Chittagong, Bangladesh: Bangladesh is facing severe shortages of connectivity, which hampers business with Burma. These obstacles include a lack of air, water, and road connectivity, and the absence of a formal trade channel, said a trade body leader on December 28.
“If connectivity is strengthened, Bangladesh's exports will definitely make a big step," said SM Nurul Hoque, Vice President of the Bangladesh-Myanmar Chamber of Commerce and Industry (BMCCI).
“The Sonali Bank is providing services for Burma-Bangladesh trade channels, but we need other banks to come forward to make the trade easier,” said Nurul Hoque, who thinks that export to Burma will get a boost this fiscal year as trade through formal channels has started on a limited scale.
The vice-president added that quick shipping and good connectivity are a must, and that the addition of non-conventional vessels (defined as those with a capacity of around 3,000 tons) in Bangladesh will play a big role.
A Bangladesh-Burma air link is also very important. The bilateral trade between the two countries has remained low because of an absence of formal trading, said Enayet Ullah Siddiqui, BMCCI Joint Secretary. Trade items are being accessed through informal trading, and both countries will mutually benefit if trade is done through formal channels, said Siddiqui.
Bangladesh primarily imports food items such as rice, lentils, and fish, as well as timber from Burma, and exports mainly cement, pharmaceuticals, condensed milk, and electrical cables, according to businessmen from Chittagong.
According to the Federation of Bangladeshi Chambers of Commerce and Industry (FBCCI), Bangladesh exported goods worth $9.65 million to Burma in fiscal year 2010-11, and imported items worth $175.72 million.
“Bangladesh has been doing business with Burma through informal channels over the years because of problems in international banking system transactions. Even though trade volumes are low, the potential is very high.”
In November, Commerce Minister Faruk Khan and a 38-member business delegation accompanied Prime Minister Sheikh Hasina on a visit to Burma to discuss bilateral trade and other issues. The Bangladeshi delegation signed several MoUs with its Burmese counterpart during the visit, following cabinet approval of Bangladesh-Burma bilateral agreements on capital investment, development, and preservation, according to officials.
