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The landscape of global trade is undergoing rapid and transformative shifts, presenting both challenges and opportunities for corporates seeking to navigate these changes.
The Hongkong and Shanghai Banking Corporation Limited (HSBC) recognize the importance of the role that supply chain strategies and structured trade finance play in this transformative process.
In line with this, HSBC Bangladesh recently organised an event titled ‘Supply Chain Reconfiguration and Structured Trade Finance’ for the apparel industry, says a press release.
Along with the industry leaders and clients from textile and apparel sector, the event was also participated by Faruque Hassan, president of BGMEA; Jose Manuel Romay, deputy chief financial officer of Inditex SA, Madrid, Spain; Vinay Mendonca, chief growth officer of global trade and receivables finance, HSBC HQ; and Md Mahbub ur Rahman, CEO of HSBC Bangladesh.
There was also a panel discussion focusing on Bangladesh transformations in supply chain reconfiguration participated by Ziaur Rahman, regional country manager of H&M Group; Zahur Ahmed, managing director of Apex Holdings Limited; Mohammed Abdur Rahim, vice chairman of DBL Group and Stuart Rogers, regional head of international markets, commercial banking, Asia-Pacific, HSBC.
Faruque Hassan said: “We have proven our capability globally being the second largest apparel manufacturer with about 8% market share and retaining our position since 2010. Now, we have a vision to grab 12% market share and grow our exports to $100 billion by 2030 through product, fiber and market diversification, innovation, technological upgradation, up-skilling our workers and continued focus on sustainability with around 200 LEED certified green RMG factories at present."
"HSBC can play pivotal role to introduce innovative solutions and create awareness among Bangladeshi apparel exporters in view of changing market dynamics. I welcome HSBC Bangladesh to explore more ways to collaborate with BGMEA, through sharing knowledge and information, capacity building on financial management, to continue to benefit our exporters in the coming days," he added.
Md Mahbub ur Rahman said: “Today ‘Made in Bangladesh’ has reached different corners of the world making us one of the top global players in apparel exports. HSBC is grateful to the Bangladesh apparel industry for trusting us a partner in their growth journey. Leveraging our international connectivity and expertise in structured trade solutions, we will continue to support the evolving needs of the industry in a rapidly changing global supply chain landscape.”
Stuart Rogers said: “HSBC is the world’s largest trade bank and is also the leading trade finance provider in Bangladesh, catering for approximately 10% of the country’s trade volume. Boasting a strong partnership of more than 25 years, we specialize in the Ready Made Garment sector, the key driver of national exports in the economy. Our industry insights, innovation, cutting edge technology and global expertise provide significant support that underpins growth for the sector.”
The discussion revolved around the changes in trade terms from LC to open account, the increase in deferred tenors and the subsequent need of financing these non-traditional dimensions.
The need of International Insurance companies to support such financing was also highlighted.
HSBC has pioneered country’s first International Supply Chain Finance (SCF) in 2017 and Receivables Finance (RF) in 2020.