Bangladesh Economic & Infrastructure Development - Updates & Discussions

[bluesky]

Especially when the FDI is just designed to import more Chinese stuff in the long run rather than impart technical know-how for local long term substitution/technical capacity etc.

FDI should be regarded just as FDI. If the Chinese companies employ more of their own people it is because they have an issue with the local language. But, it is also not a complete truth. A foreign company always needs local people because it is cost-effective. So, even if the Chinese companies employ their own stuff it will not remain so in the long run.

FDI is not exactly a way to transfer of technology. The foreign companies invest in money and machine, and the local workers simply learn the way to operate the machines and do other miscellaneous jobs. However, the local workers learn the work ethics while working in these companies and the learning is supposed to percolate down the society if there are hundreds of such companies. But, I do not yet see any real possibility of many FDIs in BD, at least it has not realized so far.

 

[Nilgiri]

FDI is not exactly a way to transfer of technology.

Depends on the FDI...yes bulk of it is not some ToT but the actual capital transfer....but there is qualitative ToT in the FDI as well in the upper echelons of management and even RnD.

For example my company made an investment into a Chinese facility for manufacture of certain compressor stages in jet engine...and now the Chinese capacity through simply having throughput of the fabrication over time has refined and optimized the production process and QC (of a few specific compressors)....and some of these have even found their way back to our main Canadian facilities. Of course the core IP remains with us and that is not transferred to anyone else...but there is this kind of shop RnD (from even just production side) that comes with enough basic FDI flow.

Not to mention worker training is also included in FDI....and is retained long term (both the training itself and the concept and attitude towards training/advancement in the larger culture and society). This is key because a purely local company investment has no idea in what and how to bring key specifics regarding best practices and knowledge that was developed over many decades by much wealthier countries.

Now China has actually moved to the stage where it pretty much forces some IP transfer over time (I remember you brought this up with Japanese investments in China, but it happens across the board...and is part of the reason for the Trump tariff war)...so there is that side too...but that is more govt directive through taking advantage of the deploy capital's low velocity rather than part of concept of FDI per se.

 

[Homo Sapiens]

http://unb.com.bd/category/Business/walton-increases-smart-tv-production/7118
Walton increases Smart TV production

• UNB NEWS
  
• PUBLISH DATE - NOVEMBER 24, 2018, 05:33 PM
  
• UNB NEWS - UNB NEWS
  
• 160 VIEWS

Dhaka, Nov 24 (UNB)- The local multinational brand ‘Walton’ has increased the production of its smart televisions witnessing the growing demands in the local market.

Recently, Walton released new models of 32-inch, 39-inch and 43-inch Smart TV with the latest operating system ‘Android 7’. Each of these new models is featured with 1GB RAM and 8 GB ROM.

The local brand set the price of its new models of 32-inch Smart TV at Tk 24.900, 39-inch at Tk 36,900 and 43-inch at Tk 39.900.

Walton is now manufacturing and marketing total of 25 models of smart televisions of 32, 39, 43, 49 and 55-inch. Among these, there is one model of 55-inch at Tk 69,900 and 49-inch at Tk 65,900. In addition, 43-inch televisions has 3 models and 39-inch has 5 models. Considering the people of middle-income group, Walton released 15 models of 32-inch smart television.

Walton Smart TV has a built-in E-share app that will allow users to share TV display with mobile phone and vice-versa. The users can manage the device operation by Smartphone through opening the remote option of the E-share app installed on handsets.

Four different formats like Key-remote, Touch remote, Mouse and Air mouse can be used by the users’ handset to operate image, audio, video and movies, stored on mobile phone, in Walton Smart TV from any corner of the home.

Maruf Hasan, head of sales of Walton Television Department, said, Smart TV has brought a radical changes and added more recreations for the viewers. Most of the buyers are now prefer to buy smart televisions.

He noted that the market share of the smart televisions has been growing very rapidly in the local market.

Uday Hakim, deputy executive director of Walton Group, said that the local television market is fully import oriented. But, the establishment of modern and internal standard local television manufacturing industries turned Bangladesh into a self-sufficient in meeting the entire local demands of televisions.

Now, a lion portion of the country’s television market is captured by the local brands, he added.

Mustafa Nahid Hossain, chief executive officer of Walton Television Department, said, Walton has installed world's latest technology and machineries at its own factory in Gazipur with huge investment to instigate a revolutionary change in the technology sector of Bangladesh. The local brand has also set up country's largest television R&D departed where a bunch of highly educated, talented and skilled engineers are working to present customers advanced and world-class products ensuring the international standard.

For which, Walton television has been recognized and achieved certification by the Bureau of Indian Standards (BIS) and Testing Certificate from Standard Organization of Nigeria Product Conformity Assessment Program (SONCAP). Walton has already announced one-year TV replacement guarantee with the assurance of high quality.

He also mentioned that high quality panels are being used in Walton Internet-based Android Smart TV. Walton is manufacturing HADS (High Advance Super Dimension Switch) and IPS (In Plan Switching) panels in ISO class seven dust free clean room, which ensure the quality and durability of the panels. As a result, viewers will get high viewing angle and high contrast pictures. Moreover, the Walton TVs are huge power efficient.

Walton is now offering 6-month replacement warranty for television panel, and two years warranty for panel and spare parts as well as free after sales of services for five years.

 

[Bilal9]

Under what brands are those specialized technical fabrics ? Don't get wrong I'm not bashing or similar here, however I happen to be heavy user of technical fabrics clothings (TACLITE®, HEATGEAR®, COOLMAX®, FlashDry™, GORE-TEX®, PrimaLoft® ThermoBall™, etc) and so far I've never recall seeing "Made in Bangladesh" in the labeling.

The technical fabrics produced locally are unbranded and are for captive consumption in apparel factories for exports to select markets (sometimes China) and are at the lower end of the quality spectrum, which is designed to a price level. They will not meet stringent criteria set up by GORE or COOLMAX. There could be branded smart fabrics made locally, but I have not seen them. GORETEX has been around since the 1970's and the silicone waterproofing coating technology is not hard to replicate, and neither is hollow wicking fibre made by the likes of Teijin etc.

You can import wicking type hollow fibre yarn from China/Korea and make fabrics in Bangladesh that closely follow GORE fabric construction.

There is local demand obviously, so there is production as well - no surprise there. Bangladesh is the second largest apparel producer after China.

 

[Nilgiri]

Bangladesh is the second largest apparel producer after China.

LOL. No it isnt you illiterate idiot.

LDC based quota export does not correlate to your total production. India total textile industry is mostly internally consumed and is approaching 250 billion USD in size....basically the entire Bangladesh GDP.

 

[Mage]

LOL. No it isnt you illiterate idiot.

LDC based quota export does not correlate to your total production. India total textile industry is mostly internally consumed and is approaching 250 billion USD in size....basically the entire Bangladesh GDP.

I think he meant exporter.....

 

[Nilgiri]

I think he meant exporter.....

There is local demand obviously, so there is production as well - no surprise there. Bangladesh is the second largest apparel producer after China.

Yeah no.... he has made this stupid claim before a number of times and been corrected on it before (by gslv mk3)

 

[Mage]

Forex reserves hit 450% growth in a decade
Ibrahim Hossain Ovi

• Published at 12:39 am November 25th, 2018

Bigstock

Foreign exchange reserves of a country define its macroeconomic stability, while it increases eligibility for getting foreign loans and attracts foreign investment

Bangladesh’s foreign currency reserve has registered more than 450% growth in the last ten years, thanks to steady economic growth and resilience of major external sectors, analysts said.

According to Bangladesh Bank (BB) data, as of September, foreign exchange reserves stood at $31.95 billion, up by 450.86%, from $5.8 billion in December 2008.

The country’s foreign reserves rose sharply mainly due to steady economic growth, including robust export earnings as well as healthy remittance inflows in the last several years, trade analysts and economists said.

They said both remittances and exports showed resilience over the years, even with turbulent overseas markets.

“The country’s economic activities have increased significantly over the last decade. Besides, remittance inflows and foreign investment have also surged,” Centre for Policy Dialogue (CPD) research director Khondaker Golam Moazzem told the Dhaka Tribune.

In addition, foreign fund inflows such as loans and grants went up, helping the economy to have a healthy foreign exchange reserve, said Moazzem.

“Foreign exchange comes mostly from exports, remittances, foreign aid, and grants, as well as Foreign Direct Investment (FDI). As a whole, Bangladesh has performed well in these categories,” Bangladesh Bank Chief Spokesperson M Serajul Islam said.

As a result, in the last ten years Bangladesh has seen a sharp rise in foreign exchange reserves, which has improved the country’s financial stability, said Islam.

According to the Export Promotion Bureau (EPB), in the July-October period of current fiscal year 2018-19, Bangladesh earned $13.65 billion, up by 18.65% from the same period last year.

Also, Bangladesh's remittances increased to $14.98 billion in FY18, up 17.31 % from last year.

The inflow of remittances rose by 6.55% to $1.24 billion in October, 2018, compared to $1.16 billion in the same month last year.

How a sound forex reserve is beneficial

Foreign exchange reserves of a country define its macroeconomic stability, while it increases eligibility for getting foreign loans and attracts foreign investment.

“In case of insufficient foreign exchange reserves, a country like Bangladesh faces trouble in getting loans from other countries and global lenders,” Khondaker Golam Moazzem said.

So, the present status is good for Bangladesh in availing loans and attracting new investment as a healthy foreign exchange reserve indicates the macroeconomic stability of a country, said the economist.

When and where to invest foreign exchange

Steady growth in the country’s economic activities has pushed the reserve of foreign exchange upward. But this should be used for financial benefits. In getting benefits from foreign exchange reserves, Bangladesh can invest its excess reserve.

“In the last few years, the Bangladesh economy has grown along with improved remittance and export earnings. But it is not being utilized to reap benefits for the economy,” former BB governor Salehuddin Ahmed told the Dhaka Tribune.

Excesses foreign exchange resembles excess liquidity. Though the return on investment may be small, it should be logically utilized said the economist, suggesting considering making investments in infrastructure projects like the Padma multi-purpose bridge.

He also said that investments can be made after keeping a six month equivalent of import bills as reserve.

If the upward trend of foreign exchange reserves continues, and the amount seems to be enough to pay import bills for a certain period, Bangladesh can make short term investments in sovereign bonds, said Moazzem.

The BB cannot set a benchmark on the amount of foreign exchange reserves to invest, as imports can rise sharply at any time, while exports can fall or see slower growth, or zero growth, said M Serajul Islam.

When the central bank thinks there is enough in foreign exchange reserves, considering the present status of the export-import situation, it can make investments and profit from excess forex reserves , said Serajul.

In making investments, the risk factors for investment and profitability are seriously taken into consideration, said the spokesperson.

However, World Bank, Bangladesh lead economist Zahid Hussain said the present forex reserve amount is enough to meet any crisis and import bills, but it is not investable yet.

The adequacy of foreign exchange reserves depends on the country’s status in terms of economic vulnerability and its import-export situation, he added.

“The minimum amount should be kept as reserve to pay import bills for three to eight months. The present amount is enough and Bangladesh can invest if the forex reserves go up to the amount required to meet eight months of import payments.”


https://www.dhakatribune.com/business/2018/11/25/forex-reserves-hit-450-growth-in-a-decade

 

[Mage]

Yeah no.... he has made this stupid claim before a number of times and been corrected on it before (by gslv mk3)

my bad

 

[Mage]

Dhaka likely to get $2.0b in add’l fund under IDA-18
FHM Humayan Kabir | Published: November 24, 2018 10:06:20 | Updated: November 24, 2018 16:34:35

Bangladesh is likely to get nearly US$ 2.0 billion additional assistance from the World Bank (WB), as the latter has decided to divert unutilised funds from other member states to the country, officials said on Friday.

The WB held its International Development Association (IDA)-18 aid package mid-term review meeting in Livingstone, Zambia last week. There, it decided to divert the funds under package to disburse more aid to the countries having higher demand for it. Bangladesh had requested for more funds.

Under IDA-18 package, Bangladesh has already received confirmation from WB to get almost all its earmarked $4.4 billion portfolio, allocated by the global lender for three years up to financial year (FY) 2019-20.


"Bangladesh has already taken almost all the funds from WB's IDA-18 package on the half way. So, we sought $4.0 billion more assistance to meet our demands," Mahmuda Begum, additional secretary of Economic Relations Division (ERD), told the FE.

"However, the WB has been able to divert about $2.0 billion funds from some war-torn member countries. We are hopeful of getting almost all the diverted funds, as Bangladesh is the highest performer among the WB member countries."

Since some war-torn countries, like -- Syria and Yemen, have been failing to spend their earmarked portfolio, the global lender has decided to divert the unused assistance to the countries like Bangladesh, which needs such assistance in greater volume, she further said.

A Bangladesh delegation, headed by Ms Mahmuda Begum participated in the IDA-18 mid-term review meeting in Zambia.

Under the ongoing IDA-18 package, the WB has allocated some $72 billion funds for its member countries, to be provided between FY 2017-18 and FY 2019-20.

"We have already signed aid deals worth nearly $4.4 billion with the WB in some one and a half years period. The IDA-18 package still has another one and a half year deadline. So, we need more assistance from the WB for the remaining period to help implement our projects in the pipeline," she added.

In October, the WB signed aid deals amounting to $965 million with Bangladesh against different development works, another ERD official said.

Meanwhile, WB at IDA-18 package review meeting assured Bangladesh of providing $500 million funds for Rohingyas as grant from its refugee funds.

Bangladesh is one of the highest concessional loan receivers from the WB.

In last IDA-17 package, the global lender set aside some $4.36 billion funds for Bangladesh from its total $52.10 billion mobilised concessional loans and grants for disbursing among its member countries between FY 2015 and FY 2017.

kabirhumayan10@gmail.com

http://thefinancialexpress.com.bd/e...-get-20b-in-addl-fund-under-ida-18-1543032380

 

[Skull and Bones]

Next stop, 100 billion.

 

[Hellfire]

Good show Bangladesh. Impressive and may you continue to clock such high growth.

 

[Bilal9]

Nov 24, 2018

Exports of Bangladeshi products to non-traditional markets are on the rise, showing an encouraging sign for the country’s efforts towards diversification of export destinations, according to data of Export Promotion Bureau.

Bangladesh considers ‘non-traditional markets’ all countries except its key export destinations, such as the EU, US, UK and Canada. India, China, Russia, Japan, South Africa, Turkey, Brazil, Chile, Mexico, South Korea, Malaysia, Australia, and New Zealand are among the major non-traditional markets for Bangladeshi products.

The country has also secured zero-duty benefits on exports of goods to markets in Japan, India, and China. Such trade privileges helped Bangladesh boost its exports to these non-traditional markets.

EPB data show that during the first four months of the current 2018-19 fiscal year, export earnings from the non-traditional markets soared substantially compared to the same period of last FY.

During the July-October period, exports to Japan stood at $464.95 million, up from $333 million in the same period last FY. Exports to India almost doubled as the country fetched $469 million during the July-October period this year, up from $226 million a year ago. In the first four months of the current FY, exports to China soared to $299 million from $224 million during the same period last FY while exports to Australia jumped to $281 million from $231 million. Exporters shipped goods worth $133 million to Russia in the July-October period against $127 million last FY, $59 million to Brazil against $52 million, $135 million to South Korea against $75 million, and $89 million to Malaysia against $65 million.

Though the country’s export growth remains steady, sector insiders said the potential of exports to non-traditional markets has remained untapped. Despite having a huge potential to gain more share in the new export destinations, Bangladesh is not being able to grab this opportunity in India, China and Latin American countries, they said.“In addition to the traditional export destinations, Bangladesh is slowly entering the emerging markets like China, India, Japan, Russia, Turkey and Latin America. This is indeed is good news for the country’s export sector,” BGMEA president Siddiqur Rahman said.He also said Bangladesh still has a long way to go as opportunities in most of the export destinations still remain untapped.

The BGMEA president said the government is working closely with the private sector to foster diversification of export destinations. Bangladesh Engineering Industries Owners’ Association (BEIOA) president Abdur Razzaque said Bangladesh’s export sector is still dependant on few sectors—apparel, leather, jute, frozen foods. “There is no alternative to product diversification to help reap the potential of new export markets,” he said.

The global market is more competitive than ever as buyers’ choices are changing constantly and Bangladesh should prepare for this challenge and focus on new products and new markets, Razzaque added.

The government has been providing cash incentives on exports to emerging markets to help the exporters enter and sustain in new export destinations.

 

[JohnWick]

An emerging superpower
You might need yo conquer America first...........

 

[Hellfire]

@MilSpec @Nilgiri

An excellent achievement I must say.