Bangladesh Economy: News & Updates

[Banglar Bir]

ADB approves $1.2bn for Dhaka-Northwest int’l trade corridor
SAM Staff, October 25, 2017

The Asian Development Bank has approved $1.2 billion in finance for the second phase upgradation of the Dhaka-Northwest international trade corridor in Bangladesh.

“Bangladesh has good prospects of becoming a regional trade hub, if the country’s transport infrastructure can be improved to bring down transport costs and make the sector more competitive,” said Dong Kyu Lee, Unit Head of Project Administration in ADB’s South Asia Department.

To take forward these aims, the project is expected to significantly boost trade and prosperity along the trade corridor route, the second busiest artery in the country, the ADB official added.

Transport infrastructure is the centerpiece of the ADB-supported South Asia Subregional Economic Cooperation (SASEC) programme, which promotes regional prosperity, said an ADB media release on Tuesday.

Since 2001, SASEC members have invested more than $9.17 billion in projects with a regional dimension, including 31 transport projects worth $7.3 billion. SASEC transport investments in Bangladesh focus on developing highway corridors. Road travel accounts for 70 percent of all passenger traffic and 60 percent of freight in Bangladesh, where traffic has been growing at a rate of 8 percent a year.

ADB has been a partner of the government in improving the Dhaka-Northwest corridor since 1994, when the landmark Jamuna Bridge Project was approved. A first ADB loan of $198 million was approved in 2012 for what is now considered phase 1 of the international corridor project.

This increased road capacity on 70 kilometers (km) of the Joydeypur-Elenga section of the road. It also improved operational efficiency of two of the land ports—Burimari and Benapole—that provide gateways to Bhutan and India, respectively.
Also Read: India’s NRL enters diesel export pact with Bangladesh
Phase 2 continues ADB’s support to the corridor by improving the 190-km section from Elenga through Hatikurul to Rangpur. Road operation and management in the Roads and Highway Department will also be strengthened.

There will be further work on issues such as road safety and gender responsive features to make the highway user friendly to women. Studies have shown that women particularly use the route on foot or slow-moving vehicles such as rickshaws, so the project will include footbridges, footpaths, and lanes for slow moving traffic to make their travel safer.

The total cost of the project is $1.67 billion, of which the government will meet $472.6 million. ADB’s financial assistance will be delivered through a multi-tranche financing facility, with the first tranche comprising a regular loan of $250 million and a concessional loan of $50 million.

The work will be carried out over 10 years to August 2027, with funding from three more tranches from the facility at intervals.

Accompanying the assistance package is an ADB technical assistance (TA) grant of $2 million to support the government in updating its Road Master Plan, and enhancing planning and monitoring activities associated with roads. The TA is to be carried out from January 2018 to December 2023.
Also Read: Bangladesh to sign MoU for LNG import from three countries
SOURCE UNB
https://southasianmonitor.com/2017/10/25/adb-approves-1-2bn-dhaka-northwest-intl-trade-corridor/

 

[Banglar Bir]

Bangladesh, China sign framework agreement to arrange funds for energy project
Aminur Rahman Rasel
Published at 01:59 PM October 29, 2017

Representational image of the signing of an agreement BigStock
Kazi Shofiqul Azam, Economic Relations Division (ERD) secretary and Chinese Ambassador to Bangladesh Ma Mingqiang signed the agreement on behalf of their respective side
Bangladesh has signed a framework agreement with China to arrange funds of Tk4293.12 crore to install a single-point mooring (SPM) at Sonadia island and two 220km-long pipelines to connect the SPM with Chittagong’s Eastern Refinery Limited.

An SPM facilitates the transfer of crude oil from mother vessels to offshore tanks and then to onshore tanks.

Kazi Shofiqul Azam, secretary of Economic Relations Division (ERD) and Chinese Ambassador to Bangladesh Ma Mingqiang signed the agreement on behalf of their respective sides at the ERD office in Dhaka on Sunday.

ERD Deputy Secretary AKM Matiur Rahman told the Dhaka Tribune: “After the framework agreement this week, the loan agreement will be signed between ERD and Chinese Exim Bank.”

On December 8, 2016, the state-owned Bangladesh Petroleum Corporation (BPC) signed a Tk5,426.26 crore deal with China’s state-owned oil pipeline contractor China Petroleum Pipeline Bureau CPPB to install an SPM.

Chinese Exim Bank will provide Tk 4293.12 crore and Bangladesh will arrange Tk1021.19 crore while the BPC will invest the remaining Tk111.95 crore.

The CPPB will set up the project as the EPC (engineering, procurement and construction) contractor.

Funding for Bangladesh’s first SPM was scheduled to be arranged by June and the project was scheduled to be completed by 2020.

The project’s main objective is to ensure the unloading of imported crude oil in a more efficient and time-saving manner.

BPC initiated the SPM project five years ago to handle the transfer of crude oil from Kutubdia to Patenga.

With installation of the SPM, Bangladesh Petroleum Corporation will be able to cut the oil-unloading period from 21 days to just nine, from a 20-ton lighter ship.

The CPPB will build the SPM as well as the pipelines that will connect the SPM with Chittagong’s Eastern Refinery Limited.

Currently, Bangladesh Petroleum Corporation imports crude and refined petroleum from the Middle-East and other countries through Chittagong Port. Large oil tankers unload crude oil to lighter vessels, which carry it to Eastern Refinery for distillation.
http://www.dhakatribune.com/banglad...ework-agreement-arrange-funds-energy-project/

 

[Banglar Bir]

A new avenue
Tribune Editorial
Published at 06:06 PM October 29, 2017
Last updated at 01:42 AM October 30, 2017

A local industry devoted to producing mobile phones will mean thousands of new jobs and an improving trade balance
As Bangladesh’s economy continues to develop and reduce its dependency on the agriculture sector, our manufacturing sector needs to be strengthened further in terms of productivity and diversification.

While the RMG industry has dominated manufacturing for a long time, the consumer electronics industry has recently emerged as a strong player.

Walton is one of the biggest names in the local consumer electronics industry, and now, for the first time in Bangladesh, the company is planning to undertake large-scale production of locally-assembled smartphones starting next year.

A local industry devoted to producing mobile phones will mean thousands of new jobs and an improving trade balance as we can scale down our import of handsets and perhaps even start exporting them.

That is the direction that we want to see more and more companies take, and we applaud Walton for showing the kind of entrepreneurial spirit that will transform our economy into a truly modern industrialised economy.

However, entering an existing market, especially one with foreign competition, means facing significant barriers, but the good news is that they can be overcome with the right kind of support from the government.

That prudent economic policy really makes a difference is already evident as the company thanked the government for its decision to lower import taxes on mobile parts, which helped lower production costs.

But apart from mobile parts, a big component of production is skilled labour, which is sorely lacking in the country.

This is not a problem that can be solved overnight, but it is certainly well worth the long-term investment.
http://www.dhakatribune.com/opinion/editorial/2017/10/29/a-new-avenue/

 

[Banglar Bir]

09:09 PM, October 29, 2017 / LAST MODIFIED: 09:15 PM, October 29, 2017
Bangladesh to emerge as ICT tiger in next 10 years: Muhith

Finance Minister AMA Muhith. Star file photo
BSS, Dhaka
Finance Minister AMA Muhith today said Bangladesh will emerge as ICT tiger in the next ten years as the country has already made a tremendous headway in ICT because of the government's realistic policies and plans.
"The pledge to building a Digital Bangladesh was included in the election manifesto by Prime Minister Sheikh Hasina nine years ago and now we can say Bangladesh has entered ICT age and in the next ten years county will emerge as ICT tiger," he told the closing session of a seminar on 'Impact Bangladesh Forum' in Dhaka.

While highlighting the benefits of the introduction of online payment systems, the finance minister said it has helped reduce 75 percent cost. The ICT is also playing important role in health sector, he added.

State minister for ICT Division Zunaid Ahmed Palak and Dhaka Chamber of Commerce and Industry (DCCI) president Abul Kasem Khan also spoke at the session.

United Nations Development Programme (UNDP) and DCCI jointly organised the daylong event.

Zunaid Ahmed Palak said immediately after coming to power the present government took realistic steps to build digital Bangladesh. As a result, the number of internet users increased to eight crore from 10 lakh eight years ago.

The government, he said, has a plan to expand internet connection up to all unions by 2018 and develop 20 lakhs skilled manpower in the ICT sector by 2021. The government has also a plan to develop 10,000 products in the ICT sector by 2021, he added.
Palak urged the entrepreneurs to invest in the ICT sector.
http://www.thedailystar.net/country...ears-finance-minister-abul-mal-muhith-1483447

 

[fallstuff]

Biman to induct two more aircraft

State-run Biman Bangladesh Airlines has decided to add two more aircraft to its fleet for 72 months on lease before October next year.

The national flag carrier has invited Proposal/Offer for Dry Lease (only aircraft) of two 737-800 aircraft with winglets for a period of 72 months, a senior official of Biman told the news agency.

He mentioned that the airline wants to induct these two aircraft with delivery schedule on or before October 1, 2018.

The aircraft will be operated on regional, international as well as on the domestic routes of Biman Bangladesh Airlines, the Biman official added.

He said that Biman has increased its weekly frequencies to some potential routes and is also planning to extend its services to prospective new destinations (like Guangzhou, Colombo, Male`) along with resumption of flights to Delhi and Hong Kong.


"These two aircraft will be helpful to the airliner," the official added.

He said the aircraft will have two class configuration with 162 -- 12 business class and 150 economy class -- seats. The age of the aircraft will not be more than 13 years on October 1, 2018.

According to an official document, the aircraft must be delivered in full operating condition.

Heavy Maintenance Check (D Check or Equivalent) of the offered aircraft must not fall due within the first 12 months of the lease period.

If above mentioned tasks and Heavy Maintenance Check (D Check or Equivalent) is due in the second year, the lessor must pay the difference between the heavy maintenance cost and the accumulated maintenance reserves, the document reads. Each aircraft must be delivered fresh out of "C" Check, it added.

Established in February 1972, at present Biman is operating flights to seven domestic and 15 international destinations. Out of the international destinations, Biman operates flights to two destinations in the Saarc countries, four destinations in the South East Asia, eight destinations in the Gulf and Middle East and one destination in Europe.

At present, Biman has 13 aircraft in its fleet including four 777-300ER, two 777-200ER, one A330-200, four 737-800 and two Dash8-Q400 aircraft.

Biman took delivery of four 777- 300ER and two 737-800 aircraft from Boeing under the purchased agreement for 10 aircraft signed in 2008. Remaining four 787-8 aircraft are scheduled to be delivered in 2018/2019.

According to the Biman sources, the airliner has a plan to start its operation on Dhaka-Narita (Japan)-Dhaka route after having suitable aircraft in its fleet.

http://www.thedailystar.net/city/biman-induct-two-more-aircraft-1479544

 

[Mage]

CTIEC Signs contract of float glass project in Bangladesh

Date: 1 November 2017
Source: www.ctiec.net
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www.ctiec.net
On Oct. 28th, China Triumph International Engineering Co., Ltd signed the general contract of second 600tpd float glass line for Nasir Float Glass Industries Ltd.
The signature ceremony was held in headquarter of CTIEC in Shanghai. The Chairman and CEO of CTIEC Mr. Peng Shou, representing CTIEC, signed the contract with Mr. Nasir, Managing Director of Nasir Float Glass Industries Ltd.

The No.1 line of 600tpd float glass project contract was originally signed in 2015, and this float glass production line is still underconstruction with a steady progress. The demand of float glass is growing along with the quick development of economy in Bangladesh.

According to the company vision, Mr. Nasir decided to start the second line of 600tpd float glass project, and selected CTIEC as the general contractor without any hesitation.

CTIEC has already constructedseveral projects for Nasir Group since 2002, facilitating the Nasir Group to become the largest glass manufacturer in Bangladesh.

All the established projects including 250tpd float glass line, 100tpd glassware production line, 20tpd tubing glass production line, 250tpd to 400tpd float glass renovation project bring considerable profitsto the customer.

Deputy chief engineer of CTIEC, Mr. Wang Zongwei, Assistant President of CTIEC and Director of international business department Mr. He Wen, Chief engineer of international business department Mr. Zhao Wenke and project manager Mr. Sun Wentao attended the meeting.


https://www.glassonweb.com/news/ctiec-signs-contract-float-glass-project-bangladesh

Telenor to invest more, seeks clear terms

Sigve Brekke
Muhammad Zahidul Islam
Telenor Group, the majority shareholder in Grameenphone, is keen to invest heavily in Bangladesh to broaden its digital services, especially in 4G segment, but wants to be clear on terms and conditions first, said its top executive.

“Digital services are the future and Grameenphone is fully ready to invest in this segment,” Sigve Brekke, CEO of the Norwegian multinational telecom company, said in an interview with The Daily Star yesterday. He, however, didn't mention the amount it plans to invest.

“We see a huge opportunity in Bangladesh. We are willing and waiting to invest in network to offer the service. But the terms and conditions to make money from it have to be clear.”

Brekke said Grameenphone has made it clear to the government that it needs predictability on policies and regulations because “we are going to invest huge amount of money”.

“We need to know under which basis we are investing. We need predictability on the Telecom Act, something the industry has been discussing with the government for many years,” Brekke said, adding that GP wants business-friendly conditions in every aspect.

Telenor owns a 55.8 percent stake in Grameenphone, while Grameen Telecom owns 34.2 percent, and the general and institutional shareholders the remaining 10 percent.

The spectrum price is too high in Bangladesh, Brekke said. “If the government wants to maximise upfront benefits from the payments, we will have no other option but to pass some of the burden on the customers.”

He blamed the poor service quality on the spectrum scarcity and poor architecture of Dhaka.

“That's why we are urging the government to use the spectrums in an efficient way and place more spectrums on auction with an affordable price.”

According to the approved guideline, the floor price for each megahertz of spectrum in the 2,100 band would be $27 million and $30 million in the 900 and 1,800 bands.

The Telenor CEO said Grameen-phone has established super network in Dhaka similar to that of in Norway or Bangkok but it needs more spectrum to provide quality service.

Brekke joined Telenor in 1998. Before becoming the CEO, the Norwegian was the executive vice president and head for the Asia region of the group and chairman of Grameenphone.

Telenor has sought permission so it can set up its own infrastructure to offer the best-in-class services to the customers.

At the moment, mobile operators are not allowed to lay fibre optic cable, a vital component for 4G services.

Likewise, mobile operators are also going to lose authority to set up towers under a new licensing regime where tower companies will own all the towers and provide services to the telecom operators.

Brekke also touched upon Bangladesh's low smartphone penetration—now less than 40 percent— saying the country would have to go a long way to reap the maximum benefit of the internet.

The price of smartphones would come down to an affordable level on the back of local assembly, he said. “As a result, the penetration will increase.”

According to Brekke, Bangladesh will not reach its goal of establishing Digital Bangladesh without the mobile operators as only they have connections with millions of people.

Grameenphone CEO Michael Foley, who was present during the interview, said local handset manufacturing is developing in Bangladesh and it will drive prices down.

He said there is huge opportunity for mobile financial services in Bangladesh.

“Financial inclusion is weak in Bangladesh as mobile operators have no participation. The real financial inclusion will not happen unless mobile operators are allowed to be involved in the process. A truly Digital Bangladesh will not happen until people find a way to be financially included.”

Brekke said Grameenphone has no intention to take business away from banks.

“We can't be an alternative to banks; rather we can financially include more people with the digital process which can ultimately help grow the economy.”

Telenor is allowed to offer banking services in Pakistan and Myanmar and has more than 2 million banking customers in Pakistan.

Telenor also has some ups-and-downs in Bangladesh.

Accenture, a global outsourcing firm where Telenor has 49 percent share, recently announced it would wind up its operations from Bangladesh.

Brekke did not make elaborate comments on the issue other than saying that it is 'unfortunate'.

GPIT, a sister concern of Telenor and an offshoot of Grameenphone, sold majority shares to Accenture in 2013.

The market leader also shut down two e-commerce business platforms—ekhanei.com and kidorkar.com—this year.

The two ecommerce sites did not get much traction. On the other hand, Telenor has successfully replicated two digital services – WowBox and Tonic, both developed in Bangladesh – in Pakistan and Myanmar. And Brekke termed it as a success of Grameenphone.

About axing of Grameenphone's manpower, Brekke said when a company moves to digital services things will be done more efficiently, which may make it necessary to cut jobs.

Previously, Grameenphone used to manage call centres with thousands of people. But after the launch of an application, its customers now can get all the support they need. Only a few people are now required to run the call centres.

“It is quite natural as we are trying to digitalise the company. One the other hand, in some areas we need more people,” Brekke added.

Grameenphone now employs less than 2,000 people, down from about 5,000 a few years ago.


http://www.thedailystar.net/business/telenor-invest-more-seeks-clear-terms-1485118

 

[Banglar Bir]

Dhaka to get first circular train service
Shohel Mamun
Published at 07:04 PM November 06, 2017
Last updated at 12:02 AM November 07, 2017

The Ministry of Railways has completed a pre-feasibility study to acquire land for the proposed circular train network around Dhaka Dhaka Tribune
The government is looking to install an 81.9km circular train network with elevated viaducts and double-line standard gauge tracks around Dhaka
Bangladesh Railway (BR) is to construct a circular rail route surrounding Dhaka City to help ease traffic congestion.

The Ministry of Railways has completed a pre-feasibility study to acquire land for the proposed rail route.

“If we are able to implement the project, city dwellers will get some relief from the existing traffic chaos,” said Railways Secretary Mofazzel Hossain.

“People who will want to travel long distances and avoid the existing chaos can easily take the circular train service.”

According to details of the project plan, the 81.9km circular train network will have elevated viaducts and double line standard gauge.

The circular route will have 20 stations: Tongi, Termuk, Purbachal road, Beraid, Kayetpara, Demra, Siddhirganj, Chowdhuri Bari, Chasara, Fatullah, Shyampur, Sadarghat, Babubazar, Nawabgonj, Shankar, Gabtoli, Dhaka Zoo, Birulia, Uttara and Dhour.

According to the plan, trains will move both ways continuously.

Passengers who want to move across the city from north to south directly could catch the train from Tongi and move through Purbachal, Demra to Siddhirganj station, which is situated at the point of the Dhaka-Chittagong highway.

If a passenger wants to go from the south to Sadarghat, they can catch the train bound for the north.
Also Read – Just 12% progress made in metro rail project in 4 years
With the addition of the circular train service, some of Dhaka’s important sections will be connected through rail service with satellite towns like Purbachal, and other suburban areas of Dhaka City.

“The circular train can help to ease movement between long distances in Dhaka. The service will not only be comfortable and easier, it will also reduce pressure over the road networks,” said Railways Minister Mazibul Hoque.

“Dhaka city is already expanding, taking 16 Union Parishad into the city’s jurisdiction. Newly added city people will be able to take advantage of the circular train service,” he added.

The commuters of Yangon in Myanmar have been using a circular train service for the past seven years.
http://www.dhakatribune.com/bangladesh/development/2017/11/06/dhaka-first-circular-train/

 

[Bilal9]

Mobile phone users in Bangladesh top 140 million
Senior Correspondent, bdnews24.com
Published: 2017-11-14 21:39:32.0 BdST Updated: 2017-11-14 22:28:12.0 BdST

More than 140 million people, out of Bangladesh’s population of 160 million, use mobile phones while around 80 million people access the internet, say the telecom regulators.

Bangladesh Telecommunication Regulatory Commission or BTRC released the latest figures on Tuesday.

The number of mobile subscribers was a little over 140.7 million by the end of September this year against 120 million during the same period last year, marking an 18 percent growth.

Grameenphone tops the chart boasting 63.8 million subscribers with the merged Airtel-Robi commanding 41.2 million subscribers.

Banglalink is a distant third with 32.3 million subscribers while state-owned operator Teletalk is struggling with 3.24 million subscribers.

The number of people with access to the internet has also grown by 18 percent in one year.

Nearly 73.8 million people access the World Wide Web by mobile phones, making up 93 percent of the total users.

Around 5.2 million subscribe to different Internet Service Providers and Public Switched Telephone Network to connect to the internet.

The number of WiMAX users has increased to 90,000 over the same period.

“The rise in the number of mobile phone and internet users indicate economic progress of the country,” said TIM Nurul Kabir, Secretary General of the Association of Mobile Telecom Operators of Bangladesh, on Tuesday.

Digital services in Bangladesh will flourish even more if the internet users are exempted from paying VAT, he suggested.

 

[Bilal9]

Bangladesh's exports rebound with 6.5% growth in October
Chief Economics Correspondent, bdnews24.com
Published: 2017-11-10 03:39:53.0 BdST Updated: 2017-11-10 03:39:53.0 BdST

• 
  
  The apparel sector in Bangladesh has seen impressive growth over the years accounting for more than 80 percent of the total exports earnings of the country. File photo: asaduzzaman pramanik
  

After a slump in September, Bangladesh's export earnings have bounced back in October, topping expectations.

It earned over $2.84 billion last month, marking a nearly 6.5 percent growth year-on-year and around 6.3 percent more than the target set in the budget for the fiscal 2017-18, according to Export Promotion Bureau data released on Thursday.

In September, export earnings dropped to $2.03 billion, which is around 10 percent less than the same month last year. It also missed the target by 28 percent.

In July-October period, Bangladesh exported goods worth over $11.5 billion.

The amount is 7.03 percent more than $10.75 billion of the same period last year, but still 0.074 percent off the target.

The readymade garment sector, like before, drove the exports with a contribution of over $9.43 billion in the four months this year.

The government targets to export goods worth $37.5 billion in 2017-18 fiscal year.

Exports in the last financial year amounted to $34.59 billion, which was 3.39 percent more than the previous year, but still way short of the $37 billion target.

Bangladesh’s economic growth hits record 7.28% in FY17
Staff Correspondent bdnews24.com
Published: 2017-11-14 15:52:58.0 BdST Updated: 2017-11-14 17:46:11.0 BdST

The GDP growth and per capita income for FY2017 are slightly higher than previous estimates.

Bangladesh’s economic growth accelerated to 7.28 percent in the year to June 30, Planning Minister AHM Mustafa Kamal said at a media briefing in Dhaka on Tuesday, citing final data.

Provisional data put the GDP growth at 7.24 percent for the year.

Per capita income rose from $1,602 to $1,610.

“In the final data, Bangladesh’s GDP stands at $249.86 billion, or nearly Tk 20.88 trillion. It took Bangladesh 34 years to reach a GDP of $100 billion. The remaining growth has been the achievement of the Sheikh Hasina administration,” he said.

Aside from Bangladesh, only Ethiopia and Cambodia have achieved a GDP growth rate over 7 percent, the planning minister said.

“The agriculture sector grew 2.90 percent, manufacturing grew 10.22 percent and the services sector grew 6.69 percent. Though we have aimed for 8 percent growth by 2020, we will reach it by 2019 at the current rate.”

The Bangladesh Bureau of Statistics, or BBS had previously issued estimates of 7.24 percent GDP growth and per capita $1,602 in April.

According to the BBS, the growth rate in FY2016 was 7.11 percent, while the per capita income was $1,465.

The economy eventually passed 7 percent growth in FY2016 after being ‘stuck’ in the 6-7 percent range for nearly a decade. Last June, Bangladesh targeted a growth rate of 7.2 percent for the current fiscal year.

 

[Banglar Bir]

12:00 AM, November 15, 2017 / LAST MODIFIED: 12:40 AM, November 15, 2017
Rise High Bangladesh

The second season of the export idea contest “Rise High Bangladesh”, jointly organised by The Daily Star and Crown Cement, has stepped into the final round. Successful campus activation programmes and campaigns in different media platforms generated all round positive response from students, and a good number of ideas have been submitted for the contest. An expert panel of judges, comprised of prominent business leaders and practitioners of the country, choose ten ideas for the final contest. Now three finalists will be selected for the gala round by the jury panel and readers.
To vote for your idea please visit : www.thedailystar.net/risehighbd

http://www.thedailystar.net/supplements/rise-high-bangladesh-1491481

 

[Banglar Bir]

02:39 PM, November 16, 2017 / LAST MODIFIED: 02:44 PM, November 16, 2017
2 more leather estates in Rajshahi, Ctg: PM

Prime Minister Sheikh Hasina. File photo
UNB, Dhaka
Expressing the hope to bag $ 5 billion export earnings from the leather, leather goods and footwear sector out of the total export earnings of $60 billion as per the Vision 2021, Prime Minister Sheikh Hasina today said two more leather industrial estates will be set up in Rajshahi and Chittagong divisions to flourish the sector.
"We've already set up an environment-friendly leather industrial estate in Savar and we've more plans. We'll set up two new leather industrial estates in Rajshahi and Chittagong divisions. We'll take necessary steps in this regard. The leather industry should not be Dhaka-centric only; rather it should be spread across the country," she said.

The Prime Minister was inaugurating the three-day Bangladesh Leather Footwear and Leathergoods International Sourcing Show (BLLISS)-2017 at the International Convention Centre Bashundhara (ICCB) in the capital through videoconferencing from her official residence Ganobhaban in the morning.

She also urged the foreign investors and buyers to invest more in Bangladesh's leather sector and source more leather products from Bangladesh.

"All the people you've come from abroad, I welcome you to Bangladesh and I hope this show will help boost our export and bring new dynamism in the sector. This event is a great opportunity to showcase the quality of our products, capacity, compliance and practice in the leather goods and footwear industry in the international buyer brands and potential investors," she said.

The Prime Minister also wished the BLLISS 2017 a grand success.

The Commerce Ministry and Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) jointly organised the event to attract more investment in the leather sector.

The theme of the show is "Think Ahead, Think Bangladesh".

Commerce Minister Tofail Ahmed was present at the function at the ICAB as a special guest while eminent entrepreneur Syed Manzur Elahi and LFMEAB President M Saiful Islam also spoke.

The pre-recorded speeches of Industries Minister Amir Hossain Amu, State Minister for Foreign Affairs M Shahriar Alam and acting FBCCI President Sheikh Fazle Fahim were played at the function.

PM's Private Sector Development Adviser Salman F Rahman and Press Secretary Ihsanul Karim were present at Ganobhaban, among others, while Director General (admin) of the PMO Kabir Bin Anwar moderated the function.

Ministers, MPs, diplomats, dignitaries and the leaders of different trade bodies were also present at the ICCB.

An audio-video presentation on the past, present and the future of Bangladesh's leather sector was projected at the function.

Leaders of industrial sector, world famous brands and international buyers from 15 countries, including China, India, Vietnam and Thailand, are participating in the show.
http://www.thedailystar.net/busines...m_medium=newsurl&utm_term=all&utm_content=all

 

[Banglar Bir]

03:41 PM, November 16, 2017 / LAST MODIFIED: 05:48 PM, November 16, 2017
ICT export earning $800m in 2017

Bangladesh earns $800 million this year by exporting locally made software and other ICT-related products, State Minister for ICT Zunaid Ahmed Palak says on Thursday, November 16, 2017. Photo: STAR
Star Online Report
Bangladesh has earned $800 million in 2017 by exporting locally made software and other ICT-related products, state minister for ICT Zunaid Ahmed Palak said today.
Bangladesh Bank’s export target of $1 billion by 2018 and $5 billion by 2021 will be achieved if the ICT industry maintains the growth, he said in a programme in Dhaka.

He was speaking at Janata Software Technology Park sharing the plan of a four-day long ICT exposition Digital World 2017, which kicks off in Dhaka on December 6.

“We have taken Vietnam as our model. They achieved $20 billion foreign currency in ten years though they have started from ground zero,” Palak said in his speech.

This year’s Digital World is expected to draw a huge number of foreign guests. Already more than 350 companies from different countries have registered for the event.
http://www.thedailystar.net/country/ict-export-earning-800m-2017-1492120

 

[ashok321]

Global investors heading to India are now beginning to make a stopover at Bangladesh

When Waseem Alim, a Wharton graduate, decided to move back home in 2013 and launch an ecommerce company, there was zero buzz around startups on the streets of Bangladesh. Alim hoped to change that. “I realized I had skills that could be used to start a technology-based company in my home country,” he recalled.

From studying online retailers in other countries, Alim realized discounts were a major driver in convincing people to shop online. That, however, would mean high cash burn, not something an internet company in Bangladesh could afford.

So Alim decided to instead start an e-grocery company, which he named Chaldal. “Grocery demands loyalty because of its nature of repeat purchases,” said Alim. Given capital Dhaka’s notorious traffic, a grocery-delivery business made immense sense.

Since then, Chaldal has been a part of the prestigious startup incubator Y Combinator and received an investment from early-stage venture fund 500 Startups. The company’s current annual gross sales, or gross merchandise value, are estimated at $5 million, growing at over 100% every year.

The rollout of 3G internet in Bangladesh 3-4 years ago led to rapid adoption of online shopping there. The country’s e-tailing sector is expected to grow 70% in 2017, according to RedSeer Consulting. Internet penetration to 40% of Bangladesh’s 165-million population has bolstered the growth of local ecommerce, F-commerce (merchants conducting online business through Facebook pages) and e-grocery startups.

Rocket Internet-backed online marketplace Daraz, Foxconn-backed e-retailer Pickaboo, and Chaldal are among the leading startups in this fairy nascent ecosystem. The size of Bangladesh’s ecommerce market is estimated to be $110-115 million this year, which is a mere 0.7% of the country’s total retail market, according to RedSeer Consulting. To put that in perspective, India’s ecommerce market is estimated to cross $17 billion this year.

The size of Bangladesh’s egrocery market is much smaller at $4-5 million, or about 0.03% of the country’s overall grocery market. Even so, analysts are predicting that Bangladesh’s ecommerce market will surge to $20 billion by 2020, by when, according to Goldman Sachs, India’s online retail market is expected to reach $69 billion.

Bangladesh’s ecommerce market is “nascent but growing— similar to what India was probably seven years ago. It’s a good time for ecommerce players to be entering,” said Shalini Prakash, venture partner at 500 Startups, which has invested in more than 50 companies in India since 2011.

“We are a global fund. So we are looking at founders and startups that are looking to solve interesting problems across the globe for the local market.”

Daraz, founded in 2014, dominates Bangladesh’s ecommerce market, selling electronics, mobile phones, large appliances and apparel. The company is growing at double-digit percentages every month, supplying to customers in neighbouring markets Pakistan, Sri Lanka, Nepal and Myanmar as well.

The opportunity in Bangladesh prompted Delhi-based digital marketing company MoMagic Technologies to launch Pickaboo there last year. “The Bangladesh ecommerce market is close to five years behind the Indian ecommerce market and is around 10-12% of the size of the Indian ecommerce market,” said Arun Gupta, chief executive of MoMagic. “We identified Bangladesh as a potential opportunity and decided to launch Pickaboo.”

Pickaboo, which clocks monthly revenues of $600,000, mostly sells electronics on its controlled marketplace and has plans to add leather accessories shortly.

“When Flipkart was launched, they started selling books first— a category where what you see on the marketplace and what you receive is the same. In today’s world, electronics fall under this category with the probability of difference being low,” said Gupta, adding that Pickaboo has a 20% share of Bangladesh’s ecommerce market.

International Finance Corporation (IFC), the private sector lending and investment arm of the World Bank, has been tracking Bangladesh’s entrepreneurial ecosystem the past year and is bullish about the market.

It has shortlisted and is actively monitoring 43 startups, including Chaldal topping the list as a potential investee company.

Chaldal, somewhat similar to India’s largest e-grocer Big Basket, delivers groceries using a network of small warehouses spread across Dhaka. “We launched Chaldal because we felt that there was a need to offer more variety of groceries to our customers,” said CEO Alim. “As the country develops there is a need to provide services that save time for the growing middle class.”

Chaldal competes with Direct Fresh and Meena Click, the online extension of Bangladesh’s 15-year-old supermarket chain Meena Bazaar. Specialising in groceries and personal care products, Meena Click was launched three years ago. The company, which handles 4,000-4,500 orders a month in Dhaka and the port city of Chittagong, said it has doubled its business over the past year.

“The grocery market is huge with limited superstore penetration and we feel that the online model would help us achieve scale that no other player in the market has,” said Alim. The online grocery startup reached out to its counterparts across the world, including Indian companies Big Basket and Grofers, to exchange notes. “The learning has mostly been around what (Big Basket and Grofers) think is important to customers— tradeoffs between quality, speed, etc.,” said Alim.

This also led to a realization that despite the geographical proximity, Bangladeshi startups operated in a different environment.

“Indian players have been able to use capital to get a starting boost. Grofers, for example, for fast-growth by spending on marketing, while Big Basket invested heavily in operations and getting quality right,” said Alim.

Another aspect about this nascent ecommerce market is that of the total online spending by customers, which is estimated to be about $50 million, 40% of the transactions are through 15,000 small merchants selling through their Facebook pages.

Bangladesh’s ecommerce “ecosystem, instead of developing around one or two big players, has several smaller merchants who sell online,” said Ruchira Shukla, regional lead, South Asia, venture capital, at IFC, which is also an investor in India’s biggest online grocer Big Basket.

Due to Bangladesh’s rapidly growing economy and urban population, IFC believes now is the right time to make some early bets in the country’s startup ecosystem. “The metrics point to healthy growth in Bangladesh… We are looking at some earlierstage investments than what we do in India—most likely at the series-A level financing along with other investors,” said Shukla.

Bangladesh also has the advantage of a large and homogenous population of 165 million. Because of this, “once the business model is figured out, it can be scaled across several cities and the entrepreneur doesn’t have to worry about differences in language or culture,” Shukla said.

That said, Bangladesh has fewer large and dense cities when compared with India, which poses tough limitations to growth by expansion.

The market is fraught with several other challenges too. “Logistics and the transportation system are still challenges in Bangladesh,” said a spokesperson for Daraz, which said it has the largest delivery network in the country, with its own fleet operating in 20 cities. “Also, the stagnant traffic hampers fast delivery of products.”

Educating customers is also an uphill task. Alim recalled being at the receiving end of “a lot of snarky remarks related to a Wharton education going to waste on becoming a grocer. People still think that I might end up doing something ‘real’ later in life.” Consumer brands, too, used to be skeptics. “When we started Chaldal, we could not find good pictures of the products we were selling (for a catalogue) and companies like Unilever were not helpful in providing us with pack shots,” said Alim.

Then, he had his light-bulb moment.

The Chaldal team rented out a small grocery for two hours to click pictures of all the items it stocked to build their online catalogue.

“Basically, we paid some money to keep the store open for an extra two hours and set up a photo studio inside. The pictures looked horrible but at least we got them up on a website.”

Another big challenge lies in how to turn around the market despite a shortage of capital. This has forced some companies to resort to capital-efficiency to survive.

“Part of the capital-efficiency comes from us having very little capital available in the ecosystem— we have had to innovate significantly beyond the practices in the Indian market,” said Alim, who took inspiration from Big Basket’s warehouse to start their own in Dhaka. Chaldal now has five small warehouses and one sourcing hub in Dhaka.

 

[ashok321]

Viva Bangladesh!

https://twitter.com/x/status/932475130005020672

 

[RISING SUN]

First LPG carrier to arrive in Bangladesh in December
The vessel, named BEXPETRO 1, with an LPG carrying capacity of 2700 MT will be the first Bangladeshi ship to directly procure LPG at source
The purchase of Bangladesh’s first LPG (Liquefied Petroleum Gas) carrying vessel is being processed by the Beximco Petroleum Limited, and it is expected to arrive with its first shipment in December, an official said.

The carrier, named BEXPETRO 1, will travel on international waters, bearing the national flag. It will be the first Bangladeshi ship to directly procure LPG at source – with an LPG carrying capacity of 2700 metric tons (MT).

This marks a major milestone for LPG operators in Bangladesh as this paves the way for a cost-effective and efficient LPG supply chain.

Led by Captain Alexander Fajardo, BEXPETRO 1 is expected to arrive in Bangladesh with its first shipment of LPG by the first week of December this year.

With two more vessels of similar capacity already in the pipeline, this is a stepping stone for Beximco Petroleum’s strategic vision of becoming the premiere LPG operator in the country.

A state-of-the-art ISO 9001 certified LPG plant has been installed in Mongla by Beximco Petroleum, in collaboration with Index Power & Energy (a Beximco company), with a capacity of 3000 MT.

Expansion work is underway for an additional capacity of 3000 MT at Mongla; another LPG terminal of 5000 MT capacity is being set up at Narayanganj.
http://www.dhakatribune.com/bangladesh/2017/11/21/first-lpg-carrier-arrive-bangladesh-december/