Bright market worth of 50 Billion US$ is about to be launched in Russia for Bangladesh’s RMG Sector
On the 31st of May, 2019, Commerce Minister of Bangladesh, Mr. Tipu Munshi signed an MoU with Russia in order to open business opportunities for Bangladesh’s apparel sector.
This ‘Memorandum of co-operation between the EURO-Asia economic commission and the government of the people’s republic of Bangladesh’ will now allow banking transactions between the two countries which will enable to reduce difficulties related to trade and commerce.
By signing this agreement, a long term demand for export for the RMG sector is going to be fulfilled. Bangladesh exported textile products to Russia by paying huge amount of tax which costs almost 75-80% of the price of the products. In accordance with the Export Promotion Bureau(EPB) data, Bangladesh exported goods worth $485.22 million to Russia in the FY2017-18 which is $20.56 million more than the earning $464.62 million in FY2016-17.
Currently, there is no banking transaction system between Russia and Bangladesh. Trade is done through Telegraphic Transfer(TT). Besides this, due to a lot of other obstructions, Bangladesh was unable to make proper utilization of this bright market.
By establishing this agreement with Russia, all these hindrances are going to be removed. As a result, a tremendous market worth of 50 Billion US dollars would be opened for Bangladesh and a lot of problems regarding the RMG sector will be solved.
Commerce minister Mr. Tipu Munshi stated, “Bangladesh has always been maintaining a good relationship with Russia in terms of trade and commerce. Unfortunately, the mutual trade and transactions did not increase as per expectations due to some complexities. The MoU will open a new pathway of business for Bangladesh in Russian markets.” He also added that Bangladesh is building large factories with safe working environment focusing on compliances and sustainability.
The Russian Ambassador to Bangladesh, Alexander Ignatov stated, “Russia has always been a friend of Bangladesh. There are huge demands of Bangladeshi products in Russian markets. By signing this MOU, we are hoping that the economic relationship between Russia and Bangladesh will reach a whole new level.”
If Bangladesh is able to grab the Russian market, it will become easier for Bangladesh to enter the markets of other countries of the Commonwealth of Independent State.