Working under geocentric system in Bangladesh

Discrimination is one amongst the foremost regarding problems for human resource
professionals and may be each positive and negative. The quota system could be a kind of
positive discrimination employers use to market the advancement of deprived teams.

In Asian country there's less Ptolemaic system, as well as public services as compare to quota
system as a result of the largely uses the quota system. It’s been found from the analysis of the 3
phases of accomplishment policy for BCS that the accomplishment system has ne'er totally
functioned on the idea of meritocracy. The system promotes solely 45-percent benefit and 55-
percent quotas, though this quota system can't be even in today's socio-economic reality in Asian
country. But we tend to see the utilization of the quota system in officialdom accomplishment
systems in South Asian countries, like social action in India that encourages the accomplishment
of minority teams. In West Pakistan, 92.5 percent of civil servants square measure recruited
supported quotas, and only 7.5% supported benefit.

Work permit in Bangladesh

All foreign nationals seeking paid employment in Asian country should be in possession of a
legitimate instrument. Bangladeshi folk’s square measure given priority of employment and
these permits square measure sometimes thought-about for work that native specialist’s square
measure unavailable or unable to try to the work.

Three totally different government bodies square measure accountable of supplying work
permits for Asian country. The Board of Investment problems work permits for industrialization,
branch workplace and liaison workplace jobs within the non-public sector that square measure
outside of the process Zone. Employment of expats within the export promotion zones, that
embrace investment opportunities, proposals and reports, square measure handled by the Asian
country Export process Zones Authority (BEPZA). For add any non-governmental organization
in Asian country, foreigners are going to be issued a piece allow by the nongovernmental
organization Affairs Bureau.

In order to be issued with a piece allow, the Asian country embassy should be furnished a letter
of employment from the business in Bangladesh and a confirmation letter of concurrence from
the relevant establishment (either BOI, BEPZA or NGOAB). A lot of data and recommendation
may be obtained from the closest Bangladeshi embassy or from the web site of the Ministry of
Foreign Affairs.

Income Taxation in Bangladesh

In Bangladesh country, revenue enhancement is collected from people and applies to a spread of
sources of financial gain as well as wages from work, pensions, investment interest and
dividends. Expats for good residing in Bangladesh and Republic of Bangladesh as East Pakistan
Asian country square measure taxed on financial gain earned from operating in Bangladesh,
where it's paid, and on foreign financial gain that's received from Bangladeshi sources. Non-
residents square measure solely taxed on financial gain received or increased in Asian country.

Males and females pay totally different rates of revenue enhancement in Asian country. Anyone
apart from feminine taxpayers and voters on top of 65 years older isn't eligible to pay any tax on
earnings below 220,000 BDT. Earnings of 300, 000 BDT square measure taxed at 20% and
incomes on top of this quantity square measure charged 25% revenue enhancement. Girl’s square
measure charged no tax up to 250,000 BDT, 10% on consecutive 300,000, 20% on consecutive
300, 000 and so 25% for any higher financial gain.

Why doing business in ready-made garments (RMG) in Bangladesh

1. Quick return:
As per the knowledge from works homeowners, RMG is that the solely sector in Asian country
wherever one will come back to his investment by three to five years. The magnitude relation of
the come against investment is incredibly high compared to different business or trade. RMG
could be a folk’s bound trade. Presently it's four millions of workers. So, it will generate a great
deal of employment chance for each consummate and unskilled folks. Government is
additionally encouraging to the bourgeois by providing incentive on export earnings (4% for
ancient market and 7% for untraditional or rising market) and low burdensome policy on the
financial gain. Additionally the social recognition associate degreed honor is that the main
accomplishment of an RMG bourgeois. Employment of giant variety of individuals could be a
nice motivation for the trade homeowners.
2. Huge market opportunities:

Recent export information shows that there's large likelihood to grow a lot of RMG business in
Asian country. Asian country has six.4% of market share wherever their main rival china has
thirty six.4% share. RMG export is increasing each year and their market share rose five.1%,
5.9% & 6.4% through last three consecutive years. Their main rival China, the biggest clothes
businessperson of the planet, is currently losing its garment export for top cost and in need of
consummate workforce. Its market share remittent to thirty six.4% (2016) from thirty-nine.3%
(2015). There’s large gap in export price between China ($161 Billion) and Asian country
($28.67 Billion). It is a nice chance for Asian country to grab a lot of market shares.

The global apparels market is expected to be $650 billion by 2020. Wherever current market is
$444 (2016) billion (source: The monetary Express). Continual RMG export growth of Asian
country is predicting large opportunities to be a worldwide leader within the export of clothes.

The rate of export share is increasing annually to the rising markets like Australia, Korea, Japan
and Russia etc. It was 14.79 (2014), 15.29 (2015) & fifteen.30 (2016) share of total export price.
It’s encouraging RMG exporters to expand their business within the new markets. Government
additionally proclaimed special incentives for untraditional markets.

3. Abundant & skilled workforce:

The main strength for this business is out there force. Labor value is lowest in Asian country
among the opposite competitors. Minimum wages in Asian country is $ sixty eight wherever
China is $ a hundred and fifty five, Kingdom of Cambodia $ a hundred and forty, India $ 137,
Vietnam $ 107 (Source: University of Delaware, USA). Consummate and relevant educated
workforce is additionally increasing during this trade. There’s around thirty seven public & non-
public university and schools that square measure manufacturing textile graduates. There square
measure six government textile institutes (under Asian country Technical education board) for
making sheepskin engineers for this trade. There are also square measure that are smart numbers
of personal institutes and polytechnics are generating consummate workforce in each year for
this sector.

4. Strong backward & forward linkage:

Favorable government policy and bank facilities for material purchase square measure blessings
for this business. There’s such a lot of backward linkage supporting industries established within
the country. Currently a day's most raw materials square measure on the market in native market.
Around 1430 textile mills square measure operating. Capability of yarn production is 2100
million kilogram per annum. Capability of materials production is 2800 million meters. Eighty
fifth of unwoven materials demand met by regionally. (Source: Readymade Garment & Textile
trade in Bangladesh- World Textile Conference II, metropolis Sept, 2016). Over previous few
years Bangladesh's strength in manufacturing cotton primarily based yarn and cloth has
increased considerably. Smart numbers of plants square measure within the method currently.
Chinese and different countries square measure trying forward in Asian country to speculate in
fiber, cloth and different allied industries in Asian country.

5. Geographic & demographic advantage:

Geographically Asian country is found in a perfect place that is a further advantage for
international business. Our country has terribly convenient access to international seaports, air
routes et al... It’s three ocean ports (Chittagong, Mongla and Payra), three international airports
(Dhaka, urban center and Sylhet) and twenty two land ports.

Every year concerning two laces youth square measure coming into in job market in Asian
country. 70% of Bangladesh population is underneath forty years older which supplies large
workforce handiness. Most of those youth is educated.

6. Duty advantages in export destinations:

As a Least Developed Country (LDC) Asian country is enjoying duty free market access or
reduced tariff rate facilities for RMG export to several developed and developing countries
within the world. Tax free facility in commerce country could be a nice advantage for RMG
exporters. Asian country is obtaining GSP (Generalized System of Preference) facilities in thirty
eight countries as well as EU (28 Countries) and a few different (10 countries) selected countries.
EU countries square measure commerce ninetieth of clothes from Asian country. Consumers
square measure progressing to increase a lot of sourcing of their target product from Asian
country.

7. Recognized hotspot for souring:

Bangladesh's growth potential has been recognized by several putative analysts across the world.
Emma Goldman Sachs includes Asian country within the "Next 11" rising countries to observe
for in conjunction with the BRIC countries (Brazil, Russia, India, and China) and JP Morgan lists
Asian country among its "Frontier Five" rising economies price finance in (Source: The Daily
Star). Several analysis and survey showed that Asian country are going to be consecutive hot
spot for sourcing. As per McKinsey & Company's research; Asian country are going to be high
sourcing country over next five years.

8. One of the safest RMG industries in the world:

Taren and Rena Plaza incident was a be-careful call for the entrepreneurs and every one
stakeholders. the' it absolutely was caused thousands of death however it created the
homeowners, staff and every one different parties committed this business aware and currently
safety is being thought-about as integral a part of the factories. Currently Asian country works is
world customary in social compliance and staff safety. This awareness created our rag trade
stronger and work friendly. Asian country has seen variety of initiatives around Taren and Rena
Plaza incidents i.e. Accord & Alliance altogether Asian country might use the training
completely.

Challenges to be faced:
Bangladesh rag trade has been facing dimensional issues since its institution. These square
measure uninterrupted power and gas offer, poor infrastructure, less capability of ocean and
aerodrome, political and labor unrest. Value hike for utility services that is have direct impact to
the garment trade apparel industry, fashion industry, fashion business, rag trade industry, further
as backward linkage industry.

Valuable operating hour is losing within the road because of traffic. The associate degree hour
journey desires three to four hours to succeed in the destinations. It’s additionally taking in some
unspecified time in the future or longer to succeed in product in urban center port from Dhaka
wherever it's purported to want 7-8 hours. Government ought to take away all the infrastructural
obstacles within the transportation facilities and specialise in separate route for the export and
import activities. These square measure is also high means, metro line, a lot of cargo vessel etc.
Chittagong port additionally cannot offer economical service for cargo. It’s hampering primarily
just in case of raw materials import. Cargo time interval from China is 12-14 days however it's
taking further 10-15 days for clearing the products. Identical situation is additionally seen in
aerodrome. By 2-3 days product square measure incoming in aerodrome however it desires want
a lot of 8-10 days for cathartic. It’s badly poignant cargo time interval.

Restrictions on foreign investment in Bangladesh

exchange Guideline issued by Asian country Bank (Central Bank of Bangladesh), except for a
number of reserved sectors foreign investors square measure liberal to build investment in Asian
country, which may be discovered together with native investors or severally by the foreign
investors. No permission from Asian country Bank is needed to line up such ventures if the
entrepreneurs use their own funds. However, to avail the facilities and institutional support
provided by the govt. of Asian country, entrepreneurs/sponsors might secure registration with the
Board of Investment.

Rule of law in Bangladesh:

Rule of Law is one amongst the essential components of a civilized society. If truth be told no
civilized fashionable nation cannot run while not the implication of rule of law. Like each
freelance civilized fashionable country rule of law one amongst the fundamental principles of the
constitution of Asian country. Nowadays it's one amongst the foremost debated topics in Asian
country.

In the constitution of Asian country Rule of Law has its own place. Per the constitution of Asian
country -

"It shall be basic aim of the state to appreciate through the democratic method a socialist society,
free from exploitation - a society during which the rule of law, basic human rights and freedom,
equality and justice, political economic and social, are going to be secured for all voters." In
accordance with this pledge the subsequent positive provisions for rule of law are incorporated
within the constitution:

Article twenty seven guarantees that everyone voter’s square measure equal before law and
square measure entitled to equal protection of law. Article thirty one guarantees that to relish the
protection of the law, and to be treated in accordance with law, is that the inalienable right of
each national, where he is also and of each different person for the present with in Asian country,
and particularly no action prejudicial to the life, liberty, body, name or property of somebody
shall be taken except in accordance with Law. Eighteen basic rights are bonded within the
constitutional arrangement for his or her effective social control has been ensured in Articles
forty four and 102. Article seven and twenty six impose limitation on the general assembly that
no law that is inconsistent with any provision of the constitution may be passed. In accordance
with Article seven, twenty six and 102(2) of the constitution the Supreme Court exercise the
facility of review whereby it will examine the extent and lawfulness of the actions of each
government and legislative and may declare any of their actions void if they are doing something
on the far side their constitutional limits. Right to be ruled by a representative body answerable
to the folks has been ensured underneath Articles 7(1), 11, 55, 56, fifty seven and 65(2) of the
constitution of these provisions of constitution square measure effective for making certain rule
of law in Asian country. However facts on the bottom tell a distinct story altogether.

Prevailing Strategy in the Industry:

The dominant strategy during this trade is that the cost-leadership strategy. Most of the
corporations specialize in hiring the most cost effective labor to achieve the cost-advantage and
sell a lot of merchandise at cheaper value. For the trade as an entire, this is often the dominant
strategy as a result of Asian country offers RMG merchandise at the most cost effective value
within the world (Islam, Rakib, and Adnan, 2016). Therefore, the worth proposition for the
complete trade, in general, is competitive rating. However, once the Rena Plaza Tragedy in 2013,
maintaining this competitive advantage not at expense of health, safety, environmental, labor,
and different compliance problems became major challenge for the RMG trade of Asian country.
Organizations that depended entirely on low-cost sourcing and labor square measure finding it
robust to adapt with the changes whereas the organizations having culture of honest follow for
years had to try to relatively very little to address the changes. Organizations couldn't scale back
prices by merely procuring low-quality materials and accessories, and currently they can't scale
back value by paying less to the labor pool and avoiding compliances as government and
different organizations currently visit the factories and keep their eyes open for non-compliance.

Labor Rights
The People's Republic of Bangladesh court ordered that the 2 international initiatives ablaze and
building safety in Bangladesh and Building Safety and also the Alliance for Bangladesh
employee Safety ought to end their work and fork up their operations to government authorities
by Nov 2018. The govt. has nevertheless to in public report on all its hearth and building safety
inspections and progress in a very manner admire the clear news adopted by the Accord and also
the Alliance. The government inflated workers' pay within the rag trade, however staff continued
to protest this as being inadequate.