Bangladesh: Call to declare ship-building a thrust sector

Association of Export-Oriented Shipbuilding Industries of Bangladesh urged the government to declare shipbuilding a thrust sector of the country. The President of the Association of Export-Oriented Shipbuilding Industries of Bangladesh Dr Abdullahel Bari demanded back to back L/C facility like Readymade Garment (RMG) factory owners in a press release.
Bangladesh has successfully exported first ocean going ship in May 2008 to Denmark, a high end market competing with Chinese and Vietnamese ship builders. In December 2008 six class ferries and boats including three aluminium catamaran passenger vessels have been exported to Mozambique.
The 8th ship has been handed over to the Danish owner on the May 21.
The President claimed shipbuilding should be treated in the budget like any other export oriented industries in the country. In a nutshell the sector needs working capital at 7 per cent interest under refinancing scheme like that available to RMG he added.
He demanded incentives as it was given to RMG in its primary stage and scope for investment without declaring the source of fund.
The Vice President of Bangladesh Society of Mechanical Engineers in the statement also demanded 0.1 percent on the total foreign currency earnings as the final settlement of taxes, at least, for initial 10 years.