Bangladesh Economy: News & Updates

[TopCat]

Assumption:

Padma bridge, deep sea port, express way, airport will take around 5 or 6 or 7 years to be completed and then to contribute in the GDP. And these all are infrastructural developments. I think among them deep sea port and Padma bridge will increase our GDP. But express way and airport may not bring change in GDP. How many flights and how much revenue will increase actually if we will get a new airport. Is there any right calculation?

And what about any increase in current industrial production and export which are more important factors in GDP growth than these future infrastructural developments?

Construction work will itself contribute to the GDP. more than 15/20 bln dollar investment will come in for say 5 years means 4 bln dollar investment per year means investment to shoot up by 4% of the GDP which is currently standing at 24% of the GDP. If we add another 4% of then the investment/GDP ration will be 28% which is enough for 7-8% growth rate.

 

[CaPtAiN_pLaNeT]

self delete

 

[Skies]

Construction work will itself contribute to the GDP. more than 15/20 bln dollar investment will come in for say 5 years means 4 bln dollar investment per year means investment to shoot up by 4% of the GDP which is currently standing at 24% of the GDP. If we add another 4% of then the investment/GDP ration will be 28% which is enough for 7-8% growth rate.

If that 15 or 20 bln dollar will come from foreign countries, as we are seeing that Hasina is convincing EU and Japan for granting money for deep ports and padma bridge, then it means we are just using foreign money or donations or loans as investment which may contribute our GDP. But what about any new contribution to the GDP by ourselves? Have we increased our export and industrial productions by ourselves?

 

[TopCat]

If that 15 or 20 bln dollar will come from foreign countries, as we are seeing that Hasina is convincing EU and Japan for granting money for deep ports and padma bridge, then it means we are just using foreign money or donations or loans as investment which may contribute our GDP. But what about any new contribution to the GDP by ourselves? Have we increased our export and industrial productions by ourselves?

Its not only the foreign loan which will be invested in those projects. For instance deep sea port, 30% investment will come from CPA(chittagong port authority). In other PPP projects government will contribute to its part. Regarding export there are 39% increase in export volume for the first five months of this fiscal. Things are picking up now.

 

[integra]

State-run Pragati starts assembling Pajero jeeps
Posted on December 3, 2010

State-run Pragati starts assembling Pajero jeeps

State-run Pragati starts assembling Pajero jeeps
Each to be sold at Tk 60 lakh, import price now Tk 1.2 crore
Bss, Chittagong

Pragati Industries Limited (PIL), the lone state-run automobile assembling industry of the country, has started assembling Mitsubishi’s most modern Pajero jeep in Bangladesh.

PIL has already completed assembling of two jeeps in its own plant in Chittagong on experimental basis and is likely to go for commercial production soon.

As part of a five-year agreement, signed between Managing Director of PIL Engineer Jahir Uddin Chowdhury and Corporate General Manager of Mitsubishi’s Asia and ASEAN offices Zenichiro Nichina, PIL started assembling the Mitsubishi Jeep in Bangladesh.

The Mitsubishi authorities has also expressed their keenness to assist in setting up of a plant in Bangladesh for manufacturing spare parts of Mitsubishi jeep.

With this achievement of the state-owned industry, the customers in future will have the scope to buy a worldwide popular ‘Pajero Sports Jeep’ at around Tk 60 lakh whereas its present imported price is Tk 1.2 core.

Jahir Uddin Chowdhury told the news agency that a four-member engineers team of Mitsubishi Corporation (MC) had imparted training to Bangladeshi motor workers on assembling sports jeeps from October 18 to November 5 this year.

Chowdhury also said they had successfully assembled two Pajero jeeps and would assemble 10 more in between January and March next year.

“We will start large scale commercial production after successfully selling these 10 jeeps in the Bangladesh market, Jahir said adding that after assembling a jeep here, it would be available at only Tk 60 lakh though its present market price is Tk 1.2 crore.

Asked about its quality, he said the MC authority is determined to maintain their standard and practically assessed the quality of PIL three times through sample tests before work orders.

“No internationally reputed company wants to undermine the quality of its products wherever it is assembled,” the MD asserted.

Mitsubishi engineers after visiting the PIL in July, 2009, expressed satisfaction over its overall condition and working atmosphere.

A four-member Bangladeshi delegation from PIL including its MD visited Mitsubishi Pajero Manufacturing industry in Thailand on September 9 last year and interacted in details on different technical and infrastructure aspects at PIL.

Reciprocally, another four-member Mitsubishi delegates led by its Asia Region manger Kajuhidi Ogata also visited the Pragati Industry.

The then Gandhara Industries, now PIL, came into being with logistics supports of General Motors of England on January 20 in 1966 near Barabkunda, Chittagong on Dhaka-Chittagong highway.

After the independence, Bangladesh government acquired the industry and renamed it Pragati Industries Limited (PIL), which was then enlisted with Bangladesh Steel and Engineering Corporation (BSEC).

PIL, which earned a profit of Tk 16.5 crore last fiscal year, has an annual capacity of assembling 1,500 vehicles like bus, truck, jeep and private car.

any idea of news regarding the assembly of private cars? Pajero serves only a minute spectrum of the population.

 

[CaPtAiN_pLaNeT]

$946m remitted by expats in November

$946m remitted by expats in November
FE Report

Bangladeshis working abroad have remitted nearly US$946 million in November this year thanks to the Eid-ul-Azha festival, officials said Monday.

"The flow of remittances has increased slightly during the period as the country observed the Eid festival," a senior official of the Bangladesh Bank (BB) told the FE, adding that the inflow of remittances normally fall after the Eid festival.

The remittances from Bangladeshi nationals working abroad were estimated at $945.99 million in November, up by $22.14 million from the previous month. In October 2010, the remittance was $923.85 million, according to the central bank statistics.

The country received $4.528 billion as remittances during July-November period of the current fiscal, registering a 2.80 per cent negative growth over the corresponding period in the previous fiscal, the BB data showed.

"We're monitoring the overall inflow of remittance closely," the BB official said, adding that the overall remittance growth is dependent on manpower export.

 

[CaPtAiN_pLaNeT]

Denmark pins high hopes on Bangladesh

Denmark pins high hopes on Bangladesh
Star Business Report

Bangladesh is no longer an aid receiving country for Denmark, it is a also a trade partner and a place where the Danish investors can do business, said Jan Moller Hansen, deputy head of mission of the Danish embassy in Dhaka.

“Bangladesh in recent years showed a steady growth of nearly 6 percent despite the economic meltdown,” Hansen told an audience of 10 Danish and 45 local clean tech companies organised by the Danish embassy in the capital yesterday.

“Trade-not-aid and the creation of long-term and sustainable partnership is definitely the way forward for a country like Bangladesh,” he added.

Hansen said the new Danish development policy focuses mainly on growth, job creation and mutual cooperation between the two countries.

“Recently, the Danish embassy opened a trade section in response to the growing trade and commercial interest in Bangladesh.”

The deputy head of the embassy said Bangladesh has made a number of impressive achievements over the last few years, especially in some social indicators.

“Poverty rates are going down, illiteracy rates are dropping, more and more girls and women enrol in schools and enter the labour market,” he added. “Access to clean drinking water and hygienic sanitation was also improving.”

The envoy said, by opening up for inflow of foreign investments, know-how and so on, the Asian Tiger economies have increased their exports and living standard of their people.

He said Denmark has a long tradition and a lot of expertise in environmental and renewable energy management.

“Danish industry and know-how can be of great value to Bangladesh and a lot of benefits can be derived from working closer together on this issues.”

Industries Minister Dilip Barua said Denmark has extended all its support to Bangladesh in its fight against poverty and corruption.

“In recent years Denmark has also been active in promoting private sector development,” the minister said.

He said Denmark has played an important role to flourish the shipbuilding industry of Bangladesh and take the industry to an international standard.

He also recognised the Danish role in the IT sector of Bangladesh.

Now there are around 20 joint ventures between Bangladesh and Denmark in the IT sector, and it is one of the main markets for the Bangladeshi IT industry.

The minister said the government is giving more thrust to eco-friendly industrialisation and encouraging green industry.

“We seek further help and cooperation from the Danish government to mitigate these national problems,” he added.

Barua hoped, as an energy efficient nation, Denmark could transfer appropriate technology to Bangladesh.

Ijaz Hossain, professor of Bangladesh University of Engineering and Technology, Hamim Rahmatullah, president of Foreign Investor’s Chamber of Commerce and Industry, and Frands Sharpe, representative of Nordic Chamber of Commerce and Industry, also spoke at the programme, moderated by Farooq Sobhan, president of Bangladesh Enterprise Institute.

 

[CaPtAiN_pLaNeT]

Business

Danish IT cos look for local partners
Staff Correspondent

Visiting representatives of Danish information technology companies on Sunday began talks with local enterprises in Bangladesh to explore possibilities of establishing long-term cooperation or joint ventures on renewable energy and clean technology.

A total of 10 Danish companies will talk with 45 Bangladeshi IT firms during their three-day meetings at Hotel Radisson to look for matchmaking.

Inaugurating the session, industries minister Dilip Barua asserted the government’s firm commitment to promote private sector as the focal point of country’s economic growth.

 

[CaPtAiN_pLaNeT]

Local co to produce aluminium ships

Local co to produce aluminium ships
Jasim Uddin Haroon

A local shipbuilding company Saturday said that it would build specialised aluminium ships with an aim to grab its luring export market and meet growing domestic needs.

The company is a pioneer in such a move as the country’s nearly half a dozen shipbuilding companies are manufacturing steel vessels.

Desh Shipbuilding and Engineering Ltd (DSEL) has recently entered into the flourishing industry in Bangladesh.

It has already developed required infrastructure at Bhatiary in Chittagong situated on an area of 26,000 square feet with state-of-the-art equipment.

“Our shipyard is now completely ready to build aluminium ships of any size. And we’ve already recruited manpower for our plant,” G Sarwar, managing director of the DSEL, told the FE Saturday.

He also said a consultant with 30 years’ experience in aluminium shipbuilding in the Middle East and a technical manager with 20 years’ experience in Singapore have also joined the shipbuilding company.

Mr Sarwar also said his company is now negotiating with buyers from the USA.

He said: “US buyers want 20 aluminium ships. We’re negotiating with them.”

An aluminium ship is a high-end product which is lighter than a steel ship and plies faster on the seas.

Company officials said Bangladesh has also a huge demand for such vessels for patrolling purposes.

Currently Bangladesh is procuring such vessels from international sources such as Australia, the UAE and other countries.

This kind of ships are popular in the globe mainly for their speedy nature, Sarwar said adding: “Speed is the prime aim of the shippers across the globe”.

He said they are hiring skilled manpower from overseas.

 

[CaPtAiN_pLaNeT]

Exports surge 36pc

Exports surge 36pc

Workers are pictured at a shipbuilding plant of Western Marine in Chittagong. The exports of vessels grew by 731 percent to $6.98 million in the July-November period.Photo: STAR

Star Business Report

Export earnings crossed the $8.27 billion mark in the July-November period, registering nearly 36 percent growth over the same period a year earlier, according to the latest Export Promotion Bureau (EPB) data.

Exports of the country’s main foreign-exchange earner, knitwear, grew nearly 37 percent, to $3.53 billion, while woven exports grew nearly 36 percent, to $2.88 billion, from a year ago.

The exports of vessels grew by whopping 731 percent, to $6.98 million, during the period compared with the same period a last year.

In November alone, exports grew nearly 30 percent, to $1.55 billion, compared with the same month a year earlier, the data said.

Salim Osman, president of Bangladesh Knitwear Manufacturers and Exporters Association, said apparel exports increased mainly because of the shift of international buyers to Bangladesh from China, the world’s largest apparel supplier.

“China is losing its competitiveness for higher costs of production,” Osman said. “We will grow more when the doors in some new destinations, like South Africa, will widen further.”

Osman said recent demand for jeans and denim products and for T-shirts has soared because China is losing market to Bangladesh.

Anwar-ul-Alam Chowdhury Parvez, former president of Bangladesh Garment Manufacturers and Exporters Association, said value of apparel exports is also increasing due to the per unit higher prices of raw materials.

Echoing Osman, the former chief of BGMEA also said China is losing business to Bangladesh due to its higher costs of production and shortages of workers in the garment factories.

“Such higher growth will continue for a long time,” he said. “We have to increase our both capacity and efficiency for sustainability of the export.

“We have a bright future. We need to address infrastructure and energy problems as soon as possible, and increase the efficiency of ports.”

 

[CaPtAiN_pLaNeT]

ICB to launch two Tk 10b mutual funds


ICB to launch two Tk 10b mutual funds

Asaduzzaman Pallab

State-owned Investment Corporation of Bangladesh (ICB) is set to launch two mutual funds of Tk10 billion, which would be the biggest ever mutual fund in the history of country's capital market.

The mutual funds-- ICB Multi-Sectoral Mutual Fund Scheme-1 and ICB NRB-Energy Sectoral Mutual Fund Scheme-1, would be of Tk5.0 billion each.

ICB Asset Management Company Ltd ( IAMCL), a subsidiary of the ICB, has been appointed as issue manager of both the two proposed funds, while state-owned Agrani Bank Ltd will act as the custodian and trustee of these two giant mutual funds.

IAMCL will apply to the Securities and Exchange Commission (SEC) shortly for approval, a top executive of the company told the FE.

"We are submitting the proposals for launching the two proposed mutual funds to the SEC by this month," Chief Executive Officer (CEO) of IAMCL, Wahiduzzaman Khandoker, said.

He further said: "If approved by the SEC, the two funds will be the largest mutual funds in the history of the country's capital market."

According to the proposals, both the mutual funds will belong to specialized categories, Mr Wahiduzzaman added.

The proposed ICB NRB- Energy Mutual Fund will invest mainly in the energy sector -- in pre-IPO (initial public offering), secondary and IPO placement market.

About the investment pattern of these two mutual funds, the IAMC CEO said, "At least 50 per cent fund of NRB-Energy Sectoral Mutual Fund will be invested in energy sector.

He said Multi Sectoral Mutual Fund is to be invested in different sectors having specific ratio.

Of the ICB Multi-Sectoral Index Fund, the sponsor -- ICB -- will hold 10 per cent of the fund, while 40 per cent fund will be subscribed by pre-ipo and the remaining 50 per cent will be Public offer.

The amount of ICB NRB Energy Mutual Fund Scheme-1 will be allocated like ICB Multi Sectoral Fund. Per unit price of both the mutual funds have 10-year maturity with the face value of Tk 10.

When asked, the AMCL CEO said these two mutual funds are expected to hit the market early next year.

At present, at least 20 mutual funds are awaiting SEC approval.

Currently, a total of 31 mutual funds are listed with the bourses. Their combined issued capital of the mutual funds is worth $299 million and their market capitalisation is more than three per cent or $520 million.

At present 13 mutual fund of ICB are listed in the premium bourses, Dhaka Stock Exchange. They are the prime sponsors of mutual fund in country's capital market.

 

[CaPtAiN_pLaNeT]

any idea of news regarding the assembly of private cars? Pajero serves only a minute spectrum of the population.

I am not certain about pragoti at this point to manufacture private cars... but Koreans Tagaz which acquired Hyundai Motor Company (South Korea) as a strategic partner will invest 2 billion US dollar to manufacture car in bangladesh and the car will cost around 10000 US dollar or 7 lac taka...



http://www.thedailystar.net/newDesig...php?nid=109469

Bangladesh to become carmaker
Star Business Report

Bangladesh is set to become an automaker by the next two years, as a South Korean investment company yesterday announced a plan to invest $2 billion for setting up a Korean brand car manufacturing plant in the country.

The proposed car unit is expected to go into production in 2012, targeting to make 50,000 Korean Tagaz brand cars a year, and sell those in both local and international markets.

Not bad for a 7 lac car... what do you say???

Some more news to follow:

Bangladesh to make automobile parts to enter US market
December 10, 2009 ·

www.theindependent-bd.com

Bangladesh to make automobile parts to enter US market
BSS, DHAKA

Bangladesh is set to export light engineering items to the US markets, paving the way for turning the country’s industry sector into a state-of-the-art in the world.

Indian Tata is also looking forward to produce nano locally in bangladesh...

http://www.thefinancialexpress-bd.co...?news_id=93643


Nitol looking to assemble Tata Nano locally

Mehdi Musharraf Bhuiyan

Bangladesh could be the next assembling home of the world's cheapest car Tata Nano, if a negotiation among the government, the car's Indian manufacturer and their local representative sees the daylight.

In recent time iran has also proposed to produce car in bangladesh...

Draexlmaier Automotive Bangladesh (DAB) Limited may also set up car manufacturing plant in Bangladesh... they have so far opened a research lab in Bangladesh...

 

[CaPtAiN_pLaNeT]

DECEMBER 7, 2010, 4:46 A.M. ET

IBM Gets $80M Outsourcing Deal In Bangladesh From Bharti Airtel-Source

IBM Gets $80M Outsourcing Deal In Bangladesh From Bharti Airtel-Source - WSJ.com
By Dhanya Ann Thoppil

DOW JONES NEWSWIRES



BANGALORE (Dow Jones)--International Business Machines Corp. (IBM) has received an $80 million (INR3.59 billion) contract from India's Bharti Airtel Ltd. (532454.BY) to manage the telecommunications services provider's technology operations in Bangladesh, a person familiar with the matter said Tuesday.

Under the 10-year contract, the U.S. software maker will manage Bharti Airtel's information technology and data center operations, as well as look after the security of the Indian company's network in Bangladesh, the person, who declined to be named, told Dow Jones Newswires.

The deal also involves transferring employees and technology from Bharti Airtel's in-house technology team in Bangladesh to IBM, the person said.

The latest contract reflects deepening ties between Bharti Airtel and IBM since they first struck a partnership in 2004. In 2004, the two companies signed a $750 million deal which has increased to more than $2 billion since then.

In September, IBM agreed to provide IT services to Bharti's operations in Africa, a new market the telecom company entered earlier this year through a $9 billion acquisition of Kuwait-based Mobile Telecommunications Co.'s assets on the continent.

Under that deal worth more than $1 billion, IBM is consolidating Bharti Airtel's IT operations in 16 African countries into one integrated system.

Bharti Airtel, India's largest by subscribers, entered the Bangladesh market in January this year by acquiring a 70% stake in Warid Telecom International Ltd. for $300 million from United Arab Emirates-based Abu Dhabi Group. Bharti has more than 194 million subscribers across 19 countries, including Bangladesh.

Warid Telecom offers mobile services in all of Bangladesh's 64 districts and has 3.6 million users as of September.

-By Dhanya Ann Thoppil, Dow Jones Newswires; +91-9886929464; dhanya.thoppil@dowjones.com

 

[CaPtAiN_pLaNeT]

Project to buy 450 buses for BRTC okayed
Ecnec approves 12 projects involving Tk 2,086 crore
Unb, Dhaka

Project to buy 450 buses for BRTC okayed

The Executive Committee of the National Economic Council (Ecnec) at a meeting yesterday approved 12 development projects involving Tk 2,086 crore, including a project to procure 450 buses for the Bangladesh Road Transport Corporation (BRTC).

The meeting approved the projects with Ecnec Chairperson and Prime Minister Sheikh Hasina in the chair.

Of the total project cost, Tk 1,415 crore will come from the government exchequer while Tk 671 crore as project assistance, according to Planning Minister AK Khandker who briefed reporters after the meeting.

The projects are the right shore conservation project of the River Jamuna in Kazipur and Sadar upazilas of Sirajganj (Tk 276 crore); Char Fassion and Manpura town under Bhola district conservation project (revised, Tk 143 crore); embankment rehabilitation and strengthening project of the River Gomoti (Tk 73 crore); river bank conservation project of Tamruddin and Banglabazar areas under polder 73/1 (A+B) in Hatia upazila of Noakhali (Tk 61 crore); river erosion protection project in Saghata Bazar of Gaibandha and embankment conservation project of the River Brahmaputra in Roumari upazila of Kurigram (Tk 170 crore); left shore conservation of the River Padma in Sujanagar upazila and right shore protection of the River Jamuna from erosion in Bera upazila of Pabna (Tk 201 crore); post literacy and continuing education for human resource development project-2 (2nd revision, Tk 575 crore); Jagannath University development project (Tk 100 crore); Baniachhang-Ajmiriganj road construction project (Tk 73 crore);

Mariners by-pass road development from Bahadderhat crossing to the River Karnaphuli with diversion canal and adjacent canals rehabilitation project (Tk 57 crore); procurement of Double Decker, single Decker AC and articulated buses for BRTC project (TK 303 crore); and Road infrastructure development and further beautification project adjacent to the Mirpur Sher-e-Bangla National Stadium and Bangabandhu National Stadium (Tk 54 crore).

 

[CaPtAiN_pLaNeT]

Maritimus to build 20000 DWT vessels in Bangladesh
Tuesday, 07 Dec 2010
EmailButton
Pdf_button
Steel Guru : Maritimus to build 20000 DWT vessels in Bangladesh - 179306 - 2010-12-07

A new Ship Building company promises at a recent seminar held in London to slowly make a ripple in the titan sea of the giant ship building industry.

Maritimus is set to build 20,000 DWT sized ocean going vessels to cater to their international market. This will be a big milestone for Maritimus as they put themselves ahead of the pack in the ship building industry. They hope they will slowly make a ripple in the titan sea of the giant ship building industry.

This is a big challenge for Maritimus Limited, expert company in ship building. This will require 5,000 MT steel work per year, thousands of workers, as well as intense planning, implementation and quality checks to make sure that all deliverables are up to the standard, or even beyond, for their meticulous clients.

Maritimus a Bangladeshi ship building company, wish to make its mark in the ship building arena. They are working along the Concept Maritimus stating that a shipyard should aim to deliver quality ships within the contracted time; profit is a consequent outcome. It is with this vision that the company, Maritimus Limited, is based on to be able to cater to the needs of their international clients in shipping and ship building. They follow strict rules and regulations as well as safety guidelines.

They have mastered quality perception, along with adequate knowledge and understanding of ships, shipping, shipyard and similar fields.

The Chair Barrister, Rofiqul Islam promised the audience at a recent London seminar organized by its media partner Media Mohol Ltd that he attended, that his MD will turn every ship that Maritimus will be creating as a strong economic spot. They have cutting edge experiences, such as working for a US owned ship building company, and state of the art technology to turn Maritimus ships to be the best among the ships created in this era.

Bangladesh has built a strong foundation in the shipping industry. They have built excellent vessels that have been at the forefront in the field. Bangladesh has a ship building heritage that they have mastered for so many centuries. They have perfected the art of building ships from different materials, different designs and with innovative technologies.

With ship building as a tradition in the country, the government has taken steps to promote the industry and support it in many ways. The government is inclined to bringing this industry at the forefront of the Bangladeshi economy.

(Sourced from Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping)