FORMATION PROCESS
“VIETNAM BUSINESS SOCIETY IN BANGLADESH”
I. Basis for formation:
– In 2018, the trade war between the United States and China officially broke out, affecting most countries around the world. In early 2020, the Covid-19 pandemic struck directly, causing global supply-chain congestion and disruption. The business community entered an extremely difficult period, especially manufacturing enterprises and those engaged in international trade.
– The Vietnam-Bangladesh business community was no exception. Although bilateral trade turnover between Vietnam and Bangladesh was not yet high compared with Vietnam’s trade with other countries, the number of Vietnamese businesses trading with the Bangladesh market was fairly modest, and businesses had not yet recognized the need to focus on this market.
1.1. Taking a comprehensive view of the issue, in early May 2020, a group of Vietnamese-origin businesses operating in Bangladesh collected and compiled data on the number of enterprises participating in the Vietnam-Bangladesh market and conducted a thorough assessment of the underlying causes. After compiling the official results, on 23 May 2020, at the Vietnamese Embassy, the businesses held a meeting attended by the Ambassador and reached a decision to form a voluntary organization named the “Vietnam Business Club in Bangladesh”, with the purpose of connecting, gathering, and sharing information, and supporting one another to invest and do business safely and sustainably in Bangladesh.
1.2. In June 2020, with the coordination of the Embassy, the “Club” consulted with Bangladeshi authorities. The Bangladeshi side suggested that, in Bangladesh, social organizations should not use the term “Club”, as it could easily be confused with an entertainment organization and would not be appropriate given the status and legal requirements of Bangladesh. Due to the impact of the global Covid-19 pandemic, the organization’s legal formation process was interrupted; however, the founders continued their work, namely: compiling business data, industry data, and legal-policy data, in preparation for the next steps.
II. Role, functions, and duties:
2.1. On 2 November 2021, despite the still highly complex developments of the Covid-19 pandemic, 9 Vietnamese businesses gathered in Dhaka, Bangladesh (representing 25 Vietnamese enterprises investing and doing business in Bangladesh that had submitted applications to join) and formally held a conference to adopt the minutes establishing the “Vietnam Business Society in Bangladesh”.
2.2. Under Bangladeshi regulations, a business society is a social organization established in Bangladesh to serve the needs of businesses (to be governed by the 1994 Act), under which the organization’s membership must include both Vietnamese and Bangladeshi businesses (a minimum of 3 Bangladeshi businesses), registered under the name “Vietnam-Bangladesh Business Association”. The founding members completed registration with the relevant Bangladeshi authority and established an Executive Board (comprising focal points responsible for industry groups); the organization currently focuses effectively on Vietnamese businesses investing in Bangladesh and exporting goods from Vietnam to Bangladesh.
2.3. The organization’s roles, functions, and duties are basically as follows:
a. Bringing together and connecting businesses;
b. Supporting, providing, and sharing market information;
c. Handling difficulties and commercial disputes;
d. Providing policy recommendations and consultation;
e. Certifying certain matters related to import and export;
f. Promoting the growth of Vietnam-Bangladesh bilateral trade turnover.
III. Activities and scale of the organization:
3.1. Over more than 2 years of operation, the Vietnam Business Society in Bangladesh has, together with diplomatic representative offices and relevant authorities of Vietnam and Bangladesh, made active contributions to economic diplomacy, boosting trade turnover, advising the business community, and consulting with relevant authorities on related matters in a genuinely effective manner.
3.2. By the end of 2022, the number of member businesses had exceeded 200 (of which 50 were full members), with cooperation agreements signed with most Chambers of Commerce and Industry and professional associations in Bangladesh. The Society coordinated with specialized Vietnamese government agencies to organize numerous business forums and trade promotion events with the Bangladeshi side, bringing practical benefits to businesses.
3.3. The Society helped untangle difficulties and resolved most commercial disputes for member businesses, contributing to a trading environment that is increasingly healthy and substantively developing.
* The Vietnam Business Society in Bangladesh believes that, with its contribution, Vietnam-Bangladesh bilateral trade turnover – from USD 1.5 billion in 2022 – will reach USD 2 billion in 2023.