Furniture sector fetches $4.65m in current fiscal

The furniture sector fetched export earnings of USD 4.65 million in the current fiscal year 2018–19 in July. This was up from the USD 4.01 million recorded for the same period in the previous financial year 2017-18, thus showing a steady growth of 15.96 per cent.

Industry experts say that the export of furniture products have risen significantly in recent years, including the current year, because of a 15 per cent cash rebate, robust technical knowhow, cheap labour, and the transformation of global giant furniture-makers into high-tech industries have helped to boost the export growth.

Selim H Rahman, president of the Bangladesh Furniture Industries Owners’ Association (BFIOA) told The Independent that China, the largest global furniture-sourcing country for the last couple of decades, had started shifting to high-tech industries.

“So, we have a huge opportunity waiting to be captured in the international market,” he said.

Moreover, year on year, the average export growth has increased to 10-15 per cent, he said.

Rahman, who is also the managing director of Hatil Furniture, said that the government had taken a decision to provide a cash incentive of 15 per cent on furniture export, which also boosted the export growth.

Explaining the point, he said, if an exporter exported $100 worth of products, he would get $15 cash back as a rebate.        

Bangladesh exports furniture to countries such as those of the Middle East, Canada, Nepal, Bhutan, India, Malaysia, Belgium, the US and other European countries. The products have become famous because of their fine quality and innovative design, he added.

About the challenges, he said, raw materials such as wood, hardware, finishing materials, and other stuffs were being imported from abroad. “We pay on average 55–60 per cent import duty on raw materials, which increases the production cost of the final product.”

Bangladeshi furniture-makers import the raw materials, manufacture the products and export the finished goods. Hence, the import duty has an effect on export, he said.

“Suppose we import fabrics used in sofas from abroad, because we cannot them locally, and pay 98 per cent import duty, the add-up cost becomes more than 100 per cent.”

“We want bond facilities, which is a facility provided to export-oriented industries for importing raw materials without paying any duty or taxes. Availing the bonded warehouse facility is essential for export-oriented industries, as it enhances their export and price competitiveness,” he added.

He also said the government should reform the import tariff policy to enable the furniture industry to survive and compete with global competitors such as Vietnam and Indonesia.

Vietnam, he said, was doing well due to cheap labour and an export-friendly policy.

He also said that Hatil Furniture exported products worth around USD 100,000 to the Middle East, Canada, Nepal and Bhutan every month. The domestic furniture market has been growing at a rate of 15-20 per cent a year, he added.

The export growth of Hatil has been increasing 50–60 per cent year-on-year, he informed.

EA

 

Furniture sector fetches $4.65m in current fiscal

The furniture sector fetched export earnings of USD 4.65 million in the current fiscal year 201819 in July. This was up from the USD 4.01 million recorded for the same period in the previous financial year 2017-18, thus showing a steady growth of 15.96 per cent. Industry experts say that the export of furniture products have risen significantly in recent years, including the current year, because of a 15 per cent cash rebate, robust technical knowhow, cheap labour, and the transformation of global giant furniture-makers into high-tech industries have helped to boost the export growth. Selim H Rahman, president of the Bangladesh Furniture Industries Owners Association (BFIOA) told The Independent that China, the largest global furniture-sourcing country for the last couple of decades, had started shifting to high-tech industries. So, we have a huge opportunity waiting to be captured in the international market, he said. Moreover, year on year, the average export growth has increased to 10-15 per cent, he said. Rahman, who is also the managing director of Hatil Furniture, said that the government had taken a decision to provide a cash incentive of 15 per cent on furniture export, which also boosted the export growth. Explaining the point, he said, if an exporter exported $100 worth of products, he would get $15 cash back as a rebate. Bangladesh exports furniture to countries such as those of the Middle East, Canada, Nepal, Bhutan, India, Malaysia, Belgium, the US and other European countries. The products have become famous because of their fine quality and innovative design, he added. About the challenges, he said, raw materials such as wood, hardware, finishing materials, and other stuffs were being imported from abroad. We pay on average 5560 per cent import duty on raw materials, which increases the production cost of the final product. Bangladeshi furniture-makers import the raw materials, manufacture the products and export the finished goods. Hence, the import duty has an effect on export, he said. Suppose we import fabrics used in sofas from abroad, because we cannot them locally, and pay 98 per cent import duty, the add-up cost becomes more than 100 per cent. We want bond facilities, which is a facility provided to export-oriented industries for importing raw materials without paying any duty or taxes. Availing the bonded warehouse facility is essential for export-oriented industries, as it enhances their export and price competitiveness, he added. He also said the government should reform the import tariff policy to enable the furniture industry to survive and compete with global competitors such as Vietnam and Indonesia. Vietnam, he said, was doing well due to cheap labour and an export-friendly policy. He also said that Hatil Furniture exported products worth around USD 100,000 to the Middle East, Canada, Nepal and Bhutan every month. The domestic furniture market has been growing at a rate of 15-20 per cent a year, he added. The export growth of Hatil has been increasing 5060 per cent year-on-year, he informed. EA