Bangladesh Economy: News & Updates

[eastwatch]

RMG exports rise as demand buoyant
Tuesday, November 23, 2010
BusinessRMG exports rise as demand buoyant
Shipment grows 37pc in four months
Refayet Ullah Mirdha

Garment exports went up by more than 37 percent in the first four months of the current fiscal year compared to the same period a year ago, according to government data.

The growth came due to a higher demand for Bangladeshi textile products abroad and the success of the country in exploring new markets.

In the July-October period, the country fetched $6.8 billion from exports.

The latest data from the Export Promotion Bureau (EPB) shows that Bangladesh exported knitwear items worth $2.88 billion, a 37.97 percent rise, during the period.

Woven items logged in $2.34 billion with a growth of 39.45 percent.

Jalal Ahmed, vice-chairman of EPB, said exports from Bangladesh are increasing mainly because of higher shipments to the new destinations and a rebound in exports of some items such as leather and leather goods.

"We are also maintaining a good export growth in China and Japan," Ahmed said.

India has also become a good market for Bangladesh, and so apparel export is growing, he said.

Ahmed said export of leather and leather goods faced a serious setback a few months ago due to anthrax scare, but such exports are rebounding now.

He said some non-traditional items like plastic waste have entered the export basket.

Habibur Rahman, acting president of Bangladesh Knitwear Manufacturers and Exporters Association, attributed the export growth to a shift in orders from other competing countries, especially China, the world's largest apparel supplier.

"The knitwear sector is receiving a significant number of orders as those were diverted from China to Bangladesh due to higher production cost there," Rahman said.

Abdus Salam Murshedy, president of Bangladesh Garment Manufacturers and Exporters Association, said the global financial meltdown was a blessing for Bangladesh.

"Many international buyers have shifted their orders to Bangladesh from other countries for higher cost of production during the global recession," Murshedy said.

Stable cotton prices and smooth operations of Chittagong Port are necessary to ensure a sustainable growth of apparel exports, he said.

 

[akash57]

BATEXPO begins

Dhaka, Nov 25 (bdnews24.com) —The annual apparel export fair has kicked off at the city's Bangabandhu Conference Centre.

The three-day 'Bangladesh Apparel and Textile Exposition', better known as BATEXPO, is organised by the Bangladesh Garments Manufacturers and Exporters Association (BGMEA), the trade body that accounts for the largest share of export-earning for the country.

Finance minister AMA Muhith inaugurated the fair on Thursday.

The garment industry leaders expect a better response from foreign buyers from this year's show.

The minister assured the organisers of all kinds of support for the readymade garment industry and said the government would continue offering stimulus packages in this sector.

"The government is considering a Tk 100 crore stimulus package for the garment industry," the minister added.

BGMEA president Salam Murshedy said at the inaugural function, "Our production cost has gone up compared to other countries due to short supply of gas and electricity, high interest rates, price hike of cotton and other accessories in the global market."

Murshedy urged the government to ensure proper support and hoped for a bigger projection of sales this year despite the fallout of the global recession.

Finance minister Muhith said, "Electricity will not remain as a problem by March next year as an additional 2000 mega watt of electricity will be added to the national grid."

He also told the businessmen to keep the pressure on the banks regarding the interest rates.

About spot orders from the buyers, Murshedy said it amounted to $ 41.64 million in last year's BATEXPO.

Bangladesh exported knitwear worth at least $ 2.88 billion in the first four months of the current fiscal, up 29.63 percent than the export target and 37.97 percent higher than the corresponding period of the last fiscal.

Woven garments worth at least $ 2.34 billion were also exported during the period, up 13.70 percent than the target and 39.45 percent higher than last year's export during the period.

A total of 137 stalls have been set up in the fair this year by 87 companies of host Bangladesh, India, Pakistan, China, Hong Kong, Japan, Thailand and Brazil.

Opposition leader and BNP chief Khaleda Zia is scheduled to attend the closing ceremony on Saturday.

BATEXPO begins | Bangladesh | bdnews24.com

 

[akash57]

Govt. offers $1b stimulus package to SMEs

The government will offer a stimulus package of $1.0 billion (Tk 100 crore) for the small and medium entrepreneurs to diversify and explore new markets around the globe.

"The government is providing little support for market diversification and in this regard it will give a package worth $1.0 billion for the small and medium entrepreneurs," Finance Minister AMA Muhith said on Thursday.

These entrepreneurs will be kept put of the bonded warehouse facility and they will enjoy all the facilities entitled to them until June 30 next year, the minister added.

Mr Muhith was speaking at the opening ceremony of the 21st Bangladesh Apparel and Textile Exposition Batexpo-2010 at Bangabandhu International Conference Centre in the city.

Quoting the electricity crisis, the minister said Bangladesh will get 2000MW power more by 2011.

The three-day annual apparel export fair has been organized by Bangladesh Garments Manufacturers and Exporters Association (BGMEA)-the apex trade body that accounts for the largest share of export-earning for the country.

Shipping Minister Shajahan Khan, Commerce Minister Muhammad Faruk Khan, Labour and Employment Minister Khandaker Mosharraf Hossain, LGRD Minister Syed Ashraful Islam and Textile and Jute Minister Abdul Latif Siddique, were present at the inaugural ceremony.

Earlier, BGMEA president Abdus Salam Murshedy drew the government's attention to the cent per cent disbursement of the declared stimulus package for smooth implementation of the recently declared wage for the workers.

"The government should implement its announced package as early as possible as it becomes a big challenge for 60-65 per cent small and medium entrepreneurs to implement the new wage structure," Mr Murshedy said.

The garment industry leaders are expecting better and more positive responses from foreign buyers from this year's display.

Bangladesh exported knitwear worth $ 2.88 billion in the first four months of the current fiscal year, 29.63 per cent higher than the export goal and 37.97 percent higher than the corresponding period of last fiscal year.

Woven garment worth $ 2.34 billion were exported in this period, 13.70 per cent higher than the target and 39.45 per cent higher than last year's export during this period.

There are 137 stalls from 87 companies including Bangladesh, India, Pakistan, China, Hong Kong, Japan, Thailand and Brazil in the fair.

BSS adds: Muhith said the country did not have market diversity, but now it has attained diversity in export market with the offering of small incentives to garment entrepreneurs. "More has to be done for them in this regard," he opined.

Although apparel sector does not pay much to the national exchequer, it created a large number of jobs and made people self- reliant, he said, adding the government provides support for it for this reason.

The country could overcome global recession successfully, he said mentioning that during last financial year (2009-10), export rose by 4 pc. "The growth rate might be low, but it maintained growth," he said.

Appreciating BGMEA for its social responsibility, he said an industry after making growth play many roles, and BGMEA also did it.

"When food prices went up, I wanted BGMEA to supply rice to garment workers at a government subsidized price, and I believe the association would do it," he said.

He said the demand of the industry for power generators and dormitory is under government's consideration. Besides, a decision for withdrawal of 15 percent VAT on house rent of RMG factories would be taken next year.

Abdul Latif Siddiqui said the government of Sheikh Hasina made necessary arrangements for captive power generators and offered stimulus packages for RMG owners.

He urged the entrepreneurs for remaining alert so that their units do not become sick, as it would be a burden on the economy. Labourers are the main force, he said urging the entrepreneurs for maintaining a sound relation with them.

Syed Ashraful Islam said through this exposition, trade in the RMG sector would be expanded.

Commerce Minister Muhammad Faruk Khan and Shipping Minister Shajahan Khan also spoke at the function.

Prime Minister Sheikh Hasina now abroad was supposed to inaugurate the gala show. Finance Minister AMA inaugurated the BATEXPO 2010 on her behalf.

Shipping Minister Shajahan Khan offered the garment exporters to use the Mongla port at concessional rate. "If you use Mongla port, we will reduce the port charges for you," he said.

He assured that special ferry service would be arranged for the garment cargoes to reach them speedily to the Mongla port.

"At present you need 15 hours to send containers from Dhaka to Chittagong through rail. Let me assure you that it will take only eight hours to send your containers from Dhaka to Mongla port," he said.

Regarding the charges at Chittagong port the Minister indicated to a good news by next month.

2000mw addl electricity by next year: Muhith

 

[akash57]

Bangladesh’s apparel sector on high tide

As the world is restoring from the effects of global economic slump, more opportunities are coming to Bangladesh, with a host of internationally reputed apparel brands eyeing the country for sourcing more garments.

Few buyers have already turned to Bangladesh for importing garments, while leaving the other countries in competition, and others too are raising the magnitude of their orders.

Higher cost of production have caused the garment prices in Turkey, China, Cambodia, Sri Lanka and Vietnam to rise, while Bangladesh too has expanded its product range and marketing strategy for past several years.

Backed by the rising demand for reasonably priced products, there has been a growth of over 30 percent in apparel exports during July to September, this year.

As revealed by the Export Promotion Bureau statistics, $2.18 billion worth of knit products and $1.79 billion worth of woven products were exported during the period, which depicts a year-on-year rise of 32 percent and 30 percent respectively.

In recent times, there has been a rise in country’s apparel exports to Canada, Mexico, South Africa, Australia, New Zealand and Brazil.

As big retail brands like JC Penny, Tesco, Wal-Mart, Zara, H and M, IKEA, Marks and Spencer, G-Star Raw, Li & Fung and Uniqlo, have raised the quantum of their purchases from Bangladesh, Spanish retail chain Inditex Group is also preparing to raise its exports from the country.

Further, leading German brands like Hugo Boss and Adidas are also in discussions with Bangladesh based apparel manufacturer Viyellatex Group for directly purchasing the stakes from the company in 2011, for the first time.

The German retail chain, Otto Gmbh and Co KG is also likely to invest Euro 20 million (Tk 197 crore) for operating a social business in Dhaka that manufactures garments.

Moreover, firms from Japan including TM Textiles, Maruhisa, NI Teijin, Yokohama Tape, CHORI, Onward Holdings Co and FVG have also started trading in Bangladesh. Bangladesh’s apparel exports to Japan, a fresh market, began to rise since 2008 after Tokyo announced its China+1 strategy aimed at shifting its large scale exports from China to other countries like Bangladesh.

Bangladesh : Bangladesh?s apparel sector on high tide - Apparel News Bangladesh

 

[akash57]

Tata Motors to set up second light vehicles unit in Bangladesh
New base may help firm make deeper inroads into Europe, which provides duty- and quota-free access

Tata Motors Ltd plans to set up a second factory in Bangladesh, one of its main export destinations for commercial vehicles, in six months to cater to growing sales of small and light commercial vehicles.

India’s largest auto maker by sales revenue is the junior partner in a 60:40 joint venture with Bangladesh’s Nitol Motors Ltd for nearly two decades.

Nita Co. Ltd, which has been the sole distributor of Tata Motors’ small, medium and heavy-duty trucks in Bangladesh since 1991, has an assembling unit for medium and heavy-duty trucks.

“Under the same joint venture agreement, what’s in the works is a new factory for which we are currently surveying the land,” said Abdul Matlub Ahmed, chairman of Nitol Niloy Group of Industries, on phone from Dhaka.

Ahmed added that the new factory will assemble small and light commercial vehicles that have so far been imported from India, allowing Nita to avoid levies and price them more competitively.

Currently 25,000 commercial vehicles are sold in Bangladesh in a year. Ahmed said the market is expected to grow three-fold in four years to 70,000 units and Nita will account for half the sales.

“With the increasing business in Bangladesh, Nita Co. Ltd is now in the process of evaluating the possibility of increasing the production capacity in Bangladesh, and also exploring the possibility of starting assembly of light and small commercial vehicles for Bangladesh,” a Tata Motors spokesperson said in an emailed response.

Both Tata Motors and Nitol Motors declined to specify the investment in the new factory.

Pankaj Chaddha, director, India, Ernst and Young, said any company transferring technology to a joint venture generates revenue both as royalty and from sales at the joint venture, besides providing strategic support to its partner.

The new factory will assemble models such as the Tata Magic, Ace and Iris. Ahmed said the site would be finalized in two-three weeks, after which Nita will seek an approval from the senior management of Tata Motors. He expects the unit to start production in six months. The facility will roll out 15,000 vehicles in the first year and reach 40,000 units in the next year. The second phase of the project would entail establishing a vendor base around the factory.

Ahmed met 27 Tata Motors suppliers in Pune last week. Officials from Tata Motors’ factory in Uttarakhand, where it makes the Ace range, have also started visiting Bangladesh, said a supplier familiar with the development, asking not to be named.

The new manufacturing base may also help Tata Motors make deeper inroads into Europe.

The European Union’s everything but arms arrangement provides duty- and quota-free access for a multitude of products from 49 least developed countries, including Bangladesh, according to the European Commission’s website.

The decision on exports from Bangladesh, however, will be Tata Motors’, said Ahmed.

Mahantesh Sabarad, senior vice-president, equity, at brokerage Fortune Equity Brokers Ltd, said Tata Motors is capable of independent presence in overseas markets, but it makes sense to emulate the Bangladesh model elsewhere if it can tie up with a local partner as strong as Nitol. “The joint venture has paid off,” he said.

Tata Motors to set up second light vehicles unit in Bangladesh - Home - livemint.com

 

[akash57]

WMS-built ships to symbolise 'Bangladesh is rising'

CHITTAGONG, Nov 25: Western Marine Shipyard will deliver a pair of the largest vessels ever built in Bangladesh to Germany tomorrow (Friday) in Chittagong.

"Grona Ammersum" and "Grona Biessum" are both 100 metre long and 5200 deadweight tonnage (DWT) ice class vessels built in compliance with the latest IMO (international maritime organisation) guidelines under the supervision of class Germanischer Lloyd.

The vessels have been designed to sustain in cryogenic weather condition and certified as E3 ice class vessels, organisers said at a press conference at a local hotel in the city today.

Chairman of Western Marine Shipyard Saiful Islam said these vessels are the first two in a series of 12 ships built for Grona Shipping based in Leer, Germany. The ships made a successful sea trial on November 15 last.

Lauding the role of the grand alliance government he said that the government has provided all-out support and infrastructure facilities to the ship building industry.

"The government has extended all possible facilities including the infrastructural ones at least in the ship building sector without which it would have been quite impossible for us to accomplish such a highly sophisticated task," Islam said.

Managing Director of the ship building company Shakhawat Hossain said it is once again proved that Bangladesh can build world class sophisticated ships with full satisfaction of customers from the advanced country like Germany.

Jalal Khaled, quality management director of Western Marine, owner of the vessels Mr. Markku Vedder from Grona Shipping, Germany, Mr. Lars Brenneke of East Wind, Germany, Mahfuz Anam, editor of the Daily Star and Matiur Rahman, editor of the daily Prathom Alo also spoke at the press conference.

WMS-built ships to symbolise 'Bangladesh is rising'

 

[fallstuff]

Walton to relocate Korean mobile phone plant to Bangladesh
Posted on November 28, 2010 by bangladesheconomy| Leave a comment

Business

Walton to relocate Korean mobile phone plant to Bangladesh
Kazi Azizul Islam


Walton Hi-tech Industries Limited is going to relocate a Korean mobile phone manufacturing plant to Bangladesh which is scheduled to come into operation early next year, advisory director of the company, Mizanur Rahman, said on Sunday.

The handsets to be manufactured by the plant will be marketed under a local brand, he said.

Walton Hi-tech Industries Ltd is a local manufacturer of electronic appliances and motorbikes. Mizan said the Korean plant bought by the company ‘is a sophisticated plant that has been producing handsets of top brands including Nokia’.

He said the company had already started the process of relocating the plant to Bangladesh by February 2011.

The plant has a capacity of producing 5,000 mobile phones a day, Mizan told New Age. ‘We will utilise the capacity according to market demand,’ and low- to mid-cost handsets will be produced in the factory in the first phase, he said. ‘We will also go for manufacturing smart phones.’

According to a top executive of a leading mobile operator, the annual market size of mobile sets in Bangladesh is around four million pieces and worth around Tk 2,000 crore. Imported sets of various brands, mostly from China, cater to less than half of the market and the rest by smuggled cellphones.

Bangladesh saw its first local brand of mobile phone sets a couple of years back but Birds Mobile, made here by assembling imported Chinese parts, failed in competition with cheaper smuggled sets.

Walton’s Mizan expressed the hope that the competitive edge of carrying out the entire manufacturing in the country and the company’s strong market network would help Walton handsets to gain a good market share.

Walton set up the country’s first refrigerator, motorbike and television manufacturing plants. These products of the company have acquired a significant local market share and are also exported to countries like Myanmar, Sudan, and Qatar.

 

[fallstuff]

Act to establish deep-seaport authority soon
Posted on November 28, 2010 by bangladesheconomy| Leave a comment

Act to establish deep-seaport authority soon

Act to establish deep-seaport authority soon
Nazmul Ahsan


The government has plans to adopt an act soon to facilitate the creation of a deep-seaport authority for the proposed deep-seaport at Sonadia, Cox’s bazaar.

The deep-seaport, to be designed as a regional port, would help minimize the transportation cost of country’s export-import activities, according to the draft of the act.

The draft act has proposed the formation of a company that would be responsible for mobilizing funds from the capital market and from other local and foreign sources for the construction of the port. A 20-member governing body, led by the shipping minister, and a five-member executive board to implement the decision of governing body will be established, the draft act said.

The deep-seaport authority act, 2010 will be sent to the Cabinet Division soon for approval, a top official in the Ministry of Shipping (MoS) said.

The governing body to be established under the proposed act will be responsible for fixing the charges and fees for the port users. The draft act also empowers it to arrange bank loans from local sources and negotiate with foreign donor agencies to mobilize funds for the construction of the proposed seaport, the act said further.

The development of the proposed deep-seaport will be completed in three phases; the first phase, to be completed by the fiscal 2015-16, will involve an expenditure of about $ 2.0 billion, a top MoS official said.

The government may bear as much as 30 per cent of the total cost, while the major part will be arranged from foreign sources, he added.

“We are hopeful the act will be approved by the highest authority of the government by next month,” the official said.

“The deep-seaport will reduce cost of transportation of the country’s export and import by at least 15 per cent, making the same competitive in the international markets.”

The port has the potential to become a major hub in the region by offering services to Nepal, Bhutan, southern China, Myanmar and the northeastern region of India, another official in the MoS said.

The first phase of the proposed deep-seaport will involve the construction of approximately 1.95km and 2.25 km long two breakwaters. Besides, there will be a 3.7 km-long dredged channel having a width of 400 metres and a depth of 14 metres, he said.

The port will be designed in such a way that it can handle seagoing vessels having a length up to 300 metres length and draught 14 metres.

Meanwhile, the government has sought $1.2 billion assistance from China to build the port.

The port is expected to have the capacity to handle 3.0 million TEUs (twenty-foot equivalent unit) and bulk cargo of 100 million tonnes.

The executive board will have the authority to acquire land for building the proposed port and the company to be formed under the proposed act will be authorized to run the activities of the port on commercial basis, according to the draft act, 2010.

The said company may undertake initiatives to arrange the required fund through public-private partnership concept, the draft added.

 

[fallstuff]

Deep-sea port bill in Dec
Posted on November 28, 2010 by bangladesheconomy| Leave a comment

Deep-sea port bill in Dec

Deep-sea port bill in Dec

Star Business Report

A bill for setting up a deep-sea port will be placed in parliament in its next session in December, said Shipping Minister Shajahan Khan yesterday.

The minister said this while inaugurating the deep-sea port cell on New Bailey Road in Dhaka.

The shipping ministry has already finalised the draft law at an inter-ministerial meeting on November 24, he added.

The government has sited the port near Sonadia Island and its adjoining areas on the south cost of the country.

Khan said his ministry has called for ‘expressions of interest’ for design consultant and contractor to implement the project.

“We got huge responses from home and abroad about the design and construction works.”

About financing, the minister said the government has approached China, and Japan has already shown interest to finance the project.

The Economic Relations Division made a preliminary development project proposal of Tk 15,986 to be sought from the donors initially.

The total investment for setting up the port has been estimated at around Tk 55,000 crore and the project will be implemented in three phases. The project may be complete in 2055.

Shipping Secretary Md Abdul Mannan Howlader said they hope the physical work of the port would start at the end of 2011 and the first phase would be complete by 2020.

“It will cost Tk 16,000 crore to complete the first phase,” he added.

Howlader said starting a separate cell for the port is just the beginning of the large project.

The cell is now dedicated to prompting the project works, he added.

Khan also said the government has approved a Tk 11,473 crore project for dredging the rivers of the country.

“Once there were 24,000 kilometres of river ways in the country but it is only 4,000 km now.”

The minister said the river dredging project would require at least 50 dredgers, but the water transport authority has only eight now.

“The government has placed orders for three dredgers, and is planning for another eight,” he added.

Khan said the prime minister has directed the shipping ministry to buy at least 20 dredgers.

“To serve the immediate purposes, we will use 11 private dredgers besides our own ones,” he added.

 

[CaPtAiN_pLaNeT]

Bangladesh gets high remittances despite recession

Bangladesh gets high remittances despite recession
Says World Migration Report 2010
Bss, Dhaka

Bangladesh, being one of the world’s leading manpower exporting countries, became the country with remarkably high remittances from its expatriates workers compared to other developing ones despite the global financial recession, said the World Migration Report-2010 (WMR) released yesterday.

The WMR-2010 titled ‘The Future of Migration: Building Capacities for Change’ said remittances to developing countries declined by six percent last year but some countries such as Bangladesh, Pakistan and the Philippines benefited from an increase in remittances between 2008 and 2009 during the recession period.

The International Organisation for Migration (IOM) released the report from Geneva and it will also be launched in Bangladesh soon after International Migrants Day-2010 to be observed on December 18, according to an IOM official from Switzerland.

Although hundreds of millions of dollars are spent each year to strengthen the ability of States to effectively manage migration, the WMR 2010 notes that responses to current and emerging migration challenges and opportunities are often short-term, piecemeal and fragmented.

“The risk of not putting in place policies and adequate resources to deal with migration is to lose a historic opportunity to take advantage of this global phenomenon,” said William Lacy Swing, director general of IOM.

“Given the unrelenting pace of migration, the window of opportunity for States to turn the negatives of migration into positives is rapidly shrinking,” Swing said.

The number of irregular migrants will continue to grow as labour supply in migrant origin countries exceeds demand in migrant receiving countries, it pointed out.

“Without significant investment in migration issues, there is no doubt that critical questions such as the human rights of migrants and their integration into host societies will become even more acute,” Swing added.

The WMR report observed that if the number of international migrants, estimated at 214 million in 2010, continues to grow at the same pace as during the last 20 years, it could reach 405 million by 2050.

New migration patterns are already in evidence as the emerging economies of Asia, Africa and Latin America are becoming ever more important countries of destination for labour migrants.

Investing and planning in the future of migration will help improve public perceptions of migrants, which have been particularly dented by the current economic downturn, he said.

The report identifies labour mobility, irregular migration, migration and development, integration, environmental change and migration governance as areas expected to undergo the greatest transformation in the coming years.

It also recommended for generating better data on irregular migration and labour markets, combating migrant smuggling and human trafficking and improving the ability of transit countries to assist irregular migrants.

The WMR-2010 called for the rigorous analysis of core capacities of countries to manage migration in order to assess their effectiveness and to identify gaps and priorities for the future.

There is a great potential for further labour migration of Bangladesh if it remains committed to providing its labour force with necessary skill development training and ensuring protection to the potential migrants at home and abroad, experts said.

 

[CaPtAiN_pLaNeT]

Polish firm to drill 8 onshore gas wells

Polish firm to drill 8 onshore gas wells
M Azizur Rahman

Polish oil and gas exploration company Krakow Ltd has won the contract to drill over half a dozen wells in the country’s state-owned onshore gas fields, officials said Monday.

“The Polish firm has been selected to develop and produce natural gas from at least eight gas wells in under-explored hydrocarbon-rich fields to boost output in the wake of the country’s acute energy crisis, “Petrobangla Chairman Dr Hussain Monsur told the FE.

After developing wells for gas production Krakow will hand over those to the state-owned companies.

There would be no sharing of the proceeds of gas sales with the foreign companies, he said.

But Krakow would be paid for its job from the state coffer, said the chief of the state-owned Petrobangla.

Krakow has been selected considering its technical and financial offers and its experiences in conducting hydrocarbon exploration activities, said the Petrobangla official.

Petrobangla in September 2009 had sought expression of interests for drilling in state-owned gas fields and Krakow has emerged as the winner out of the 25 global companies that had participated in the bid.

Krakow will develop the gas wells in several hydrocarbon-rich fields, owned by Petrobangla subsidiaries, Bangladesh Gas Fields Company Ltd (BGFCL) and Sylhet Gas Fields Company Ltd (SGFCL).

Currently both the BGFCL and the SGFCL have five gas operating fields each but their gas output is around 730 million cubic feet (mmcfd) and 165 mmcfd per day respectively.

Experts said the two fields they operate are gas-rich but under-explored.

“We expect that at least eight new wells would be developed in the gas fields owned by these two companies and each of the wells would produce gas of around 25 mmcfd,” said Petrobangla Chairman.

Krakow’s selection is, however, for the first time that Bangladesh is appointing any global firm to conduct drilling in state-operated gas fields.

The extraordinary move is taken due to a severe capacity constraint of the state-owned lone gas exploration and development company Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX), which has limited equipment and manpower and a very busy workload.

The move under ‘fast track’ programme was initiated in the wake of severe energy crunch in the country, as gas production now hovers around 1,960 mmcfd against the daily demand for around 2,500 mmcfd.

The country urgently needs new energy sources, and unless new gas fields are discovered, the supply of gas will start diminishing from 2011.

Petrobangla forecasts that the country’s current gas reserves will run out by 2014-2015 at current consumption rates.

At present, proven gas reserves are 6.0 trillion cubic feet (Tcf), while the probable reserves are 5.5 Tcf.

The gas supply shortfall has forced Petrobangla to suspend gas supplies to new industries. Industries are now maintaining holiday staggering to cope with the short supply of natural gas.

It also suspended the operation of several state-owned power plants due to gas crisis.

The country’s compressed natural gas (CNG) filling stations have also been maintaining six-hour halt in operation from 3 pm–9 pm every day.

 

[CaPtAiN_pLaNeT]

Business

Revenue up by 25pc in four months
Bdnews24.com . Dhaka

Revenue collection in the first four month of the current fiscal year (2009-2010) was up by 25.74 per cent, in comparison to last year. Moreover, 109.26 per cent of the revenue target was achieved.

The figures were revealed in a National Board of Revenue press conference, by NBR chairman Nasiruddin Ahmed on Monday.

‘Revenue collections stood at Tk 212.3 billion against the target of Tk 194.3 billion in the first four months. We are hoping to exceed the target with our collections at the end of the year,’ he said.

The chairman pointed out that collections from the value added tax category saw the highest increase within the period, with Tk 81.2 billion against a target of 71.9 billion.

The growth was 31.8 per cent while the category’s achievement rate was 112.91 per cent.

Meanwhile, the growth in collections from income tax was 29.29 per cent.

A revenue of Tk 47.70 billion was collected in the form of income taxes against the target of Tk 43.19 billion. The rate of target achievement stood at 110.46 per cent.

 

[CaPtAiN_pLaNeT]

Business

Walton to relocate Korean mobile phone plant to Bangladesh
Kazi Azizul Islam

Walton Hi-tech Industries Limited is going to relocate a Korean mobile phone manufacturing plant to Bangladesh which is scheduled to come into operation early next year, advisory director of the company, Mizanur Rahman, said on Sunday.

The handsets to be manufactured by the plant will be marketed under a local brand, he said.

Walton Hi-tech Industries Ltd is a local manufacturer of electronic appliances and motorbikes. Mizan said the Korean plant bought by the company ‘is a sophisticated plant that has been producing handsets of top brands including Nokia’.

He said the company had already started the process of relocating the plant to Bangladesh by February 2011.

The plant has a capacity of producing 5,000 mobile phones a day, Mizan told New Age. ‘We will utilise the capacity according to market demand,’ and low- to mid-cost handsets will be produced in the factory in the first phase, he said. ‘We will also go for manufacturing smart phones.’

According to a top executive of a leading mobile operator, the annual market size of mobile sets in Bangladesh is around four million pieces and worth around Tk 2,000 crore. Imported sets of various brands, mostly from China, cater to less than half of the market and the rest by smuggled cellphones.

Bangladesh saw its first local brand of mobile phone sets a couple of years back but Birds Mobile, made here by assembling imported Chinese parts, failed in competition with cheaper smuggled sets.

Walton’s Mizan expressed the hope that the competitive edge of carrying out the entire manufacturing in the country and the company’s strong market network would help Walton handsets to gain a good market share.

Walton set up the country’s first refrigerator, motorbike and television manufacturing plants. These products of the company have acquired a significant local market share and are also exported to countries like Myanmar, Sudan, and Qatar.

 

[eastwatch]

GDP growth 8.4pc likely by 2020
Friday, November 26, 2010
GDP growth 8.4pc likely by 2020
UNCTAD launches LDC report
Bss, Dhaka

The Least Developed Countries (LDC) Report 2010 has predicted that annual growth of Bangladesh would be 8.4 percent by 2020 and income per capita under PPP (purchasing power parity) method would rise to $2,776 from the present $1,361.

“The prediction of the LDC report is close to the national perspective plan which reclaimed that Bangladesh would enter into middle income countries group within 10 years," eminent economist Prof Wahiduddin Mahmud said at a report dissemination function at the Cirdap auditorium here yesterday.

United Nations Conference on Trade and Development (UNCTAD) prepared the report that was disseminated simultaneously across the globe by the UN Information Centre.

Prof Mahmud said Bangladesh would be able to achieve its goal of attaining the status of middle-income country, if no major political turmoil takes place.

“The per capita income would be increased by seven percent and we can maintain GDP growth more than 8.5 percent within 2021, if the infrastructure problems including power crisis are solved,” he added.

Criticising the role of developed countries in the name of providing aid, the leading economist said the donor countries are not transferring their technology truly rather they are taking their money back through sending huge number of consultants in the name of technology transfer scheme.

LDC countries should create pressure on the forums of developed countries like G7 and G20 to provide true assistance for the development of the LDCs, Prof Mahmud said.

In the perspective of Bangladesh economy, he suggested imposing tax on holding assets as some are making huge money just through buying and selling of lands.

“If we are not able to check this land business then people would not invest in the industry sector,” he added.

The report stated that during the period 2002 to 2007, the real GDP of the LDCs as a group grew by more than seven percent per annum. This was the strongest and longest growth acceleration achieved by the LDCs since 1970 and a much better overall macroeconomic performance than that in the 1990s.

However, not all LDCs experienced boom, a little over a quarter of the LDCs, 14 countries saw GDP per capita decline or grow sluggishly, it said.

The report observed that the economic boom of the LDCs was driven by record levels of export, foreign direct investment inflows and migrant's remittance.

However, the report said progress towards achieving Millennium Development Goals has been slow in the LDC countries.

This is basically because the LDCs have not been able to generate sufficient productive jobs and livelihoods for its growing number of population.

Former adviser to a caretaker government Mirza Azizul Islam, former ambassador Waliur Rahman, Prof Shamsul Alam also spoke on the occasion. Officer-in-charge of UNIC Kazi Ali Reza moderated the discussion.

 

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Bangladesh has made its place in the global R&D map

Bangladesh has made its place in the global R&D map as international brand Samsung opened the country’s first research and development, reports bdnews24.com.

“We opened the centre in November to cut the R&D expenditure and it’ll support our initiative of aggressive marketing campaign we are pursuing for the local market,” Kanghyun Lee, managing director of Samsung Dhaka branch office, told bdnews24.com.

Samsung has already recruited some 100 software engineers as it has a target to recruit 1,000 engineers by 2013, he said adding, “It’ll send out a strong signal to other major global brands to open R&D centres in Bangladesh.”

Engineers in Bangladesh are as qualified as in India but they are not that expensive and they will help the multinational company customise its products in the regional market, Mr Lee said.

Samsung has 12 other R&D centres worldwide and two of them are located in India where 4,500 engineers are working.

“The official launch of the centre is expected to be held in February as we want to invite the Bangladesh prime minister and the Samsung global CEO in the launching programme,” he said.

The centre will help the government achieve its digital goal of Vision 2021 as it is related to technological advancement, he added.

“You don’t find R&D centre in every country as it requires advance knowledge and continuous flow of talented human resources to run its operations,” he explained.

Lee said Samsung is the biggest global company in consumer electronics category but it is facing a problem in selling its products due to under-invoicing by other companies and rampant sales of fake products.

“On one hand it hurts Samsung and on the other consumers are being cheated,” he said.

The company primarily focuses on middle and high-end products and it is going to launch Galaxy Tab PC and mobile next week, Mr Lee said.

“We sell LCD and LED TV and next year as we are going to introduce 3D and internet TV in the domestic market,” he added.

“The company has changed its business pattern and appointed another distributor, Transcom, this year to aggressively market its products,” the managing director said. Electra is its another distributor.