Bangladesh Economic & Infrastructure Development - Updates & Discussions

[Bilal9]

How?

Let me explain this by way of just the apparel industry.

Ten years ago we used to make basic items like t-shirts and underwear where labor quantity and quality (and the skills required) was at a very low level.

Now (I recently posted a video about this), the quality (precision) and quantity of value-addition-labor has gone up with manufacture of complicated higher price-tag items like branded Suits, jackets, medium-priced ladies' couture etc. To make these higher priced items and the many complicated critical operations involved, you need an entirely different type of precision skill set compared to sewing underwear.

At the same time, local backward integration (such as manufacture of specialized high-priced higher thread count shirting, denim and precision fabric locally) has increased many fold. Alongside this, specialized technical fabric manufacture for jackets and outerwear (production of which is increasing in volume every year) has also started locally. All this has lowered the cost of input and the time-to-market just-in-time factors substantially for local production, and made sourcing from Bangladesh much more attractive than in prior times. Which in turn increased the value-addition argument for Bangladesh many fold.

My point was that lower priced garment manufacture (t-shirts and underwear) is going to be transferred to places like Ethiopia, Somalia, Cambodia pretty soon. Indonesia passed this stage at least ten years ago if not earlier. To stay competitive, Bangladesh had to add qualitative value addition factors like this and move higher up the value-addition chain for more money. But in the end, labor cost and scale/organization of efficient production is always the biggest factor in being competitive as a sourcing destination. This is why Bangladesh could pull it off and our neighbors couldn't.

 

[Hellfire]

If you look at the terrain, Bangladesh is surrounded by hilly/mountainous lands which makes it difficult to penetrate it through land from the East and Northeast. That means if we cut through the chicken's neck, India will be in a severe disadvantage. Now all we need is a decent air force and air defence to stop any airborne invasion.

Damn, I nearly choked on this one.

Let me get this straight, Air Force and Air Defence to stop any airborne invasion - and you correlate it with cutting through the chicken neck? What dissociated logic was that?


@Nilgiri was hovering, till I chanced upon this thread. Gives a great respite from nonsense on other threads. I choked on my damn coffee with this genius' post!


BTW what is with 'Feelz' .... you have me in splits!!!!

Yes, a strategy to cut through the most militarily concentrated area in whole of India (yes, more than Kashmir) with the pitiful Bangladesh lungi brigades with nonexistant artillery, stone age ELINT, ECM, ECCM, EW, COMJAM, rudimentary force maneuvre capabilities, piss poor logistics support capabilities, desperately laughable war gaming and mobilization capabilities is likely to bring eternal glory to lungi nation.

I take offense to your post here!

Do you think IA would even bat an eyelid?

BSF & SSB will be tasked to deal with them, what with their modernization and upgradation of firepower. Heck, ITBP has paratroopers now

 

[Bilal9]

why i feel that there is only one company/ business group in Bangladesh that every now and then you people make thread and celebrate it.

There are many companies (at least half a dozen or more now) in the same markets Walton competes in such as TV's refrigerators, and other home appliances. Walton is the largest company however. Walton's PR branding is quite strong.

 

[Mage]

Well ten years ago we used to make basic items like t-shirts and underwear where labor quantity and quality (and the skills required) was at a very low level.

Now (I recently posted a video about this), the quality (precision) and quantity of value-addition-labor has gone up with manufacture of complicated higher price-tag items like branded Suits, jackets, medium-priced ladies' couture etc.

At the same time, backward integration (such as manufacture of specialized high-priced higher thread count shirting, denim and precision fabric locally) has increased many fold. Alongside this, technical fabric manufacture for jackets and outerwear (production of which is increasing in volume every year) has also started locally.

My point was that lower priced garment manufacture is going to be transferred to places like Ethiopia, Somalia, Cambodia pretty soon. Indonesia passed this stage at least ten years ago if not earlier.

Maybe for garments.....still main exoorts are knit or crochet textiles.

Other sectors are lagging way too much behind. Only talks and land aquisacquis are going on the SEZs. But no actual production. Same with the IT parks.....

 

[Jugger]

I would buy a Walton if the warranty and price is right..!
Good going Bangladesh.

 

[Bilal9]

Maybe for garments.....still main exports are knit or crochet textiles.

Other sectors are lagging way too much behind. Only talks and land acquisitions are going on the SEZs. But no actual production. Same with the IT parks.....

I would respectfully differ with you.

The rate at which new electronics and motorcycle plants are opening up now, these mirror the exact pattern of that in Vietnam say three to five years ago before the export boom started. Moreover, note the backward integration of the products, which means these companies are in it for the long haul in Bangladesh with an eye on exports, and not just to make a quick buck locally.

Bangladesh and Vietnam themselves are large consumer markets, with Bangladesh having more consumer market potential because of higher population. Look at this old news....

12:00 AM, June 16, 2017 / LAST MODIFIED: 12:07 AM, June 16, 2017
Samsung starts manufacturing locally

Koo Yeun Choi, group leader for global strategic business at Samsung Electronics; Taeho Park, division head of consumer electronics at Samsung Southwest Asia; Seungwon Youn, managing director of Samsung Electronics Bangladesh, and Saifur Rahman, director of Transcom Group, open a liquid crystal module production line of Transcom Electronics in Dhaka yesterday. Photo: Transcom Group

Star Business Report

South Korean electronics giant Samsung yesterday officially opened two factories in Bangladesh to manufacture five home appliances to cater local markets.

The plants, where LED television, refrigerator, air conditioner, washing machine and microwave oven will be produced, have been set up in joint venture with local Transcom Group and Fair Electronics.

Transcom Electronics inaugurated a new state-of-the-art liquid crystal module production line in the capital recently.

The factory is currently run by 100 engineers but it will create further job opportunities in Bangladesh, Transcom Electronics said.

“We have taken this huge endeavour and significant investment considering Bangladeshi customers' benefit,” said Yeamin Sharif Chowdhury, head of business of Transcom Electronics.

The initiative will ensure the availability of genuine Samsung TVs in the country at affordable prices, said Seungwon Youn, managing director of Samsung Electronics Bangladesh.

“Our cooperation with Transcom will always go hand in hand and we believe that this will generate scope for technological development in the TV industry in Bangladesh,” he added.

The LCM line was inaugurated by Saifur Rahman, director of Transcom Group, along with KooYeun Choi, group leader of Samsung Electronics's global strategic business department, Taeho Park, division head of consumer electronics at Samsung Southwest Asia, and Youn.

The plant, which spans 18,000 square feet in the capital's Mohakhali area, started manufacturing televisions on a test basis from last month.

Industries Minister Amir Hossain Amu along with the officials of Samsung Electronics attends the foundation laying ceremony of a plant of Fair Electronics at Shibpur of Narsingdi yesterday. Samsung and Fair Electronics opened the plants jointly. Photo: Fair Electronics

Some 13 models of televisions -- all of which would be less than 55 inches -- will be manufactured at the plant, with some of the components brought in from Vietnam.

Samsung currently has five distribution partners in Bangladesh and the factory will supply televisions to them.

The existing market for televisions stands at about ten lakh units a year. Of the sum, branded products account for 40 percent.

The other factory that was inaugurated yesterday will be run by Fair Electronics.

The plant, located in Shibpur of Narsingdi, was inaugurated by Industries Minister Amir Hossain Amu, ICT State Minister Zunaid Ahmed Palak and Korean Ambassador Ahn Seong-doo.

The plant will manufacture 4 lakh units of refrigerator, 2.5 lakh units of microwave oven, 1.2 lakh units of air conditioner and 50,000 units of washing machine every year, according to Fair Group.

The factory will employ about 3,000 people.

 

[Mage]

I would respectfully differ with you.

The rate at which new electronics and motorcycle plants are opening up now, these mirror the exact pattern of that in Vietnam say three to five years ago before the export boom started. Moreover, note the backward integration of the products, which means these companies are in it for the long haul in Bangladesh with an eye on exports, and not just to make a quick buck locally.

Bangladesh and Vietnam themselves are large consumer markets, with Bangladesh having more consumer market potential because of higher population. Look at this old news....

12:00 AM, June 16, 2017 / LAST MODIFIED: 12:07 AM, June 16, 2017
Samsung starts manufacturing locally

Koo Yeun Choi, group leader for global strategic business at Samsung Electronics; Taeho Park, division head of consumer electronics at Samsung Southwest Asia; Seungwon Youn, managing director of Samsung Electronics Bangladesh, and Saifur Rahman, director of Transcom Group, open a liquid crystal module production line of Transcom Electronics in Dhaka yesterday. Photo: Transcom Group

Star Business Report

South Korean electronics giant Samsung yesterday officially opened two factories in Bangladesh to manufacture five home appliances to cater local markets.

The plants, where LED television, refrigerator, air conditioner, washing machine and microwave oven will be produced, have been set up in joint venture with local Transcom Group and Fair Electronics.

Transcom Electronics inaugurated a new state-of-the-art liquid crystal module production line in the capital recently.

The factory is currently run by 100 engineers but it will create further job opportunities in Bangladesh, Transcom Electronics said.

“We have taken this huge endeavour and significant investment considering Bangladeshi customers' benefit,” said Yeamin Sharif Chowdhury, head of business of Transcom Electronics.

The initiative will ensure the availability of genuine Samsung TVs in the country at affordable prices, said Seungwon Youn, managing director of Samsung Electronics Bangladesh.

“Our cooperation with Transcom will always go hand in hand and we believe that this will generate scope for technological development in the TV industry in Bangladesh,” he added.

The LCM line was inaugurated by Saifur Rahman, director of Transcom Group, along with KooYeun Choi, group leader of Samsung Electronics's global strategic business department, Taeho Park, division head of consumer electronics at Samsung Southwest Asia, and Youn.

The plant, which spans 18,000 square feet in the capital's Mohakhali area, started manufacturing televisions on a test basis from last month.

Industries Minister Amir Hossain Amu along with the officials of Samsung Electronics attends the foundation laying ceremony of a plant of Fair Electronics at Shibpur of Narsingdi yesterday. Samsung and Fair Electronics opened the plants jointly. Photo: Fair Electronics

Some 13 models of televisions -- all of which would be less than 55 inches -- will be manufactured at the plant, with some of the components brought in from Vietnam.

Samsung currently has five distribution partners in Bangladesh and the factory will supply televisions to them.

The existing market for televisions stands at about ten lakh units a year. Of the sum, branded products account for 40 percent.

The other factory that was inaugurated yesterday will be run by Fair Electronics.

The plant, located in Shibpur of Narsingdi, was inaugurated by Industries Minister Amir Hossain Amu, ICT State Minister Zunaid Ahmed Palak and Korean Ambassador Ahn Seong-doo.

The plant will manufacture 4 lakh units of refrigerator, 2.5 lakh units of microwave oven, 1.2 lakh units of air conditioner and 50,000 units of washing machine every year, according to Fair Group.

The factory will employ about 3,000 people.

Vietnam's export was more than 50 billion back in 2008. By 2013 it had surpassed 100 billion. And their exports were not as dependent on textiles. So no BD's situation is nothing like Vietnam of three to five years ago. Vietnam had FDI inflows of more than 20 billion back in 2013. BD can barely surpass 2 billion in 2018. Vietnam is what we should look into. But we are nowhere near as competent as them, we need to understand that.

Bangladesh might be a large consumer market. But I only see people preferring foreign brands. Indian motorbikes dominate the motorbike market. People prefer Chinese phone over Walton or Symphony. Only for refrigerator Walton has good share in the market. But still those with money would rather buy a whirlpool fridge over a Walton one.

One news of Samsung manufacturing locally doesn't make much change. They are manufacturing to meet local demand they won't be able to export from here..... Vietnam was in so much better position even 10 years ago in terms of manufacturing electronic goods.

 

[VikingRaider]

I'm pretty sure if we had a land border with China, our relation would be hostile as well.

Very unlikely it would be better than our relation with India. Who do you think we have a better relation with? India or Myanmar?

If we had a border with China, China would've found it much easier to pressure us.

Now we are in a good situation to balance Indian influence with Chinese one, if we play our game right.

It's party correct . Pakistan also had border with China and they are life time ally . Bangladesh would be the same IMHO, as there are two circle in this region , one is China and the other is india. And also sharing land border has a benefit .
However there could be other condition for BD , as our politicals parties are not pro Bangladeshi. So that's a problem .So if one party supported india and the other china , then there would be a clash . But also if we shared land border, so indian influence would reduce , and condition could be different .

 

[Homo Sapiens]

Vietnam's export was more than 50 billion back in 2008. By 2013 it had surpassed 100 billion. And their exports were not as dependent on textiles. So no BD's situation is nothing like Vietnam of three to five years ago. Vietnam had FDI inflows of more than 20 billion back in 2013. BD can barely surpass 2 billion in 2018. Vietnam is what we should look into. But we are nowhere near as competent as them, we need to understand that.

Bangladesh might be a large consumer market. But I only see people preferring foreign brands. Indian motorbikes dominate the motorbike market. People prefer Chinese phone over Walton or Symphony. Only for refrigerator Walton has good share in the market. But still those with money would rather buy a whirlpool fridge over a Walton one.

One news of Samsung manufacturing locally doesn't make much change. They are manufacturing to meet local demand they won't be able to export from here..... Vietnam was in so much better position even 10 years ago in terms of manufacturing electronic goods.

Too much dependency on FDI and export like Vietnam is not desirable either. Vietnam's export volume is almost as large as it's total GDP. Their entire economy is dependent on export. This is a potential danger. Too much dependency on foreign market for your product and jobs are dangerous in a world hit by frequent recession, trade war, economic turmoil in major economies. We need healthy mix of both internal robust consumer base and global customers. both FDI and local investors.

 

[Mage]

It's party correct . Pakistan also had border with China and they are life time ally . Bangladesh would be the same IMHO, as there are two circle in this region , one is China and the other is india. And also sharing land border has a benefit .
However there could be other condition for BD , as our politicals parties are not pro Bangladeshi. So that's a problem .So if one party supported india and the other china , then there would be a clash . But also if we shared land border, so indian influence would reduce , and condition could be different .

There is no such thing as lifetime ally. And I would not want BD to have the relationship with China that Pakistan has with China. It's pretty much one way traffic.

 

[moweike]

I'm pretty sure if we had a land border with China, our relation would be hostile as well.

Very unlikely it would be better than our relation with India. Who do you think we have a better relation with? India or Myanmar?

If we had a border with China, China would've found it much easier to pressure us.

Now we are in a good situation to balance Indian influence with Chinese one, if we play our game right.

Fortunately, we are not close to Bangladesh.Why are you keen to discuss China? Persecution fantasy?

 

[HariSinghNalwa]

Bangladeshi spewing their vitriol as usual typical jamaati ,this thread is about india facilitating your trade with a third country which is already minuscule without tariffs ,you thinking about chicken's neck ,you jamati is good for JMB camps ,your boasting and vitriol should be limited otherwise missiles pointed elsewhere will be on you.

 

[Mage]

Too much dependency on FDI and export like Vietnam is not desirable either. Vietnam's export volume is almost as large as it's total GDP. Their entire economy is dependent on export. This is a potential danger. Too much dependency on foreign market for your product and jobs are dangerous in a world hit by frequent recession, trade war, economic turmoil in major economies. We need healthy mix of both internal robust consumer base and global customers. both FDI and local investors.

That is correct. But the thing is we are no where near Vietnam in attracting FDI. If we could only attract half of what Vietnam attracts we would be in a much better position. We get less FDI than Myanmar, Cambodia, Mozambique.

 

[Mage]

Fortunately, we are not close to Bangladesh.Why are you keen to discuss China? Persecution fantasy?

The topic of China was brought by someone else. I only stated what I think. It seems I hit a nerve. Should I apologize?

Bangladeshi spewing their vitriol as usual typical jamaati ,this thread is about india facilitating your trade with a third country which is already minuscule without tariffs ,you thinking about chicken's neck ,you jamati is good for JMB camps ,your boasting and vitriol should be limited otherwise missiles pointed elsewhere will be on you.

You will get nothing by hitting Bangladesh with missiles, I hope you know that....it will only push more Bangladeshis to cross land border to India.

 

[HariSinghNalwa]

You will get nothing by hitting Bangladesh with missiles, I hope you know that....it will only push more Bangladeshis to cross land border to India.

it is not my decision to make but some jamati posters here talk delusions ,maybe you should talk to them ,also the new fence has made kind of impossible of large scale migration like seen in 71