Bogra is the hub of agriculture machinery production
An Ittefaq report
The Daily Ittefaq - March 7, 2010
An Ittefaq report
The Daily Ittefaq - March 7, 2010
Bangladesh Economy: News & Updates
- Thread starter Raquib
- Start date
South Asian Media Net
SUPERSTORES EYE BOOM TIME AHEAD
Saturday, March 06,2010
DHAKA: Superstores are set to boom in the country as the current market players are planning to open several hundred more outlets in the next few years to cope with the rising demand from the consumers.
With a strong 15-20 per cent annual sales growth, about 30 companies with more than 200 outlets have already made foray into the industry since Rahimafrooz, one of the largest business groups in Bangladesh, introduced Agora, a chain superstore, in the capital a decade ago.
The annual turnover of the superstores now stands at around Tk 15.0 billion (1500 crore or about US$217million), according to Bangladesh Supermarket Owners Association (BSOA).
Hassle-free shopping environment, hygienic commodities, fresh vegetables, meat and fish at the supermarkets are earning appreciation of the customers, market operators said.
The supermarket biggies have attempted the massive expansion drive to attract the shoppers, who still depend on unplanned wet markets to buy their daily essentials.
They say that a rise in organised retailing would offer the consumers hygienic foods at competitive prices, compared to those offered by retailers in the kitchen markets, where commodities are sold mostly in unhygienic condition.
The rise in the number of supermarkets, according to analysts, will diversify the choices of consumers and boost their spending, so much needed for economic growth, while the wet markets will also improve quality and services following in the footsteps of supermarkets.
But a decade ago, the retail-level trade was in the hands of thousands of small traders in the wet markets and the grocery shops in cities and remained out of the focus of the big business houses.
The landscape began to change in 2000 when Rahimafrooz Superstores, operating Agora, moved in to seize a slice of the retailing and wholesale trade, which has been growing at 6 per cent, on an average, annually.
In the past decade, many small and big supermarkets made debut, successfully attracting middle and upper middle class consumers, a section of whom are gradually turning to chain stores from the wet or kitchen markets, superstore operators say.
Dhaka-based Agora now runs four outlets, Meena Bazar nine including seven in Dhaka, PQS five, Prince Bazar two, Nandan five and Swapno 70 including 30 outside the capital. Bangladesh Rifles (BDR) also runs 11 stores in the capital.
According to operators, more than 600 chain retail outlets are expected to be set up in the next five years in an attempt to attract more customers.
"It is a good sign. Expansion of outlets will boost consumer's confidence and help create a market for manufacturers," Niaz Rahim, president of BSOA, told the FE.
He said once the supermarket culture is established, the commodity prices also will stabilise.
The supermarket culture is playing a vital role in generating employment, with a single store providing jobs to around 50 people, said Mr Rahim. "The massive expansion plan by various market players will open the door for more employment opportunities."
Due to massive expansion of superstores, farmers will no more be needed to turn to the multi-level intermediation as they will directly contact the chain stores operators. "As a result, they will no more be cheated," Zakir Hossain, general secretary of BSOA, told the FE.
Mr Hossain lamented that they did not get the required assistance from the government, although they were paying taxes. "It requires Tk 60-70 million to open a small-size store," he added.
As planned, Agora will open about 80 outlets across the country in the next five years, Mr Rahim, also managing director of Rahimafrooz Superstores, said.
"Fresh vegetables directly collected from the farmers are one of the key reasons behind the increasing popularity of the stores in Dhaka," Mokhlesur Rahman of Agora, told the FE.
On the growth of the business, he said, "We've been trying to ensure customers' satisfaction from the very beginning. And our quality products also attract the customers."
With many more such stores springing up at important locations in Dhaka and other major cities, Agora is endeavouring to fulfill the everyday shopping needs of the urbanites through fair price, right assortment and best quality, Mokhlesur Rahman added.
In order to ensure an uninterrupted supply of products, Agora has developed a sourcing channel to collect fruits and vegetables directly from the farmers, he said.
"It's a business to connect consumers to better products and prices, and create a market for local manufacturers," Ferdous Khan Noman, assistant manager (Purchase) of Meena Bazar, said.
"We are going to set up about 60 more superstores in the next four to five years across the country," he said, adding Meena Bazar has already two stores in Chittagong and Khulna.
"We feel the customers are ready because of changes in their lifestyle, preferences and needs. We want to offer a neighbourhood experience to the consumers by opening more outlets," said a senior official of ACI Ltd, which operates Swapno.
With the recent opening of a total of 70 branches, ACI has diversified the retailing business. Now it plans to open about 500 stores in the country in the next five years.
Mamunur Rashid, marketing manager of PQS, said they are planning to spread the mega-shop business by opening three more stores this year and another 10 in the next two or three years.
The departmental stores with the main focus on food items -- ranging from a wide variety of fish, meat, vegetables to fruits, bakery, dairy and grocery items- also offer a vast array of other household, personal care and miscellaneous products.
Consumers can buy as much as nearly 20,000 products of different kinds from such a store, the operators boast.
Supermarkets have successfully made a breakthrough in the urban lifestyle with the idea of "all essential commodities under one roof." In the early days of the business, around 500 customers would visit a supermarket outlet daily. Now some 5,000 customers come to a store everyday, they say.
"I shop here because it gives a relaxing shopping experience, which traditional kitchen markets fail to offer," Farzana, a customer at Agora's Maghbazar outlet, told the FE.
Besides, every commodity is available in this mega-shop, she added.
"The supermarkets offer good services to working people who really find little time for shopping," Shelley, a school-teacher, a regular customer of Meena Bazar, said.
SUPERSTORES EYE BOOM TIME AHEAD
Saturday, March 06,2010
DHAKA: Superstores are set to boom in the country as the current market players are planning to open several hundred more outlets in the next few years to cope with the rising demand from the consumers.
With a strong 15-20 per cent annual sales growth, about 30 companies with more than 200 outlets have already made foray into the industry since Rahimafrooz, one of the largest business groups in Bangladesh, introduced Agora, a chain superstore, in the capital a decade ago.
The annual turnover of the superstores now stands at around Tk 15.0 billion (1500 crore or about US$217million), according to Bangladesh Supermarket Owners Association (BSOA).
Hassle-free shopping environment, hygienic commodities, fresh vegetables, meat and fish at the supermarkets are earning appreciation of the customers, market operators said.
The supermarket biggies have attempted the massive expansion drive to attract the shoppers, who still depend on unplanned wet markets to buy their daily essentials.
They say that a rise in organised retailing would offer the consumers hygienic foods at competitive prices, compared to those offered by retailers in the kitchen markets, where commodities are sold mostly in unhygienic condition.
The rise in the number of supermarkets, according to analysts, will diversify the choices of consumers and boost their spending, so much needed for economic growth, while the wet markets will also improve quality and services following in the footsteps of supermarkets.
But a decade ago, the retail-level trade was in the hands of thousands of small traders in the wet markets and the grocery shops in cities and remained out of the focus of the big business houses.
The landscape began to change in 2000 when Rahimafrooz Superstores, operating Agora, moved in to seize a slice of the retailing and wholesale trade, which has been growing at 6 per cent, on an average, annually.
In the past decade, many small and big supermarkets made debut, successfully attracting middle and upper middle class consumers, a section of whom are gradually turning to chain stores from the wet or kitchen markets, superstore operators say.
Dhaka-based Agora now runs four outlets, Meena Bazar nine including seven in Dhaka, PQS five, Prince Bazar two, Nandan five and Swapno 70 including 30 outside the capital. Bangladesh Rifles (BDR) also runs 11 stores in the capital.
According to operators, more than 600 chain retail outlets are expected to be set up in the next five years in an attempt to attract more customers.
"It is a good sign. Expansion of outlets will boost consumer's confidence and help create a market for manufacturers," Niaz Rahim, president of BSOA, told the FE.
He said once the supermarket culture is established, the commodity prices also will stabilise.
The supermarket culture is playing a vital role in generating employment, with a single store providing jobs to around 50 people, said Mr Rahim. "The massive expansion plan by various market players will open the door for more employment opportunities."
Due to massive expansion of superstores, farmers will no more be needed to turn to the multi-level intermediation as they will directly contact the chain stores operators. "As a result, they will no more be cheated," Zakir Hossain, general secretary of BSOA, told the FE.
Mr Hossain lamented that they did not get the required assistance from the government, although they were paying taxes. "It requires Tk 60-70 million to open a small-size store," he added.
As planned, Agora will open about 80 outlets across the country in the next five years, Mr Rahim, also managing director of Rahimafrooz Superstores, said.
"Fresh vegetables directly collected from the farmers are one of the key reasons behind the increasing popularity of the stores in Dhaka," Mokhlesur Rahman of Agora, told the FE.
On the growth of the business, he said, "We've been trying to ensure customers' satisfaction from the very beginning. And our quality products also attract the customers."
With many more such stores springing up at important locations in Dhaka and other major cities, Agora is endeavouring to fulfill the everyday shopping needs of the urbanites through fair price, right assortment and best quality, Mokhlesur Rahman added.
In order to ensure an uninterrupted supply of products, Agora has developed a sourcing channel to collect fruits and vegetables directly from the farmers, he said.
"It's a business to connect consumers to better products and prices, and create a market for local manufacturers," Ferdous Khan Noman, assistant manager (Purchase) of Meena Bazar, said.
"We are going to set up about 60 more superstores in the next four to five years across the country," he said, adding Meena Bazar has already two stores in Chittagong and Khulna.
"We feel the customers are ready because of changes in their lifestyle, preferences and needs. We want to offer a neighbourhood experience to the consumers by opening more outlets," said a senior official of ACI Ltd, which operates Swapno.
With the recent opening of a total of 70 branches, ACI has diversified the retailing business. Now it plans to open about 500 stores in the country in the next five years.
Mamunur Rashid, marketing manager of PQS, said they are planning to spread the mega-shop business by opening three more stores this year and another 10 in the next two or three years.
The departmental stores with the main focus on food items -- ranging from a wide variety of fish, meat, vegetables to fruits, bakery, dairy and grocery items- also offer a vast array of other household, personal care and miscellaneous products.
Consumers can buy as much as nearly 20,000 products of different kinds from such a store, the operators boast.
Supermarkets have successfully made a breakthrough in the urban lifestyle with the idea of "all essential commodities under one roof." In the early days of the business, around 500 customers would visit a supermarket outlet daily. Now some 5,000 customers come to a store everyday, they say.
"I shop here because it gives a relaxing shopping experience, which traditional kitchen markets fail to offer," Farzana, a customer at Agora's Maghbazar outlet, told the FE.
Besides, every commodity is available in this mega-shop, she added.
"The supermarkets offer good services to working people who really find little time for shopping," Shelley, a school-teacher, a regular customer of Meena Bazar, said.
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fallstuff
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Here is a link to Agora Grocery store in Bangladesh. Agora has a complete e-commerce site along with physical locations. Wanna see what they sell ? How much it cost in Bangladesh ? Here you go
http://www.agorabd.com/index.php
http://www.agorabd.com/index.php
I have little knowlege about the price structure of Agora online products. Can you tell if these are expensive or cheap?
TopCat
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Not aware of online product. But their superstore prices are reasonable and you can find almost everything at one place.
fallstuff
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I have no idea about prices in Dhaka. I can only tell you what I pay here in South Florida. For 15 kilo of Pakistani Basmati I pay like $10 at Sams Club ( a division of Wal-Mart). Rui, I pay like $2/ lb. Beef is usually between $3.50 and $4.00, arm and a leg if you want organic. Eggs regular dozen $1.20. hormone free $2.50, Organic cage free about $4.00.
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fallstuff
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More five-star hotels planned
Sayeda Akter
Unique Group, the owning company of Westin Dhaka, is set for expansion by opening three more five-star hotels to tap growing demand for high-heeled accommodation.
Initially, the company plans to invest around Tk 2,000 crore for expansion, while Starwood Hotels and Resorts Worldwide will be the managing company for all three hotels.
A deal will be signed today between Unique Group and Starwood, the parent company of renowned global brands such as Westin, Sheraton and Le Meridien.
At present, the local market for five-star hotels is increasing at a rate of 15 percent a year, and it will double in the next three years, said Mohammad Noor Ali, managing director of Unique Group.
So as an investor, I have to look to the future and plan on capturing the country's hospitality business in the long run. And that is the main reason behind this expansion plan."
Under the plan, two five-star hotels are to be constructed in Dhaka: Le Meridien in Banani and The Westin Dhaka 2 in Gulshan. A third, also named Westin, will open in Chittagong, the first five-star hotel for the commercial capital.
Construction of the hotels will be complete by 2012-end and all are likely to begin operations the following year.
Simultaneously, I have Starwood, one of the best hotel management companies in the world, with me, which gives me added confidence, said Ali, also the managing director of Westin Dhaka.
In recent years, the hospitality sector in Bangladesh has boomed in the five-star hotel segment. Three new five-star hotels opened in Dhaka in the past four years, taking the number to five.
Industry experts said the capital city now has around 1,250 five-star rooms. The hotels reach full occupancy only in winter and an average occupancy rate of around 75 percent can easily make the business profitable, they added.
One of the drivers of growth has been the increase in foreign business people visiting the country, as both the garments and telecom industries have taken off, said Ali.
Apart from that, the geographical location of these hotels will also exploit the proximity to airport and the garment belt in Ashulia-Savar, as well as the headquarters of the major mobile telecom operators, he said. The country's diplomatic zone is also near our hotels.
Ali is optimistic about profiting from the hotel in Chittagong, as the number of affluent visitors, including investors, top officials from banks and port, and shipping businessmen, are increasing fast in the region.
The company is conducting studies to assess demand for accommodation and the regular flow of guests to the port city. The room rent for the Westin in Chittagong will be slightly lower than in Dhaka, said the Unique Group chief.
The annual turnover of Westin Dhaka was Tk 106 crore, and the operating profit was around Tk 47 crore in 2008, which grew by 20 percent in 2009, Ali said.
The 235-room Westin has an average occupancy of 80 percent, while the hotel has gained a 25 percent share of the total market.
sayeda@thedailystar.net
More five-star hotels planned
Sayeda Akter
Unique Group, the owning company of Westin Dhaka, is set for expansion by opening three more five-star hotels to tap growing demand for high-heeled accommodation.
Initially, the company plans to invest around Tk 2,000 crore for expansion, while Starwood Hotels and Resorts Worldwide will be the managing company for all three hotels.
A deal will be signed today between Unique Group and Starwood, the parent company of renowned global brands such as Westin, Sheraton and Le Meridien.
At present, the local market for five-star hotels is increasing at a rate of 15 percent a year, and it will double in the next three years, said Mohammad Noor Ali, managing director of Unique Group.
So as an investor, I have to look to the future and plan on capturing the country's hospitality business in the long run. And that is the main reason behind this expansion plan."
Under the plan, two five-star hotels are to be constructed in Dhaka: Le Meridien in Banani and The Westin Dhaka 2 in Gulshan. A third, also named Westin, will open in Chittagong, the first five-star hotel for the commercial capital.
Construction of the hotels will be complete by 2012-end and all are likely to begin operations the following year.
Simultaneously, I have Starwood, one of the best hotel management companies in the world, with me, which gives me added confidence, said Ali, also the managing director of Westin Dhaka.
In recent years, the hospitality sector in Bangladesh has boomed in the five-star hotel segment. Three new five-star hotels opened in Dhaka in the past four years, taking the number to five.
Industry experts said the capital city now has around 1,250 five-star rooms. The hotels reach full occupancy only in winter and an average occupancy rate of around 75 percent can easily make the business profitable, they added.
One of the drivers of growth has been the increase in foreign business people visiting the country, as both the garments and telecom industries have taken off, said Ali.
Apart from that, the geographical location of these hotels will also exploit the proximity to airport and the garment belt in Ashulia-Savar, as well as the headquarters of the major mobile telecom operators, he said. The country's diplomatic zone is also near our hotels.
Ali is optimistic about profiting from the hotel in Chittagong, as the number of affluent visitors, including investors, top officials from banks and port, and shipping businessmen, are increasing fast in the region.
The company is conducting studies to assess demand for accommodation and the regular flow of guests to the port city. The room rent for the Westin in Chittagong will be slightly lower than in Dhaka, said the Unique Group chief.
The annual turnover of Westin Dhaka was Tk 106 crore, and the operating profit was around Tk 47 crore in 2008, which grew by 20 percent in 2009, Ali said.
The 235-room Westin has an average occupancy of 80 percent, while the hotel has gained a 25 percent share of the total market.
sayeda@thedailystar.net
More five-star hotels planned
USA itself is almost equal to an entire continent with abundant resources and has only about 300 million people. BD has about 150 million people who are living in a very tiny land (less than Texas?). So, food may be expensive in BD considering the level of incomes of its people.
The planned new construction of a number of hotels in Dhaka shows the growing importance of BD as a manufacturing and export hub of textiles and others.
The existing Westin is very beautiful. I hope, the company will adopt our traditional Muslim architecture for its new hotels. Tajmahal Hotel in Bombay is a beatuful piece of that kind of architecture.
Recession jolts economy, growth rate falls: ADB
RECESSION JOLTS ECONOMY, GROWTH RATE FALLS
Rate projected at 5.5pc against 5.9 in '09
FE Report
The Asian Development Bank (ADB) has projected a lower growth rate at 5.5 per cent for the Bangladesh economy for the current fiscal year (FY) from 5.9 in FY '09 as the first-half period's growth in some major sectors like industry and services has been buffeted by the global recession.
"The global economic recession belatedly affected Bangladesh economy in the first half (July-December) of FY2010. Investment was sluggish, and exports - one of the key drivers of growth - performed poorly," the Manila-based multilateral lender said in its Bangladesh Quarterly Economic Update (QEU) Monday.
It, however, suggested that Bangladesh government should rebalance the country's economy by diversifying its base in order to cushion the economy's vulnerability to global economic shocks.
"To attain higher medium-term growth, the government needs to identify new drivers of growth. It also needs to improve the country's investment climate to encourage domestic and foreign investments, " said the QEU.
It also suggested that the government should enhance the capacity of key agencies to boost public sector investment and encourage higher private sector investment.
Besides, it needs to push for job creation to make growth more inclusive resulting in an accelerated decline in poverty, said the ADB report.
Highlighting the major sectors, the QEU said the global economic recession badly affected the growth of the country's industrial sector in the first half following a decline in the export of RMG and other major products.
"The industrial sector growth in FY2010 is set to slow to 5.6 per cent from 5.9 per cent in FY2009," it said.
The QEU also said the supply-side bottlenecks, stemming from the country's fragile investment climate, have lowered the industry sector's growth outlook. In particular, the acute power and gas shortages are key constraints on growth, it added.
It also said the manufacturing activities are expected to pick up during the second half of FY2010, buoyed by rising investment and trade activities.
About services, it said the slowdown in trade flows and weaker industrial performance had affected the services sector during the first half of FY2010.
As a result, services sector growth is projected at 5.9% in FY2010, down from 6.3% in FY2009, it said.
Inflation, according to the ADB update, rose from 2.3 per cent year-on-year in June 2009 (a 90-month low) to 4.6 per cent in September, and further to 8.5 per cent in December 2009.
Both food and non-food inflation contributed to the inflation spike, it said, adding the while food inflation jumped to 9.5 per cent in December 2009 from 0.3 per cent in June and non-food inflation rose to 7.0 per cent from 5.9 per cent.
It also mentioned that inflation was more pronounced in urban areas (9.1 per cent in December 2009) than in rural areas (8.3 per cent).
Lower crop production and the rising prices of rice and other commodities, including oil, in the international market contributed to the recent price escalation, it added.
It also said the country's agriculture growth in FY2010 is expected to be lower at 4.1 per cent as compared to the 4.6 per cent growth in FY2009 due to the weather and farmers' response to lower farm-gate prices after last year's harvest season.
About fiscal management, it said responding to the recent reforms and streamlining of tax administration, tax revenue under the National Board of Revenue (NBR) rose 16.2 per cent during the first seven months of FY2010 over the corresponding period of FY2009.
Mentioning that 29 per cent of the total annual development programme (ADP) allocation for FY2010 was spent during the first half of FY2010, the Bank suggested that the ADB utilisation should be improved through streamlining project processing and implementation.
On monetary and financial sector, it said broad money grew 20.7 per cent year-on-year in December 2009, up from 17.9 per cent in December 2008, which is higher than the target growth of 15.5 per cent in FY2010.
Money supply went up due to high growth in net foreign assets (78.7 per cent) due to the large purchases of foreign exchange by Bangladesh Bank, it said.
Although private sector credit growth slowed to 19.2 per cent in December 2009, down from 21.8 per cent in December 2008, it has reversed its course in recent months, which currently is above the 16.7 per cent target rate, it added.
Excess liquidity (measured as a percentage of deposits) rose from 8.6 per cent in November 2008 to 12.4 per cent in November 2009, it said.
It also said the interest rate spread narrowed to 5.0 percentage points in September 2009 from 5.2 percentage points a year earlier.
About balance of payments, it said the country's trade deficit narrowed to $2.8 billion in July-December 2009 from $2.9 billion in the year earlier as exports declined by 6.2 per and import payments came down by 5.7 per cent in the first half of FY2010.
"With the lower deficit in trade and services, and the still healthy rise in remittances (22.8 per cent) the current account surplus rose to $1.7 billion during the first half of FY2010, from a deficit of $128.0 million in the same period of the previous year," it said.
As a result, the overall balance of payments surplus rose to $2.1 billion, up from $489.0 million during the first half of FY2009, it said.
On exchange rates, the ADB's QEU said Bangladesh Bank's intervention in the foreign exchange market has continued to keep the exchange rate stable within a narrow range of Tk 69.0:$1 to Tk 69.3:$1.
The real effective exchange rate continues to appreciate because of relatively higher domestic inflation, implying some erosion of export competitiveness, it added.
RECESSION JOLTS ECONOMY, GROWTH RATE FALLS
Rate projected at 5.5pc against 5.9 in '09
FE Report
The Asian Development Bank (ADB) has projected a lower growth rate at 5.5 per cent for the Bangladesh economy for the current fiscal year (FY) from 5.9 in FY '09 as the first-half period's growth in some major sectors like industry and services has been buffeted by the global recession.
"The global economic recession belatedly affected Bangladesh economy in the first half (July-December) of FY2010. Investment was sluggish, and exports - one of the key drivers of growth - performed poorly," the Manila-based multilateral lender said in its Bangladesh Quarterly Economic Update (QEU) Monday.
It, however, suggested that Bangladesh government should rebalance the country's economy by diversifying its base in order to cushion the economy's vulnerability to global economic shocks.
"To attain higher medium-term growth, the government needs to identify new drivers of growth. It also needs to improve the country's investment climate to encourage domestic and foreign investments, " said the QEU.
It also suggested that the government should enhance the capacity of key agencies to boost public sector investment and encourage higher private sector investment.
Besides, it needs to push for job creation to make growth more inclusive resulting in an accelerated decline in poverty, said the ADB report.
Highlighting the major sectors, the QEU said the global economic recession badly affected the growth of the country's industrial sector in the first half following a decline in the export of RMG and other major products.
"The industrial sector growth in FY2010 is set to slow to 5.6 per cent from 5.9 per cent in FY2009," it said.
The QEU also said the supply-side bottlenecks, stemming from the country's fragile investment climate, have lowered the industry sector's growth outlook. In particular, the acute power and gas shortages are key constraints on growth, it added.
It also said the manufacturing activities are expected to pick up during the second half of FY2010, buoyed by rising investment and trade activities.
About services, it said the slowdown in trade flows and weaker industrial performance had affected the services sector during the first half of FY2010.
As a result, services sector growth is projected at 5.9% in FY2010, down from 6.3% in FY2009, it said.
Inflation, according to the ADB update, rose from 2.3 per cent year-on-year in June 2009 (a 90-month low) to 4.6 per cent in September, and further to 8.5 per cent in December 2009.
Both food and non-food inflation contributed to the inflation spike, it said, adding the while food inflation jumped to 9.5 per cent in December 2009 from 0.3 per cent in June and non-food inflation rose to 7.0 per cent from 5.9 per cent.
It also mentioned that inflation was more pronounced in urban areas (9.1 per cent in December 2009) than in rural areas (8.3 per cent).
Lower crop production and the rising prices of rice and other commodities, including oil, in the international market contributed to the recent price escalation, it added.
It also said the country's agriculture growth in FY2010 is expected to be lower at 4.1 per cent as compared to the 4.6 per cent growth in FY2009 due to the weather and farmers' response to lower farm-gate prices after last year's harvest season.
About fiscal management, it said responding to the recent reforms and streamlining of tax administration, tax revenue under the National Board of Revenue (NBR) rose 16.2 per cent during the first seven months of FY2010 over the corresponding period of FY2009.
Mentioning that 29 per cent of the total annual development programme (ADP) allocation for FY2010 was spent during the first half of FY2010, the Bank suggested that the ADB utilisation should be improved through streamlining project processing and implementation.
On monetary and financial sector, it said broad money grew 20.7 per cent year-on-year in December 2009, up from 17.9 per cent in December 2008, which is higher than the target growth of 15.5 per cent in FY2010.
Money supply went up due to high growth in net foreign assets (78.7 per cent) due to the large purchases of foreign exchange by Bangladesh Bank, it said.
Although private sector credit growth slowed to 19.2 per cent in December 2009, down from 21.8 per cent in December 2008, it has reversed its course in recent months, which currently is above the 16.7 per cent target rate, it added.
Excess liquidity (measured as a percentage of deposits) rose from 8.6 per cent in November 2008 to 12.4 per cent in November 2009, it said.
It also said the interest rate spread narrowed to 5.0 percentage points in September 2009 from 5.2 percentage points a year earlier.
About balance of payments, it said the country's trade deficit narrowed to $2.8 billion in July-December 2009 from $2.9 billion in the year earlier as exports declined by 6.2 per and import payments came down by 5.7 per cent in the first half of FY2010.
"With the lower deficit in trade and services, and the still healthy rise in remittances (22.8 per cent) the current account surplus rose to $1.7 billion during the first half of FY2010, from a deficit of $128.0 million in the same period of the previous year," it said.
As a result, the overall balance of payments surplus rose to $2.1 billion, up from $489.0 million during the first half of FY2009, it said.
On exchange rates, the ADB's QEU said Bangladesh Bank's intervention in the foreign exchange market has continued to keep the exchange rate stable within a narrow range of Tk 69.0:$1 to Tk 69.3:$1.
The real effective exchange rate continues to appreciate because of relatively higher domestic inflation, implying some erosion of export competitiveness, it added.
fallstuff
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Stores like Agora is not for the average person in Dhaka. Prices are kinda high. I asked the price of of whole 9 kilo Rui back in 2000 in Agora, I was told 5500 TK.
. When Rui kilo was like 120 in New Market.On a separate tone exports are going down. My two cents are gas shortage. How hard it is to understand that not everything can run of gas. China runs with coal fire plants. Firing one every week. Shame!
TopCat
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Stores like Agora is not for the average person in Dhaka. Prices are kinda high. I asked the price of of whole 9 kilo Rui back in 2000 in Agora, I was told 5500 TK.
On a separate tone exports are going down. My two cents are gas shortage. How hard it is to understand that not everything can run of gas. China runs with coal fire plants. Firing one every week. Shame!
Prices came down a lot now a days. They are not more than 20% from average kitchen market price.
RMG exporters to US hear alarm bells
Shipments to US plunge by 23 per cent in January
Kazi Azizul Islam
A considerable decline in Bangladesh痴 garments exports to the US, amidst the increase of other countries・garment shipments to the world痴 largest market due to the receding of recession, has set off alarm bells in the RMG sector, said industry sources.
Officials at the Bangladesh Garments Buying Houses Association informed New Age that the country痴 apparel shipments to US declined by about 23 per cent in the first month of the current year.
In January 2009 Bangladesh shipped 100.5 million square metres or equivalent units of apparels to the US, 22.6 per cent down from the same month last year.
In the same month US apparel imports increased by more than 2 per cent, and shipments from China increased by 23 per cent, from Vietnam by 7 per cent and from Honduras by 4 per cent.
In terms of volume, Bangladesh痴 shipment in January 2009 was the lowest in the past two and a half year, said officials, quoting a report of the US痴 Department of Commerce.
Garment shipments to the US from India, Indonesia, Mexico and Cambodia also declined by 5 to 10 per cent.
India痴 apparel shipment to the US is recovering in the recent months from the large declines in the many previous months.
全uch a great decline in shipments to the top market for Bangladeshi apparels is an ominous signal, and especially so when shipments from other countries are increasing again,・said the association痴 vice-president, Kazi Iftekhar Hossain.
The US is the single largest market destination for Bangladeshi garment exports, and Bangladesh, after China and Vietnam, is the third largest supplier there. Nearly one-third of Bangladesh痴 apparel export earning, which amounted to $3.4 billion in 2009, comes from the US.
The Bangladesh Garment Manufacturers and Exporters Association痴 president, Abdus Salam Murshedy, said, 禅he trend of such steep decline in shipments to the US is really worrisome.・br> He said that US importers had come with fresh orders in the previous few months to Bangladeshi suppliers, but they could not feed the importers accordingly due to the increasing power and gas crisis.
The price of garments has also become a great factor, said Murshedy. 糎hile local exporters, who get no incentives from the government, remain unable to feed the importers due to further cuts of garment prices, suppliers in China, Vietnam and India are being able to do so.・br> Khondaker Golam Moazzem, a senior researcher of the Centre for Policy Dialogue, also feels that the decline in Bangladesh痴 apparel shipments to the US indicates that some changes might have been taking place in the US importers・sourcing dynamics.
He apprehended that Chinese and Vietnamese suppliers might have been offering lucrative prices and convenient supply offers as, after experiencing the recent recession, the US importers want to take less risk and prefer deliveries in shorter periods.
He said that Bangladesh痴 garment sector should study the post-recession US market keenly in order to find the reasons for the erosion of Bangladesh痴 competitiveness and work out the ways and means to retain its market share.
Shipments to US plunge by 23 per cent in January
Kazi Azizul Islam
A considerable decline in Bangladesh痴 garments exports to the US, amidst the increase of other countries・garment shipments to the world痴 largest market due to the receding of recession, has set off alarm bells in the RMG sector, said industry sources.
Officials at the Bangladesh Garments Buying Houses Association informed New Age that the country痴 apparel shipments to US declined by about 23 per cent in the first month of the current year.
In January 2009 Bangladesh shipped 100.5 million square metres or equivalent units of apparels to the US, 22.6 per cent down from the same month last year.
In the same month US apparel imports increased by more than 2 per cent, and shipments from China increased by 23 per cent, from Vietnam by 7 per cent and from Honduras by 4 per cent.
In terms of volume, Bangladesh痴 shipment in January 2009 was the lowest in the past two and a half year, said officials, quoting a report of the US痴 Department of Commerce.
Garment shipments to the US from India, Indonesia, Mexico and Cambodia also declined by 5 to 10 per cent.
India痴 apparel shipment to the US is recovering in the recent months from the large declines in the many previous months.
全uch a great decline in shipments to the top market for Bangladeshi apparels is an ominous signal, and especially so when shipments from other countries are increasing again,・said the association痴 vice-president, Kazi Iftekhar Hossain.
The US is the single largest market destination for Bangladeshi garment exports, and Bangladesh, after China and Vietnam, is the third largest supplier there. Nearly one-third of Bangladesh痴 apparel export earning, which amounted to $3.4 billion in 2009, comes from the US.
The Bangladesh Garment Manufacturers and Exporters Association痴 president, Abdus Salam Murshedy, said, 禅he trend of such steep decline in shipments to the US is really worrisome.・br> He said that US importers had come with fresh orders in the previous few months to Bangladeshi suppliers, but they could not feed the importers accordingly due to the increasing power and gas crisis.
The price of garments has also become a great factor, said Murshedy. 糎hile local exporters, who get no incentives from the government, remain unable to feed the importers due to further cuts of garment prices, suppliers in China, Vietnam and India are being able to do so.・br> Khondaker Golam Moazzem, a senior researcher of the Centre for Policy Dialogue, also feels that the decline in Bangladesh痴 apparel shipments to the US indicates that some changes might have been taking place in the US importers・sourcing dynamics.
He apprehended that Chinese and Vietnamese suppliers might have been offering lucrative prices and convenient supply offers as, after experiencing the recent recession, the US importers want to take less risk and prefer deliveries in shorter periods.
He said that Bangladesh痴 garment sector should study the post-recession US market keenly in order to find the reasons for the erosion of Bangladesh痴 competitiveness and work out the ways and means to retain its market share.
Top apparel buyers open offices in Dhaka
Top apparel buyers open offices in Dhaka
Refayet Ullah Mirdha
Most global retail brands have opened their offices in Dhaka in recent times for direct sourcing of Bangladesh's quality clothing items at reasonable prices.
Buyers say the liaison offices here will raise their capacity to follow up on supply chain management for the Bangladesh-made apparels collected at a cost comparatively lower than other countries.
After China, the world's largest supplier of apparels, Bangladesh emerges as a lucrative place for the renowned retailers like US giant Wal-Mart, JC Penny, Zara, Tesco, IKEA, Marks and Spencer, H and M, Uniqlo and Li & Fung.
These firms have already established their branches in the Bangladesh capital with an aim for business expansion, as they now take much more interest in Bangladesh's readymade garments than they are keen on such items from China, India and Pakistan..
Previously, major foreign buyers used to source Bangladesh's RMG either from Delhi or Hong Kong or from Islamabad or through the local buying houses representing them.
According to a major supplier, major brands like Puma, G-Star Raw and Espirit are likely to have their branches in Dhaka soon, although they still source ready-to-wear products from other countries.
An official of the Swedish company IKEA points his finger at Bangladesh's low-cost but quality apparels, which pushed up buyers' interests.
Moreover, recently Bangladesh improved a lot in compliance issues and made the garment factories free of child labour, he added.
"Recently many owners have established effluent treatment plants (ETP) in their factories, as it is mandatory for protection of environmental and ecological balance," the IKEA official also pointed out.
Cheap labour cost is another factor that helped grow buyers' keenness, said an official at the Dhaka office of another retail brand.
On the objectives of opening its branch office, he said, "Certainly we can now follow-up the supply chain management, compliance issues, product quality and design and efficiency of the suppliers very closely.
The country is in an advantageous position with cheap and quality apparels because its competitors like China, Pakistan and India are losing out their market share for their higher cost of production, industry insiders say.
Higher cost of production and shifting to high-end products have driven China out of the apparel market, while Pakistan lost its reputation because it has long been a trouble-torn country, apparel makers added.
Meanwhile, Export Promotion Bureau data shows around $3.55 billion knitwear exports in seven months to January of the current fiscal year, a 6.85 percent decline compared to the corresponding period a year earlier. EPB also points out that this figure is also 13.62 percent below the target for this period.
Woven exports also slowed 6.99 percent to $3.15 billion during July-January.
Home textiles and textile fabrics also maintained a negative growth, as their exports totalled $165.65 million and $42.30 million respectively.
When his attention was drawn to such export decline, Anwar-ul-Alam Chowdhury Parvez, former president of Bangladesh Garment Manufacturers and Exporters Association, said the financial meltdown worldwide has led to this situation, as major export destinations like EU and USA have been badly affected by the recession.
"Apparel exports will rebound soon as there are signs of recession-recovery, Parvez hoped. However, he insisted on developing Bangladesh's basic infrastructures to take the growth in apparel exports to an optimum level.
In this context, he suggested the government ensure regular adequate supply of gas and power to RMG units so that manufacturers can maintain in-time production and lead-time.
Top apparel buyers open offices in Dhaka
Refayet Ullah Mirdha
Most global retail brands have opened their offices in Dhaka in recent times for direct sourcing of Bangladesh's quality clothing items at reasonable prices.
Buyers say the liaison offices here will raise their capacity to follow up on supply chain management for the Bangladesh-made apparels collected at a cost comparatively lower than other countries.
After China, the world's largest supplier of apparels, Bangladesh emerges as a lucrative place for the renowned retailers like US giant Wal-Mart, JC Penny, Zara, Tesco, IKEA, Marks and Spencer, H and M, Uniqlo and Li & Fung.
These firms have already established their branches in the Bangladesh capital with an aim for business expansion, as they now take much more interest in Bangladesh's readymade garments than they are keen on such items from China, India and Pakistan..
Previously, major foreign buyers used to source Bangladesh's RMG either from Delhi or Hong Kong or from Islamabad or through the local buying houses representing them.
According to a major supplier, major brands like Puma, G-Star Raw and Espirit are likely to have their branches in Dhaka soon, although they still source ready-to-wear products from other countries.
An official of the Swedish company IKEA points his finger at Bangladesh's low-cost but quality apparels, which pushed up buyers' interests.
Moreover, recently Bangladesh improved a lot in compliance issues and made the garment factories free of child labour, he added.
"Recently many owners have established effluent treatment plants (ETP) in their factories, as it is mandatory for protection of environmental and ecological balance," the IKEA official also pointed out.
Cheap labour cost is another factor that helped grow buyers' keenness, said an official at the Dhaka office of another retail brand.
On the objectives of opening its branch office, he said, "Certainly we can now follow-up the supply chain management, compliance issues, product quality and design and efficiency of the suppliers very closely.
The country is in an advantageous position with cheap and quality apparels because its competitors like China, Pakistan and India are losing out their market share for their higher cost of production, industry insiders say.
Higher cost of production and shifting to high-end products have driven China out of the apparel market, while Pakistan lost its reputation because it has long been a trouble-torn country, apparel makers added.
Meanwhile, Export Promotion Bureau data shows around $3.55 billion knitwear exports in seven months to January of the current fiscal year, a 6.85 percent decline compared to the corresponding period a year earlier. EPB also points out that this figure is also 13.62 percent below the target for this period.
Woven exports also slowed 6.99 percent to $3.15 billion during July-January.
Home textiles and textile fabrics also maintained a negative growth, as their exports totalled $165.65 million and $42.30 million respectively.
When his attention was drawn to such export decline, Anwar-ul-Alam Chowdhury Parvez, former president of Bangladesh Garment Manufacturers and Exporters Association, said the financial meltdown worldwide has led to this situation, as major export destinations like EU and USA have been badly affected by the recession.
"Apparel exports will rebound soon as there are signs of recession-recovery, Parvez hoped. However, he insisted on developing Bangladesh's basic infrastructures to take the growth in apparel exports to an optimum level.
In this context, he suggested the government ensure regular adequate supply of gas and power to RMG units so that manufacturers can maintain in-time production and lead-time.
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China, Bangladesh plan closer co-op with deals on gas, agriculture
BEIJING, March 19 (Xinhua) -- China and Bangladesh signed a series of agreements on oil, gas, mineral and agricultural cooperation during a four-day official visit to China by Bangladesh Prime Minister Sheikh Hasina.
The two countries issued a joint statement in Beijing on Friday, in which both sides agreed to build a "closer comprehensive partnership of cooperation" to better contribute to regional and world peace and counter global challenges.
This year marks the 35th anniversary of China-Bangladesh diplomatic ties. The two countries would hold commemorative activities in Beijing and Dhaka to further enhance bilateral friendship, the statement said.
While maintaining high-level contacts and political ties, the two countries planned to take active measures to expand bilateral trade, ease the trade imbalance and enhance cooperation in trade, investment, agriculture, transportation and infrastructure.
China is to provide preferential tariff treatment to more Bangladeshi products, while Bangladesh would encourage more enterprises to participate in the Shanghai World Expo and other commodity fairs in China to boost exports, the statement said.
The two countries also signed agreements on a concessional loan offered by China to Bangladesh and the construction of the seventh Bangladesh-China Friendship Bridge at Kajirtek.
China, Bangladesh plan closer co-op with deals on gas, agriculture
BEIJING, March 19 (Xinhua) -- China and Bangladesh signed a series of agreements on oil, gas, mineral and agricultural cooperation during a four-day official visit to China by Bangladesh Prime Minister Sheikh Hasina.
The two countries issued a joint statement in Beijing on Friday, in which both sides agreed to build a "closer comprehensive partnership of cooperation" to better contribute to regional and world peace and counter global challenges.
This year marks the 35th anniversary of China-Bangladesh diplomatic ties. The two countries would hold commemorative activities in Beijing and Dhaka to further enhance bilateral friendship, the statement said.
While maintaining high-level contacts and political ties, the two countries planned to take active measures to expand bilateral trade, ease the trade imbalance and enhance cooperation in trade, investment, agriculture, transportation and infrastructure.
China is to provide preferential tariff treatment to more Bangladeshi products, while Bangladesh would encourage more enterprises to participate in the Shanghai World Expo and other commodity fairs in China to boost exports, the statement said.
The two countries also signed agreements on a concessional loan offered by China to Bangladesh and the construction of the seventh Bangladesh-China Friendship Bridge at Kajirtek.
China, Bangladesh plan closer co-op with deals on gas, agriculture
