Boats will keep Bangladesh afloat

ship building

Supply and demand are the fundamental variables that indicate which markets and industries are prime for growth. As markets shift, countries are always looking for new niche markets to dominate with their exports. Bangladesh, which has typically been known for ship demolition, is now changing its primary industry to ship building. According to the Asia Times:

“Bangladesh’s 124 shipyards, with more than 100,000 skilled and 150,000 semi-skilled workers, can easily secure a substantial share of the global small shipbuilding market, according to a World Bank study published in March.

If the country can capture even 1% of the $167 billion global shipbuilding market, ‘exports will be worth $1.6 billion’, the World Bank noted earlier this year. Total export orders can easily exceed a billion dollars within a year or two ‘if we succeed in maintaining our present momentum despite the worldwide economical turmoil’, Mohammad Shahidul Bashar, public relations deputy manager at Western Marine, told Asia Times Online. The industry at present has orders to build 42 ships worth around $600 million, he said.

Export earnings from ships, boats and floating structures rose to $40.4 million in the 12 months to last June from $12.7 million in the year to June 2009, according to the Export Promotion Bureau. The latest tax incentive comes after a dip in exports to $9.3 million in the 2009-10 fiscal year.”

“The shipbuilding industry could become the country’s third-largest foreign exchange earner in less than 10 years if the government provided support relating to bank guarantees and declares export-oriented shipyards as export-processing zones, the Bangladesh Foreign Trade Institute says. The country’s exports are dominated by textiles and ready-made garments, at around 70% of value.”

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