What's new

Bangladesh Economic & Infrastructure Development - Updates & Discussions

Update on Multi-disciplinary and Super-specialized Hospital at Bangabandhu Sheikh Mujib Medical University(BSMMU)

An interim inspection of the project has been carried out with Hyundai Development Company (the contractor) and Sunjin Engineering & Architecture (one of the consultants).

Construction of underground structure almost completed, frame construction of the 1st and 2nd floors is now in progress. At the same time, the foundation works of the entrance to the basement parking area is also ongoing. The new specialized hospital is planned for completion by 2022.

In this regard, since October 14th, Eulji Medical Center, Eulji University (one of the consultants) has invited doctors, nurses and hospital administrators who belong to BSMMU, and has been providing education and training to them.

84486949_468053207204159_667884856390189056_n.jpg



84554728_468053230537490_8635764620352552960_n.jpg



84499920_468053267204153_4936016646968967168_n.jpg



83101562_468053297204150_5456905770912186368_n.jpg
 





Bangladesh: a new frontier for Hong Kong companies

Mark O'Neill


2071701_24b6f7ba758ba6614607ad600cc1dea8.jpg


In a district of northern Bangladesh, Hong Kong entrepreneur Felix Chang employs 18,000 people in four factories making hair products. They account for 90 percent of his company’s revenue, against 10 percent from three plants in China.

“In 2009, we started to look at production sites in Southeast Asia,” said Chang, chairman of the Evergreen Products Group. “Costs were rising in China, including wages, rent and other fees.”

He chose Bangladesh because of its abundant labor and low production costs, including wages and land.

Chang is not alone. Hong Kong firms have invested US$800 million in 150 projects in Bangladesh, making them the eighth largest investor.

The largest sector, US$317 million, is services: textiles come next with US$276 million and third is chemicals with US$103 million.

The United States, Britain, mainland China and South Korea are the top four foreign investors. The monthly minimum wage is US$95, the cheapest in Southeast Asia after Myanmar, US$75.

Another factor driving Hong Kong and other foreign companies to Bangladesh is the Sino-US trade war. Most people believe that, under Trump and whoever succeeds him, economic relations between the two countries will deteriorate.

Goods made in China may face tariff or other barriers to enter the US – so it is safer to diversify risk and spread production over different countries.

On Feb. 26 the Hong Kong Trade Development hosted a seminar on investing in Bangladesh, attended by about 80 people, mostly from Hong Kong.

“Our economy is now 44th in the world. By 2041, it will be 23rd,” said Md. Shah Alam, deputy secretary to the government of Bangladesh, told the seminar.

Over the last decade, the country's GDP has grown by over 6 percent a year. Last year it grew 7.86 percent, a record.

“Your investment is secured by law against nationalization or expropriation,” he said. “There is equal treatment for local and foreign firms. You can have 100 percent foreign equity ownership and unrestricted exit of capital. Almost all sectors are open. In 30 years, we have never posted negative economic growth and never defaulted on debt repayments.

“We have bilateral investment treaties with 31 countries and double tax treaties with 28. We have an open, market-based economy,” he said.

Dr. Khalilur Rahman of the Ministry of Foreign Affairs said foreign investment would be safe from labor unrest and political stability.

“Last December, Sheikh Hasina was re-elected prime minister for a further five years. This is her third term. She is an exceptional leader who has provided political stability,” he said.

Hasina has led the Awami League political party since 1981. It won an overwhelming victory in the general election on Dec. 30 last year, taking 288 of 300 seats.

The most important sector is ready-made garments. Garment exports in July 2017 to June 2018 reached US$30.6 billion, accounting for 83.5 percent of total exports.

Bangladesh is the world’s second-largest garment exporter, after China. Total exports in 2017/18 hit a record US$36.7 billion, up 5.81 percent over a year earlier. The government's target is US$39 billion by 2019 and US$50 billion by 2021, to mark the country’s 50th birthday.

Jacqueline Yuen, an economist at HKTDC, told the seminar that the country was most suitable for labor-intensive industries.

“Many brands source garments there, such as H & M, Marks & Spencer, Adidas and Uniqlo. Because it is a least-developed country, its exports pay no duty in Australia, Canada, Japan and the European Union.

“Of the country, 80 percent is flood plain. From July to October, there are flooding problems because of insufficient drainage, so you need longer lead times for export. The port of Chittagong accounts for 90 percent of total trade. The journey from Dhaka takes 7-8 hours,” she said.

To deal with an uncertain power supply, many investors buy generators they use when the national supply drops. The government is spending billions of dollars on new power stations, coal and nuclear-powered, and new infrastructure, such as roads and railways.

Felix Chang has gone further than most other foreign investors. He has opened a training center for domestic maids to prepare them for work in Hong Kong. The young women learn Cantonese, Chinese cuisine and how to live and work in the home of a Hong Kong family.

His company also gives back to the community in Nilphilmari, where the factories are. It holds distributions of rice to people over 60, costing about HK$1 million, and gives HK$200,000 to a school for handicapped children every year.
 
External Debt: Repayment to hit record high

erd.jpg

Jagaran Chakma
Bangladesh is going for a record amount in external debt repayment this fiscal year, putting pressure on the almost stagnant foreign currency reserves and tightening market conditions.

The Economic Relations Division data shows that the government has paid $1.34 billion to external lenders in the first 10 months till April of the outgoing fiscal year, up by 14.4 percent than what was paid over the corresponding period a year ago.

Bangladesh repaid $1.2 billion to its external lenders in fiscal 2017-18, according to the latest report on “Flow of External Resources into Bangladesh” compiled by the ERD.

Since independence, the country’s foreign borrowing has been $51.83 billion till June 30, 2018. The government repaid $21.98 billion and the outstanding debt stood at $39.58 billion till April this year.

The government set a target to bring in $7.2 billion in foreign loan in the ongoing fiscal year. During the last nine months, it borrowed $4.52 billion whereas the amount was $3.42 billion in the corresponding period last year.

Analysts said still Bangladesh was in the comfort zone but the situation would turn critical after five years when repayment of big and supplier credits begin.

Economists assume that the loan repayment allocation would significantly be hiked in the budget.

A senior ERD official told The Daily Star that there was no possibility of falling in a debt trap within the next 10 years as per their calculations despite the fact that the government would have to make big repayments in the next five years as large loans mature.

According to Zahid, loan repayment would not be a big problem for the government as it would be ensuring proper utilisation of foreign loans.

“Foreign loan repayment is not a burden for Bangladesh at this moment. It may put pressure on the economy after five to six years when repayment of big and supplier credit loans will start,” said Zahid Hussain, lead economist at World Bank Dhaka office.

However, he said, if the government uses it properly in a way to contribute to the economy and continue the present economic growth, it would not create any pressure.

According to him, the government is implementing some infrastructure projects which would not be economically viable as their cost overruns and implementation delays would put the economy at risk.

“Implementation delays of infrastructure projects will not bring expected returns,” he said.

Zahid Hussain sees unnecessary expenditure in the implementation of big projects and the government taking up expensive loans irrespective of where it has been mobilised from.

He said loans from the World Bank, Asian Development Bank and Japan International Cooperation Agency were still concessional but the others were really expensive and of short terms compared to those of multilateral lenders.

He further said the percentage of expensive credit was still not at a risky level and was still manageable, but in future it would create pressure on the economy due to cost overruns and project implementation delays.

If the returns are lower than the implementation costs, it will definitely create pressure on the economy and the government will have to reduce allocation for education and health and social welfare to make loan repayments, he noted.

Ahsan H Mansur, executive director of Policy Research Institute, said Bangladesh will face a debt burden after five to six years when repayment of expensive loan starts.

The government should be careful in the selection of projects and only those with good returns should be implemented, he said.

“I think expensive projects like the Padma rail link, Karnaphuli tunnel and Dohazari to Cox’s Bazar rail line will not be economically viable as there will be no good returns,” he said.

“The government will have to make repayments higher than returns.” he said.

According to Mansur, if the export volume and remittance did not increase alongside the GDP growth, the government would have to impose taxes which would have to be borne by the citizens.

https://www.google.com/amp/s/www.thedailystar.net/frontpage/news/external-debt-repayment-hit-record-high-1755166?amp


This economic impact we will have due to Covid-19 epidemic will effect o external debt payment . Let’s hope we don’t fall into a debt trap .

 
28th span of Padma Bridge installed, work slowed but still proceeding...

Awesome news, just keep it up !

Thanks Brother - appreciate the encouragement. :-)

Chinese firm to build Osmani Airport extension
BSS
  • Published at 11:06 pm March 11th, 2020
web-sylhet-osmani-airport-1583946392820.jpg

File photo of Sylhet Osmani International Airport

The approval came from a meeting of the CCGP held at the Finance Division Conference Room at Bangladesh Secretariat

The Cabinet Committee on Government Purchase (CCGP) on Wednesday approved a proposal from the Civil Aviation Authority of Bangladesh (CAAB) for awarding the contract to Beijing Urban Construction Group Ltd (BUCG) for conducting works at Sylhet Osmani International Airport.

The BUCG will implement the public works at the Sylhet Airport under the “Sylhet Osmani International Airport Extension (1st phase) Project” with an expenditure of Taka 2,116.51 crore.

The approval came from a meeting of the CCGP held at the Finance Division Conference Room at Bangladesh Secretariat today with Finance Minister AHM Mustafa Kamal in the chair.

Briefing reporters after the meeting, Cabinet Secretary Khandker Anwarul Islam said that a total of six firms submitted their bids for the Sylhet Osmani International Airport extension project where BUCG turned out to be the lowest bidder.
 
Cellphones assembled by ITEL Transsion brand.


Motorcycles being made at Runner Motorcycles...


Bicycles being made at Duranta Cycles

 
Comilla SEZ completes 3300 Crore of production every year on average. 240 companies established in this SEZ.

 
Honda establishes local manufacturing plant.

Yamaha establishes local manufacturing plant.

Runner Dominator 250cc bike being exported to foreign markets.

Same story here again.
 

Pakistan Defence Latest Posts

Pakistan Affairs Latest Posts

Back
Top Bottom