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Bangladesh Economy: News & Updates

Bangladesh to produce laptops by June

Bangladesh will produce laptops for Taka 12,000 only which are expected to come to the market by June.

Telephone Shilpa Sangstha (TSS) will sign an agreement with Malaysian company Think F Transistor (TFT) to produce laptop in the country.

Laptops of three brands with a measure of 8.9, 10.2 and 12.2 inches will be produced, which are expected to come to the market by June.

TSS Managing Director Ismail Hossain on Saturday told the state-run news agency that all paper works in this connection have been finalised.

TSS is taking preparation to produce 10,000 laptops per month. Most of the accessories will be procured from local market.

Bangladesh University of Engineering and Technology (Buet) experts gave technical opinions saying that the tender floated by TFT is acceptable.

At the initial stage, TSS will take technical support from TFT and later, it will produce laptop by its own.

Four international companies participated in the tender for producing laptops.

Bangladesh to produce laptops by June
 
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Alhamdulillah!! Things are moving on right direction. It's a very affordable price and I am expecting a lot self emplyment around rural bd. I will try to donate some Insh'allah.
 
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Alhamdulillah!! Things are moving on right direction. It's a very affordable price and I am expecting a lot self emplyment around rural bd. I will try to donate some Insh'allah.

dear Al-Zakir Vhi,

As far I know you donated in PDF too. That's very good of you because we should spend for them who give us service or from whom we get service. And obviously for BD as like we spend for our friends.
 
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Alhamdulillah!! Things are moving on right direction. It's a very affordable price and I am expecting a lot self emplyment around rural bd. I will try to donate some Insh'allah.

Getting tired of listening BD Hen-Karanga,ten-Karenga under AWAMY dalals while losing on every single economic uplifting activity. Latest addition to such losing string is the foreign labor market (Amardesh Online Edition).
Having lost 1.3% in GDP growth and shown continious degredation in exporting goods
(The Daily Sangram || Oldest bangla daily newspaper), now those dalals want us to be in foolish paradise and froth "Karenga Mantra". So Zakir Bhai, please don't dream since all of it just nightmare under them.
 
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Facelift for farming



Sohel Parvez


Machines are taking over farming in Bangladesh -- slowly but surely -- a major shift in centuries-old manual cultivation.

Ploughing with cows and buffaloes and irrigating fields manually will soon be a thing of the past.

About 67 percent of the 76 lakh hectares of arable lands are irrigated by mechanised means. Power tillers and tractors till nearly 70 percent of 13.74 million hectares of total cropland, analysts said.

With progress made in threshing, almost all maize is shelled by machine and in the case of rice, threshing by machine is about 50 percent, agronomists said.

The adoption of the mechanised methods facilitated timely cultivation, resulting in a rise in production.

It has also reduced the cost of tilling, absorbed a portion of farm labour and accelerated growth in workshop and production facilities for farm machinery and repair services.

“Farming is changing with time. A decade ago, almost all farms used animals to plough with. Now, you will hardly find tilling by cattle in our locality,” said Momtaz Hossain, a 55-year-old farmer at Mohadevpur, Naogaon.

Hossain, who has 30 years of experience in farming, linked the drop in tilling by cattle mainly to labour shortages.

“Seven years ago, I had eight tilling cows. But I switched to power tillers because of a dearth of workers. It has become tough nowadays to hire people to look after cows."

“It is possible to till more than three acres of land from dawn to dusk with a power tiller. In case of cattle, only half an acre of land could be tilled until noon,” said Hossain, who owns 10 acres of arable land.

To reduce dependence on animals and labourers, Hossain also bought a thresher in 2000.

Although no official data on farm mechanisation is available, over 400,000 power tillers along with nearly 15,000-20,000 tractors are now in use in agriculture, according to researchers.

“It's a silent revolution that began after the 1988 flood,” said RI Sarker, a professor of the farm power and machinery department, Bangladesh Agricultural University (BAU).

Although the journey began as part of a so-called 'Green Revolution', advancements were slow until 1988 because of the standardisation requirements of the government.

Loss of tilling animals in the 1988 flood led the government to relax rules that later encouraged increased imports of farm implements, mainly from China and India. This leads to growth in sales and expansion of farm machinery.

Experts said shortages of tilling cattle as well as farm labourer in peak season were the main factors behind the rise in such mechanisation. Promotional campaigns by public agriculture research institutes and private sector marketers also supported the growth.

“Now about 70 percent of the total crop area is tilled by power tillers and tractors,” said Md Syedul Islam, head of farm machinery and post-harvest technology division, Bangladesh Rice Research Institute.

“One of the main benefits of mechanised tilling is timely cultivation, which farmers cannot ensure by depending on tilling by cattle,” he said. “It is estimated that farmers incur a loss of about 50 kilograms of paddy a hectare every day, if transplantation goes behind the schedule."

Monjurul Alam, a BAU professor, said a labour shortage in peak season caused delayed plantation and harvesting, leading to lower output.

Despite advancements, progress in mechanised transplantation and harvesting still goes slow.

However, remarkable growth has been seen in threshing of major crops, such as rice, maize and wheat.

“Farmers are now using nearly three lakh closed drum and open drum threshers. Some 25,000-30,000 threshers are being made locally every year to meet the increasing demand,” said Alam who conducted a study on value chain in the agri-machinery

sub-sector of Bangladesh in favour of SouthAsia Enterprise Development Facility (SEDF) in 2005.

“Farm machinery is revolving around a section of entrepreneurs who invest in farm machinery to earn money,” he said.

Wais Kabir, executive chairman of Bangladesh Agricultural Research Council (Barc), said mechanised cultivation has increased without institutional support.

“Mechanisation is on the rise because of individual efforts,” he said. However progress in mechanised plantation, reaping and fertiliser application remains slow, he added.

“Also, availability of quality machinery remains a problem. The government should introduce standardisation requirements so that farmers receive quality farm machinery,” he said.

The Barc executive chairman also suggested mainstreaming the issue of mechanised cultivation in the agenda of Department of Agricultural Extension to create awareness among farmers on the benefits.

sohel@thedailystar.net


Facelift for farming
 
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Indian friends should read the above article who are hell bent to prove that our labours are fluxing on inidan border for Maid job.
Acute shortage of labours are everywhere except north bengal.
 
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Grameen, Adidas to make low-cost shoes

Grameen, Adidas to make low-cost shoes
Sajjadur Rahman

Grameen Group and German sports apparel maker Adidas are planning for a joint venture to make low-cost shoes in Bangladesh for the poor.

If the deal gets through, it will be a major footprint in Nobel laureate Muhammad Yunus' social business.

As the first step, the two sides have signed a memorandum of understanding and are working together on how to bring the products into market tentatively by year-end, said officials of Yunus Centre, the hub of the Nobel laureate's social business activities.

Grameen and Adidas are working on the price issue, they said.

Dairy giant Groupe Danone and water company Veolia -- both from France -- have already launched separate joint social business ventures with Grameen to serve the poor with nutrition and safe-drinking water.

Germany's BASF SE and Intel of USA have also entered joint venture social businesses with Grameen to produce chemically-treated mosquito-nets and provide information and communication technology for the poor.

Grameen has also tied up with Germany's top chain store Otto to set up a garment factory. Grameen-Adidas will be the latest in Yunus's social business efforts.

At a meeting at Yunus Centre last week, Yunus said: “The shoes will be cheap and affordable by the poor. It will protect people from diseases."

Nadina Terrera, assistant programme officer of Yunus Centre, told The Daily Star yesterday: "We are working on the price issue. It will be quite affordable for the poor."

Prof Yunus in his speech on Prof Hiren Mukerjee Memorial Lecture on December 2009 in Indian parliament said: "The goal of the Grameen-Adidas company is to make sure that no one, child or adult, goes without shoes."

“This is a health intervention to make sure that people in the rural areas, particularly children, do not have to suffer from parasitic diseases that can be transmitted through walking barefoot."
 
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Local company to invest $4.9m at KEPZ
Business Report



Texture Art Limited, a Bangladeshi company, will set up a Garments Manufacturing Industry at the Karnaphuli Export Processing Zone (KEPZ).

This 100 per cent local-owned company will invest US Dollar 4.9 million to set up their plant and will produce garments items. The company will also create employment opportunity for 1540 Bangladeshi nationals. An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and M/s. Texture Art Limited at BEPZA Complex, Dhaka recently. Md. Moyjuddin Ahmed, Member (Investment Promotion) of BEPZA and Syed Qumrul Hossain, Chairman of M/s. Texture Art Limited signed the agreement on behalf of their respective organizations.

Brig General Jamil Ahmed Khan, ndc, psc, Executive Chairman, AKM Mahabubur Rahman, Member (Finance), Md. Shawkat Nabi, Secretary, AZM Azizur Rahman, General Manager (Investment Promotion) and other officials of BEPZA were present at the signing ceremony.

The New Nation - Internet Edition
 
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Gildan buys T-shirt plant in Bangladesh

By Robert Gibbens, The GazetteMarch 31, 2010 11:06 AM

MONTREAL - Montreal-based T-shirt giant Gildan Activewear Inc. has chosen Bangladesh as a base for manufacturing in Asia.

The company Wednesday said it has bought a T-shirt plant near Dhaka for $15 million U.S.

CEO Glenn Chamandy told the annual shareholders' meeting in early February that Gildan planned to build a low-cost high-quality manufacturing base in Asia, but excluded China as a potential location.

Gildan has now bought Shahriyar Fabric Industries Ltd., which operates the Dhaka knitting, dying, finishing, cutting and sewing plant.

Gildan will expand its annual capacity of 2.2 million dozen T-shirts to 3.5 million dozen to serve growing markets in Asia and Europe.

The company says it will continue to grow its manufacturing operations in Central America and the Caribbean, which mainly serve the North American market.


Read more: Gildan buys T-shirt plant in Bangladesh
 
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ASDA installs webcams in Bangladesh factories
(AFP) – 3 hours ago

DHAKA — Supermarket giant Asda has installed webcams in two factories in Bangladesh, allowing viewers to see working conditions there in a bid to show it does not use "sweatshop" labour.

The webcams are "part of our effort to increase the transparency of the Asda business and show customers where their products come from," the company's website says.

Asda, along with other Western clothing makers, has been targeted in the past by campaigners for employing people in Bangladesh on low wages and in poor conditions, but it says it is committed to quality and fairness.

The initiative, showing a clothing testing lab and the finishing section of a factory making trousers and shorts, was criticised Friday by one Bangladesh garment industry group for "spying" on workers.

"It is sort of spying on us. We are working to further improve the working conditions at our factories... but buyers do virtually nothing," Shafiul Islam Mohiuddin, vice president of the association, told AFP.

The webcam idea is a publicity stunt "to build goodwill" with Asda's customers, not a practical step toward improving conditions for workers, said Mosherefa Mishu, head of the Garment Workers Unity Forum.

"I don't think that buyers are worried about the working condition of our factories," she said.

Bangladesh's 4,500 garment factories manufacture low-cost clothing for most of the world's retail giants including Asda's American parent Wal-Mart, Swedish high-street chain H&M, French supermarket Carrefour and Levi Strauss.

The South Asian country of 144 million is one of the cheapest manufacturing destinations on Earth, largely because minimum factory worker wages are set at just 25 dollars a month.

Conditions on the factory floor are cramped and frequent accidents -- such as a February fire that killed 21 people at a factory producing knitwear for H&M -- have long been a thorn in the side of image-savvy Western companies.

Asda has also installed webcams in its head office in Leeds in one of its carrot processing plants and at an automated cow-milking machine in Lockerbie.

The webcam footage in the Bangladesh factories was temporarily unavailable on Friday.

It can be seen at

AFP: ASDA installs webcams in Bangladesh factories
 
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Foreign investment in Bangladesh down nearly 66 pctMonday, April 05, 2010 6:31 AM

DHAKA, Apr. 5, 2010 (Xinhua News Agency) -- Net foreign investment in Bangladesh plunged nearly 66 percent to 228 million U.S. dollars in the first seven months of the current fiscal year 2009-10 to end June 2010, the central bank data showed Monday.

"Net foreign direct investment (FDI) inflows came down to 228 million U.S. dollars in July-January period of the current fiscal year from 662 million U.S. dollars in the same period a year earlier owing to global recession," a senior Bangladesh Bank (BB) official said.

Apart from the global recession shocks, the BB official, who preferred to be unnamed, said acute shortage of gas and electricity in the country also contributed to abate FDI inflows to a large extent during the first seven months of the current fiscal year 2009-10 (July 2009-June 2010).

Bangladesh experiences up to 300 million cubic feet (8.49 million cubic meters) of gas and at least up to 1,500 megawatts of electricity shortages each day.

Due to the same reasons, the BB official said the FDI inflows also fell sharply in the first half of the current fiscal year.

Inflows of FDI to Bangladesh shrunk by 67.33 percent to 197 million U.S. dollars in July-December period of the current fiscal year 2009-10, the BB data showed.

Despite the power and energy crisis in the country, the BB official, however, expressed the hope that the flow of FDI might rise in the coming months due to recovery of major global economies.

Foreign investment in Bangladesh down nearly 66 pct
 
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Bangabandhu Int'l Airport
First phase work to complete in 5yrs

The government has drawn up a plan to construct the first phase of the proposed Tk 50,000 crore Bangabandhu Sheikh Mujib International Airport in next five years under build-own-operate-transfer (BOOT) basis.

As part of the plan Civil Aviation Authority, Bangladesh (CAAB) conducted a feasibility study over the last three months where they identified three possible sites for the airport.

Of the three, two are in Mymensingh and one is in Tangail.

An inter-ministerial meeting the day before yesterday at the civil aviation and tourism ministry preferred the site at Trishal in Mymensingh.

Civil Aviation and Tourism Secretary Shafique Alam Mehdi said the site at Trishal, 97 kilometres off the capital, would be given the top priority as it has about 1200 acres of government land in place.

CAAB handed over its feasibility study report to the ministry. The ministry will soon send a summary of it to the prime minister for her consent.

“Soon after the prime minister's consent we will appoint consultants and conduct the technical feasibility study within this year,” Shafique added.

According to the primary plan the airport will be established on about 6000 acres of land with three 9000 feet runways and all other modern facilities like Dubai or Singapore Airports.
An elevated expressway has also been planned under the project to link the airport with Dhaka.
Renowned airport builders will provide the fund for the project.

In the first phase a dual terminal and a runway will be constructed. It will also include a parking bay to accommodate 75 aircraft, support facilities and structures including a large maintenance hangar, a fire station and workshop.

Two more passenger terminals and runways are expected to be completed by 2020, Shafique said.

Ministry sources said reputable airport building agencies like Italian-Thai Development Corporation, Murray and Roberts of South Africa, Penta Ocean Construction and Obayashi Corporation have informally communicated with the ministry.

The civil aviation secretary said the airport would be the connecting link between the emerging and developed economies in the East and West.

“Bangladesh needs a gateway to East Asian and Middle Eastern and Western countries as air cargo transportation is growing day by day,” he said.

Shahjalal International Airport doesn't have adequate space and facilities to fulfil the demand,” Shafique said.

The airport has been planned in a way so that it can meet the demand of next hundred years, the official added.

A high official of the ministry said Shahajalal Airport was built when country's external trade was not more than $1 billion, which has now crossed $35 billion a year.

According to the CAAB statistics 1.5 lakh metric tonnes of freight have been transported through Shahjalal Airport in 2009 with a 20 percent growth annually
 
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Bangladesh gets second positive credit rating
BSS, Dhaka

Like Standard and Poor’s, another global rating agency, Moody's Investors Service, has assigned sovereign rating of Ba3 to Bangladesh with a stable outlook for the financial sector.

"This is indeed a very positive news for the country as it would help increase both trade and investment,"
Bangladesh Bank Governor Dr Atiur Rahman said on Monday.

The governor shared the information with the media after inaugurating a workshop on banking and monetary issues for the members of Economic Reporters' Forum at the central bank headquarters.

He said Bangladesh's position is on the same row of the Philippines, but higher than Vietnam and Pakistan. India is one step ahead of Bangladesh with a rating of Ba2.

Dr Atiur pointed out four major factors that contributed to the positive rating. These include recent dynamic RMG exports, large remittance inflows, minimal foreign commercial borrowing and advantageous external debt servicing profile.

"The Ba3 foreign and local-currency sovereign bond ratings broadly incorporate Moody's assessment of Bangladesh's reasonable degree of financial and balance-of-payments robustness which, coupled with prospects for continued macroeconomic stability, reduces the likelihood of severe stress on the country's creditworthiness," a Moody's report, posted on its web site said.

The report, quoting Moody's Vice-President and lead sovereign analyst for Bangladesh Aninda Mitra, said the combination of a conservative institutional framework for managing the economy, supported by capital controls, ensured better external balance and price stability than at many other emerging markets at a similar stage of development.

"The policy stability and underlying demographic shifts coupled with steady increases in trade openness have aided a remarkably steady rate of economic growth averaging 6 per cent over the past decade," said the Singapore-based analyst, adding,"The economy has also ably withstood several recent external shocks, periods of domestic political stress and supply-side bottlenecks."

Mitra attributes this resilience to the robust growth of family-based remittance inflows and the growing role of micro-finance institutions. These have offset the vagaries of subsistence level per-capita income by supporting domestic consumption and helping to develop a critical social safety net.

Bangladesh gets second positive credit rating
 
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Bangladesh gets second positive credit rating
BSS, Dhaka

Only people has no clue about financial systems and corruption are dancing with such news. These rating systems are corrupt to the core and main reason behind banking collapse in US and EU. There is strong sentiment world wide (including in india) to get rid of these corrupt credit rating systems. Govt should say Bangladesh financial systems are sound without such corrupt rating and not let these people dictate terms. Besides, these ratings are mostly used when bond like istruments are used for borrowing. In Bangladesh history virtually that was not the case and in foseeable future Bangladesh will not be borrowing using such instrument.

But because of people like Leon, its new of an acheivement, what a joke!!!
 
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