Bangladesh Economy: News & Updates

[Al-zakir]

Bangladesh Dec remittances up 20.5 pct on year

Sun Jan 11, 2009 5:02pm IST Email |

DHAKA, Jan 11 (Reuters) - Money sent home in December by Bangladeshis working abroad rose to $765.79 million, up 20.5 percent from a year earlier, the central bank said on Sunday.

In July-December, the first half of the 2008/09 financial year, remittances from more than 5 million expatriate Bangladeshis totalled $4.5 billion, 31 percent higher than the same period of 2007/08.

In 2008, the number of Bangladeshis cleared for overseas employment exceeded 875,000 against 832,000 in 2007, according to the Ministry of Expatriates' Welfare and Overseas Employment.

The central bank expects remittances to reach $10 billion in the current financial year.

However, some analysts say the inflow of remittances may slow down as the global credit crisis and recession in the developed world put jobs at risk.

The central bank said remittances would be affected only if instability in financial markets persists for long.

Expat income, a key source of foreign exchange for the impoverished south Asian country, hit a record $7.91 billion in the 2007/08 financial year, nearly a third higher than the previous year.

Strong remittances also helped offset the impact of the trade shortfall and kept the overall balance of payments in surplus.

The bulk of remittances came from Saudi Arabia followed by the United States, the United Arab Emirates, Kuwait, Britain, Qatar and Oman.

Remittances are Bangladesh's second-biggest source of foreign income after ready-made garments, which earned $10.7 billion in the 2007/08 fiscal year.

($1=68.95 taka)


Bangladesh Dec remittances up 20.5 pct on year | Reuters

 

[BanglaBhoot]

Bangladesh fares better as export slump eats up jobs across Asia

Bangladesh's exports, dominated by the sale of low-cost garments to mass-market retailers like Wal-Mart, have fared well as consumers have begun shifting toward thriftier purchases, according to a report published in the New York Times (NYT) Thursday.

Garment workers in Bangladesh still earn $40 to $50 a month, barely half the minimum wage in export-oriented coastal cities in China.

Now American and European buyers are pulling their import orders from country after country.

While all of Asia is suffering, some economies are feeling the effects of the global downturn less than others, the report said.

According to the report, many of these countries are latecomers to the world market. They have even lower wages than China and were just starting to benefit from the arrival of businesses seeking to avoid increases in wages and other costs in China from 2003 through last summer.

Economic difficulties in the West "will have an impact on Bangladesh in terms of our growth rate, but I'm not concerned it will eat into our share" of the global garment market, Mustafizur Rahman, the executive director of the Center for Policy Dialogue (CPD) told the NYT.

The numbers bear that out. While overall American imports dropped 12 per cent in November compared with a year earlier, imports rose from Bangladesh and from Vietnam.

Each country shipped more knit apparel to the United States, and Vietnam also shipped more furniture.

Few countries were hit harder in the Asian financial crisis than Indonesia. Much of the banking system collapsed, economic output plunged, riots ensued and the government fell.

In Asia Indonesia is often described as one of the less vulnerable countries, because its insular economy relies less on trade than other countries in the region.

With the world's fourth-largest population - after China, India and the US - Indonesia has long had a domestic market big enough to sustain large industries without the need for foreign markets.

Last Thursday, Japan said exports fell 35 per cent in December from a year earlier as the crisis hurt its main markets. China and Japan draw the most attention, but the global slump in manufacturing is spreading across Asia.

Industrial production is dropping in South Korea at the fastest pace since record keeping began in 1975. Taiwanese exports dived 40 per cent in December compared with a year earlier.

"There's not a country in the region that is not slowing sharply or in outright recession," Stephen S. Roach, the chairman of Morgan Stanley Asia said

During the last crisis, investors took their money out of country after country. Asian leaders thought they had found a solution - increases in exports to the West, particularly of electronics.

Bangladesh fares better as export slump eats up jobs across Asia

 

[Al-zakir]

Friday, January 23, 2009
German investor keen to set up $200m RMG unit

Unb, DhakaGerman Ambassador to Bangladesh Frank Meyke said yesterday an investor of his country is eager to set up a mega-RMG unit in Bangladesh spending $200 million.

During a meeting with Foreign Minister Dr Dipu Moni at her office, the German envoy said the RMG unit would be able to generate employment for about 10,000 Bangladeshis.

Meyke also handed over a felicitation message from German Foreign Minister Frank Walter Steinmeier to the foreign minister.

They also discussed various issues, including Bangladesh-German trade relations, investment, development and some matters of bilateral, regional and international interests.

The envoy assured the foreign minister of continued German support to Bangladesh's trade, investment and development.

He also informed the Foreign Minister of the forthcoming visit of the German foreign secretary to hold bilateral talks with his Bangladesh counterpart in late January and the visit of German South Asian Parliamentary (Friendship) Group in the second half of February 2009.

Dipu Moni expressed satisfaction at the current level of trade with Germany, (an export of more than US$ 2 billion in 2007-2008) and requested for more foreign investment from Germany, sought continued support for Bangladesh's development efforts and German scholarship and study opportunities for Bangladeshi students.

The discussion also covered some important issues, including cooperation in the field of renewable energy in which Germany has long experience and keenness to assist Bangladesh.

The Daily Star - Details News

 

[Al-zakir]

Country earns Tk 1636cr by exporting plastic products




The country had earned a total of Taka 1636.76 crore in 2006-2007 by exporting plastic products.

"Plastic industries have immense potential where about five lakh people are employed," Shamim Ahmed, general secretary of Bangladesh Plastic Goods Manufacturers Association (BPGMEA) said while talking to BSS yesterday.

He said at present only 20 percent of the potential of the country's plastic industries is being used. The domestic demand of plastic products was 5.40 tonnes in 2005 and the demand is growing at an annual rate of 20 percent.

The export growth of plastic products was 63.24 from 2005-06 fiscal to 2006-07.

There are 2,997 plastic industries in the country, of which 52 are large scale, 980 medium and 1,965 small.

Of the total plastic industries, 381 are hundred percent export-oriented. Among the plastic industries, 65 percent are based in Dhaka while 20 percent in Chittagong, 10 percent in Narayanganj and five percent are in Khulna, Comilla, Bogra and Rajshahi. Presently Bangladesh has been exporting plastic items to Italy, New Zealand, Poland, China, UK, Belgium, France, Germany, USA, Canada, Spain, India, Nepal, Bhutan, Australia, Sri Lanka, Malaysia and other countries.

The BPGMEA sources said Bangladesh is now exporting plastic shopping bags, garbage bags, butcher bags, oven sacks, industrial films, PVC pipes, polythene sheet, plastic hanger, hand gloves, ropes, plastic waste, V-belt, toys, electronic switches, polyester thread, computer accessories, video/audio cassette, melamine table ware, toothbrush, ball pen and artificial flower etc.

Plastic products are popularly used as household items, table ware, kitchen ware, office equipment, toiletries, packaging, building materials, engineering parts, industrial equipment, agricultural product, poultry and fishing, automobile and cycle parts, electronics, textiles articles and musical products.

Referring to various demands of the BPGMEA, Shamim Ahmed said withdrawal of 100 percent bank guarantee is necessary for smooth running of the plastic industries. Process is going on to set up a plastic industrial estate but getting environment clearance certificate should be made easier in this regard, he said.

The BPGMEA sources said plastic is a wonder of polymer chemistry, have become an indispensable part of modern life. At the same time, its disposal is being viewed as a matter of environmental concern, since plastic is not biodegradable.

Bangladesh do not have polymer industry, despite having facilities of using natural gas. As all polymer raw materials are imported and there is a scope of recycling waste plastics which could be a way to protect the environment.

With the growth of plastic manufacturing sector, plastic industries have been successfully exporting plastic products to the developed countries.

Nearly hundred percent of the plastic packaging materials used by the exporters of Bangladesh are being supplied by the local plastic industries, in the form of deemed export. The volume use of plastic products is growing with the development of the country. Volume of plastic wastes is also increasing. At least, 60 percent of plastic wastes are being recycled in the country that save about 400 million US dollar per year cutting import of resin.

Since plastic is not bio-degradable, it is essential to promote recycling of plastic waste and to reach 100 percent recycling of such wastes, the source added.

The New Nation - Internet Edition

 

[BanglaBhoot]

Manpower export and remittance likely to fall this year

Staff Correspondent

Manpower export is likely to fall significantly affecting country's remittance earning this year due to global economic recession.

Talking to The Bangladesh Today, BAIRA President Ghulam Mustafa said "The manpower exporting sector sends abroad around eight lac people every year while the country earns $9 billion per annum. But the ratio of manpower export is likely to shrink affecting remittance due to global economic setback."

The problem will be double when collapse in exporting new manpower is coupled with suffering of many existing overseas workers from non-availability of jobs in the host countries due to economic setback, he said.

He said it is necessary to ensure three things including increase in government level contact with host countries, activeness of foreign missions and timely visa processing by recruiting agents to protect manpower export sector from this setback.

"Government to government persuasion, sincerity of foreign missions and labour attaché and timely visa processing by the recruiting agencies can pave the way for solving this problem. If these steps are taken, the crisis will cease to exist after three to four months," he said.

About 50 per cent overseas Bangladeshi workers being less skilled, 31 per cent skilled, 16 per cent semi skilled and 3 per cent professional, he said the government should be attentive in creating skilled manpower and sending those abroad to get significant amount of remittance and avoid untoward incidents in the host countries.

BAIRA Senior Vice President Mohammed Shamsuzzaman said country's remittance earning has been already affected as manpower export to Saudi Arabia, Kuwait, Bahrain and Malaysia has totally stopped due to commission of unlawful activities by some unskilled workers there.

He said earlier there was a potential market for Bangladeshi workers in these countries but for some untoward incidents, this market has declined. Now it is the onus of the elected government to take initiative to resolve this problem.

Currently the countries where BD workers are going include South Korea, United Arab Emirates, Oman, Qatar, Bahrain and Singapore, he said, adding "The elected government should expand overseas markets further and convince the countries which have shown the door to our workers."

http://www.thebangladeshtoday.com/back page.htm#back page -01

 

[BanglaBhoot]

Ominous signs indeed

While the nation is still celebrating the transition to democracy from the two-year unrepresentative emergency rule, there are some ominous signs in sight in the economic front. These include an impending fall in the manpower export from Bangladesh and drop in exports of Ready Made Garments (RMG) to developed countries specially USA and European Union countries. This is a very alarming scenario as exports of manpower and RMGs are the two main sources of our foreign exchange earnings. If there is any setback in these sectors, the nation will face a serious debacle.

According to a national daily, Bangladesh's manpower export has suffered a blow Thursday as Malaysia banned hiring new foreign workers in the manufacturing and services sectors amid fears that its economic crisis will lead to more job losses for locals. Malaysian Home minister is on record as saying that there was no reason to bring in foreigners after a government report showed 45,000 people would be laid off at the end of January. "There is no valid reason to bring in foreign workers at this time," he added. Officials in Bangladesh termed the development a " big blow" to the country's manpower exports, already reeling from job cuts and squeeze in construction activities in the Gulf economies. A freeze in Malaysian jobs may result in drastic drop in manpower exports and remittances. Already thousands of workers have returned home from Singapore.

The report comes as manpower export in December slumped nearly 50 per cent to 44,000. Leaders of Bangladesh Association of International Recruiting agencies (BAIRA) have expressed the fear that due to economic recession manpower export will fall causing decline in remittances. They have urged the government to take immediate steps to check the possible drop in manpower export.

Meanwhile, there are reports that import of RMGs from Bangladesh by developed countries may mark a drastic fall due to economic recession. Bangladesh is already faced with tough completion from different countries in exporting RMGs to developed countries. If these countries now reduce the quantum of RMG imports due to recession, Bangladesh will be hard hit. And if remittances drop and earnings from RMG exports decline the overall economy of Bangladesh will be affected badly and it may be very difficult to overcome the crisis thus created. Against this backdrop, the government should go all out for persuading the countries concerned not to reduce import of manpower and RMGs from Bangladesh.

editorial

 

[Al-zakir]

Taiwanese co to invest $10.205m in KEPZ

NATION BUSINESS REPORT

The Lasting Spring Metal Industries Limited, a Taiwanese company will set up a garments accessories manufacturing industry at the Karnaphuli Export Processing Zones (KEPZ).

The 100 percent foreign owned company will invest 10.205 million US dollar in setting up the plant and will produce garments accessories. The company will also create employment opportunity for 648 people including 14 foreign nationals, said a press release.

An agreement to this effect was signed between Bangladesh Export Processing Zones Authority (BEPZA) and Lasting Spring Metal Industries Limited at BEPZA Complex at Dhanmondi in the city on Thursday.

Prashanta Bhushan Barua, member (Investment Promotion) of BEPZA and Rachel Wu, chairman of Lasting Spring Metal Industries Limited signed the agreement on behalf of their respective organizations.

Brig General Jamil Ahmed Khan, executive chairman of BEPZA and other officials of both the organizations were present on the occasion.

The New Nation - Internet Edition

 

[BanglaBhoot]

Cheap labour helps Bangladesh

DHAKA - AN ARMY of cheap labour has made Bangladesh a hotspot for growth as the rest of Asia struggles through the global financial crisis and observers say the country must now exploit its advantages.

With China finding it increasingly difficult to mass-produce low-cost items at discount rates, buyers have turned their attention to Bangladesh where textiles and footwear can be made cheaply.

'The country is fast replacing China as the desired low-cost manufacturing hub in Asia for items such as textiles and footwear,' Mr Ifty Islam, managing partner of Asian Tiger Capital, an investment bank, said.

'Thanks to this abundance of cheap labour and an insulated financial system, Bangladesh was one of the best performing economies in Asia in 2008,' Mr Islam, a former managing director at Citigroup and Deutsche Bank, said.

'It will remain so this year and in 2012 we may hit eight per cent growth'.

'If the new government can sort out power and infrastructure problems, Bangladesh will be unstoppable.'

Battered by the global financial slowdown, stock markets across the continent fell more than 50 per cent on average in 2008, while exports have slumped to the negative in many of the so-called Asian tiger economies.

'Dhaka shares were down by merely seven per cent. In the five months to November Bangladesh exports grew 27 per cent year-on-year, possibly the best rate in the world,' Mr Islam said.

Thanks to soaring exports and also remittances sent by the country's overseas workers, Bangladesh's central bank has projected a 6.5 per cent growth this year if shipments continue to fare well.

'Unlike economies facing heavy capital outflows and credit crunches in the current turmoil, credit and liquidity conditions remain easy here with no need for any blanket economy-wide monetary or fiscal stimulus,' the bank said.

Analysts and foreign investors said tens of millions of labourers who work in poor conditions for less than $50 a month are boosting Dhaka's growth at a time when buyers such as Wal-Mart are looking for cheaper sources.

'All eyes are on Bangladesh because it is the only country which can produce quality textile items at least 20-30 per cent cheaper than China,' said Mr Steffen Mohler, director of Germany's Multiline Limited, a top trading firm.

Multiline has this month started building one of the world's largest textile factories 50 kilometres north of Dhaka with an investment of $200 million (S$300 million).

It will be largest foreign investment in the country's fast growing textile sector, which accounts 75 per cent of its total exports, and will create jobs for 15,000 people when it goes into production early next year.

'We are here because Bangladesh will dominate (the) textile business for years to come. I know of no one - department stores, top retailers and trading firms - who are now not in Bangladesh. They are diverting their orders from China,' Mr Mohler said.

'We see Bangladesh textile exports doubling to 22 billion dollars by 2011.'

Taiwanese entrepreneurs who played a key role in transforming China into the world's top performing economy are rushing to Bangladesh to look for land to build footwear and textile factories, Taipei's representative Frank Chen said.

'Every week we have teams from Taiwan. Many of them have shut down factories in China's southern Dongguan city because they cannot make any money there. Bangladesh is the place which is still profitable,' he said.

Taiwanese investors have set up more than two dozen footwear, textile and furniture factories in Bangladesh with the firm Pao Chen looking to build the world's largest footwear factory which would employ 40,000 people, he said.

Such has been the rush of investors that Bangladesh's export processing zone (EPZ) authority says it is running short of plots to allocate to the incoming foreign investors.

'We have rented out almost all the plots,' said the authority's spokesman.

'Only a handful in the country's 10 EPZs remain, but we are searching for more.' -- AFP

Cheap labour helps Bangladesh

 

[Al-zakir]

Bangladesh becomes No 1 trousers exporter to US

January 27, 2009
Kazi Azizul Islam
Bangladesh is becoming the ‘Trousers Island’, if not the Treasure Island, for global apparel importers as local manufacturers are sourcing jeans and other cotton trousers at the cheapest prices and maintaining admirable quality, industry people said.
The industry’s strength has weighed up with Bangladeshi exporters occupying the number-one position in the US market of jeans and other cotton trousers in December, industry insiders told New Age.
Quoting the latest report of world’s leading market survey organisation Research & Markets, Bangladesh Garment Manufacturers and Exporters’ Association officials said by December Bangladesh controlled 13.82 per cent market share in USA.
The market surveyor, quoting US official data, showed that in 2008 US importers’ procurement of cotton trousers from Bangladesh totalled 299.9 million pieces, up 26.3 per cent from that in the pervious year.
Chinese suppliers lost their position to Bangladeshis as their shipments grew by less than 9 per cent to 288.7 million pieces in the year.
Mexico, which was the top exporter of trousers to USA just two years back, stood third, with a more-than-10-per-cent decline in shipments totalling 224.4 million pieces.
Vietnam stood at fourth position in US cotton trousers market, with 184.2 million pairs of trousers and an export growth rate of 14 per cent,
A Bangladeshi official at VF Corporation’s procurement office in Dhaka points out that with developed backward linkage, local jeans-makers are finding fabrics cheaper locally and delivering shipments within a short period.
‘It is really fantastic to feel that one in every seven trousers sold in the USA is made in Bangladesh,’ he said. ‘Importers are diverting their procurements from other countries to Bangladesh and it is becoming a ‘Trousers Island’.
The Bangladesh Garment Manufacturers and Exporters’ Association president Anwar-Ul-Alam Chowdhury Parvez said, ‘More and more global buyers are recognising the unparalleled capacity of Bangladeshi manufacturers in handling of large-volume orders at convenient prices.’
Bangladeshi suppliers recently received significant orders diverted from Mexico as depreciation of the value of her currency and some other factors made Mexican trousers costly, Anwar noted.
Abdus Salam Murshedy, managing director of the Envoy Group, a leading jeans supplier to American brands, points out that China’s growing reluctance to low-end products are also diverting many buyers to Bangladesh.
Partex Denim managing director Showkot Aziz Russell said finer quality denim fabrics are being produced in Bangladesh, attracting more procurement by global brands.
Partex supplies fabrics to many jean makers who source all top global brands including H&M, C&A, Marks & Spencer, American Eagle, and Uniclo.
With a 2-million-yard annul production capacity, Partex is said to be the largest among some 20 local units that are now able to meet more than half of the industry’s demand that earlier had to be fed by imports.
The robust growth in trousers shipments to the USA is also significant for Bangladesh as she earns more than one-third of her entire apparel export proceeds from that country by selling denim and other cotton trousers.
According to the latest official data, in the January-November 2008, Bangladesh apparel exports earned $3.17 billion from the USA, with cotton-based trousers accounting for $1.19 billion and non-cotton trousers $147 million.
‘Trousers’ success story again proves that if the backward-linkage is strong, Bangladeshi manufacturers are strong enough to extract maximum benefits using comparative advantages,’ said Prof Mustafizur Rahman, executive director of the Centre for Policy Dialogue, a private think-tank.
The apparel industry analyst thinks the woven garment sub-sector’s emphasis on trousers indicates a poor backward linkage for the shirt-makers.
Mustafiz however suggested that the industry should not be much complacent over the increasing volume of exports but put efforts for maximising value-addition.

Bangladesh becomes No 1 trousers exporter to US : Dhaka Mirror

 

[TopCat]

BB buys more dollar to keep forex market stable
FE Report

The central bank has continued to purchase US dollar from the commercial banks to keep the inter-bank foreign exchange market stable, officials said.

As part of the move, the Bangladesh Bank (BB) purchased US$10 million at Tk 68.90 per unit from a private commercial bank Tuesday.

"We've purchased the US dollar from a Shariah-based Islami bank to enable the financial institution comply with the net open position (NOP) rules for holding foreign exchange properly," a BB senior official told the FE.

On Monday last, the central bank similarly purchased $50 million from a state-owned commercial bank on the same ground.

The BB official also said the central bank continues its intervention in the inter-bank foreign exchange market by selling and buying the US currency directly and providing overdraft (OD) facilities to the banks aiming to keep the market stable.

The central bank has started intervention in the market by buying the US currency directly from the commercial banks since January 15 last to keep the market steady.

The BB has since purchased $80 million from two commercial banks as part of its intervention in the market, the officials added.

The flow of foreign exchange has increased in the market because of falling trend in opening of letters of credit (LCs) against imports recently, market operators said.

The country's overall opening of LCs for imports dropped drastically by 37.69 per cent during the first three weeks of January over the corresponding period of the previous year.

Import LCs worth US$780.64 million were opened during the first three weeks of January as against $1.252 billion of the corresponding period of the previous year, according to the central bank statistics.

Meanwhile, the flow of remittances reached $666.65 million in first 22 days of this month that indicates a higher inflow than that of the pervious month.

The remittance from Bangladeshi nationals working abroad was estimated at $765.79 million in December last, which was $4.41 million higher than that of the previous month.

The country's foreign exchange reserve stood at $5.478 billion Tuesday due to robust growth of remittance, the central bank officials confirmed.

BB buys more dollar to keep forex market stable

 

[BanglaBhoot]

Export growth decelerates as global meltdown starts biting Bangladesh

The country's merchandise export earnings dropped by over 10 per cent in December last over the corresponding month of the previous year due mainly to the global meltdown.

"December was a bad month for exporters because of fewer working days on account of the Eid festival and general elections, in tandem with the fall-out from the on-going international financial crisis," President of the Bangladesh Knitwear Manufactures and Exporters Association (BKMEA) Fazlul Hoque told the FE Monday while explaining the downtrend in export.

The effect of global financial crisis may continue in the apparel sector during the next couple of months, the BKMEA president added.

The Export Promotion Bureau (EPB) officials also admitted that the export orders from Europe and the United States have declined albeit modestly, due to the global meltdown.

"We're now preparing ourselves to encounter the fallout from the global financial crisis through providing appropriate policy support," an EPB senior official told the FE, adding that the EPB has already discussed the issue with the exporters to know the real picture of export performance.

In fiscal 2007-08, the pattern of exports in terms of geographical location of markets thereof showed a continued heavy dependence on Europe and North America.

Nearly 50 per cent of exports went to the European Union (EU) countries while 28.6 per cent entered the North America Free Trade Agreement (NAFTA) bloc, according to the central bank statistics.

The country's export earnings dropped to $ 1.195 billion in December last, from $1.329 billion of the same period of the previous year, the EPB's data showed.

However, the overall export earnings grew by 19.38 per cent during the first half of the current fiscal over the same period of last fiscal, the EPB officials said.

Bangladesh fetched US$ 7.76 billion in exports during the July-December period of fiscal 2008-09 (FY09), also down by $97.89 million from the target, or by 1.25 per cent, according to the EPB statistics.

The export target for FY09 was fixed at $16.298 billion as against $14.11 billion of the previous fiscal year.

The price index of Bangladeshi export products increased by 3.98 per cent in December last while the export volume rose up by 15.40 per cent, they added. This indicated that the exports rose more in terms of volume than that of related prices.

The items like readymade garments (RMG), knitwear, terry towel, textile fabrics and tea recorded growth while exceeding the target during the period.

However, the exports of footwear, home textile, petroleum bi-products, computer services etc., recorded growth but their earnings missed the export-earning target.

Readymade garments (RMG) products worth $2.805 billion were exported during the period, up 2.45 per cent from the target of $ 2.738 billion. The sector registered a 20.99 per cent growth over the same period last fiscal.

Knitwear sector fetched $3.240 billion during the period under review, which was 2.16 per cent higher than the target and 27.07 per cent higher than the earnings during the corresponding period of last fiscal.

Frozen food sector earned $268.84 million, down by 2.81 per cent from the half-yearly target and 4.05 per cent from the earning during the corresponding period of the last fiscal.

Earnings from export of leather stood at $104.80 million during the period against the half-yearly target of $146.62 million, showing a 28.52 per cent shortfall. Related export receipts registered a 31.86 per cent negative growth compared to the performance during the corresponding period of the previous fiscal.

Export growth decelerates as global meltdown starts biting Bangladesh

 

[Neo]

25,000 jute workers lose jobs in Bangladesh​

Friday, February 06, 2009

DHAKA: Bangladesh’s crucial jute sector has shed 25,000 jobs and shut three factories after a massive slump in export triggered by the global economic downturn, the industry said on Thursday.

The Bangladesh Jute Spinners Association said the country’s 59 jute yarn factories had slashed production by 30 percent in the last three months as demand for their products nosedived in European markets.

“In the last month, the factories have cut more than 25,000 jobs. Three jute spinners... have already been shut down,” said secretary general Shahidul Karim.

According to the government’s Export Promotion Bureau, jute goods exports plunged by 18 percent to 136.83 million dollars in the six months to December.

“The situation is getting worse day by day as the global recession has wreaked havoc on the European companies to whom we supply most of our jute yarn. In the next few weeks more factories will have to draw shutters,” he said.

Jute goods — such as sacking, yarn and floor carpets — are Bangladesh’s third largest export. The sector directly employs some 125,000 people, plus more than 20 million farmers grow it as cash crop every year.

 

[Al-zakir]

Bangladeshi company to invest $2.2 million in Adamjee EPZ



NATION BUSINESS REPORT



M/s. Osman Interlinings Limited, a Bangladeshi company will set up a Garments Accessories Manufacturing Industry in the Adamjee Export Processing Zone.

This 100% local owned company, will invest US dollar 2.2 million to set up their plant and will produce interlining items. The company will also create employment opportunity for 173 Bangladeshi nationals including '6 foreign nationals.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and M/s. Osman Interlinings Limited in BEPZA Complex, Dhaka Prasanta Bhushan Barua, Member (Investment Promotion) of BEPZA and Sayeeful Islam, Managing Director of M/s Osman Interlinings Limited executed and exchanged the agreement on behalf of their respective organisation.

Brig General Jamil Ahmed Khan, ndc, psc, Executive Chairman of BEPZA and other officials from respective organisations were present on the occasion.

The New Nation - Internet Edition

 

[slugger]

Bangladesh-US co to set up garments plant at KEPZ

Messrs S and S Clothing Limited, a USA-Bangladesh company, will set up a garments manufacturing plant in the Karnaphuli Export Processing Zone.

The joint venture company will invest US$ 2.666 million aimed at producing garments accessories in the plant, a press release said on Wednesday.

It will also create employment opportunities for 2,028 Bangladeshis and 2 foreigners, the release added.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and the M/s S and S Clothing Limited in BEPZA Complex recently.

Parsanta Bhushan Barua, Member (Investment Promotion) of BEPZA and Daniel Surendranath Sinnaduray, the managing director of M/s S and S Clothing Limited, signed the agreement on behalf of their respective organizations.

Brigadier General Jamil Ahmed Khan, the Executive Chairman of BEPZA, and other officials from respective organizations were present on the occasion.

 

[slugger]

Nasir Glass exports rise on Indian foothold

Float glass being produced at the plant of Nasir Glass Industries Ltd, which exported glass worth more than Tk 20 crore last year.

Nasir Glass Industries Limited (NGIL) exported more than Tk 20 crore worth of glass in 2008, a chunk of which went to the northeastern states of India.

The country's largest glassmaker that started commercial operations in September 2005 had explored the new markets over the past two years.

The company exported glass worth about Tk 13 crore in 2007, according to NGIL and bank officials.

“Ninety percent of the company's exports go to the Indian market,” said Touhidul Alam Khan, executive vice president and head of syndication and structured finance unit of Prime Bank.

The bank deals with the company export documents.

Both Bangladesh's export basket and markets are limited to a few products and countries. Many say that it is the collective failure of both businessmen and the government to diversify export products and destinations.

Glass has been added to the list of few products -- jute, garments, battery, cement -- that are generally exported to India.


Bangladesh's exports to India are a mere $350 million against imports worth $3.5 billion from the next-door neighbour.

“We also export to Nepal, Bhutan, South Africa and Kenya, in addition to the north eastern states of India,” said Abu Sayed, general manager (commercial and banking) of NGIL.

“Now the company is trying to explore new export markets including the United States and the oil rich Middle Eastern countries," added Sayed.

NGIL was set up with Tk 200 crore in investment, equipped with the state of the art technology and machinery.

Prime Bank lent Tk 100 crore as a syndicated term loan over a period of six years. Some 14 financial institutions participated in the largest syndicated arrangement in 2003.

In just three years of production, NGIL sales turnover stood at Tk 182 crore in 2008, which was Tk 157 crore in 2007, according to company statistics.

The company manufactures float glass, reflective glass, tempered glass, coated glass, mirrors, clear and coloured glass.

Besides NGIL, PHP Group also started commercial production of float glass at about the same time. Two other companies Osmania, owned by the government and MEB by Ilais Brothers, a private business house in Chittagong, were in operation earlier.

Currently, all these four companies produce around 350 tonnes of glass a day against their combined capacity of around 400 tonnes, according to the respective officials. NGIL produces 180-200 tonnes a day, PHP produces 100 tonnes on a single day and Osmania and MEB congregate the rest.

Bangladesh had once met 70 percent of its demand for glass by imports, at the time 2003-04. Now the sector exports after fulfilling the country's total market demand for the product. Industry people said the country is saving crores of money that was previously spent on import of the product.

According to a market study jointly conducted by a local private bank and an international research organisation in 2003, Bangladesh imported 6.51 crore square feet of glass in 2003. The local companies produced 4.14 crore square feet the same year.

Glass is produced with silica sand, dolomite, soda ash and limestone, of which, silica sand represents 70 percent, a raw material available locally.

“The company has already paid back about 70 percent of its syndicated term loan,” Touhidul Alam Khan said.

NGIL can produce as much as 20mm thick glass, while the maximum capacity of other companies is 12mm, according to NGIL's production manager.