Bangladesh Economic & Infrastructure Development - Updates & Discussions

[Bilal9]

 

[Bilal9]

New Housing Development near Madani 100 ft road in Baridhara area.

Forget the Beverly Hills comparison - but I do agree. For Bangladesh, it is rather nice - well designed and landscaped.

 

[Bilal9]

RFL Group Production Process. They have to be one of the most diverse product manufacturers/exporters in this country, having a share in almost every product category. The numbers and sizes of their industrial parks is also mind-boggling. Take a look.

 

[Avicenna]

Bangladesh stocks hold 'hidden gems' for investors, HSBC says

The Bangladesh stock market has over 300 listed companies, and only 7 stocks have a market capitalization of more than $1 billion, according to HSBC.

www.cnbc.com

Bangladesh stocks hold ‘hidden gems’ for investors, HSBC says

PUBLISHED TUE, JUN 8 20219:16 PM EDT

• Bangladesh has two stock exchanges — Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange.
• The country’s top 30 listed companies by market capitalization and liquidity are on the DS30 index, which is up more than 65% over a 12-month period.
• HSBC’s Devendra Joshi explained that the Bangladeshi economy is larger than Vietnam and growing at a faster clip than the Southeast Asian nation. Vietnam is a favored frontier market among investors.

HSBC says Bangladesh stocks hold opportunities for fund managers looking to diversify their portfolios — and there could be “hidden gems” among the public-listed companies there.
The South Asian country has two stock exchanges — Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange. The top 30 listed companies by market capitalization and liquidity in Bangladesh are on the DS30 index, which is up more than 65% over a 12-month period.

In a report published this month, HSBC said the Bangladesh stock market is where Vietnam was five years ago — the Southeast Asian nation is a frontier market favorite among investors. The bank says Bangladesh is well placed to start closing the gap with Vietnam.
“It is less correlated with global macro and equity themes than Vietnam and also receives far less attention from analysts, creating opportunities for fund managers looking for diversification and ‘hidden gems,’” HSBC analysts said in the report.
While the Bangladesh market is relatively small, illiquid and not easy to access, it has a market capitalization-to-GDP ratio of 14%, according to HSBC. The ratio measures the total value of a country’s publicly listed stocks, divided by its GDP and can shed light on whether stocks in the country are overvalued or undervalued. A number below 50% indicates a market is undervalued.

“The market is illiquid, but that’s where the opportunity is,” said Devendra Joshi, ASEAN and frontier markets equity strategist at HSBC said Tuesday on CNBC’s “Squawk Box Asia.” He is one of the co-authors of the report.
The Bangladesh stock market has more than 300 listed companies, and only 7 stocks have a market capitalization of more than $1 billion, according to the HSBC report. The broader DSEX index has long been dominated by financial stocks but the weightage of consumer and health-care companies is increasing.

Economic growth
Bangladesh is one of the fastest-growing economies in the world. Prior to the pandemic, the country registered an 8.2% growth rate in 2019, according to the World Bank.
Joshi explained that the Bangladeshi economy is larger than Vietnam and also growing at a faster pace than the Southeast Asian nation. “They will need more and more investment to capital markets if they were to sustain the growth,” he said.

With a population of some 163 million people, the country’s GDP per capita is inching closer to $2,000. That is set to bring about a shift toward discretionary sectors such as those related to non-essential consumer goods and services, which tend to increase as disposable incomes rise.

Ready made garments workers works in a garments factory in Dhaka on July 25, 2020.

Though Bangladesh’s garments export and remittance sector have been key drivers of its economy over the last 30 to 40 years, that mix is changing, according to Joshi. “The next leg of growth is going to come from the domestic consumption, the domestic engine of the economy,” he added.
In the report, HSBC also noted that Bangladesh is showing signs of diversifying away from garments by setting up infrastructure to allow companies such as South Korean tech giant Samsung and Japanese automaker Honda to build production facilities. Meanwhile, domestic pharmaceutical companies and some home-grown consumer brands have started exporting to overseas markets.
Currency stability
The country’s currency, the Bangladeshi taka, has been relatively stable, Joshi said. As of Tuesday afternoon, it changed hands at about 84.79 per dollar and has remained relatively rangebound over the last 12 months.
Joshi said that one reason for the stability is that there aren’t as many portfolio investors in the market, which shelters the taka from volatility.
“From the external position also, the country’s balance sheet sounds strong, the external debt to GDP is quite low — so the currency has been quite stable,” he added.
The report also noted that an active and deep two-way market in the dollar-taka trade has yet to develop.

 

[Bilal9]

Latest Status - Dhaka Elevated Expressway. Will open summer next year.

Bangladesh stocks hold 'hidden gems' for investors, HSBC says

The Bangladesh stock market has over 300 listed companies, and only 7 stocks have a market capitalization of more than $1 billion, according to HSBC.

www.cnbc.com

Bangladesh stocks hold ‘hidden gems’ for investors, HSBC says

PUBLISHED TUE, JUN 8 20219:16 PM EDT

• Bangladesh has two stock exchanges — Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange.
• The country’s top 30 listed companies by market capitalization and liquidity are on the DS30 index, which is up more than 65% over a 12-month period.
• HSBC’s Devendra Joshi explained that the Bangladeshi economy is larger than Vietnam and growing at a faster clip than the Southeast Asian nation. Vietnam is a favored frontier market among investors.

HSBC says Bangladesh stocks hold opportunities for fund managers looking to diversify their portfolios — and there could be “hidden gems” among the public-listed companies there.
The South Asian country has two stock exchanges — Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange. The top 30 listed companies by market capitalization and liquidity in Bangladesh are on the DS30 index, which is up more than 65% over a 12-month period.

In a report published this month, HSBC said the Bangladesh stock market is where Vietnam was five years ago — the Southeast Asian nation is a frontier market favorite among investors. The bank says Bangladesh is well placed to start closing the gap with Vietnam.
“It is less correlated with global macro and equity themes than Vietnam and also receives far less attention from analysts, creating opportunities for fund managers looking for diversification and ‘hidden gems,’” HSBC analysts said in the report.
While the Bangladesh market is relatively small, illiquid and not easy to access, it has a market capitalization-to-GDP ratio of 14%, according to HSBC. The ratio measures the total value of a country’s publicly listed stocks, divided by its GDP and can shed light on whether stocks in the country are overvalued or undervalued. A number below 50% indicates a market is undervalued.

“The market is illiquid, but that’s where the opportunity is,” said Devendra Joshi, ASEAN and frontier markets equity strategist at HSBC said Tuesday on CNBC’s “Squawk Box Asia.” He is one of the co-authors of the report.
The Bangladesh stock market has more than 300 listed companies, and only 7 stocks have a market capitalization of more than $1 billion, according to the HSBC report. The broader DSEX index has long been dominated by financial stocks but the weightage of consumer and health-care companies is increasing.

Economic growth
Bangladesh is one of the fastest-growing economies in the world. Prior to the pandemic, the country registered an 8.2% growth rate in 2019, according to the World Bank.
Joshi explained that the Bangladeshi economy is larger than Vietnam and also growing at a faster pace than the Southeast Asian nation. “They will need more and more investment to capital markets if they were to sustain the growth,” he said.

With a population of some 163 million people, the country’s GDP per capita is inching closer to $2,000. That is set to bring about a shift toward discretionary sectors such as those related to non-essential consumer goods and services, which tend to increase as disposable incomes rise.

Ready made garments workers works in a garments factory in Dhaka on July 25, 2020.

Though Bangladesh’s garments export and remittance sector have been key drivers of its economy over the last 30 to 40 years, that mix is changing, according to Joshi. “The next leg of growth is going to come from the domestic consumption, the domestic engine of the economy,” he added.
In the report, HSBC also noted that Bangladesh is showing signs of diversifying away from garments by setting up infrastructure to allow companies such as South Korean tech giant Samsung and Japanese automaker Honda to build production facilities. Meanwhile, domestic pharmaceutical companies and some home-grown consumer brands have started exporting to overseas markets.
Currency stability
The country’s currency, the Bangladeshi taka, has been relatively stable, Joshi said. As of Tuesday afternoon, it changed hands at about 84.79 per dollar and has remained relatively rangebound over the last 12 months.
Joshi said that one reason for the stability is that there aren’t as many portfolio investors in the market, which shelters the taka from volatility.
“From the external position also, the country’s balance sheet sounds strong, the external debt to GDP is quite low — so the currency has been quite stable,” he added.
The report also noted that an active and deep two-way market in the dollar-taka trade has yet to develop.

https://www.cnbc.com/video/2021/06/...start-exporting-outside-the-country-hsbc.html

Bangladesh is 'moving up' the value chain by exporting higher end goods: HSBC

Devendra Joshi of HSBC says Bangladesh's pharmaceutical and consumer electronics industries have been exporting their goods overseas, and this can be seen in the stock exchange where there is now far more representation from the pharma industry.

www.cnbc.com

 

[SpaceMan18]

Hazrat Shahjalal Airport Terminal 3

 

[Bilal9]

Matarbari Project update - long one. Sorry Bengali only.

 

[Bilal9]

BGMEA gets global recognition for green factories

UNB
12th June, 2021 08:19:45 PM

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has won the prestigious "US Green Building Council (USGBC) Leadership Award" for its efforts in developing Bangladesh as the "home of green garment factories of the world".

BGMEA is the first organization in the world to receive such an award and it is a big international recognition, said BGMEA President Faruque Hassan Saturday during a virtual media briefing from the association's office in the capital.

Bangladesh now has 143 instances of "Leadership in Energy and Environmental Design (LEED) certified" garment factories – the highest in the world.

Of these factories, 41 are platinum rated and the rest are gold and silver-rated ones certified by the USGBC.

Also, around 500 more apparel factories are waiting to be certified by the USGBC as green factory buildings, the BGMEA president said.

"As the country's pioneering export industry, the apparel industry holds the responsibility of running the engine of economic growth. But while we do it, we cannot stay indifferent to the negative externalities of growth – especially when it comes to the environment," Faruque Hassan said.

"Green factory buildings are environment friendly in planning, design, construction and operation, which reduce or eliminate negative impacts and improve our quality of life through its lifetime."

"These buildings have cleaner air circulation, more access to daylight, less pollution, harm-free chemical paints and finishing, which create a healthier working environment. The improved quality of the environment does not only reduce the prevalence of asthma and respiratory allergies but also encourages workers and boosts retention rate and productivity," the BGMEA president said.

BGMEA Vice-President Md Shahidullah Azim and directors Barrister Shehrin Salam Oishee and Md Mohiuddin Rubel were also present at the briefing.
7 OF THE TOP 10 LEED® CERTIFIED FACTORIES IN BANGLADESH

By Zulker Naeen

Bangladesh is grossing a silent revolution by setting up continuous eco-friendly factories. About 7 #green#infrastructures for factories among highest 10 are in now Bangladesh for scoring the highest standard. And each is #garment industries.

U.S. Green Building Council, #USGBC gives the LEED® certificate for green industries. #LEED stands for ‘Leadership in Energy and Environmental Design’. Recently, #USGBC has published the updated list of LEED® certified Green #factoryconstruction, though newly industries are getting their enlistment regularly.

7 of the Top 10 LEED® certified factories in the world are in Bangladesh:

1st Position | 97 point |Remi Fashions.
2nd Position | 92 point |Plummy Fashions.
3rd Position | 90 points | Vintage Denim Studio Ltd.
5th Position | 85 points | SQ Celsius 2.
9th Position | 81 points | Genesis Washing.
9th Position | 81 points | SQ Cole Blends.
9th Position | 81 points | SQ Birichina Ltd.

To receive LEED® certificate, every factory has to meet 9 requirements. Those building materials have to be used, which emits less #carbon. Even, for further construction, the materials of brick, cement, steel also have to meet that standard. Within 500 sq. feet distance from the factory, there should have the residence, school facility, market, transport stands for the workers. This facility takes the workers less time to come at factories, which also helps to reduce fuel use as well as carbon.

To energy conservation issues, use of proper sunlight, solar power, energy saving bulbs has to be used. The factory arrangement should avoid the use of underground water by saving the rain water and water saving tap. A minimum free space should be kept also. The work environment should be friendly and up to date equipment should be used for manufacturing.

There is a total of 110 points to fulfill 9 conditions. 80 points on the ‘Lead Platinum’, 60-79 points for ‘Lead Gold’, 50-59 points for Lead, Silver, and the 40-49 points for ‘Lead’ in the certificate match. From Bangladesh, so far, about 32 factories have earned LEED® certificate for infrastructure environment. Many industry entrepreneurs are approaching to develop of #eco-friendly factories. In this case, however, RMG Industry is ahead of these trends.

#Green Factory Certification needs more branding, which may raise competition among the factory owners. They need to be aware of the LEED® #certification, as a lack of maintenance may also void the certification. It is heard that UGSBC may start their own office in our country or they may deploy a dedicated institution for this responsibility.

 

[Bilal9]

LEED Certified Green Factory - Bangladesh
LEED Factory is a holistic concept where the multiple aspects pertaining to design, construction and operations are integrated to achieve sustainable performance. Also, the design and processes vary based on the type and nature of building and climatic conditions. A sustainable design is the core of a LEED Factory, which automatically ensures the efficiency of the building during the post occupancy stage. Factually speaking, Green Building movement has modified many parts of contemporary factory architecture in a more vernacular way.

Besides tangible benefits like project costs, interest payback and energy efficiency which are visible to all, green factories also work on areas like water, waste, indoor air quality, heat island effect, etc. which are not visible and often not given their due importance. For a factory project with a life cycle of more than 50 years, these aspects have to be accounted for. Green factories bring all this into perspective by setting practical benchmarks to take raise the level of performance.

Green factories also ensure that there is improved productivity of the employees through green health standards without impacting the natural environment habitat. Green factories include mechanisms through which both construction and post occupancy wastes are handled effectively, thereby reducing pollution and improving local environment quality. At last, but not the least, Green Factories reduce greenhouse gases emissions and have less carbon footprints on environment. As per the Green Building rating systems, construction materials must be procured locally to boost the regional economy. This would reduce the carbon footprint by minimizing the emissions arising from transport. Besides this, green buildings encourage the use of recycled material, reused and salvaged material to reduce the use of virgin material.

One of our recently completed projects ‘Mithela Textile Industries Ltd.’ is the World’s First LEED Platinum Certified Dyeing Factory and 3rd highest as any factory in the world. As a sustainability consultant, we try and understand the vision of architects and clients and work as a bridge between different project stakeholders to make their vision come true.

Very interestingly, unlike other Bangladesh Platinum rated factories, while designing our main focus was on the passive design and not active components like solar power, STP etc. Real success came when we were able to achieve 91 points without incurring any cost on Solar-power, STP, high performance glass, imported materials etc. While consulting for LEED certification our concern is always the Return of Investment (ROI). An optimized ROI not only save a lot of capital expenditure for the developer but also encourages developers to think further on environment without a pinch in their pocket.

Green building certification program is focused to measure and reduce the negative impacts on nature due to the construction. For ease of implementation, LEED green building rating has been divided into following major modules: - Sustainable Sites, , Water Efficiency, Energy Efficiency, Green Building Materials & Resources, Indoor Environment, Sustainable Design & Innovation etc.

In each module of LEED rating, there are certain mandatory requirements and some tradable compliance. Mandatory are must to do requirements and one cannot apply for rating if we do not comply with them. Regarding the tradable compliances, if we comply with them we get one or more points based on the degree of compliance that we achieve. The more points we get, the greener the project becomes.

 

[F-6 enthusiast]

Pharmaceutical industry of Bangladesh and its future.

 

[Bilal9]

DSE leads Asian frontier markets’ rally in May
DSEX, the broad-based index at Bangladesh’s premier bourse, gained more than 9.3% in May

The Dhaka Stock Exchange (DSE) has been the best performing bourse among the Asian frontier markets in May, according to Asia Frontier Capital.

DSEX, the broad-based index at Bangladesh's premier bourse, gained more than 9.3% in May, while the key indices in the markets of Pakistan, Vietnam, China, the Philippines, Kazakhstan, Sri Lanka, Thailand, and Indonesia lagged behind with lower gains.

Over the same month, AFC Asia Frontier Fund, which has an investment in Bangladesh, saw its net asset value going up 3%.

The DSEX saw the big jump in May as a strong quarterly result and the control of new Covid-19 cases swiftly brought back investor confidence, said analysts at the international investment firm having bases in Hong Kong and the Cayman Islands.

Of the portfolio companies of AFC Asia Frontier Fund, commercial vehicle assembler Ifad Autos gained 28.1% and Brac Bank 23.9% in May "on the back of very impressive quarterly results in a tough operating environment."

On the other hand, local analysts are concerned about the extra-ordinary rallies, like around a hundred or more percent gains in a month, in the small-cap scrips at both the DSE and Chittagong Stock Exchange (CSE) and many of them believe this is taking place amid excessive speculation and a lack of regulatory supervision.

The Bangladesh stock market, which historically lacks sufficient depth, has come through two major boom and bust cycles in 1996 and 2010.

A decade of depressed journey appears to have ended in the middle of 2020 as the extreme market dip then was accompanied by a bold monetary easing by the Bangladesh Bank on top of the better-than-expected outcome in the battle with the pandemic, in terms of both the public health and economic recovery.

Since the middle of last year, the DSE and the CSE have topped the international return tables twice in 2020, in September and October.

Also over the second half of 2020, DSEX was at the top of the return table for globally tracked indices.

However, a fair extent of correction over the initial months this year resulted in a moderate year-to-date rally in the DSEX as the index gained 11% while AFC Asia Frontier Fund and MSCI World Index, a benchmark that tracks shares in 50 countries, also gained the same percentage points.

Up to the end of May this year, DSEX outperformed its counterparts in Sri Lanka, China, Indonesia, the Philippines and underperformed those in Mongolia, Kazakhstan, Vietnam, Iraq, and Pakistan.

 

[F-6 enthusiast]

something we can learn from
export-lead industrialisation of south korea

 

[Bilal9]

something we can learn from
export-lead industrialisation of south korea

Thanks for posting this.

However we don't have a meritocratic cabinet even today, compared to what South Korea had in the sixties. Less than ten percent of our cabinet currently has any higher education degree or with only a paper degree. These people are mainly goondas and political cadres and have no qualification to lead. No comparison with Korea situation.

Korea had some dedicated and highly educated bureaucrats driving export-led growth - mainly of light industrial goods which was (and continues to be) highly profitable. I have had personal interactions with Korean higher middle class business leaders. They are all western educated and highly practical evolved business leaders.

And unlike Japan next to us, which was an industrial juggernaut at that time (1950's and 1960's) that helped Korea with exports and ToT, we have India next to us, which is an impoverished ill-managed 3rd world entity, exporting their garbage culture and people to us, and exploiting us financially at every opportunity.

We are growing economically in spite of Indian exploitation, not because of their help.

But essentially - we are at the stage where Korea was in the 1970's (and 1980's in some cases)

In the 1990's devaluation of the US Dollar against the Yen and Deutsche Mark impacted the exports of Japan and Germany, but was an unexpected boon to the S. Korean economy.

The trade was of USA and China is also an opportunity for countries like Vietnam and Bangladesh, wherein China can resituate its low-skill and low-value-addition industries to these countries.

 

[F-6 enthusiast]

Apparently SL asked india for a loan first. I hope SL financial situation improves and they get back on track.
SL per capita gdp is ~ 4000$

 

[SpaceMan18]

Apparently SL asked india for a loan first. I hope SL financial situation improves and they get back on track.
SL per capita gdp is ~ 4000$

4,000 is better than us lmao good luck to them , sadly Sri Lanka got unlucky