Bangladesh Economy: News & Updates

[CaPtAiN_pLaNeT]

Banglalion reaches out to Rajshahi

Tuesday, 20 July 2010 21:45

Banglalion reaches out to Rajshahi

Banglalion reaches out to Rajshahi
Staff Correspondent, Rajshahi

Banglalion, a broadband service provider with WiMAX technology, rolled out its services in Rajshahi yesterday.

Ferdous Ahmed, head of sales of Banglalion, announced the services at a press conference in the city where GM Faruk, head of media section of Banglalion, was also present.

The data technology will play an important role in meeting the technology-friendly people's demand for internet services, Ahmed said.

Banglalion has operations in Dhaka, Chittagong and Sylhet.

 

[TopCat]

Rangunia EPZ eyes green light

CIPL initiated the Rangunia EPZ project in 1999 and got its licence in 2000, but it was held up for the last decade due to political reasons.

The present government has a strategy to set up more industrial parks for local and foreign investments.

The previous Awami League led government in 1997 allocated lands to set up the Korean EPZ in Chittagong, under the Bangladesh non-government EPZ Act, 1996.

Unfortunate country.. Can we ever get rid of Mullahs and reactionist???

 

[CaPtAiN_pLaNeT]

Economic Zone Bill passed in parliament

Tuesday, 20 July 2010 21:54

Economic Zone Bill passed in parliament

Economic Zone Bill passed in parliament
FE Report

Parliament on Tuesday passed the Bangladesh Economic Zone Bill, 2010 with provisions to set up four types of economic zones.

The bill aims at boosting industrialisation, service-oriented production, export and employment generation.

Agriculture Minister Begum Matia Chowdhury moved the bill, which was passed by voice vote.

The four types of economic zones are: Economic Zone by local or foreign national, group or institution with government or local private ownership; Private Economic Zone by local or expatriate Bangladeshi or foreigners, groups, business organisation or group, individually or collectively; Government Economic Zone by government initiative or ownership; and Specialised Economic Zone by specialised industry or commercial institution with private or public-private partnership or by government initiative.

According to the Bill, the government will be able to declare a designated land as economic zone. The authorities will divide such designated land into export processing area, domestic processing area, commercial area and non-processing area, and prepare master plans for those.

Excepting the industries designated as reserved in the industrial policy, installation of industries or establishments belonging to any sectors including small and cottage industry, agriculture farming, service-oriented institutions, etc. could established in the Economic Zones.

According to the Bill, the government will constitute Bangladesh Economic Zones Authority with its head office in Dhaka and also the Governing Board.

A person, who is a minister, nominated by the Prime Minister will be the Chairman of the Board. Ministers/State Ministers of Industries, Commerce, Finance, Planning, Science and Information and Communication Technology, Energy, Communication, Labor and Employment, Environment and Forest will remain on the Board as ex-officio members.

Principal Secretary to the Prime Minister, Bangladesh Bank Governor, Chairman of Board of Investment, Secretaries of Industries, Commerce, Finance, Planning, Agriculture, Post and Telecommunications, Science and ICT, Foreign, Energy and Mineral Resources, Power, Home, Shipping, Environment and Forest, and the Prime Minister's Office, and Chairman of National Board of Revenue will remain on the Board as ex-officio.

FBCCI president, government nominees from the district Chamber of Commerce and Industry concerned with the economic zones, two women entrepreneurs nominated by government, and president of specialized chamber of commerce and industry will also remain on the Governing Board.

 

[bd_4_ever]

US to support Tk 210cr for low carbon path


US President Obama administration assured Bangladesh of providing Taka 210 crore for promotion of Low Emission Development Strategies (LEDS).

A USAID delegation said this in a meeting with State Minister for Environment and Forests Dr Hasan Mahmud at his secretariat office here on Tuesday.

Acting Mission Director of the USAID in Bangladesh Dennis Sharma led the delegation. After Copenhagen Climate Conference it will be the first commitment of the US government following a number of European countries to support Bangladesh to combat adverse impacts of climate change. Bangladesh is one of the 18 countries selected by the US administration for Support Service for Low Emission Development (SSLED), Sharma told the state minister. He said the LEDS project will help take initiative for development of environmental laws, reorganization of the concerned departments, strengthen adaptation capacity in the vulnerable areas. The USAID official said the US government appreciates Bangladesh's commitment to global efforts to address climate change impacts. Bangladesh translated its commitment to combat climate change by preparing the Bangladesh Climate Change Strategy and Action Plan (BCCSAP) and establishment of its own US$ 100 million adaptation fund, he noted.

Responding to the US support, Dr Hasan focused on the vulnerable areas of Bangladesh which are mostly affected due to climate change. Bangladesh, an innocent victim of climate change has been making its own stride to cope with climate adversities, he said. He also laid importance on accelerating efforts to deliver the fund committed by the developed countries to support developing countries in the Copenhagen Accord for adaptation. The USAID officials said the initial focus of the SSLED programme will be providing technical support for country preparation and initial implementation of LEDS that are designed and led by the host country. Environment Secretary Dr Mihir Kanti Majumder, Deputy Office Director of USAID Mark Visocky and senior officials of the ministry were present.

The New Nation - Internet Edition

 

[bd_4_ever]

Anti-monga paddies cultivation continued in full swing


The farmers have been continuing large-scale farming of anti-monga short-duration variety paddies now under adequate government assistance in greater Rangpur to combat the century-old seasonal curse, officials said on Wednesday.

Special steps have been taken by the DAE in collaboration with different NGOs as per directions of the Ministry of Agriculture for successful farming of these paddies on 70,000 hectares land with a view to saying a permanent good-bye to monga this time. Additional Director (AD), Rangpur of the DAE Mohsin Ali told that 19,200 hectares land will be brought under anti-monga paddy farming in Rangpur, 8,600 in Gaibandha, 12,750 in Kurigram, 11,500 in Lalmonirhat and 17,900 hectares in Nilphamari district.

Of them, BRRI dhan 33 will be cultivated on 40,300 hectares, BRRI dhan 39 on 10,000 hectares, BINA dhan 7 on 19,000 hectares and BU dhan 1 will be cultivated on 700 hectares in greater Rangpur where seedling transplantation now continues in full swing. Farming of BRRI dhan 33 inbred variety paddy started contributing a lot to combating seasonal monga effectively during peak monga hours in greater Rangpur since the year 2007 when farmers successfully cultivated the paddy on 24,188 hectares land.

Similarly, farming of the other short duration inbred paddies like BRRI dhan 39, BINA dhan 7 and BU dhan 1 also got stronger footages in combating the seasonal curse for the people of poverty- prone greater Rangpur areas in recent years. Using the evolved farming technologies by Bangladesh Rice Research Institute (BRRI), large-scale farming of short duration BRRI dhan 33 began in the area 2008 to combat monga after a meeting held at Rangpur Circuit House on May 16 in 2008.

The then agriculture secretary (currently cabinet secretary) M Abdul Aziz, ndc, presided over that meeting which was attended by the then DG of BRRI, executive chairman of BARC, DG of DAE, rice scientists, experts and officials concerned. The meeting was then fixed farming target of the paddy on 40,000 hectares during that T-Aman season to create job opportunities for the farm-labourers and early paddy harvest during peak monga hour.

The then agriculture secretary also ordered all concerned to make the programme successful by timely and ensured distribution of 1,600 tonnes of BRRI dhan 33 seeds and all other necessary facilities among farmers through BADC and different NGOs. Accordingly, all necessary steps were then taken timely as per order and the programme became successful and a model for monga mitigation as the farmers then cultivated the paddy on about 42,000 hectares in greater Rangpur. Because of a large-scale farming of the short duration paddies using the latest agro-technologies and massive social safety network programmes of the government, monga factually disappeared from greater Rangpur from last year of 2009, experts said on Wednesday.

Renowned rice scientist Dr MA Mazid told BSS today that there are 1,07,000 hectares suitable land for farming BRRI dhan 33 in greater Rangpur to harvest about 5 lakh tonnes paddy in only 100 days using Direct Seeded Rice (DSR) method or in 115 to 118 days through transplantation. The farmers can sow the BRRI dhan 33 and other short duration paddy seeds using dry and wet methods of DSR or Lithao from June 20 and July 20 and transplant the prepared seedlings by August 15 to harvest the paddies during the full monga period, he said.

A total of 3,81,633 farm labourers can get jobs everyday for 45 consecutive days during monga period if the targeted 1,07,000 hectares could be brought under the short duration paddies and subsequent crop farming in the relay method in the area, he added. Harvesting periods of all crops will be advanced by 40 days in all seasons to enable farmers getting more profits as cultivation of these paddies would be followed by relay-method farming of early variety potato, moog, vegetables, maize and mustard.

The New Nation - Internet Edition

 

[CaPtAiN_pLaNeT]

Tk 12,617cr farm loan target fixed

Tk 12,617cr farm loan target fixed

Staff Correspondent

Bangladesh Bank (BB) yesterday announced a target of distributing Tk 12,617 crore agricultural loan in the 2010-11 fiscal year, which is about 13 percent higher than that of the previous fiscal year.

Disclosing the target at a press conference at the central bank's conference room, BB Governor Atiur Rahman said the new target is about 9.5 percent of the national budget.

In the last fiscal year, Tk 11,117 crore agricultural loan was disbursed against a target of Tk 11,500 crore.

In its half-yearly Monetary Policy Statement released Monday, BB emphasised the need for keeping prices of essentials stable. It also stressed on more financing for agriculture, small and medium scale initiatives and increasing loans for the productive sectors.

The governor said banks have been advised to boost agricultural loan keeping in line with the monetary policy.

From the current fiscal year, some new crops like palm and strawberry have been included in the agricultural loan category, added the BB chief.

 

[CaPtAiN_pLaNeT]

Industrial sector share in
economy to be 40pc: PM

Business

Bangladesh Sangbad Sangstha . Dhaka

Prime minister Sheikh Hasina on Wednesday told the parliament that the government was working on upgrading Bangladesh to a middle income country through raising contribution of its industrial sector in the national economy up to 40 per cent from the existing 28 per cent.
‘The proposed industrial policy has reflected the target,’ she said adding that it would be possible to reach the ultimate target of turning the country into an industrial state through maintaining continuation after attaining the target of the industrial policy.
The prime minister said this while replying to a query from treasury bench lawmaker Md Tajul Islam. ‘The country’s industrial and investment policies were liberalised to open new investment avenues through creating a sound environment for the entrepreneurs to further develop the industrial sector in the light of the proposed Industrial Policy 2010,’ she said.
Under the proposed industrial policy, there will be a package of import duty on capital machineries based on advantaged and disadvantaged areas for ensuring balanced development of the country, she said.
To encourage the non-resident Bangladeshis to invest in the country, their investments would be considered as foreign investments.
Hasina said measures would be taken for creating massive infrastructure facilities including setting up economic zone at industrially disadvantaged areas of the country like greater Rangpur, Dinajpur and Rajshahi districts and incentives would be given to those areas.
The prime minister said the government had taken initiatives for turning Bangladesh into an industrialized country by gradually upgrading its present agriculture-based economy.
The growth of agriculture sector would also continue through utilising the modern technology, she said adding, ‘no country can become an industrialised one by only depending on agriculture.’
Replying to a supplementary question, the leader of the house said the private sector had been inspired for making investment at various sectors like television, telephone, airlines etc.

 

[CaPtAiN_pLaNeT]

Special economic zones get rolling

Wednesday, 21 July 2010 21:10

Special economic zones get rolling

Special economic zones get rolling
Star Business Report

Three proposed special economic zones (SEZ) in Sylhet, Feni and Khulna will get a new lease of life after parliament passed the Bangladesh Economic Zone Bill 2010 on Tuesday, said officials from the Board of Investment (BoI).

Agriculture Minister Matia Chowdhury moved the bill, which was passed by voice vote.

An SEZ is a geographical region that has economic laws that are more liberal than the typical laws.

Department for International Development (DFID) and Infrastructure Investment Facilitation Centre (IIFC) earlier expressed willingness to fund the infrastructure of such economic zones.

The BoI has initiated steps to conduct a feasibility study on the proposed Sylhet zone and studies on the other two zones will follow, an official said.

"We will soon appoint a consultant to identify the right place. Although, we chose the three districts to locate the SEZs, the places could be changed after the consultant gives a report," he added.

BoI officials said they also talked with representatives of British-Bangladesh Chamber of Commerce and Sylhet Chamber of Commerce and Industry to identify the needs of the potential investors.

Besides foreign direct investment, officials said the proposed Sylhet zone will bring in millions of dollars in diaspora investment, which will generate a substantial number of jobs and boost local economy.

Referring to an investment promotion meeting held last year in the United Kingdom, officials said Bangladeshi diaspora from the Sylhet region showed keen interest in investing in real estate, tourism and hospitality, apparels and electronics.

Experts believe the spill-over effects in the form of job creation, investment and transfer of management skills and technology will be much greater than those from traditional industrial parks.

According to the bill, there will be four types of economic zones -- economic zone by local or foreign nationals, private economic zone by local or expatriate Bangladeshis or foreigners, government economic zone and specialised economic zone by specialised industries with private or public-private partnership or government initiative.

 

[CaPtAiN_pLaNeT]

Export earning rises by 4.11 per cent in 2009-10

Wednesday, 21 July 2010 21:09

Bangladesh Sangbad Sangstha (BSS)

Export earning rises by 4.11 per cent in 2009-10

DHAKA, July 21 (BSS) - The country's total export earning in fiscal 2009-10 was US$16204.65 million which is 4.11 percent more than the earning in the previous fiscal.

The export earning in June 2010 was US$1723.52 million which is US$1421.55 million (21.24 percent) more than the corresponding month in 2009, said a release of Export Promotion Bureau.

In the recently concluded fiscal year, export earnings increased in the sectors of jute goods, jute, petroleum byproducts, plastic goods, cement, rubber, leather, leather goods, wood and wooden products, paper, cotton fabrics, knitwear, woven garments, home textiles and footwear.

On the other hand, the export earnings declined in the sectors of frozen food, tea, chemical goods, handicrafts, silk, printed materials, textile fabrics, caps, human hair, ceramics, glassware and computer services.

 

[CaPtAiN_pLaNeT]

Pragati, Mitsubishi sign Pajero deal

Wednesday, 21 July 2010 21:11

Business

Pragati, Mitsubishi sign Pajero deal
Bangladesh Sangbad Sangstha . Dhaka

Pragati Industries Ltd, the country’s lone car assembling and marketing company in the public sector, from now on will assemble Mitsubishi Pajero Sports Jeep, ushering in a new era in the industries sector of Bangladesh.

An agreement to this effect was signed between the Pragati Industries Ltd and Mitsubishi Motors Corporation at the latter’s office in Japan on July 8 this year, officials said on Wednesday.

Pragati Industries managing director M Jahir Uddin Chowdhury and corporate general manager of Asia and Asian office on behalf of Mitsubishi Corporation Genichro Nishina signed the agreement on behalf of their respective sides.

Under the agreement, Pragati Industries will be able to assemble the long-cherished Mitsubishi Pajero Sports Jeep by June 2011 and prices of the jeep will be much cheaper than cars of other models, industries ministry officials said.

This will help Pragati Industries Ltd expand its market and eventually pave the way for transforming the company into a progressive manufacturing plant in the county, they said. The Pragati Ltd has contributed Tk 87.33 crore to the national exchequer during 2009-10 financial year, which was Tk 47.60 crore in 2008-09 financial year, official sources said.

 

[CaPtAiN_pLaNeT]

Pragati, Mitsubishi sign Pajero deal

Wednesday, 21 July 2010 21:11

Business

Pragati, Mitsubishi sign Pajero deal
Bangladesh Sangbad Sangstha . Dhaka

Pragati Industries Ltd, the country’s lone car assembling and marketing company in the public sector, from now on will assemble Mitsubishi Pajero Sports Jeep, ushering in a new era in the industries sector of Bangladesh.

An agreement to this effect was signed between the Pragati Industries Ltd and Mitsubishi Motors Corporation at the latter’s office in Japan on July 8 this year, officials said on Wednesday.

Pragati Industries managing director M Jahir Uddin Chowdhury and corporate general manager of Asia and Asian office on behalf of Mitsubishi Corporation Genichro Nishina signed the agreement on behalf of their respective sides.

Under the agreement, Pragati Industries will be able to assemble the long-cherished Mitsubishi Pajero Sports Jeep by June 2011 and prices of the jeep will be much cheaper than cars of other models, industries ministry officials said.

This will help Pragati Industries Ltd expand its market and eventually pave the way for transforming the company into a progressive manufacturing plant in the county, they said. The Pragati Ltd has contributed Tk 87.33 crore to the national exchequer during 2009-10 financial year, which was Tk 47.60 crore in 2008-09 financial year, official sources said.

Pragati to assemble Mitsubishi brand luxury jeep, car
October 25, 2009 · Leave a Comment

:: The Daily Independent Bangladesh :.. Internet Edition

Pragati to assemble Mitsubishi brand luxury jeep, car
BSS, CHITTAGONG

Oct 24 : Owning a new luxury car at an affordable price would no longer be a distant dream for a local buyer with modest income level as state-owned Pragati Industries Ltd (PIL) has taken an initiative to assemble Japanese vehicle manufacturing giant Mitsubishi build Pajero brand jeep and Sedan brand car in its factory.

PIL officials told the news agency that local buyers could purchase such internationally recognized brand superior cars at just half price compared current market rate one has to pay for an imported one.

Apart from helping to bring back past glory of PIL, countrys lone motor vehicle assembling enterprise and a subsidiary of Bangladesh Steel and Engineering Corporation (BSEC), the officials said local vehicle market would witness a revolutionary change if the visionary project is materialized successfully.

PIL officials said, necessary discussion between BSEC and the Mitsubishi company to this effect has been finalized and initial car assembling process would start after signing of an agreement within a month.

As per preliminary estimate, the General Manager (Marketing) of PIL Mustafizur Rahman said, local buyers can purchase a 2500 CC Pajero brand jeep at a cost of Taka 40-45 lakhs instead of current market price of an imported one at Taka 70-80 lakhs while a 1500 CC Sedan car at Taka 12-13 lakhs against Taka 22-24 lakhs for an imported one.

A 4-member team led by BSEC Chairman M Abu Hafiz visited Mitsubishi factory in Thailand in last month to witness for themselves the facility and other technological aspects of the enterprise and had necessary discussion with the officials there to gather knowledge on required technological support for the PIL factory to start assembling Pajero brand jeep and Sedan car.

Earlier, a Japanese team comprising of Mitsubishi company engineers while visiting the PIL factory in July last expressed their satisfaction after witnessing the overall capacity and work atmosphere here.

Managing Director of PIL Engineer Zahiruddin Chowdhury told BSS that bilateral discussion with Mitsubishi authority is at final stage and only the issue of fixing the price of their supplied vehicles parts and PIL assembled cars was still unresolved.

” I am hopeful of settling the issue by October 30 and then we could reach an agreement” Zahiruddin said adding that the PIL would able to provide newly assembled luxury cars to buyers at a price close to a reconditioned one.

He said, the Mitsubishi authority would carry out three times sample test for PIL assembled cars before issuing final clearance for their marketing in Bangladesh market to ensure properly the quality and standard of the products up to its original level.

After signing of agreement, at first, a Mitsubishi company expert team would assemble a car at PIL factory in presence of local engineers and then they would supervise assemble process to be done by local men. Finally, the Japanese experts would physically check a car to be assembled fully by local experts without their help and then the Mitsubishi authority would issue work order in favour of PIL for commercial production if the new product is proved up to the mark.

 

[CaPtAiN_pLaNeT]

Pragati to begin trial assembling of Pajero Sports Jeep by next Jan; It makes record profit of Tk 25.05 crore in last fiscal

UNBconnect... - Pragati to begin trial assembling of Pajero Sports Jeep by next Jan; It makes record profit of Tk 25.05 crore in last fiscal

Reported by: UNBconnect
Reported on: July 21, 2010 20:37 PM
Reported in: National
News - Pragati to begin trial assembling of Pajero Sports Jeep by next Jan; It makes record profit of Tk 25.05 crore in last fiscal
Dhaka, Jul 21 (UNB) - Pragati Industries Limited (PIL), a subsidiary of Bangladesh Steel and Engineering Corporation (BSEC), is likely to go into trial production of Pajero Sports Jeep through assembling by January next year.

The government hopes to market the assembled Pajero Sports Jeeps in the country through Pragati Industries by June next year.

Pragati Industries have already taken steps to import 12 Pajero Sports Jeeps in CKD (Completely Knocked Down) condition by November this year.

“Pragati (Industries Limited) signed a five-year agreement with Mitsubishi Motor Corporation on July 8 in Japan for assembling its Pajero Sports Jeep at their Chittagong plant,” said an official of Pragati.

Pragati Industries managing director Engr Mohammad Zahir Uddin Chowdhury and corporate general manager of Mitsubishi Motors Corporation Genichiro Nishina signed the agreement on behalf of their respective sides.

BSEC chairman Mohammad Abu Hafiz, additional Industries Secretary ABM Khorshed Alam and a senior official of Mitsubishi Motors Corporation, Mitsuyoshi Yokoi were present at the signing ceremony.

Earlier, the state-owned BSEC and the Mitsubishi authorities agreed to set up a joint venture plant to manufacture cars in country’s commercial capital Chittagong.

Mitsubishi Motors Corporation on December 3 last year sent a proposal titled “Proposal for Pajero Sports Assembling Project at PIL factory” to the Industries Ministry with an estimated cost of 110 million Japanese Yen.

Following the proposal, a memorandum of understanding between the two parties was signed on February 24 this year.

Separate teams from Japan visited the PIL factory thrice - in March, April and July - and had given training to the local engineers who will assemble cars.

The Cabinet committee on public purchase approved procuring through PIL 420 Pajero Jeeps for Upazila chairmen and 208 Pajero for Upazila Nirbahi Officers (UNOs) in the fiscal 2008-09 and 2009-10.

Pragati Industries made a record profit of Tk 25.05 crore against a target of Tk 21.79 crore in the just-ended fiscal, which was the highest achievement of the company so far. Its profit was Tk 16.60 crore in the fiscal 2008-2009.

The government earned revenue worth Tk 87.33 crore from the PIL in the last fiscal while the amount was Tk 47.60 crore in the fiscal 2008-09.

 

[bd_4_ever]

BSEC records highest profit in 2009-10 fiscal


Bangladesh Steel and Engineering Corporation (BSEC) recorded highest profit in the just-ended fiscal (2009-10) year since its inception in 1976, BSEC Chairman Mohammad Abu Hafiz said Thursday, reports UNB.

The BSEC, an autonomous organisation under the Ministry of Industries, made a profit of Tk 714 million (71.40 crore) in the last fiscal and contributed Tk 3.37 billion (approximately) (337.25 crore) to the national exchequer.

The amount of profit was Tk 596 million (59.60 crore) in the 2008-09 fiscal with a contribution of Tk 2.83 billion (282.79 crore) to the national exchequer.

The BSEC has nine subsidiaries --- Atlas Bangladesh Ltd, Bangladesh Blade Factory Ltd, Chittagong Dry Dock Ltd, Eastern Cables Ltd, Eastern Tubes Ltd, Gazi Wires Ltd, General Electric Manufacturing Co Ltd,National Tubes Ltd and Pragati Industries Ltd.

Of the nine companies, Atlas Bangladesh Ltd recorded the highest profit Tk 326.4 million (32.64 crore) in the fiscal 2009-10 and it deposited Tk 2.16 billion (216.42 crore) to the government exchequer.

Pragati Industries Ltd (PIL) was in the second position in terms of making profit. The profit amount was Tk 250.5 million (25.05 crore) in the last fiscal. The government earned revenue worth Tk 873.3 million (87.33 crore) from PIL.

The BSEC deposited Tk 13.03 billion (1303.31 crore) to the government exchequer in the last six fiscals since 2004-05 while it made profit worth Tk 2.55 billion (254.61 crore) within the same period.

BSEC records highest profit in 2009-10 fiscal

 

[bd_4_ever]

Bangladesh to produce cars by 2012


Bangladesh will manufacture and sell luxurious cars locally by 2012, Industries Minister Dilip Barua announced it yesterday.

Addressing a press conference at his office he said that state owned Progati Industries Limited will produce 'sedan car' by 2012 while it will start assembling Pajero Sports Jeep by 2011.

He said by manufacturing locally the Progati Industries Limited will be able to bring down car price to half of that of the international price.

To this regard, Dilip Barua noted that the Pragoti Industries Limited (PIL) would be turned into a full fledged automobiles manufacturing company.

The Industries Ministry on July 8 signed an agreement with the Mitsubishi Motors Corporation in Japan to assemble Mitsubishi Pajero Sports Jeep for five years.

According to the agreement, Pragoti Industries will assemble and market Pajero Sports Jeep by June, 2011. Locally assembled jeep will be sold about Tk 60 lakh, which is now selling at Tk 1.20 crore in the international markets.

Barua said that assembling of Pajero jeep on trial basis would be started by January, 2011 while the full fledged production will start in June of the same year.

The Industries Minister hoped that the beginning of assemble and manufacturing of cars is a door step to develop a full fledged automobile industry in the country. "It will help meet the local car demand." Barua said that at the preliminary stage the state owned company will use batteries of local company Rahimafrooz Bangladesh Limited and produce some parts to assemble the sports jeep, the minister mentioned.

He also mentioned that Progati got purchase order of 420 cars for Upazila Chairmen and 208 for UNOs. Of them, 208 cars for UNOs and 260 cars for Upazila Chairmen had already been provided.

He urged the entrepreneurs to build up backward linkage industries of the car to make its price a competitive and reasonable, and reduce dependency on import parts.

Industries Ministry secretary Dewan Zakir Hossain and the Chairman of Bangladesh Steel & Engineering Corporation (BSEC) Muhammad Abu Hafiz were also present in the programme.

BSEC chairman Muhammad Abu Hafiz said people think government institution give more loss than profit. Opposing the thinking, he presented a statistics of profit of the BSEC as they profit Tk 72 crore this year.

He also mentioned that this year they gave Tk 337 crore to the government exchequer as revenue.

Since its inception in 1966, Pragoti has assembled and marketed more than 50,000 vehicles such as cars, Jeeps, Buses, Trucks, Pickup, Ambulance, Tractors etc. of multiple models by importing CKD(Complete Knocked Down ) kits.

The New Nation - Internet Edition

 

[CaPtAiN_pLaNeT]

Japan’s Onward plans Bangladesh entry

Business

Kazi Azizul Islam

Onward Holdings, one of the leading Japanese textile and garment manufacturers and retailers of fashion brands, has planned to make Bangladesh the company’s third manufacturing base, industry sources said.
Officials of the Japan Bangladesh Chamber of Commerce and Industry told New Age that Onward disclosed that it had eyed Bangladesh as a manufacturing base as the country’s garment industry is attracting the company.
‘Onward aims to lay the groundwork for making Bangladesh its third manufacturing base overseas, following China and Vietnam,’ company chairman Takeshi Hirouchi was quoted in Tokyo by Japanese media on Tuesday.
Onward operates hundreds of fashion brands in Japan with its local apparel business subsidiary Onward Kashiyama Co Ltd.
Having annual sales worth $3 billion, Onward also owns European brands like Gibo, Jil Sander, Joseph, Erika, J Press and Freed of London, which are sold in stores in Spain, Italy, UK, Germany, Taiwan and China. Its Chacott is one of the world’s largest dancewear brands.
‘It is a very good thing that an important Japanese company has shown its eagerness to enter into Bangladesh market,’ said Yasuharu Shinto, head of economic cooperation department at the Japan embassy in Dhaka.
The Japanese diplomat sees the move as a sign of strength in the relation between Bangladesh and his country.
Abdul Haque, president of the JBCCI, said Onward’s entry into Bangladesh would be significant advancement in Japan-Bangladesh investment and trade relation.
‘Onward’s foray into Bangladesh will be another big venture after the Japanese giant Uniqlo started sourcing from and manufacturing in Bangladesh a year ago,’ said Haque.
Haque, who is also a director of the Federation of Bangladesh Chambers of Commerce and Industry, said the government should concentrate on speedy developments of infrastructures including special industrial estates.
‘Not only the apparel manufacturers, other Japanese industrial sector entrepreneurs are set to come here, but they need ready industrial estates, gas, electricity and other infrastructures,’ he added.
Japanese apparel retailers have been increasingly showing eagerness on Bangladesh for the past couple of years or so as they search for competitive sourcing destination that could be alternative to China.
Rising wages in China are discouraging the European and Japanese importers, who have diverted their attention to Bangladesh, Indonesia, Vietnam and Cambodia.
Japan imports $28 billion worth of apparels a year while China still controls 80 per cent of the market. Vietnam is the next major source which exports to Japan $1 billion annually.
Indonesia, India and Myanmar are also significant players in Japanese market but, industry people say, Bangladesh’s garment shipments to Japan started to swell last year.
Bangladesh’s apparel shipments to Japan in January-May, 2010, amounted to $64 million, which is 167 per cent higher than the same period of 2009.
Opening of sourcing office in Dhaka last year by the Japanese retail giant Uniqlo has prompted many other Japanese companies to set their sight on Bangladesh. Top Japanese companies like Toray and Kurabo have also stared ventures in Bangladesh.