Building a hub economy - re-export is an important phenomenon. It can also be an important tool to fight Monga
There is usually a great need of capital investment for this kind of businesses to flourish. Government can mobilize NRB money to raise capital through securities and funds to create four re-export zones in Sylhet, Dinajpur, Chittagong and Khulna.
The position of Bangladesh within the global map makes it a natural candidate to become a regional hub economy. However, the globe wouldn't come to it unless it aligns itself to become a hub. We have written on the same topic before about how to make sure that Bangladesh becomes a regional hub that smoothens the interaction of three Asian Engines (China, India and ASEAN).
Today, we want to focus on a specific aspect of a hub ecnonomy. That is Re-Export. World's two best known hub economies are Singapore and Hong-Kong. They are well known around the world. A recent new competitor to these two city states is United Arab Emirates.
However, re-export has a big promise for the economic development of Bangladesh. It also has the potential to facilitate trades for land locked Nepal, Bhutan or other land-locked Indian provinces in the North-East.
Government of Bangladesh should immediately start a process of raising a fund to build several re-export zones authorities where companies or traders will be provided facilities to assemble, minor value add and brand products before they are reexported. It has an immense potential for Bangladesh.
The region of North Bengal promises to be the focus region to become a re-export processing zones of Bangladesh. Specifically, this is suitable when the government is looking at the big picture and solve the problem of so-called Monga in several northern districts. However, it should be ackknowledged that re-export zones will need shorter time to ramp-up (compared to the EPZs), but most often, REZs involve more capital and human skills than EPZ. Keeping that in mind, government will have to actively engage the private sector to facilitate this. It can also invite other experts in Hong Kong or Singapore to come here and take advantage of the natuaral settings and government policies.
Bangladesh should immediately establish a number REZs in different corners of the country. REZ stands for Re-Export Processing Zone. We are familiar with EPZ (Export Processing Zones) and SEZ (Special Economic Zones). In addtion to these two, we need a third kind of zones are are Re-export Zones.
Following are some information regarding Re-Export ranging from definition to news articles. Enjoy.
If you thought some of the ideas are worth of your reading time, please forward it to others. If you have an ear to the columinsts in regular traditional media, please forward it to them. If you have an ear to the journalists and news editors of the electronic media, discuss it with them. Hope they would look at the suggestions and give due diligence.
Thanks for your time,
Innovation Line
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Note: This is a freelance column, published mainly in different internet based forums. This column is open for contribution by the members of new generation, sometimes referred to as Gen 71. If you identify yourself as someone from that age-group and want to contribute to this column, please feel free to contact. Thanks to the group moderator for publishing the article.
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Noun: reexport ree'ek`sport
Any commodity reexported
Verb: reexport ree'ek`sport
To export again, as what has been imported
Derived forms: reexports, reexporting, reexported
Re-Export Zone (REZ)
About UAE re-export take a look at this:
Dubai most active re-export hub after Singapore, Hong Kong
http://uaeinteract. com/docs/ Dubai_most_ active_re- export_hub_ after_Singapore, _Hong_Kong/ 15638.htm
posted on 21/03/2005
Dubai's exports were valued at about Dh44 billion from the third quarter of 2003 to the third quarter of 2004, a trade group said. The statistic forms part of a study released by the Dubai Chamber of Commerce and Industry (DCCI), according to the "Gulf News."
Dubai is recognised as the third most active re-export centre in the world, after Singapore and Hong Kong, the DCCI report said. The trading sector contributed an average of 85.2 per cent of Dubai's exports (this includes re-exports) during the period under review. Manufacturing contributed about nine per cent on average during the same period.
The services sector represented 3.9 per cent, while the construction sector represented just 0.6 per cent of exports. About 87 per cent of export-oriented companies operating in Dubai are located in Dubai proper, while the remaining 13 per cent are located in Dubai's various free zones, the DCCI report said.
This is based on DCCI's certificate of origin database. Free zone companies contributed 44.6 per cent of total exports recorded, even though they are smaller in number than the total number of Dubai-based exporting companies.
Exporters located in Dubai proper represented 55.4 per cent of total exports, despite their superior numbers. The export share of the free zones declined from 50 per cent in the third quarter of 2003 to 41 per cent in the second quarter of 2004, the report said.
The majority of exporting companies employ less than 10 workers, the DCCI report said. On average, these companies accounted for 58.6 per cent of total exports. Companies with between 50 and 249 employees accounted for 18.3 per cent of exports. Firms employing between 20 to 49 employees represented 10.3 per cent of total exports.
These figures also refer to the period starting in the third quarter of 2003 and ending in the third quarter of 2004. The number of exporting firms increased during the last four years, DCCI representatives said.
A selective breakdown of the data works out as follows: Companies which have been open for less than five years account for 33.8 per cent of Dubai' s exports. The export share of 10-19-year-old firms came to 19.3 per cent. Firms operating for 20-29 years claimed 11.4 per cent. Firms operating for 30 years or more represented just 2.4 per cent of total exports. (The Emirates News Agency, WAM)
Here is another UAE sourced link:
http://www.uae. gov.ae/Governmen t/trade.htm
Rr-Exports
A report by Emirates Industrial Bank (EIB) issued in May 1999 ranks the UAE as the third most important re-export center in the world (after Hong Kong and Singapore respectively) . Re-export trade forms a substantial one-third of the entire trading sector in the UAE. In Dubai, where a large part of the re-export trade is concentrated, it forms an even greater proportion of that emirate's total income. The re export strength of the UAE lies in bulk purchases, low taxes, good infrastructure and an historical concentration of traders. Reduced delivery lead times are also a major reason for the success of the trade. Although Iran (machinery, textiles, vehicles) and India (silver, silver jewellery) feature prominently as destination countries there is a fairly even spread of re-exports across at least 35 countries. After expanding very rapidly in the mid-1990s, there has been a slowed own in the growth of re-export trade in recent years, due in part to an economic decline in key destination countries. Overall re-exports in the 1990s have grown at a much faster rate than imports. Currently more than 25 per cent of imports are for re-export, compared with less than 17 per cent as recently as 1994.
For an example, take a look from the Saudi Arabia: http://www.reexport .com/Zones/ bonded.htm
Dammam Bonded & Re-export Zone was created with the aim of developing imports and exports, thereby encouraging commercial activities and attracting investors and investments to the area. To enhance the handling capabilities at King Abdul Aziz Port in Dammam, Saudi Arabia and to increase the competitiveness of our clients products and services in the Saudi market and abroad by offering a state of the art infrastructure, well designed services and a full management support and care.