagannath University

Submitted by:-NIMBUS 2nd Batch Dept. of Marketing Jagannath University

Submission date- 16 May, 2010

Jagannath University
Department of Marketing

NIMBUS
(Today and tomorrows marketing leaders)

NAME 1) 2) 3) 4) 5) 6) 7) 8) 9) Md. Ashraful Alam Md. Masum Billah Md.Mamun-Ar-Rashid Kazal Chandra Karmaker M.M.Abdullah Al Maswood Sheik Azharul Islam Md. Jahangir Alam Md. Monir Hossain Jaynal Abedin

ID NO 07882889 07882806 07882881 07882882 07882853 07882791 06631880 07882802 07882801

Group Leader: Md. Ashraful Alam

07882889

Chapter 1
1.0 Introduction
After the 2nd world war united nation (UN) was formed in order to safety and habitable of world by taking all countries under one flag. It was thought that this organization would solve all of social, economical and political problem of the countries. But many problems come in front because of geographical country and the huge disparity of eco-social condition in spite of willingness to solve this problem. So, the concept of forming regional, political and economical organization had grown. ASEAN is a geographical economical organization. Basically, the association of Southeast Asian Nation is known as ASEAN. It is consisted with 11 countries. ASEAN was formed on 8th august 1967 by 5 south Asian same minded countries Indonesia, Malaysia, Philippines, Singapore, and Thailand. Its main purposes are the economic development of country, social progress, increasing economic growth, cultural development among its members by exchanging facilities, the protection of the peace and stability of the region and to provide the opportunities for member countries regarding internal and external economic problem. Keeping this new in mind and to fulfill this view easily the five countries had increased their members from five to eleven including Brunei, Burma, Cambodia, Laos, Vietnam and East Timor in the years of subsequently. ASEAN is successfully doing its job to keep economic, social, religious and cultural constancy among the members country. Most of ASEAN countries have a good economic relation with Bangladesh. So ASEAN is an important and nonreject able organization in Bangladesh perspective.

Chapter 2
Export to ASEAN countries

2.0 Introduction
The role of Export in the Economic Perspective is inevitable. If the rolling of exports is higher than import, it will ensure an auspicious economic growth of a country. ASEAN countries play a vital contribution to Bangladesh economy. Bangladesh gets good amounts of foreign currency through exporting different goods and services in ASEAN market.

2.1 Bangladesh export to Brunei


Brunei is small country with a wealthy economic condition. Its economy is a mixture of foreign and domestic entrepreneurship, government regulation and welfare measures, and village tradition. It is almost totally supported by exports of crude oil and natural gas, with revenues from the petroleum sector.

2.1.1 Major exported products:


1. 2. 3. 4. 5. 6. Live animals, animals products Plastics and articles thereof Raw hides and skins, leather Printed books, newspaper, typescripts Textiles and textile articles Potential chemicals

Years 2004-05 2005-06 2006-07 2007-08 2008-09

Amount (Taka in Millions) 30.567 32.706 26.910 30.153 19.941

Growth Rate 77% 7% -18% 12% -34%

Table 2.1.1: The amounts of exports in last six years to Brunei from Bangladesh Source: Annual Export Receipts (2008-09), (2006-07) Statistics Department, Bangladesh Bank

300 250 200 150 100 50 0 -50 Amount (Taka in Millions) Growth Rate

Fig 2.1.1: Export to Brunei from Bangladesh Source: Annual Export Receipts (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Now lets see what the major exports to Brunei were for the last four years and how much was the percentage of total export.

Table: 2.1 Exported products to Brunei


(Value in million tk.) Name of the products 1.Live animals, animals products 2.Plastics and articles thereof 2005-06 2006-07 200708 3.814 200809

48

3.Raw hides and skins, leather 21.132 5.873 7.886 5.735 4.Printed books, newspapers, 0.211 typescripts 5.Textiles and textile articles 11.016 21.011 18.366 13.409 6.Potential chemicals 0.758 Source-Export receipts: 08-09, 07-08, 06-07, 05-06.By statistics. Dept. of B.B. page 123-124.
5

Fig-2.1
50 45 40 35 30 25 20 15 10 5 0 1.Live animals, animals products

2.Plastics and articles thereof

3.Raw hides and skins, leather 4.Printed books, newspapers, typescripts 5.Textiles and textile articles 6.Potential chemicals

2.1.2 Analysis
In the year 2005-06 we exported raw hides and skins 64.64% and textiles and textiles articles 33.70%.In 2006-07 raw hides and skins decreased 21.85% and textiles and textiles articles increases 78.15%.In 2007-08 we exported some new products such as live animals 12.65%, plastics and articles thereof 0.16%, printed books and newspaper 0.70%.Increases raw hides 26.16% but decreases textiles 60.95%.In 2008-09 our total export decreased. Raw hides and skins decreases 28.82%, textiles and textiles articles decreased 67.38%. Chemical was first exported at 3.82% in 2008-09.

2.1.3 Causes of Increasing Export:


1. There are several things that works behind the increasing the export of Textile fabric. They are available cheap labor, uninterruptable power supply and available foreign raw materials. 2. Bangladesh has a good reputation in pharmaceuticals and we are able to export at a cheaper rate. 3. Bangladesh is dexterous in producing many dry food items because raw materials are available in Bangladesh.

2.2 Bangladesh export to Cambodia

Cambodia is a pivotal country where Bangladesh exports notable amount of goods& services in every economic year. The relationship in terms of export from Bangladesh to Cambodia contributes a lot in our trade and business.

2.2.1 Major exported products: 1. Products of the chemical or allied industries 2. Plastics and articles thereof 3. Raw hides and skins, leather 4. Pulp of wood or of other fibrous 5. Textiles and textile articles Years 2004-05 2005-06 2006-07 2007-08 2008-09 Amount (Taka in Millions) 55.131 39.192 44.781 50.749 46.246 Growth Rate 15% -29% 14% 13% -8%

Table 2.2.1: The amounts of Exports in last six years to Cambodia from Bangladesh Source: Annual Export Receipts (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Fig 2.2.1: Exports to Cambodia from Bangladesh


5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 -500 2006-07 2007-08 2008-09 2736.4 4105.91 65% 50%

Source: Annual Export Receipts (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Table: 2.2 Exported products to Cambodia


(Value in million tk.) Name of the products 1. Products of the chemical or allied industries 2. Plastics and articles thereof 3. Raw hides and skins, leather 4. Pulp of wood or of other fibrous 42.693 1.172 26.550 42.976 2005-06 2006-07 2.242 200708 12.953 200809 17.646

0.686 31.267 0.055 5.788 1.670 25.679

5. Textiles and textile articles 15.180

Source-Export receipts: 08-09, 07-08, 06-07, 05-06.By statistics. Dept. of B.B, page 149-150

Fig 2.2
45 40 35 30 25 20 15 10 5 0 1. Products of the chemical or allied industries 2. Plastics and articles thereof 3. Raw hides and skins, leather 4. Pulp of wood or of other fibrous 5. Textiles and textile articles

2.2.2 Analysis
In 2005-06 Bangladesh exported Cambodia raw hides, skins and leather at 68.67%, Pulp of wood or other fibrous at 1.89%, textiles and textile articles at 24.42%. In 2006-07 new item products of the chemical or allied industries was added to export at the rate of 2.97% of total export. Other items were remaining with increasing of textiles from 24.42% to 35.23%.In 2007-08 products of the chemical or allied industries increased rapidly from 2.97% to 25.52%. New item plastics and articles included. Others were reduced in compare with previous years. In 2008-09 products of the chemical or allied industries were increase more. But textiles and textiles articles has fallen a big number from 11.41 to 3.61%.

2.2.3 Causes of Increasing Export:


1. There are several things that works behind the increasing the export of Textile fabric. They are available cheap labor, uninterruptable power supply and available foreign raw materials. 2. Bangladesh has a good reputation in pharmaceuticals and we are able to export at a cheaper rate. 3. Bangladesh is dexterous in producing many dry food items because raw materials are available in Bangladesh.

2.3 Bangladesh export to Indonesia

Indonesia is one of the bigger countries of South East Asia. It has more than 200 million population markets for Bangladesh. It is a more potential and good market from Bangladeshi point of view.

2.3.1 Major exported products:


1. Live animals, animals products 2. Vegetable products 3. Tobacco and substitutes 4. Products of the comical and allied industries 5. Plastics and articles thereof 6. Raw hides and skins, leather 7. Wood and articles of wood 8. Textiles and textile articles 9. Iron and steel 10. Machinery 11. Miscellaneous The amounts of are shown below: Years 2004-05 2005-06 2006-07 2007-08 Amount (Taka in Millions) 648.53 289.39 978.35 1420.25 Growth Rate 294% -55% 238% 45%

10

2008-09

1351.17

-5%

Table 2.3.1: The amounts of Exports in last six years to Indonesia from Bangladesh Source: Annual Export Receipts (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Fig 2.3.1: Exports to Indonesia from Bangladesh

1600 1400 1200 1000 800 600 400 200 0 -200 Amount (Taka in Millions) Growth Rate

Source: Annual Export Receipts (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Table-2.3 Exported products to Indonesia


( value in million tk.) Name of the products 200506 0.862 22.770 200607 5.294 15.82 14.07 0.669 10.671 2007-08 200809 5.482 45.671 51.101

1. Live animals 2. Vegetables products 3 .Tobacco and

11

substitutes 4.Products of the chemical 68.987 109.577 and allied industries 5. Plastics 3.165 0.484 40.882 91.78

6.361

12.480

Source-Export receipts: 08-09, 07-08, 06-07, 05-06.By statistics. Dept. of B.B, page 202-205

Fig 2.3
120 100 80 60 40 20 0

1. Live animals 2. Vegetables products 3 .Tobacco and substitutes 4.Products of the chemical and allied industries 5. Plastics

2.3.2 Analysis
In 2005-06 Bangladesh exported many item to Indonesia. But textiles and its article export in a big amount which is 74.69 % of total. Other items like products of the chemical and allied industries 6.76%, iron and steel 14.90% were exported. In 2006-07 textiles had fallen down in 69.41%. Iron and steel had fallen in 13.66%. Though their total amount had increased from previous years. Raw hides, skins, leather and product of chemical were increased. In 2007-08 total amount and percentage of total export of textiles and raw hides were increased from 69.41% to 17.17% consecutively. But others were reduced. In 2008-09 all the items were reduced
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without products of chemical. It was increased from 2.92% to 6.77%. New item is live animals and products but little amount which is 0.4% of totals.

2.3.3 Causes of Increasing Export:


1. Bangladesh has a good reputation in pharmaceuticals and we are able to export at a cheaper rate. 2. There are several things that works behind the increasing the export of Woven garments. They are available cheap labor, uninterruptable power supply and available foreign raw materials. 3. We have an auspicious environment for Raw jute, Tobacco. 4. Raw leather and raw juts are highly available in Bangladesh so we can produce and export many Sacks & bags in Indonesia.

2.4 Bangladesh export to Laos


2.4.1 Major items export to Laos: 1. 2. 3. 4. 5.
.Plastics and articles thereof Raw hides, skins and leather Textiles and articles Miscellaneous Optical The amounts of exports in last six years to Laos are shown below: Years 2004-05 2005-06 2006-07 2007-08 2008-09 Amount (Taka in Millions) 0 41.88 16.15 15.85 19.57 Growth Rate -61% -2% 23%

Table 2.4.1: The amounts of Exports in last six years to Laos from Bangladesh Source: Annual Export Receipts (2008-09), (2006-07) Statistics Department, Bangladesh Bank

13

45 40 35 30 25 20 15 10 5 0 -5 Amount (Taka in Millions) Growth Rate

Table -2.4 Exported products to Laos


(Value in million tk.) Name of the products 200506 200607 200708 6.12 37.81 0 4.041 12.716 2.407 0.247 6.397 0.317 2.520 2008-09

1..Plastics and articles thereof 2.Raw hides, skins and leather 3.Textiles and article 4.Miscellaneous 5.Optical

2.235 9.468 6.009 1.704 0.159

Source-Export receipts:08-09,07-08,06-07,05-06.By statistics. Dept. of B.B .page 239-240

Fig 2.4

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40 35 30 25 20 15 10 5 0 1..Plastics and articles thereof 2.Raw hides, skins and leather 3.Textiles and article 4.Miscellaneous 5.Optical

2.4.2 Analysis
In 2005-06 we export only two products that is an amount of 41851 million tk. Those are raw hides, skins, leather 90 % and textiles articles. In 2006-07 we export 3 products but decreased an amount of 16167 tk. raw hides, skins and leather retains 1 as 78 % exported. In 2007-08 4 products exported but in amount less than previous years. Raw hides, skins and leather 40% lost their market, plastics and thereof 41% in top position in exported products. In 2008-09 we exported 5 products that is an amount of 19575 million tk. more than previous years. Textiles articles 30% increased in a good amount of exported products.

2.5 Bangladesh export to Malaysia


Malaysia is one of the most significant nations in ASEAN. There are a number of remarkable products and services are being exported from Malaysia to Bangladesh as well as the trade relation with Malaysia is increasing rapidly.

2.5.1 Major items export to Malaysia:


1. 2. 3. 4. 5. 6. 7. 8. 9. Live animals and animals products Vegetables products Animal and vegetables Foodstuffs, beverages, skinner and vinegar Mineral product Pharmaceuticals products and chemicals Plastic and rubber Raw hides and skins, leather Printed books, newspaper, paperbound, picture
15

10. Textiles and articles 11. Iron, steel, copper Years 2004-05 2005-06 2006-07 2007-08 2008-09 Amount (Taka in Millions) 529.58 726.22 1043.35 164.22 117.82 Growth Rate 33% 37% 43% -84% -28%

1200 1000 800 600 400 200 0 -200 Amount (Taka in Millions) Growth Rate

Table -2.5: Exported products to Malaysia


(Value in million tk.) Name of the products 200506 200607 200708 200809

1. Live animals and products 2.Vegetables products 3.Animal and vegetables

102.964 134.307 164.278 117.816 126.578 90.265 1.004 30.778 27.228 39.473 1.064 161.321 3.717

178.155 160.837

4.Foodstuffs,beverages,skinet
16

and vinegar 5.Mineral product 2.942 456.468

Source-Export receipts:08-09,07-08,06-07,05-06.By statistics. Dept. of B.B.page 249-250

Fig 2.5
500 450 400 350 300 250 200 150 100 50 0 2.Vegetables products 3.Animal and vegetables 4.Foodstuffs,beverages,skinet and vinegar 5.Mineral product 1. Live animals and products

2.5.2Analysis
In 2005-06 Bangladesh exported highly such as animals, vegetables, pharmaceutical products, textiles and articles to Malaysia. But mineral product and plastic and rubbers exported rate decreased. In 2006-07 animals, plastics and rubbers, textiles and articles had increased than previous year 05-06. But vegetables, foodstuffs, skins, raw hides and iron, steel, copper had decreased. In 2007-08 the exported products live animals, pharmaceuticals products, plastics, raw hides and textiles increased but other products decreased. In 2008-09 Bangladesh exported mineral products, pharmaceuticals which percentage rate was high than previous year.

2.5.3 Causes of Increasing and fluctuation of Export:


1. Bangladesh has a good reputation in pharmaceuticals and we are able to export at a cheaper rate.

17

2. There are several things that works behind the increasing the export of Woven garments and knitwear. There are available cheap labor, uninterruptable power supply and available foreign raw materials. 3. Bangladesh ecology is favorable for shrimp cultivation. 4. Our agricultural production depends on whether so our agricultural products export like potato and jute fluctuate.

2.6 Bangladesh export to Myanmar

Myanmar is the nearest country of Bangladesh. It is one of the ASEAN countries. Bangladesh extends export in different countries. Myanmar is one of them. Myanmar is an industrially least developed country. So Bangladesh has lot of opportunity to export in Myanmar.

2.6.1 Major exported products:


1. Vegetables products 2. Products of the chemical and Allied industries 3. Plastics and articles thereof 4. Raw hides and skins, leather 5. Textiles and articles 6. Ceramic products 7. Iron, steel 8. Live animals 9. Machinery

The amounts of exports in last six years to Myanmar are shown below:

18

Years 2004-05 2005-06 2006-07 2007-08 2008-09

Amount (Taka in Millions) 212.52 262.61 253.09 92.34 125.38

Growth Rate 66% 19% -4% -63% 36%

Table 2.6.1: The amounts of Exports in last six years to Myanmar from Bangladesh Source: Annual Export Receipts (2008-09), (2006-07) Statistics Department, Bangladesh Bank

300 250 200 150 100 50 0 -50 Amount (Taka in Millions) Growth Rate

Table -2.6: Exported products to Myanmar


( value in million tk.)

Name of the products

200506 0.585

2006-07

2007-08

2008-09

1.Vegetables products

548

4.928

664

19

2.Products of the chemical and allied industries

58.903

10.3300

92.343

125.379

3.Plastics and articles thereof

1.587

0.180

4.Raw hides and skins, leather 5.Textiles and articles

10.447

73.198

8.358

4.694

0.348

2.255

1.939

13.616

Source-Export receipts:08-09,07-08,06-07,05-06.By statistics. Dept. of B.B. page 127-129.

Fig 2.6
700 600 500 400 300 200 100 0 1.Vegetables products 2.Products of the chemical and allied industries 3.Plastics and articles thereof 4.Raw hides and skins, leather 5.Textiles and articles

20

2.6.2 Analysis

In 2005-06 Bangladesh had exported highly chemical, allied industries, plastics and articles thereof and textiles to Myanmar. But the rates of other products have decreased. In 2006-07 Bangladesh had exported highly chemical, allied industries which increased from previous years. But some products percentage decreased such as vegetables products, plastics and articles, live animals from previous years. In 2007-08 exported products vegetables products and iron, steel increased from previous years. In 2008-09 Bangladesh had exported chemical, allied industries and iron, steel which rate was high than previous years. But other products rate decreased such as vegetables, plastics, raw hides ceramic products from previous years.

2.6.3 Causes of Increasing and decreasing of Export:


1. Bangladesh has a good reputation in pharmaceuticals and we are able to export at a cheaper rate. 2. Bangladesh has a great demand in its own develop rather than its production thats why its exports have been decreasing day after day. 3. Bangladesh has available leather and cheap labor so it can produce and exports foot wear.

2.7 Bangladesh export to Singapore

Export to ASEAN countries especially in Singapore provides a major source of foreign currency for Bangladesh. The trend of export to Singapore is going towards progress.

2.7.1 Major exported products:


1. Live animals: animal products 2. Vegetables products 3. Foodstuffs, beverages 4. Mineral product 5. Products of the chemical and allied industries
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6. Plastics and articles thereof 7. Raw hides and skins, leather

8. Wood and articles of wood 9. Pulp of wood or of other fibrous 10. Textiles and articles 11. Vegetable fat and oil 12. Footwear, headgear 13. Articles of stone 14. Natural and cultured pearls 15. Base metals and articles of base metal 16. Machinery and mechanical 17. Vehicles, aircraft, vessels

The amounts of exports in last six years to Singapore are shown below: Years 2004-05 2005-06 2006-07 2007-08 2008-09 Amount (Taka in Millions) 2736.4 4105.91 4520.26 3149.13 3909.07 Growth Rate 65% 50% 10% -30% 24%

Table 2.8.1: The amounts of Exports in last six years to Singapore from Bangladesh Source: Annual Export Receipts (2008-09), (2006-07) Statistics Department, Bangladesh Bank

22

Fig
5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 -500

2.8.1:

Exports

to

Singapore

from

Bangladesh

Amount (Taka in Millions) Growth Rate

Source: Annual Export Receipts (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Table -2.7 Exported products to Singapore


( value in million tk.) Name of the products 1.Live animals : animal products 2.Vegetables products 3. Foodstuffs, beverages 4. Mineral product 5. Products of the chemical and allied industries 200506 53.373 2006-07 156.873 200708 115.43 2 251.44 4 110.52 5 200809 59.920

600.99 3 46.15 2632.8 47 368.01 9

664.174 76.627 546.334 26.874

83.834 190.88 9 1808.1 77 45.273

94.437

Source-Export receipts:08-09,07-08,06-07,05-06.By statistics. Dept. of B.B. page 319-324

23

Fig 2.7
3000 2500 2000 1500 1000 500 0 1.Live animals : animal products products 4. Mineral product the chemical and allied 2.Vegetables 3. Foodstuffs, beverages 5. Products of industries 2005-06 Growth 2006-07 Growth 2007-08 Growth 2008-09 Growth

2.7.2 Analysis

In 2005-06 we exported 17 types an amount of products of 5244877 tk. in which mineral products 50%, vegetables products 11% and natural and cultured pearls noticeable. In 2006-07 we exported 16 types of products, that is about 4034101 million tk. natural and cultured pearls43 % and textiles articles 11.97% but mineral product 13.59% decreases a huge amount on the other hand vegetable products 11% remain same. In 2007-08 we exported 15 types of products that is about 3149128 million tk. That means our export decrease year by year. Though natural and cultured pearls are top position29% but it decreases than previous years. In 2008-09 we export 17 products that is amount about 3909069 that is more than 07-08.After 1 year we export mineral products 46% and that is gained top position. Textiles and articles exports also increase. But we lost our pearls 4% and vegetable products 0.35%. So after analyzing we have a good chance to export in Singapore.

2.7.3 Causes of Increasing and decreasing of Export:


1. There are several things that works behind the increasing the export of Woven garments and knitwear. There are available cheap labor, uninterruptable power supply and available foreign raw materials. 2. Computer accessories are so developing day by day and demand of computer products are increased 3. Bangladesh are reverend country and fish items are available to export
24

2.8 Bangladesh export to Thailand


Thailand is one of the major countries of ASEAN tigers. Thailands economy is standing on strong base. Bangladesh keeps trade relation with Thailand over the years. Bangladesh export many goods to Thailand.

2.8.1 Major exported products:


1. Live animals: animal products 2. Vegetables products 3. Prepared foodstuffs 4. Products of the chemical 5. Plastics and articles 6. Raw hides and skins 7. Wood and articles of wood 8. Textiles and articles 9. Footwear, headgear 10. Base metals and articles of base metal 11. Machinery and mechanical 12. Vehicles, aircraft

The amounts of exports in last six years to Thailand are shown below: Years 2004-05 Amount (Taka in Millions) 2760.14 Growth Rate 97%

25

2005-06 2006-07 2007-08 2008-09

1381.73 1280.12 471.77 2431.74

-50% -7% -63% 415%

Table 2.9.1: The amounts of Exports in last six years to Thailand from Bangladesh Source: Annual Export Receipts (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Fig 2.9.1: Exports to Thailand from Bangladesh


3000 2500 2000 1500 1000 500 0 -500 Amount (Taka in Millions) Growth Rate

Source: Annual Export Receipts (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Table -2.8 Exported products to Thailand


( value in million tk.) Name of the products 1. Live animals : animal 2005-06 2006-07 2007-08 2008-09

131.51

193.056

160.195

163109

26

products 2. Vegetables products 3. Prepared foodstuffs 4. Products of the Chemical 5.Plastics and articles 11.532 69.675 2.778 0.865

3.146

5.435

19.104

25.361

906.726

0.162

2.146

3.511

7.377

Source-Export receipts:08-09,07-08,06-07,05-06.By statistics. Dept. of B.B. page 356-359.

Fig 2.8
180000 160000 140000 120000 100000 80000 60000 40000 20000 0 1. Live animals : animal products 2. Vegetables products 3. Prepared foodstuffs 4. Products of the Chemical 5.Plastics and articles

2.8.2 Analysis

27

In 2005-06 textiles and articles and base metals and its articles exported highly than other products. In 2006-07 textiles export decreased but base metal and its articles export rate increased. In 2007-08 live animals and animals products exported highly. Base metal and its articles export rate decreased hugely. In 2008-09 products of the chemical exported highly from previous years. Export change of other products was not noticeable.

2.8.3 Causes of Increasing and Fluctuation of Export:


1. There are several things that works behind the increasing the export of knitwear. There are available cheap labor, uninterruptable power supply and available foreign raw materials 2. Bangladesh has available leather and cheap labor so it can produce and exports foot wear. 3. Bangladesh ecology is favorable for shrimp cultivation. 4. We have an auspicious environment for raw jute.

2.9 Bangladesh export to Vietnam

Vietnam is one of the major countries of ASEAN. Bangladesh has a long trade relationship with Vietnam. There are a huge demand for Bangladeshi products and service. Bangladesh export many products to Vietnam.

2.9 Major exported products 1. Live animals, animals products 2. Foodstuffs, beverage, sprits, vinegar 3. Pharmaceuticals products and
Chemicals 4. Plastic and rubbers 5. Raw hides and skins, leather 6. Textiles & articles 7. Iron & steel 8. Machinery 9. Miscellaneous 10.Vegetable
28

The amounts of exports in last six years to Vietnam are shown below: Years 2004-05 2005-06 2006-07 2007-08 2008-09 Amount (Taka in Millions) 1544.84 1359.65 2310.67 36.61 66.73 Growth Rate 71% -12% 70% -98% 82%

Table 2.10.1: The amounts of Exports in last six years to Vietnam from Bangladesh Source: Annual Export Receipts (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Fig 2.10.1: Exports to Vietnam from Bangladesh


2500 2000 1500 Amount (Taka in Millions) 1000 500 0 -500 Growth Rate

Source: Annual Export Receipts (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Table -2.9 Exported products to Vietnam


( value in million tk.)
29

Name of the products 1.Live animals, animals products

200506 2.351

200607 6.141

200708 51.891

200809 275.94 6 0.503

42.200 2.Foodstuffs,beverage,sprits,vin gar 3.Pharmaceuticals products and Chemicals 4.Plastic and rubbers 5.Raw hides and skins, leather

23.998

28.219

27.737

66.875

115.80 1 67.451

2.748

29.124

58.309

607.68 417.36 441.73 358.28 3 3 6 6 Source-Export receipts:08-09,07-08,06-07,05-06.By statistics. Dept. of B.B. page 393-397

Fig 2.9
700 600 500 400 300 200 100 0 2.Foodstuffs,beverage,sprits ,vingar 3.Pharmaceuticals products 1.Live animals, animals products

and Chemicals

2.9.2 Analysis
In 2005-06 only raw hides and skins, leather and textiles and articles exported highly. These products percentage rate was 40.37% and 54.36%.other products exported few. In 2006-07
30

textiles and textiles articles export was highest, which rate was 51.06% .Raw hides, skins, leather and iron, steel export was noticeable. In 2007-08 raw hides, skins export increased from previous years. But textiles and articles and iron and steel export decreased from previous years. In 200809 live animals and animals products, pharmaceuticals products and chemical, plastics and articles, textiles and its articles increased from previous years. Other products export rate decreased.

2.9.3 Causes of Increasing and Decreasing of Export:


1. We have an auspicious environment for raw jute. 2. Bangladesh has a good reputation in pharmaceuticals and we are able to export at a cheaper rate. 3. Bangladesh has available leather and cheap labor so it can produce and exports foot wear.

2.10 Bangladesh export to Philippines


Philippine is one of the countries of South East Asia. Bangladesh has a long trade relationship with Philippine. Every year Bangladesh has exported number of products to Philippine.

2.10.1 Major Exported products:


1. Live animals: animal products 2. Vegetables products 3. Foodstuffs beverages 4. Products of the Chemical or allied industries 5. Raw hides and Skins 6. Pulp of wood or other fibrous cellulosic 7. Textiles and textiles articles 8. Articles of stone, plaster, cement etc 9. Base metals and articles of base metal 10. Machinery and mechanical 11. Mineral product

31

The amounts of exports in last six years to Philippines are shown below: Years 2004-05 2005-06 2006-07 2007-08 2008-09 Amount (Taka in Millions) 332.17 690.07 517.22 249.07 878.04 Growth Rate 7% 108% -25% -51% 252%

Table 2.7.1: The amounts of Exports in last six years to Philippines from Bangladesh Source: Annual Export Receipts (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Fig 2.7.1: Exports to Philippines from Bangladesh


900 800 700 600 500 400 300 200 100 0 -100 Amount (Taka in Millions) Growth Rate

Source: Annual Export Receipts (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Table -2.10 Exported products to Philippines


( value in million tk.)

32

Name of the products 1. Live animals : animal products 2. Vegetables products 3. Foodstuffs beverage 4. Products of the Chemical or allied industries 5. Raw hides and Skins

2005-06

2006-07

2007-08 1.848

2008-09

0.339 69.406 28.457

0.214 22.298 35.679

0.171 43.061

24.892 216.368

10.579

1.250

3.718

1.503

Source-Export receipts:08-09,07-08,06-07,05-06.By statistics. Dept. of B.B. page 297-299

Fig 2.10
250 200 150 100 50 0 3. Foodstuffs beverage 4. Products of the Chemical or allied industries 5. Raw hides and Skins 1. Live animals : animal products 2. Vegetables products

10.1.2 Analysis
In 2005-06 foodstuffs, beverage, base metals and its articles exported hugely. In 2006-07all of the products export rate decreased from previous without base metals and its articles. In 2007-08 live animals and animals products exported firstly. All products without base metals and its articles export rate increased from previous years. In 2008-09 mineral products exported first time. Without vegetables and products of the chemical or allied industries all products export rate decreased.

2.10.3 Causes of Increasing and Decreasing of Export:


1. Bangladesh has a good reputation in pharmaceuticals and we are able to export at a cheaper rate.
33

2. There are several things that works behind the increasing the export of knitwear. There are available cheap labor, uninterruptable power supply and available foreign raw materials

2.11 Overall chapter brief


Many existing implements Bangladesh has been faced through exporting goods and services from ASEAN nation. There are many problems are available in Bangladesh such as appropriate trade principal, absence of expert exporter, law quality of exportable goods, lack capital, curtain amount of exportable products, failure in making agreement. Thats why balance of trade and payment are meeting many existing restriction. Now Bangladesh govt. try to equalize the balance of trade payment by applying different rules and regulations imposing many restriction as well as Government should negotiate with ASEAN countries to ensure a fixed quota system in Financial Market. Bangladesh Govt. can be taken different effective steps in to consideration such as increasing products standardization reducing cost of production supplying capital, making trade agreement reducing export tax etc.

Table 2.11 Total Export to ASEAN countries


( value in million tk.) Country name 2008-09 2007-08 2006-07 2005-06 32.692 71.870 62.172 1019.355 41.851 790.933 233.976 5244.877 1585.913 1505.105

Brunei 19.902 30.135 26.884 Burma 345.529 446.704 208.294 Cambodia 46.46 50.749 75.367 Indonesia 1351.172 1402.246 1317.924 Laos 19.75 15.846 16.167 Malaysia 1876.421 1418.889 867.435 Philippines 878.036 249.074 371.715 Singapore 3909.069 3149.128 4034.101 Thailand 2431.740 471.769 1492.799 Vietnam 1189.719 1029.978 1547.345 Source -Export receipts:08-09,07-08,06-07,05-06.By statistics. Dept. of B.B.

Figure 2.11 of ASEAN countries

34

6000000 5000000 4000000 3000000 2000000 1000000 0 2008-09 2007-08 2006-07 2005-06

Table 2.12 ASEAN total exports:

YEAR ASEAN Total (crore)

2008-09 1206.7

2007-08 826.5

2006-07 995.8

2005-06 1123.6

Figure 2.12 of total export


1400 1200 1000 800 600 400 200 0 1 2 3 4 5 Series1 Series2

35

Chapter 3

Import from ASEAN countries 3.0 Introduction


As the resources are scarce, so no country cannot continue its economic operation by its available resources. Bangladesh has been satisfying its national demand through importing various goods and services from different nation specially ASEAN countries in long period of time. Bangladesh in a country which has a great demand of raw materials of textiles, computer accessories, industrial machineries, electrics and so on that has to import from different countries and ASEAN is remarkable of theme.

3.1Bangladesh import from Brunei


Brunei is one of the non major countries from the trade perspective of Bangladesh. Bangladesh imports a few products from Brunei. Actually Bangladesh has a very new trade relationship with Brunei. 3.1.1 Major imported products: 1. Products of the chemical or allied industries 2. Plastics and articles thereof; rubber and articles 3. Pulp of wood or of other fibrous cellulose material; paper or paperboard, recovered paper or paperboard 4. Textiles and textile articles 5. Base metals and articles of base metal 6. Machinery and mechanical appliance electrical equipment, parts thereof, sound recorders and reproducers, television image and sound recorders and reproducers and parts.

36

The amounts of imports in last six years from Brunei are shown below: Years 2004-05 2005-06 2006-07 2007-08 2008-09 Amount (Taka in Millions) 6.3 11.89 25.51 97.32 29.28 Growth Rate -60% 88% 115% 282% -70%

Table 3.1.1: The amounts of imports in last six years from Brunei to Bangladesh Source: Annual Import Payments (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Fig 3.1.1: Imports from Brunei to Bangladesh


100 90 80 70 60 50 40 30 20 10 0 -10 2004-05 2005-06 2006-07 2007-08 2008-09 Growth Rate Amount (Taka in Millions)

Source: Annual Import Payments (2008-09), (2006-07) Statistics Department, Bangladesh Bank

37

Table 3.1 Imported products from Brunei


( value in million tk.)

Name of the products

2005-06

200607 3.337

2007-08

200809 3.102

1. Products of the chemical or allied industries 2. Plastics and articles thereof; rubber and articles 3. Pulp of wood or of other fibrous cellulose material 4. Textiles and textile articles 5. Base metals and articles of base metal

0.237

7.420

14.719

1.169

2.185

1.920

1.34

10.447

17.816

1.069

2.137

8.572

69.896

----

------

3.452

----

-----

Source-Import receipts: 08-09, 07-08, 06-07, 05-06.By statistics. Dept. of B.B.


FIG 3.1

70 60 50 40 30 20 10 0

1. Products of the chemical or allied industries 2. Plastics and articles thereof; rubber and articles 3. Pulp of wood or of other fibrous cellulose material 4. Textiles and textile articles 5. Base metals and articles of base metal

38

3.1.2 Analysis
From the imported information of 05-06, the high percentage product are plastics and articles, rubber machinery and mechanical therefore import decreased pulp of wood textiles and product of chemicals. In 06-07,the imported product increased than 05-06.such as pulp of wood, textiles, base metals, product of chemical .on the other hand plastics and articles have decreased than 0506. In 07-08 the imported product increased only textiles and textiles articles but other product decreased than previous year. In 08-09 the imported product machinery and mechanical appliance has increased but other product has decreased as well as previous year.

3.2 Bangladesh import from Cambodia


Cambodia is one of the countries of south East Asia. It is a non-major country from the trade perspective of Bangladesh. Bangladesh imports a few products from Cambodia. 3.2.1 Major imported products: 1. Pulp of wood or other fibrous cellulose material, recovered paper or paperboard, paper and paperboard and articles thereof 2. Products of the chemical or allied industries 3. Prepared foodstuffs, beverages sprits and vinegar, tobacco and manufactured tobacco Substitutes 4. Textiles and textile articles 5. Machinery and mechanical appliance electrical equipment, parts thereof, sound recorders and reproducers, television image and sound recorders and reproducers and parts and accessories of such articles Table 3.2.1: The amounts of imports in last six years from Cambodia to Bangladesh Years 2004-05 2005-06 2006-07 2007-08 2008-09 Amount (Taka in Millions) 1.55 0.95 5.43 6.97 70.8 Growth Rate -38% 472% 28% 916%

Source: Annual Import Payments (2008-09), (2006-07) Statistics Department, Bangladesh Bank

39

Fig 3.2.1: Imports from Cambodia to Bangladesh


80 70 60 50 40 30 20 10 0 -10 2005-06 2006-07 2007-08 2008-09 Amount (Taka in Millions) 1.55 Growth Rate -

Source: Annual Import Payments (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Table 3.2 Imported products from Cambodia


( value in million tk.)

Name of the products

200506 -------

200607 3.694 ----

200708 1.663 ----

200809 0.862 0.328

1. Pulp of wood 2. Products of the chemical or allied industries 3. Prepared foodstuffs 4. Textiles and textile articles 5. Machinery

---1.591 ----

-----1.645

------5.11

0.705 --8.936

Source-Import receipts: 08-09, 07-08, 06-07, 05-06.By statistics. Dept. of B.B.

40

Fig 3.2
25 20 15 10 5 0 1. Pulp of wood 2. Products of the chemical or allied industries 3. Prepared foodstuffs 4. Textiles and textile articles 5. Machinery

3.2.2 Analysis
In 05-06, Bangladesh imported from Cambodia only textiles and textiles articles. In 06-07,the imported product textiles has decreased but pulp of wood and machinery has increased from previous year. In 07-08, pulp of wood has decreased than 06-07 but machinery and mechanical appliance has increased highly than 06-07. In 08-09 the imported product pulp of wood and machinery and mechanical appliance have decreased but in o8-o9 Bangladesh imported new product, products of chemical or allied industries, prepared food stuffs, from Cambodia. Bangladesh has not imported these products in previous years.

3.3 Bangladesh import from Indonesia


Indonesia is a fast growing country. It stands on a strong economic base. Bangladesh has a long trade relationship with Indonesia. Bangladesh imports a number of products from Indonesia.

3.3.1 Major imported products: 1. Vegetable products 2. Animal or vegetable fats and oils and their cleavage products, prepared edible fats, animal or vegetable waxes
41

3. Prepared foodstuffs, beverages sprits and vinegar, tobacco and manufactured tobacco substitute 4. Products of the chemical or allied industries 5. Raw hides and skins, leather, fur skins and articles thereof, saddler and harness, travel goods, handbags and similar containers, articles of animal gut( other than silk-warm gut 6. Plastics and articles thereof rubber and articles thereof 7. Wood and articles of wood, wood charcoal, cork and articles of cork, manufactures of straw, of esparto or other painting materials, basket ware and wicker work 8. Pulp of wood or other fibrous cellulosic material, recovered(waste and scrap) paper or paperboard, paper and paperboard and articles thereof 9. Textiles and textile articles 10. Footwear, headgear, umbrellas, sun umbrella, walking sticks, seat sticks, whips, riding crops and parts thereof, prepared feathers and articles made thereof, artificial flowers, articles of human hair

The amounts of imports in last six years from Indonesia are shown below: Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Amount (Taka in Millions) 2173.14 8801.47 1673.55 1547.32 30395.22 34974.04 Growth Rate 305% -80% -8% 1864% 15%

Table 3.3.1: The amounts of imports in last six years from Indonesia to Bangladesh Source: Annual Import Payments (2008-09), (2006-07) Statistics Department, Bangladesh Bank

42

Imports from Indonesia from Bangladesh


40000 35000 30000 25000 20000 15000 10000 5000 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Fig 3.3.1: Imports from Indonesia to Bangladesh Source: Annual Import Payments (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Table 3.3 imported products from Indonesia


( value in million tk.)

Name of the products

20052006 92.123 1024.712

2006-2007

2007-2008

20082009 858330 20010.553

1. Vegetable products 2. Animal or vegetable fats

82232 10054.145

469084 16513.351

3.Prepared foodstuffs 4. Products of the chemical or allied industries

235.007 109.621

204.204 1095.738

94.443 1342.462

72.095 2210.984

5. Raw hides and skins,

45.201

167.262

193.686

36.39

Source-Import receipts: 08-09, 07-08, 06-07, 05-06.By statistics. Dept. of B.B.

43

Fig 3.3
900000 800000 700000 600000 500000 400000 300000 200000 100000 0 1. Vegetable products 2. Animal or vegetable fats 3.Prepared foodstuffs 4. Products of the chemical or allied industries 5. Raw hides and skins,

3.3.2 Analysis
In 05-06 Bangladesh has imported highly animals or vegetables fats, textiles, prepared food stuffs from Indonesia. But the imported other products have decreased percentage such as products of chemical, raw hide and skins, plastics and articles wood and articles, food wear. In 06-07, animal or vegetables, products of chemical or allied industries, raw hides, plastics and articles, pulp of wood, textiles have increased than 05-06. But vegetable products, prepared food stuffs, wood or articles, food wear have decreased than previous year. In 07-08, the imported product animal or vegetable has only increased but other products have decreased than previous year. In 08-09, Bangladesh has imported vegetables products, animal or vegetable products of chemical, pulp of wood. This is high percentage than previous year. But other products such as prepared food stuffs raw hides, plastics, wood and articles pulp of wood and textiles, foot wear have decreased percentage than 07-08.

44

3.4 Bangladesh import from Laos


Laos is not a very renowned name in the world trade perspective. But now a days it export a variety of products. Bangladesh import many necessary and import goods from Laos. The amount of import is significant and it is increasing gradually. 3.4.1 Major imported products: 1. Vegetable products 2. Textiles and textile articles 3. Base metals and articles of base metal 4. Products of the chemical or allied industries 5. Pulp of wood or other fibrous cellulose material, recovered(waste and scrap) paper or paperboard, paper and paperboard and articles thereof 6. Plastics and articles thereof rubber and articles thereof 7. Machinery and mechanical appliances, electronic equipment parts thereof, sound recorders and reproducers, Television image 8. Vehicles, aircraft, vessels and associated transport equipment

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Amount (Taka in Millions) 306.70 496.01 6432.06 80.26 150.49 60.74

Growth rate -60% -87% -99% 87% -60%

Table 3.4.1: The amounts of imports in last six years from Laos to Bangladesh Source: Annual Import Payments (2008-09), (2006-07) Statistics Department, Bangladesh Bank

45

Imports from Laos to Bangladesh


7000 6000 5000 4000 3000 2000 1000 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Fig 3.4.1: Imports from Laos to Bangladesh Source: Annual Import Payments (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Table 3.4 Imported products from Laos


( value in million tk.)

Products

20052006 ---

20062007 1339

20082009 ---

1. Vegetable products

2. Textiles and textile articles

39.368

66.049

47.348

3. Base metals and articles of base metal 4. Products of the chemical or allied industries 5. Pulp of wood or other fibrous cellulose material

---

---

---

2.472

---

6.424

0.319

1.261

0.091

46

Source-Import receipts: 08-09, 07-08, 06-07, 05-06.By statistics. Dept. of B.B.

Fig 3.4
14000 12000 10000 8000 6000 4000 2000 0 2. Textiles and textile articles 3. Base metals and articles of base metal 4. Products of the chemical or allied industries 5. Pulp of wood or other fibrous cellulose material 1. Vegetable products

3.4.2 Analysis
The above data we found hat, vegetable products imported percentage was increasing in the year 07-08 which is 2.91% from previous year 06-07 and also 05-06. But in the year 08-09 we see that there is no import of vegetable product is occurred .that is very good sigh to us. Similarly we see that base metals and articles, pulp of wood, paper board, paper articles ,and associated terms poor equipments are two positive sight to us . But the textiles article was decreasing in the year 07-08 from the year 07 and 08. But in the year 08-09 again increasing in 77.95% which is very harm o us. Also chemical products plastics, machinery and electronic parts, television image import percentage are increasing with cheap rate.

3.5

Bangladesh import from Malaysia

Malaysia is one of the good developed countries, in ASEAN. We export many products there. They are economically strong, but we have a potential there. 3.5.1 Major imported products:
47

1. Vegetable products 2. Textiles and textile articles 3. Animal or vegetable fats and oils and their cleavage products, prepared edible fats, animal or vegetable waxes 4. Products of the chemical or allied industries 5. Pulp of wood or other fibrous cellulose material, recovered (waste and scrap) paper or paperboard, paper and paperboard and articles thereof 6. Plastics and articles thereof rubber and articles thereof 7. Base metals and articles of base metals 8. Wood and articles of wood, wood charcoal, cork and articles of cork, manufactures of straw, of esparto or other plaiting materials, basket ware and wickerwork 9. Prepared foodstuffs, beverages sprits and vinegar 10. Mineral products 11. Live animals, animal products

The amounts of imports in last six years from Malaysia are shown below: Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Amount (Taka in Millions) 5089.92 4714.67 17050.12 18048.32 30926.7 47760.88 Growth Rate -8% 262% 6% 71% 54%

Table 3.5.1: The amounts of imports in last six years from Malaysia to Bangladesh Source: Annual Import Payments (2008-09), (2006-07) Statistics Department, Bangladesh Bank

48

Imports from Malaysia to Bangladesh


60000 50000 40000 30000 20000 10000 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Fig 3.5.1: Imports from Malaysia to Bangladesh Source: Annual Import Payments (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Table 3.5 Imported products from Malaysia


( value in millin tk.)

Products

2005-06

200607 63.735

200708 218.57 1 2112.1 60 1196.3 15 228.76 03 179.64 4

2008- 09

1. Vegetable products

---

151.479

2. Textiles and textile articles

2606291

179599 7 8067.1 39 192.17 00 220.29 0

2089.03 3 1167.29 63 4346.76 9 236.238

3. Animal or vegetable fats

7067.10 9 1921.70 0 ---

4. Products of the chemical or allied industries 5. Pulp of wood or other fibrous cellulose material

49

Source-Import receipts: 08-09, 07-08, 06-07, 05-06.By statistics. Dept. of B.B.

Fig 3.5
3000000 2500000 2000000 1500000 1000000 500000 0 1. Vegetable products 2. Textiles and textile articles 3. Animal or vegetable fats 4. Products of the chemical or allied industries

3.5.2 Analysis
In the chart of Malaysia we see that every product was imported in 08-09 yearbooks we found that the rate of vegetable products, pulp of wood, plastic articles wood articles live animals imported was low in the 08-09 from previous year. We also found that the percentage of vegetables fats and mineral is pretty high from previous years. And other products like textiles articles, chemical products, base metals are imported but increasing rate of 08-09 is low from previous years.

3.6 Bangladesh import from Myanmar


Myanmar is a neighbor country of Bangladesh. Bangladesh maintains trade relationship with Myanmar for over the years. We import a lot of products from Myanmar. 3.6.1 Major imported products: 1. Live animals, animal products
50

2. Vegetable products 3. Animal or vegetable fats and oils and their cleave rage products 4. Products of the chemical or allied industries 5. Raw hides and skins, leather, fur skins and articles thereof 6. Plastics and articles thereof rubber and articles thereof 7. Wood and articles of wood, wood charcoal, cork and articles of cork 8. Prepared foodstuffs, beverages sprits and vinegar, tobacco and manufactured tobacco substitutes 9. Machinery and mechanical appliances, electronics equipment parts thereof, sound recorders and reproducers, Television image

The amounts of imports in last six years from Myanmar are shown below: Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Amount (Taka in Millions) 0.00 152.74 334.26 1440.24 7944.50 4585.54 Growth Rate 119% 331% 452% -42%

Table 3.6.1: The amounts of imports in last six years from Myanmar to Bangladesh Source: Annual Import Payments (2008-09), (2006-07) Statistics Department, Bangladesh Bank

51

Imports from Myanmar to Bangladesh


9000 8000 7000 6000 5000 4000 3000 2000 1000 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Fig 3.6.1: Imports from Myanmar to Bangladesh Source: Annual Import Payments (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Table 3.6 imported products from Myanmar


( value in million tk.)

Products 1.Live animals, animal products 2. Vegetable products 3.Animal or vegetable fats 4. Products of the chemical or allied industries 5. Raw hides and skins

2005-06 ---198.612 --.987

2006-07 31.022 206.476 --.636

2007-08 45.529

2008- 09 45.156

6038.593 2589.579 10324 -------

3.607

3.408

---

---

Source-Import receipts: 08-09, 07-08, 06-07, 05-06.By statistics. Dept. of B.B.

52

Fig 3.6
12000 10000 8000 6000 4000 2000 0 3.Animal or vegetable fats 4. Products of the chemical or allied industries 5. Raw hides and skins 1.Live animals, animal products 2. Vegetable products

3.6.2 Analysis
From the above chart, we see that animal fats, chemical products, raw hides, leather, plastics are not imported in this year 08-09 and also very low percentage imported in previous years. The vegetable articles, wood of articles are imported so much in the year 08-09 from the year 07-08, 06-07. We see the rate of live animals have increased in 08-09 from 07-08 and which is not imported in previous year but in this year 08-09 we import his product 1.60%.

3.7 Bangladesh import from Philippines


Philippines is a developed country. It is one of the important countries in ASEAN. Philippine is agriculture based country. We export a huge amount of products there. 3.7.1 Major imported products: 1. Vegetable products 2. Textiles and textile articles 3. Products of the chemical or allied industries 4. Vehicles and associated transport equipment 5. Plastics and articles thereof rubber and articles thereof
53

6. Machinery and mechanical appliances 7. Base metals and articles base metal 8. Prepared foodstuffs, beverages sprits and vinegar, tobacco and manufactured tobacco Substitutes 9. Mineral products 10. Pulp of wood or of other products

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Amount (Taka in Millions) 7.69 10.71 14.99 21.81 3416.43 5487.49

Growth Rate 39% 39% 45% 15564% 61%

Table 3.7.1: The amounts of imports in last six years from Philippines to Bangladesh Source: Annual Import Payments (2008-09), Statistics Department, Bangladesh Bank

Imports from Philippines to Bangladesh


6000 5000 4000 3000 2000 1000 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

54

Fig 3.7.1: Imports from Philippines to Bangladesh Source: Annual Import Payments (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Table 3.7 Imported products from Philippines


( value in million tk.)

Products

2005-06

200607 5.565 177.26 2 37.557

2007-08

2008-09

1. Vegetable products 2. Textiles and textile articles

24.601 401.528

2.541 223.085

7.356 198.268

3. Products of the chemical or allied industries 4. Vehicles and associated transport equipment 5. Plastics and articles thereof

191.659

23.228

40.103

1.704

---

10.707

3.403

93.020

158.21 1

299.758

78.134

Source-Import receipts: 08-09, 07-08, 06-07, 05-06.By statistics. Dept. of B.B.

55

Fig 3.7
450 400 350 300 250 200 150 100 50 0 3. Products of the chemical or allied industries 1. Vegetable products 2. Textiles and textile articles

3.7.2 Analysis
The imported vegetable products and textiles, textiles articles were big amount in 05-6 but decrease 07-08, little increase 07-08 and 08-09. Product of chemicals were longer 05-06 decrease 06-07 and 07-08 and increase 08-09,palastics and article product are increased consecutively the present years from previous year. Machinery and mechanical appliance are increased the recent years. Base metals are articles base metal are increased 06-07 and 07-08 but decrease 08-09. Prepared food stuff beverage is increased recent years.

3.8 Bangladesh import from Singapore


Singapore is one of the Asian tigers. Its economy is really a developed one. It has every reason to be successful. Bangladesh maintains trade relationship for long time. Bangladesh exports a lot of products from Singapore. 3.8.1 Major imported goods: 1. Vegetable products 2. Textiles and textile articles 3. Products of the chemical or allied industries 4. Live animals, animal products 5. Plastics and articles thereof rubber and articles thereof
56

6. Raw hides and skins, leather, fur skins and articles thereof, saddler and harness, travel goods, handbags and similar containers, articles of animal gut( other than silk-warm gut) 7. Wood and articles of wood, wood charcoal, cork and articles of cork, manufactures of straw, of esparto or other painting materials, basket ware and wickerwork 8. Prepared foodstuffs, beverages sprits and vinegar, tobacco and manufactured tobacco substitutes 9. Mineral products 10. Animal or vegetable fats and oils and their cleavage products, prepared edible fats, animal or vegetable waxes

The amounts of imports in last six years from Singapore are shown below: Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Amount (Taka in Millions) 35799.6 28424.37 21801.26 43118.4 87265.96 1211631.5 Growth Rate -21% -23% -80% 102% 39%

Table 3.8.1: The amounts of imports in last six years from Singapore to Bangladesh Source: Annual Import Payments (2008-09), (2006-07) Statistics Department, Bangladesh Bank

57

Imports from Singapore to Bangladesh


1400000 1200000 1000000 800000 600000 400000 200000 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Fig 3.8.1: Imports from Singapore to Bangladesh Source: Annual Import Payments (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Table 3.8 Imported products from Singapore


( value in million tk.)

Name of the products

20052006 3614.507 392.611 607.981

20062007 6092.763 3694.950 5933.859

20072008 3679.744 5104.273 7697.416

20082009 4653.140 5310.428 8197.476

1. Vegetable products 2. Textiles and textile articles 3. Products of the chemical or allied industries 4. Live animals, animal products 5. Plastics and articles thereof

9501.972

831.949

640.087

235.240

412.471

3992.719

4978.942

4270.127

Source-Import receipts: 08-09, 07-08, 06-07, 05-06.By statistics. Dept. of B.B.


58

Fig 3.8
10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 3. Products of the chemical or allied industries 4. Live animals, animal products 5. Plastics and articles thereof 2. Textiles and textile articles 1. Vegetable products

3.8.2 Analysis
Most of the products percentage are decreased 08-09 from 07-08, but most products percentage are increased 06-07 from 05-06, but product 2,3,5,8,9,10 increased 07-08 from 06-07. The amount of imported products such as vegetable, textiles increased 06-07 from 05-06 and 07-08 from 08-09. Live animals, animals products the amount of imported was longer 05-06, but decrease 06-07 and 07-08 on the other hand increase 08-09 longer enough. Plastics and articles were increased 05-06 but decrease 06-07 and simultaneously increased 07-08, 08-09. The products of chemicals, raw hides wood and articles prepared foodstuffs, mineral products, animal and vegetable are consecutively increased.

3.9 Bangladesh import from Thailand


Thailand is another Asian tiger. Its economic condition is really excellent. It exports many countries of the world. Thailand exports a number of products t Bangladesh. Bangladesh imports from Thailand for many years. 3.9.1 Major imported products: 1. Vegetable products
59

2. Textiles and textile articles 3. Products of the chemical or allied industries 4. Live animals, animal products 5. Plastics and articles thereof rubber and articles thereof 6. Raw hides and skins, leather, fur skins and articles thereof, saddler and harness, travel goods, handbags and similar containers, articles of animal gut( other than silk-warm gut) 7. Base metals and articles base metal 8. Prepared foodstuffs, beverages sprits and vinegar, tobacco and manufactured tobacco substitutes 9. Mineral products 10. Animal or vegetable fats and oils and their cleavage products, prepared edible fats, animal or vegetable wages The amounts of imports in last six years from Thailand are shown below:

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Amount (Taka in Millions) 1095.38 16005.06 461.55 12039.23 34295.64 36010.02

Growth Rate 1361% -97% 2508% 235% 5%

Table 3.9.1: The amounts of imports in last six years from Thailand to Bangladesh Source: Annual Import Payments (2008-09), (2006-07) Statistics Department, Bangladesh Bank

60

Imports from Thailand to Bangladesh


40000 35000 30000 25000 20000 15000 10000 5000 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Fig 3.9.1: Imports from Thailand to Bangladesh Source: Annual Import Payments (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Table 3.9 imported products from Thailand


( value in thousand tk.)

Name of the products

20052006 54320 2 55003 9 ---

20062007 631793

20072008 187688 0 593244 2 192579 7 29630

20082009 1744270

1. Vegetable products

2. Textiles and textile articles

623024 8 118663 4 23925

5594381

3. Products of the chemical or allied industries 4. Live animals, animal products

2029373

---

26421

61

5. Plastics and articles thereof rubber and articles thereof

21009 1

482812 8

720184 0

6564044

Source-Import receipts: 08-09, 07-08, 06-07, 05-06.By statistics. Dept.of B.B.

Fig 3.9
8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0 5. Plastics and articles thereof rubber and articles thereof 3. Products of the chemical or allied industries 4. Live animals, animal products 2. Textiles and textile articles 1. Vegetable products

3.9.2 Analysis
In the year 05-06 we imported vegetables products 2.40%, textiles and textiles articles 2.57%, plastics and articles then 0.98%, raw hides and skins, prepared foodstuff, mineral product 1.41% animal or vegetables fats from Thailand. In the year 06-07 our total import from Thailand have increased. In the year 07-08 our total import from Thailand increased in a huge amount in this year we import vegetable, textiles, chemicals, live animals, base metal increased. But the imported products live animals, vegetables products, raw hides and skins, textile, footwear, articles of stone, vehicles, optical are decreased from 07-08 to 08-09.

3.10 Bangladesh import from Vietnam


Vietnam is one of the fast growing countries. It is now becoming developed and developed in international trade. Bangladesh also has trade relationship with Vietnam. Bangladesh exports many products from Vietnam.

62

3.10.1 Major imported products: 1. Vegetable products 2. Textiles and textile articles 3. Products of the chemical or allied industries 4. Live animals, animal products 5. Plastics and articles thereof rubber and articles thereof 6. Pulp of wood or of other products 7. Base metals and articles base metal 8. Prepared foodstuffs, beverages sprits and vinegar, tobacco and manufactured tobacco substitutes 9. Mineral products 10. Machinery and mechanical appliances

Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Amount (Taka in Millions) 244.88 784.86 924.00 440.84 810.65 1738.55

Growth Rate 221% 18% -52% 84% 114%

Table 3.10.1: The amounts of imports in last six years from Vietnam to Bangladesh Source: Annual Import Payments (2008-09), (2006-07) Statistics Department, Bangladesh Bank

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Imports fromVietnam to Bangladesh


2000 1800 1600 1400 1200 1000 800 600 400 200 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Fig 3.10.1: Imports from Vietnam to Bangladesh Source: Annual Import Payments (2008-09), (2006-07) Statistics Department, Bangladesh Bank

Table 3.10 Imported products from Vietnam


( value in million tk.)

Products

200506 656.629

200607 80.958

2007-08

2008-09

1. Vegetable products 2. Textiles and textile articles 3. Products of the chemical or allied industries 4. Live animals, animal products 5. Plastics and articles thereof rubber and articles thereof

144.123 207.829 77.684

128.814 525.987 400.004

172.136 263.843 11.071 22.962

1.560

1.530

5.491

4.465

46.021

42.189

52.180

61.104

Source-Import receipts: 08-09, 07-08, 06-07, 05-06.By statistics. Dept. of B.B.


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Fig 3.10
700 600 500 2. Textiles and textile articles 400 300 200 100 0 5. Plastics and articles thereof rubber and articles thereof 3. Products of the chemical or allied industries 4. Live animals, animal products 1. Vegetable products

3.10.2 Analysis
In the year 05-06 we imported vegetables products 68.64%, textiles and textiles articles 17.99% , products of the chemicals 1.16%, live animals0.16%, plastics and articles thereof 4.81%, pulp of wood0.16% prepared foodstuffs 1% and mineral products 0.09% from Vietnam out of total import. In the year 06-07 our total import increased. vegetables reduced 8.32% textiles increased 27.10%, products of chemicals increased 2.36%, live animals same plastics produced 4.33% pulp of wood increased 0.18%prepared decreased 0.94% minerals reduced 0.08% but two new produces such as base metals 1.72% import from Vietnam in 06-07. But live animals, vegetables products, raw hides and skins, wood, pulp of wood, base metals, vehicles, miscellaneous are decreased from 07-08 to 08-09.

Table 3.11 Total import from ASEAN countries


( value in million tk.)

Country Name Brunei

2008-09 29.285

2007-08 97.317

2006-07 26.977

2005-06 23.664

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Cambodia Indonesia Laos Malaysia Burma Philippines Singapore Thailand Vietnam

70.802 34974.045 60738 47760878 4585536 5487492 121631493 36444702 1738555

6.974 30395.224 150490 30926698 7944504 3416435 87265959 34295640 801655

5.339 24446.801 81122 23071749 1413369 2180511 71234258 28623377 973598

2.807 19075.147 47212 22271069 1983554 1499224 56906089 21399374 956597

Source-Import receipts: 08-09, 07-08, 06-07, 05-06.By statistics. Dept. of B.B.

Figure 3.11 of total import from ASEAN countries

140000000 120000000 100000000 80000000 60000000 40000000 20000000 0 2008-2009 2007-2008 2006-2007 2005-2006

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Table 3.12 Total import ASEAN


Year ASEAN Total (corer) 2008-2009 25473.6 2007-2008 19556.8 2006-2007 15225.4 2005-2006 12461.1

Figure 3.12 of total import of ASEASN

ASEAN Total (crore)


30000 25000 20000 15000 10000 5000 0

ASEAN Total (crore)

CHAPTER 4
4.1 Balance of Trade:

The difference between the monetary value of exports and imports is called balance of trade. When the monetary value of export exceeds the monetary value of import, a positive balance of trade is determined. On the other hand, there will be a negative balance of trade. The balances of trade of ASEAN countries for the last three years are shown below.
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SL no 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Country Brunei Cambodia Laos Indonesia Malaysia Myanmar Philippines Singapore Thailand Vietnam

Balance of Trade 2008-09 -9.38 -24.51 -41.16 -33622.87 -47643.06 -4460.16 -460945.6 -1207722.42 -34012.97 -1671.83

Balance of Trade 2007-08 -67.14 43.78 -134.65 -28992.98 -445.83 -7852.2 -3167.36 -84116.83 -33823.87 -765.05

Balance of Trade 2006-07 1827.62 39.35 1035.19 -14494.55 -17004.97 -1187.15 -987.32 -38598.14 -1075920.93 1869.84

Table 4.1 Balance of Trade for last three years


Source: Annual Export Receipts 2008-09, Statistics Department, Bangladesh Bank and Annual Import Payments 2008-09, Statistics Department, Bangladesh Bank

200000 0 -200000 -400000 -600000 -800000 -1000000 -1200000 -1400000 Balance of Trade 2008-09 Balance of Trade 2007-08 Balance of Trade 2006-07

Fig 4.1: Balance of Trade

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Source: Annual Export Receipts (2008-09), Statistics Department, Bangladesh Bank, Annual Import Payments (2008-09), Statistics Department, Bangladesh Bank

4.2 Analysis
Negative balance of trade is a very frequent phenomenon to Bangladesh economy. If we examine the above mentioned graphs, we can see that in 2006-07 our balance of trade with ASEAN countries was comparatively less negative. Negative balance of trade is decreasing with Indonesia, Malaysia, and Thailand. It is a very positive sign for Bangladesh. But the huge negative balance of trade with Singapore is gradually increasing. So, Bangladesh has no alternative to increase export on a high scale to Singapore and other ASEAN countries.

Chapter 5
Conclusion:
ASEAN is an emerging economical power in this region as well as world. Trade between the countries of ASEAN and Bangladesh increasing day by day without East Timor. Bangladesh has a big potential for exporting new and exciting goods in ASEAN countries. Bangladesh imports many items from ASEAN countries. So Bangladesh is a good market for them and they are also good market for Bangladesh. But this is amateur of great regent that, Bangladesh has no relation with ASEAN and no entrance in ASEAN Free Trade Area (AFTA).If Bangladesh can be gotten regional and economical such as tariff, quota facilities which will help us to develop our economy. SEAN is a south Asian organization. Bangladesh is also a south Asian country. So the entrance to ASEAN for Bangladesh may be well and better than worse.

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Part-B
Competitive position of Bangladesh in comparison of ASEAN countries
1.1 Brunei
Top exported products in Brunei with growth rate are given below: Table 1.1 Top exported products in Brunei with growth rate
Product Textile Country India China England 2007-08 72.46 53.37 37.41 18.366 310.35 230.25 156.51 78.86 180.25 110.13 90.05 2008-09 53.46 38.31 25.51 13.40 430.13 270.23 215.15 97.37 140.33 131.41 123.55 (Million tk.) Growth -23% -28% -72% 26% 26.53% 14% 10% 25% 11% 10% 24%

Bangladesh
Raw hides China Pakistan UAE

Bangladesh
Chemical product Germany UK Russia

7.5 Bangladesh Source: Annual Export Receipts (2008-09) and (2006-07), Bangladesh Bank

Graph 1.1
500 400 300 200 100 0 -100

2007-08 2008-09 India England China

China

UAE

Germany

Bangladesh

Bangladesh

Pakistan

Russia

UK

Bangladesh

Growth

Textile

Raw hides

Chemical product

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1.2 Analysis
In textiles sector, we can see that, India, Chin, UK and Bangladesh export 72.46 million tk. 53.37 million, 37.41 million, and 18.366 million tk. conjunctively in 2007-08. In 2008-09, India increases in export to 53.46 million taka, China 38.31 million tk. UK 25.51 million tk. But only Bangladesh decrease to13.40million tk. In raw hides, we can see that China, Pakistan, UAE has a positive growth rate of 26.53%, 14%, 19% conductively. But the growth rate of Bangladesh is negative -25%. In chemical products, in Germany decrease its growth rate at -11%, UK increases to 10%, Russia increases to 24%. Bangladesh export this product 1st time

1.3 What are our absolute advantages?

1. Bangladesh has two seaports. One is Chittagong port and another is Mongla port. Bangladesh can easily export product through these port. Here Bangladesh has absolute advantage from those countries that have no port. 2. We have low labor cost. Because of Bangladesh is densely populated and poor country. Because of poverty, people engage them in work in a low wages which creates low production cost in comparison of competitive country. 3. Bangladesh is an agricultural country. So the raw materials of product can be found easily and in a very cheap rate. 4. We are renown in textiles. So Brunei imports textiles from us for our renown. 5. We are Muslim country. Most of the time, we eat cow, goat meat. So raw hides and animal skin are available here.

1.4 What are our comparative advantages?

1. Bangladesh is very far from Brunei. But our competitor countries are much more near from Brunei. So their transport cost is low than us. 2. High and modern technology is very available in our competitive country. We are not highly introduced with modern technology. 3. Other countries have seaport do their best use. 71

4. Government stability is also a good reason for more exporting of our competitor. 5. In spite of high labor cost, their labor is more skill and productive than us.

1.5 Why we are in back position?


1. Bangladesh has two seaports. But we are not using it properly. By this chance, India gets permission to use our ports. On the other hand our competitor is doing the best use of their port. 2. We have available and low labor cost. But they are not so skillful. So the quality of product is not so well as comparison of our competition. 3. Cultural limitation is also a problem for us. As for example; we cannot do any business of wine. 4. Government instability and electricity problem are a major problem to stay in a back position. 5. We are very far from Brunei. So our competitor gets extra benefit.

2.1 Malaysia:
Top exported products in Brunei with growth rate are given below: Table 1.2 Top exported products in Brunei with growth rate
Product Textile Country India UK China Bangladesh Australia Canada China 2007-08 167.52 1280.38 1050.13 814.52 672.61 450.17 360.11 178.155 150.28 110.68 70.27 39.473 2008-07 1856.32 1390.57 1126.31 752.517 726.45 530.67 410.18 160.834 210.57 130.29 85.23 61.32 (Million tk.) Growth 19% 23% 27% -17% 11.09% 17% 21% -4% 22.8% 21% 20% 20%

Mineral product

Bangladesh
Vegetable product India Myanmar Taiwan

Bangladesh

Source: Annual Export Receipts (2008-09) and (2006-07), Bangladesh Bank

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Graph 1.2
2000 1800 1600 1400 1200 1000 800 600 400 200 0 -200

2007-08 2008-07 Growth India Australia Canada China China

Bangladesh

India

Bangladesh

Taiwan

UK

Textile

Mineral product

Vegetable product

2.2 Analysis
In textile side, we observe that, India export in 2007-08 is 1672.52 million tk. in 2008-09 is1856.32 million tk. And the growth rate is 19%. We also observe that England export in2007-08 is 1280.38 million tk. And it increase in 2008-09 is 1390.53 and growth rate is 23%. In 2007-08 china export to Brunei is 1050.13million tk. And in 2008-09 it increases to 1137.27 million tk. Which growth rate are 27 present. Last we observe that Bangladesh exported in 2007-08 is 814.32 million tk. which is low from in 2008-09 export that is 752.61 million and the growth rate is negative which is -17%. We find in mineral product, tae Australia, Canada, china also Bangladesh exported that product is 672.61, 450.17, 360.11, 178.155 in 2007 -08 and in 2008-09 is 726.45, 530.67, 410.18, 160.834 million tk. And the growth rate is 11.09%, 17%, 21% and -4%. In vegetable product sector, India, Myanmar, Taiwan and Bangladesh exported growth rate is 22.8%, 21%, 20% and 20%.

2.3 What are our absolute advantages?


1. The main advantage of Bangladesh has 1 internationally renowned seaport called Chittagong seaport and Mongla sea port. Bangladesh is getting much extra facilities by this port but our competitor countries get these facilities less.

Bangladesh

Myanmar

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2. As Bangladesh are facing poverty and we densely populated so that Bangladesh find labor at low cost as well as low production cost against the competitive countries. 3. Bangladesh is agricultural based country. We get this type of material in cheap rate. 4. We are reputed in textiles. So Brunei imports textiles from us for our reputation. 5. Raw hides and animal skins are available here because we are Muslims and most people eat cow, goat meat.

2.4 What are the comparative advantages?


1. The distance of Bangladesh from Malaysia is very far as our competitors countries are near from Malaysia. So they get much facility such as their transport cost low than us. 2. Our competitor countries are much strong modern technology. But Bangladesh is backward highly modern technology. 3. The utilization of seaport is very high in competitive countries rather than our country. 4. Government constancy is also a positive reason for more exporting of our competitor. 5. Our competitive countries get most skillful labor and production system, in spite of having more labor cost rather than us.

2.5 Why we are in back position?


1. Though Bangladesh has two internationally seaports but these cannot be used appropriately immediately India get permission to use our port on the other hand our competitive country use their port best way. 2. Though we have cheap labor but most are not skillful and standard product is not as well as comparison of our competitor. 3. Bangladesh is faced serious cultural limitation for performing any business but our competitor can easily continue their business without facing any cultural limitation. 4. Bangladesh is backward because of facing political instability and serious energy problem. 5. Bangladesh is lacked behind for distance from Brunei.

3.1 Indonesia:
Top exported products in Brunei with growth rate are given below:
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Table 1.3 Top exported products in Brunei with growth rate (Million tk.)
Product Textiles Country Mexico Germany China 2007-08 2260.28 1838.17 1056.57 1044.75 165.63 125.18 50.33 40.82 452.17 340.28 210.31 2008-09 2370.31 1917.35 958.25 953.38 179.27 160.38 65.36 91.478 490.53 360.61 250.29 Growth 13% 9% -11% -9% 8% 32% -26% 110% 18% 13% 19%

Bangladesh
Chemical UK Russia India

Bangladesh
Raw hides UAE Pakistan China

64.28 -72% Bangladesh 240.837 Source: Annual Export Receipts (2008-09) and (2006-07), Bangladesh Bank

Graph 1.3
2500 2000 1500 1000 500 0 Mexico China 2007-08 2008-09 Growth

India

UAE

Bangladesh

Russia

Bangladesh

China

UK

-500

Textiles

Chemical

Raw hides

3.2 Analysis
In case of Textiles our competitor countries Mexico, Germany, China. Their export in 2007-08 is 2260.28, 1830.25, 1056.25, and 1044.98 consecutively also include Bangladesh. Their export in
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Bangladesh

Germany

Pakistan

2008-09 is 2337.25, 1947.25, 958.14, and 953.81 consecutively also include Bangladesh. Growth rate of Mexico, Germany, and China are 13%, 9%, 11%, But Bangladesh has 9%. In case of Chemical products UK, Russia, India and Bangladesh gain their growth rate 8%, 32%, -26%, 110%. So our growth rate is optimistic In case of Raw hides UAE, Pakistan, Chinas our competitors. Their growth rate in 2008-09 is 10%, 18%, 13%, 19% but Bangladesh exports their products 1st in 2008-09

3.3 What are our absolute advantages?


1. We know it very well that Bangladesh has over populated country. So its very easy to find or get low cost labor from here. There are also a great in Bangladesh that is poverty. A big part of our country goes under poverty. For this reason we can get them at a cheap rate. 2. Another great advantage of Bangladesh is the sea port which is Chittagong and Mongla sea port. Bangladesh easily transport or import products from the help of those port. 3. It is known to all that Bangladesh is an agricultural country. For this we can get raw materials of various products and at cheap rate. Also we know that we are very aggressive in textile articles and because of a Muslim country, we get huge raw hides and animal skin which we easily export to another country.

3.4 What are the comparative advantages?


1. There are some basic reasons by which our competitor countries get many facilities from ours. And that is: 2. The distance between Indonesia and Bangladesh is too large but our competitor countries can easily transport to Indonesia because of near to Indonesia. And also transport cost is low from us. 3. Technologically our competitor countries are very much developed. For this reason they produced much than us and also they export huge amount product than us. 4. In other competitor countries, their government stability is better which help to export huge. 5. The competitor countries labor is very skillful in their workplace. Which is very productive than us.

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3.5Why we are in back position?


1. In spite of two sea port in Bangladesh, we are no using it well. Its a good luck that we have the sea port. But we cant get better benefit from it. Recently India gets the chance to use our seaport. Our competitor countries are very developed in their seaport. 2. In Bangladesh, there is a great problem is electricity and government stability, also with gas and water. For this great problem we are very much back from other competitor countries. 3. Cultural limitation is a fact for us to export product. There is a difference between our and other exportable countries. For this reason we cant produce or business that product which is not permitted in our culture. 4. Our labor cost is very low but the problem is that they are not very much skillful. For this, they cant produce quality product and when they go abroad they are not equal to other labor of another country which is a big problem of us.

4.1 SINGAPORE
Top exported products in Brunei with growth rate are given below:
Table 1.4 Top exported products in Brunei with growth rate (Million tk.)
Product Textiles Country China UK France 2007-08 1067.53 985.39 835.21 775.95 420.19 365.63 240.35 110.52 238.73 233.26 171.34 59.07 2008-09 1153.23 1025.45 965.53 924.68 730 514 354 190.88 432.11 343.59 239.43 82.73 Growth 12% 10% 31% 12% 67% 56% 69% 30% 55% 47% 24% 21%

Bangladesh
Iron Japan China Brazil

Bangladesh
Live animal South Africa Egypt Russia

Bangladesh Source: Annual Export Receipts (2008-09) and (2006-07), Bangladesh Bank

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Graph 1.4
1200 1000 800 600 400 200 0 South Africa 2007-08 2008-09 Growth

Japan

France

China

Bangladesh

China

Brazil

Bangladesh

Textiles

Iron

Live animal

4.2 Analysis
Increase of textiles, china exports 1067.53 in 2007-08 and increasing 1153.23 in 2008-09. But the observation of England, France and Bangladesh importing an amount are simultaneously increase 2007-08 and growth rate consecutively 12%, 10%, 3%. Increase of iron, Japan export 730 in 2008-09 and 420.19 in 2007-08. China, Brazil, and Bangladesh export 2008-09 514,354,390 and growth rate 67%,56%,69%. But 2007-08the amount of export 420,365,240,110 consecutively. In case of live animals South Africa, Egypt, Russia and Bangladesh export 432.34, 239.25, 171.59 in 2007-08 and growth rate 555, 47%, 24% and 21%.

4.3 What are our absolute advantages?


1. Bangladesh is an agricultural country. For this advantage, we can get raw materials of various products. We also get these products in a very cheap rate. We know that, we are affluent in textiles and its associate articles. So we also export this product comfortably.

Bangladesh

UK

Russia

Egypt

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2. Most of our people are Muslim. So our main foods are rice, vegetables, meat, beef, and fish. As a result, raw hides and animal skins are available here. 3. Bangladesh is an over populated country. Besides, our people are live below poverty line. So it is very easy to get low cost labor here. As a result, our production costs are less than other competitive country and we produce more products in a low cost. So we also more export than other competitive country. 4. We have renown in jute and textiles products in the world-wide. So we export our products to Singapore better than other competitive countries. 5. Bangladesh has two sea-ports. One is Chittagong sea-port and another is Mongla seaport. So we transport our products very easily. For this advantage we can export our products more rapidly. Here Bangladesh has an absolute advantage from those countries that have no port.

4.4 What are the comparative advantages?


1. Our competitive countries are very much developed in technological sector. For this reason they produce more than us. So they also export huge amount of products than us. 2. Government stability is also an important factor for increasing export. Government stability of our competitive countries is very much stable than us. So they export products comfortably. 3. Bangladesh is very far from Singapore. But our competitive countries like Malaysia, Indonesia etc. are very much near from Singapore. So their transfer costs are lower than us. 4. Though our labor cost is very low but they are inexperienced. But our competitive countries labor is very much experienced. They produce better products than us. So in spite of their higher cost, they export more products than us.

4.5 Why we are in back position?


1. There is a great problem in electricity, gas, and water as well as government instability in Bangladesh. For this reason we cannot produce more products than our competitive countries. So we are in back position. 2. Cultural and religion obligation is also a problem for us. As for example, we cannot produce wine. 3. Bangladesh has two sea-port but we cannot use it properly. By this chance India gets permission to use our sea-port. Besides, our competitive countries are doing the best use of their sea-port.

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4. Our labors are inexperienced. So they cannot produce standard products. As a result, Singapore cannot import our products hugely. 5. We are very far from Singapore. But our competitive countries are near to Singapore. So they want to import products from those countries.

5.1 THAILAND
Top exported products in Brunei with growth rate are given below:
Table 1.5 Top exported products in Brunei with growth rate
product Textiles Country China France Mexico 2007-08 390.72 275.28 215.21 192.135 350.29 270.47 140.22 109.61 117.57 90.15 55.66 25.361 2008-09 425.35 340.41 255.37 258.162 370.12 235.52 185.31 139.04 150.20 110.57 60.28 39.62

(Million tk.)
Growth 23% 28% 24% -23% 11% -14% 27% 24% 22% 28% 07% 67%

Bangladesh
Metal product Japan China UK

Bangladesh
Chemical product UK India Russia

Bangladesh Source: Annual Export Receipts (2008-09) and (2006-07), Bangladesh Bank

Graph 1.5

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China

Mexico

France

China

India

Bangladesh

Bangladesh

Russia

Textiles

Metal product

Chemical product

5.2 Analysis:
In textile, china, France, Mexico, BD exports 390.72, 275.28, 215.21, 192.13 million tk. consecutively in 2007-08. But in 2008-09, this countrys export is 425.35, 340.41, 255.37, 258.162 million tk. consecutively. From this, we can see that growth rate of China 23%, France 28%, Mexico 24%, but Bangladeshs growth rate is negative(-23%). In metal products Japan, china, UK, BD exports in 2007-08.350, 270, 17, 140.22, and 09.61 consecutively. But this countrys exports are 370.12, 235.52, 185.31, and 139.04 in 2008-09. But the growth rate of these countries 11%,-12%, 21% but BD increases their growth rate 24%. In chemical product, growth rate of UK, India, Russias growth rate is 22%, 28%, 07% BDs growth rate is 67%..

5.3 What are our Absolute advantages?


1. In spite of having two renown internationally seaport. Bangladesh is getting much extra facilities than our competitor. 2. Because of poverty and densely populated country Bangladesh find labor at a low cost as well as low production against our competitor countries. 3. Bangladesh finds all materials in cheap rates because of agricultural based country.
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Bangladesh

Japan

450 400 350 300 250 200 150 100 50 0 -50

2007-08 2008-09 Growth UK UK

4. We are famous in textiles so Thailand imports textiles from us for our reputation. 5. Actually we are Muslims and most people eat cow, goat, meat so raw hides and animals skins are available here less competitor.

5.4 What are our Comparative advantages?


1. The distance of Bangladesh from Thailand is very far. As our competitors countries are near from Thailand, so they get much facility such as their transport cost low than us. 2. Bangladesh faces less modern technology than our competitors much strong modern technology. 3. Competitor countries use seaport properly rather than our country. 4. Government constancy is also a positive reason for more exporting of our competitor. 5. Competitors labors or workers much skillful and competent strong production system, inspire of having more labor cost rather than us.

5.5 Why we are in back position?

1. In spite of having two internationally seaport but these con not be used properly. Immediately 2. India gets permission to use seaport. But competitive countries use their port best way. 3. Unskilled labor force and standard product is not as well as comparison our competitor. 4. Facing much cultural limitation rather than our competitors. 5. Turbulent politics, politically instability and serious energy problems faces 6. Bangladesh is faced lag behind for distance from Thailand.

6.1 Conclusion:
Export has a very significant role to play in accelerating the economic growth of any country. But by interpreting the above mentioned information and discussion, we can say that the export situation for Bangladesh in ASEAN countries is not satisfactory. Most of the times we see that the competitive position of Bangladesh in export to ASEAN countries is very low.
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The most important problem for Bangladesh is; it cannot supply the major import items for the ASEAN countries in most of the cases. It supplies only the non-major import items which are not enough to compete with the all economic giant competitors like USA, China, Singapore, Malaysia, Thailand, France, Germany, and Japan who are the major suppliers for the ASEAN countries. To overcome this problem, Bangladesh needs to be very smart in producing and exporting the products which are mainly demanded by the importers. It needs to utilize its resources with proper plan and effectiveness. It needs to reduce the system loss. And most importantly, Government has to be very strict, smart, and tricky while maintain international trade relationships.

7.1 References:
1) 2) 3) 4) 5) Annual Export Receipts (2008-09) and (2006-07), Bangladesh Bank Assignment, Prime Group, 1st batch en.wikipedia.org (accessed on 10th April, 20010 ) www.indexmundi.com(Accessed on 9th April, 2010) www.state.gov (accessed on 9th April, 2010 )

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