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Private sector driving Bangladesh towards $1-tr economy

Homo Sapiens

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Private sector driving Bangladesh towards $1-tr economy​


Mahmudul Hasan
Fri Nov 25, 2022 08:00 AM Last update on: Fri Nov 25, 2022 09:06 AM

Private companies are spearheading Bangladesh's growth with their energy and optimism, putting the economy on a path to cross the $1-trillion mark by 2040, according to a top global consulting firm.
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The milestone will be achieved because of private firms' drive to become world-class global businesses and their ability to recruit the best talent, build globally recognised brands, and compete with leading multinational companies, said the Boston Consulting Group (BCG) in a report.

The "Trillion-Dollar Prize Local Champions Leading the Way" report calls private sectors firms as emerging champions.
"Bangladesh's emerging champions are willing to push themselves to embrace more winning traits to go truly beyond great and lead the nation towards becoming a trillion-dollar economy by 2040," it said.

"Bangladesh's emerging champions are innovative companies that have grown rapidly, created a structural advantage in the domestic market and are ready to pursue global ambitions."

The success of these champions echoes the path of exemplary enterprises in other countries, doubling down on domain expertise, domestic success, and quality talent.

"These champions aim to raise international capital, form global alliances and penetrate a diverse and shifting global supply chain to ensure supply security," said the report.

The report is expected to be launched in Dhaka today.

According to the report, the private sector is also boosting innovation and productivity and leveraging the growing digital landscape with well-structured strategic programmes.

"We believe these champions can be powerful contributors to realising Bangladesh's trillion-dollar ambition."
The report was based on BCG analysis and in-depth interviews of leading companies in Bangladesh having an annual revenue range of $300 million to $3 billion.

The emerging companies boast an impressive ten-year average shareholder return of 16 per cent, delivering above the S&P Global 1200 companies' 15 per cent, the Asia 50 Index's 14 per cent, and the MSCI Emerging Markets' 10 per cent.

The BCG report found solid optimism among companies with 57 per cent believing the next generation will have better lives.
In Bangladesh, there is a growing young workforce with a median age of 28 and the working age population is 68.4 per cent.
The report found that 83 per cent of Bangladeshi companies surveyed have a bold ambitious vision and 38 per cent focused on driving better customer outcomes through personalisation.

About 78 per cent strongly believe that they must build a culture of continuous transformation and 61 per cent are pursuing strategic international expansion to create global brands.

According to the report, a key driver is the domestic consumer market.

The local consumer market is set to become the ninth-largest in the world driven by a rapidly expanding middle and affluent class, which is projected to grow from about 19 million in 2020 to about 34 million by 2025.

With an average annual GDP growth of 6.4 per cent between 2016 and 2021, Bangladesh has outpaced major Asian peers such as India, Indonesia, Vietnam, the Philippines, and Thailand. The country's growth rate was around double its fellow lower-middle-income countries and significantly higher than the global average of 2.9 per cent.

The country has high economic resilience with a savings rate of 34 per cent against the global average of 27 per cent. The government debt at 19 per cent is the lowest among peers, said the report.

"Besides China, the two most dynamic countries in the world are in South Asia. I would say India and Bangladesh have strong momentum," said Hans-Paul Bürkner, global chair emeritus for BCG, in an interview with The Daily Star last week.
"One of the key elements now for Bangladesh is to really make good use of these opportunities. I think this is crucial."

"Don't see yourself as a poor country, lagging far behind and without having many opportunities. Actually, there is a real opportunity to really move forward to become a middle-income country in the coming years and decades."
But, of course, it takes special efforts, according to Bürkner.

Companies around the world are diversifying their supply chain and Bangladesh can seize the opportunity.
"A massive shift in the supply chains will occur in five to seven years where Bangladesh can play a role. I think the key is really to be open to grab these opportunities," he added.

He urged Bangladesh to build infrastructures in order to lower logistics and transportation costs significantly.
"There are opportunities. That's why we are positive about Bangladesh. We feel progress is being made, but a lot more needs to be done."

Bangladesh is widely recognised for its important role in the global supply chain for textile and apparel, and the BCG continues to see growth in this sector with major domestic players expanding their businesses globally.

The momentum in the digital industry, three times increase in public spending in the last decade, the government's 2041 vision and the Smart Nation Plan are also powering growth.

The telecom industry is led by three private players, Grameenphone, Robi and Banglalink, which have helped position Bangladesh as the ninth-largest mobile market in the world.

The NGO sector has also been a major driver of growth for the economy, with the world's largest NGO Brac and the pioneer of microfinance Grameen Bank providing a safety net for the bottom of the pyramid, the report said.

The startup industry has raised funding of over $700 million and now the government is taking an active role in promoting start-ups.

Other sectors are also emerging on the global stage with players like multinational goods company Pran-RFL establishing franchises in Africa and the Middle East, and pharmaceuticals and animal health companies driving expansion in Europe, the UK, and the US.

The BCG is aware about the challenges Bangladesh faces amid the current global uncertainty.
"No story is without ups and downs. The current economic climate has created some uncertainties, with liquidity challenges, foreign exchange risks and inflationary pressures in the short term. But the measures the country is taking should allow Bangladesh to remain on its course towards a trillion-dollar economy," the report said.

There are areas where Bangladesh needs to do more, said Saibal Chakraborty, managing director and a partner of the BCG office in New Delhi. He co-authored the report.
"For example, digital analytics is an area where more needs to be done."

Although the country is enjoying a great demographic dividend, some companies are feeling the crunch when it comes to cutting-edge managerial talent or tech talent, said Chakraborty.

The BCG found that 56 per cent of organisations have social impact at the top of their mind and are geared to drive meaningful change.

Zarif Munir, managing director and senior partner in the Kuala Lumpur office of BCG, said: "In 2015, we observed one big trend in Bangladesh and that was the middle and affluent class, and they were the driving force of the economy."

"Now, we believe the next big driving force after the middle class are local companies. They're young, They're hungry. They want to grow despite the challenges."

The report assessed companies based on three pillars: growing beyond, operating beyond, and organising beyond.
The companies that are "growing beyond" to realise global ambitions with societal impact at heart are Brac, bKash, Brac Bank, PHP, ShopUp, Pathao, Walton, Pran, and Summit.

The companies that are "operating beyond" through partnerships and multi-local delivery networks are Square, Walton, PHP, ShopUp, Pran, Patho and Meghna Group.

The firms that are "organising beyond" include Confidence Group, Beximco and Pran.

"Bangladesh is on the move. But to reach its full potential, the emerging champions will need to lean in," said Tausif Ishtiaque, a partner in the Kuala Lumpur office of the BCG and a co-author of the report.

 

bluesky

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This long article is for the consumption of BAL cronies. I did not see anything about investments, both local and FDI.

How an economy grows without investments in the correct sectors. Vietnam received more than $200 billion worth of FDIs and no one really comes to BD to invest.

Yet, BD seems to be the only country where kites fly high sky without wind. BAL brats are very happy, though with this fake reporting!!
 

UKBengali

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This unprecedented double-digit expected CAGR growth in a country where GDP per capita has already reached 8,000 US dollars at PPP will allow BD companies to keep growing rapidly in order to generate more revenue and profits to invest overseas for rapid overseas expansion.

Expect 30% of the huge near 200 million population to have “middle-income” purchasing power by the year 2030. That would be the size of France being able to buy goods like TVs, fridges and use services on the internet like entertainment.

Trolls(both BD and others) should take note that all independent data points to a good correlation with published BBS data since AL came into power in 2009. Give it up and spend time on more productive pursuits.
 

bluesky

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More data to back up the strong growth of the BD economy.

There can be no doubt that BD is now the only Asian "Tiger" economy at this moment in time.
@UKBengali, has your Hasina Bubu already received copy machines from Biden to print dollars? After the foreign exchange reserve money has been stolen for many years, you are celebrating @1 trillion GDP.

The FE reserves have come down to $26.3. Some knowledgeable people say it is $20 billion, and your BAL newspaper is talking about $1,000 billion in GDP!!

Wait for a few months, Hasina Bubu will successfully reduce the GDP to less than $220 billion when the currency drops to Tk200 a dollar.
 
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Homo Sapiens

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This long article is for the consumption of BAL cronies. I did not see anything about investments, both local and FDI.

How an economy grows without investments in the correct sectors. Vietnam received more than $200 billion worth of FDIs and no one really comes to BD to invest.

Yet, BD seems to be the only country where kites fly high sky without wind. BAL brats are very happy, though with this fake reporting!!
@bluesky bhai charidkey shudhu unnoyon ar unnoyon. Ar swiss bank e dollar mojut er hirik ! :lol:



Eibar bojhen BCG ke - ke poisha dai eishob report bahir korar jonno.

All dhokeybaaji and banoat.

Shob-e takar khela !!

Reminds me of this...

View attachment 900531
We have to make a distinction between Private sector and the Awami League Govt. I am afraid we are opposing and denying the hard work and intrepreneureship of our private sector just because we don't like the govt. It is almost beyond dispute that, whatever progress we achieved so far is mostly due to our dynamic private sector. It is not that, this report were published by BAL controlled media from Bangladesh. If an American consultancy group is recognizing the achievement of our private sector we have no reason to trash it as BAL propaganda unless we can prove that BAL indeed managed to manipulate Boston Consulting Group(BCG) to make a favorable report on Bangladeshi private sector instead of their govt.
 
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@IKBenhali, has your Hadina Bubu already receive copy machines from Biden! When foreign exchange reserve money has been stolen for many years, you are celebrating @1 trillion GDP.

Wait for a few months, Hasina Bono will successfully reduce the GFP to less than $220 billion when Taka drops to 200 to a dollar.

Get your head out of Tariq Chora’s arse!

Show some patriotism you Dhakaya shill.
 
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We have to make a distinction between Private sector and the Awami League Govt. I am afraid we are opposing and denying the hard work and intrepreneureship of our private sector just because we don't like the govt. It is almost beyond dispute that, whatever progress we achieved so far is mostly due to our dynamic private sector. It is not that, this report were published by BAL controlled media from Bangladesh. If an American consultancy group is recognizing the achievement of our private sector we have no reason to trash it as BAL propaganda unless we can prove that BAL indeed managed to manipulate Boston Consulting Group(BCG) to make a favorable report on Bangladeshi private sector instead of their govt.

Private sector has been able to shine because Hasina has managed the macro side exceptionally well.

What are those macro things?

1. Good relations with India has enabled BD to source cotton, transport vehicles and machine parts at the cheapest price. BNP government would have put barriers forcing the private sector to source from more expensive locations.

2. Power - Hasina has transformed the power sector by getting Russia and China to fund and build power stations. BNP’s pro US slavery did not enable Russia and China to build them during the reigns of Zia and Ershad or Tariq Chora.

3. Transportation - Hasina is the first leader of Bangladesh to connect the entire country by road and soon rail. No more waiting hours for ferries.

Private sector cannot be dynamic if the government doesn’t create a conducive macro economic condition.

I can add many more!

@UKBengali
@EasyNow
 

UKBengali

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Private sector has been able to shine because Hasina has managed the macro side exceptionally well.

What are those macro things?

1. Good relations with India has enabled BD to source cotton, transport vehicles and machine parts at the cheapest price. BNP government would have put barriers forcing the private sector to source from more expensive locations.

2. Power - Hasina has transformed the power sector by getting Russia and China to fund and build power stations. BNP’s pro US slavery did not enable Russia and China to build them during the reigns of Zia and Ershad or Tariq Chora.

3. Transportation - Hasina is the first leader of Bangladesh to connect the entire country by road and soon rail. No more waiting hours for ferries.

Private sector cannot be dynamic if the government doesn’t create a conducive macro economic condition.

I can add many more!

@UKBengali
@EasyNow



BD’shis must be the only people who think the private sector can flourish without central government creating the right business friendly environment.

Bizarre conclusion.
 
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BD’shis must be the only people who think the private sector can flourish without central government creating the right business friendly environment.

Bizarre conclusion.

I tell you bro!

It’s the Dhakaya rota learning!

They speak really fast almost like a 🦜

Have you seen Bangladeshi debating competitions 🤣🤣🤣

It’s hilarious 😂

Dhakaya education system churns out parrots who are incapable of original or independent thought.

Then they cry why Indians take “their jobs” 😂😂😂😂

They always group themselves into camps 🤣🤣🤣

BNP v AL
Mujib v Zia
Brazil v Argentina

The last one is hilarious 😂😂😂😂
 

UKBengali

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I tell you bro!

It’s the Dhakaya rota learning!

They speak really fast almost like a 🦜

Have you seen Bangladeshi debating competitions 🤣🤣🤣

It’s hilarious 😂

Dhakaya education system churns out parrots who are incapable of original or independent thought.

Then they cry why Indians take “their jobs” 😂😂😂😂

They always group themselves into camps 🤣🤣🤣

BNP v AL
Mujib v Zia
Brazil v Argentina

The last one is hilarious 😂😂😂😂

Yep, Sylhet has contributed disproportionately to BD’s development through gas, remittances and also brainpower at the top of politics.

Let them have their silly fights while we Sylhetis get ahead.

All good as Sylhet also benefits from being part of BD.
 
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Yep, Sylhet has contributed disproportionately to BD’s development through gas, remittances and also brainpower at the top of politics.

Let me have their silly fights while we Sylhetis get ahead.

All good as Sylhet also benefits from being part of BD.

Sylhet is an integral part of BD. I love ordinary Bangladeshis and am proud of Padma and Jamuna bridges although they are no where near Sylhet.

However, Dhakaya mentality is holding BD back.

You have the chetona brigade around Dhakaya university!

And the Wahhabis around Howa howa bhaban.

Two extreme ideologies!

Hasina is the only one who can control these extremists!!!
 

Bilal9

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We have to make a distinction between Private sector and the Awami League Govt. I am afraid we are opposing and denying the hard work and intrepreneureship of our private sector just because we don't like the govt. It is almost beyond dispute that, whatever progress we achieved so far is mostly due to our dynamic private sector. It is not that, this report were published by BAL controlled media from Bangladesh. If an American consultancy group is recognizing the achievement of our private sector we have no reason to trash it as BAL propaganda unless we can prove that BAL indeed managed to manipulate Boston Consulting Group(BCG) to make a favorable report on Bangladeshi private sector instead of their govt.

Bhai I know about wall street financial firms.

Lobbyist and consulting firms like BCG will publish favorable reports on any country in exchange for money or for future lobbyist prospects.

Bangladesh will become a Trillion-Zillion economy !!

Where does money for a Consulting firm come from ? Maybe Joi kumar gave BCG promises to hire them as lobbyist ?

And the guy who wrote the report is a BCG India division partner (2+2=4). :-)

It is really wierd when the whole world recognises BD's achievement but a section of its own citizenry and diaspora is busy badmouthing it.

Regards

Whole world does not recognize it.

It is only Hasina-supporter Indians like you and some lobbyist firms for hire that are peddling this fantasy...to keep the Indian looting of Bangladesh going and preserved as Status Quo.

Bangladesh reserves, some say - are less than ten Billion right now. Good luck keeping "The Boat" afloat.

We know why Indians love Hasina, she is an Indian tool to suck Bangladesh dry....

Do all Indians take us Bangladeshis for idiots ?
 
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It is really wierd when the whole world recognises BD's achievement but a section of its own citizenry and diaspora is busy badmouthing it.

Regards

It’s partisanship at its worst.

You saw it during Obama’s presidency when white working class was voting against Obamacare 🤣🤣🤣

Polls after polls found ACA was massively popular but Obamacare was pants 🤣🤣🤣

In BD, growth is over 6% if it’s credited to the private sector but it is minus 6% if it’s credited to Hasina 🤣🤣🤣

Do all Indians take us Bangladeshis for idiots ?

No! Only Dhakaya educated YouTube blogging “intellectuals” and their followers 🤣🤣🤣

@UKBengali
@EasyNow
 

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