Bangladesh Economy: News & Updates

[CaPtAiN_pLaNeT]

BB builds Tk 665cr SME fund

Tuesday, 03 August 2010 20:53

BB builds Tk 665cr SME fund

BB builds Tk 665cr SME fund
Star Business Report

Bangladesh Bank has created a Tk 665 crore ($95 million) fund for providing loans to small and medium enterprises (SMEs) at low interest.

Asian Development Bank (ADB) will contribute $76 million, while the government will provide the rest $19 million to the fund, according to a central bank circular issued on Monday.

From the fund, 15 percent will be reserved for women entrepreneurs and the highest interest rate for them would be 10 percent. The BB has directed the banks to give loan to the male borrowers on the basis of market rate of interest.

The circular said the borrowers will get Tk 50,000 to Tk 70,000 in loans.

The banks will get around 75 percent refinance facility from the central bank. The bank concerned will give 15 percent of the total loan and the entrepreneur will bear the rest 10 percent.

The BB circular also said the highest tenure of a mid-term loan will be three years and that for a long-term loan will be five years. The refinancing scheme will be applicable for the projects outside Dhaka and Chittagong metropolitan areas.

For getting the refinance facility for giving loans under the SME category, the banks will have to fulfill some criteria. One of those is that the bank will have practical prior experience about SME financing. In the long-term national rating scale, they must have BBB- rating.

 

[CaPtAiN_pLaNeT]

Dhaka set to launch Mission Africa

Tuesday, 03 August 2010 20:58

Dhaka set to launch Mission Africa

Dhaka set to launch Mission Africa
Author / Source : ANIS ALAMGIR

'Mission Africa,' the new initiative of the Bangladesh foreign ministry aimed at exploring four major areas in the second largest continent of the world, will set sail from August 23.

The mission seeks to tap the hitherto unexplored areas in manpower exports, sell the country's exportable goods, identify new areas of cooperation and investment in the second modest populous continent, a highly-placed ministry source said yesterday.

Formally named the 'Fact Finding Mission to Africa', the mission will be in two phases, with foreign secretary Mijarul Quayes leading a six- member team, comprising officials from the prime minister's office, ministries of commerce, overseas employment and expatriate welfare and foreign affairs.

The first explorers to Africa start their trip, visiting the African west coast nations of the Ivory Coast, Liberia, Senegal, Nigeria and Ghana from August 23 to September 2.
After Eid-ul-Fitr, the team will also visit some South African countries.

With Bangladesh's engagement with some African nations in connection with the peace-keeping and peace-building under the UN umbrella, Bangladesh has already made its presence strongly felt in the region.

The UN missions have also drawn the attention of the countries in the hitherto unknown continent, enhancing and strengthening bilateral, commercial, and economic relations with the countries, where our peace keepers are serving.

Meanwhile, the Armed Forces Division (AFD) has said that the governments of Congo, Ivory Coast, Liberia, Sudan and some other African countries have shown interest in strengthening bilateral and economic relations with Bangladesh, seeking in particular, cooperation and assistance from Dhaka.

The AFD has also identified some potential areas for bilateral cooperation, like exporting skilled and unskilled labour, business in the garments sector, pharmaceuticals, agricultural and agro-based industries, education and culture, telecommunication as well as investments in banking and financial institutions, such as leasing firms, insurance companies, etc.
The AFD has also proposed to convene an inter-ministerial meeting to explore and follow up cooperation in these areas.

The governments of African countries have also expressed similar views to the Bangladeshi contingents, who are deployed as UN peacekeepers for a long time.

Similar feelings were also conveyed to the Parliamentary Standing Committee on the ministry of defence during its recent visit to Ivory Coast and Congo. The committee also pinpointed on export of manpower and Bangladeshi products, specially pharmaceuticals and ceramics, to the African countries.

Since independence, Bangladesh has been maintaining excellent bilateral relations with some African countries. Out of 56 countries of the continent, Bangladesh has missions only in Libya, Kenya, South Africa, Morocco and Egypt. Unfortunately Bangladesh doesn't have any mission in Middle and West Africa.

"The present government's policy for economic diplomacy focuses on Africa as a new destination for our manpower and exportable goods.

In line with this policy, we need to explore all possible ways for sustainable bilateral relations and tangible trade with the African nations for which we need to find out from the ground the possibilities of future cooperation with these countries," said Wahidur Rahman, director general of the African Wing of the ministry of foreign affairs (MOFA).

Talking to The Independent, Wahid, a member of 'Mission Africa' said: "Since we do not have any resident missions, bilateral relations with many African nations, including Congo, Liberia and Ivory Coast, are being looked after by our permanent mission to the UN in New York."

 

[CaPtAiN_pLaNeT]

Please bring the Bangladesh Economy thread here... as very few people visit the global economy part and bangladesh economic news is not that big to be part of global economy as of now. Other than the bangladesh economy news this Bangladesh Defence section is full of only a number of thread opened by some Jamaet E Islami suuporter as they are dissapointed in recent time due to the fact that their leader has been arrested with war crime charges & possibly will be sentenced to death if the charges found to be true and may be their party will be banned soon.

Here Bangladesh economy thread will provide some picture how bangladesh is developing. This is the prime reason why many of the people come in to this thread instead only for some anti awami league and anti indian thread.

But in reality some activity and policy of india such as recent garment worker unrest, building dam, using bangladesh as a transit without giving proper benifit to bangladesh are not good for bangladesh. Thread with balanced article covering this topics are and should be welcome.

Lastly it would be great if you bring the "Bangladesh Economy" thread here in this "Bangladesh Defence" forum.

 

[British_Bangladeshi]

BoI body okays $141m in FDI
Tuesday, 10 August 2010 23:20

Business


The scrutiny committee of the Board of Investment on Tuesday approved four projects involving $141 million in foreign investment.

The committee at meeting at the Prime Minister's Office endorsed four projects in telecommunication, textile and aviation sectors, reports BSS.

Among the projects, Axiata Group of Malaysia will invest $100 million to expand its network in Bangladesh through its local partner Axiata (Bangladesh) Limited, known by the brand name of Robi. An offshore branch of HSBC Bank will fund $11 million for expansion of a local firm Sinha Textile and Spinning Mills.

Phoenix Airways of Singapore will invest in two projects in the aviation sector worth over $30 million.

Under these two projects, United Airways will strengthen its fleet and expand operations.

Bangladesh Bank governor Atiur Rahman, also the head of the scrutiny committee, said that the projects were the clear indications of foreign investors' focus on Bangladesh.

‘The country is becoming a destination for foreign investments, especially from Asian countries,’ Atiur said.

Atiur said the technical committee would approve the projects in a few days after it received recommendation from the BoI. He said the committee would not take much time to give its consent to a potential project so the investor can go ahead without unnecessary delay.

 

[British_Bangladeshi]

Bangladesh is conducive to foreign investment


Tuesday, 10 August 2010 23:19

Bangladesh is conducive to foreign investment



Bangladesh is conducive to foreign investment
BoI chief tells Chennai entrepreneurs
Star Business Report

The country offers a competitive business-friendly environment for investors, the executive chairman of Bangladesh's Board of Investment told a seminar in Chennai yesterday, according to Delhi media reports.

“Low labour cost, strategic location, regional connectivity and worldwide access are some advantages for investors,” said Dr SA Samad, who headed a big business team to the capital of Indian state Tamil Nadu on August 8-10.

The Confederation of Indian Industry (CII) organised the seminar on 'strengthening Indo-Bangladesh investment and trade'.

The India-Bangladesh Chamber of Commerce and Industry arranged Bangladesh team's visit to Chennai.

Samad attached due importance to enhanced economic ties with India, as it remains immune to recession which affected many countries worldwide.

Pointing to Bangladesh's steady pace of around 6 percent growth, the BoI chief said his country targets to touch an 8 percent growth by 2013.

Samad listed some sectors that could lure Tamil Nadu entrepreneurs for investments under private-public partnership, which include power, ports, telecom, highways and expressways, oil and gas, airports, tourism, industrial estates and property development.

High Commissioner to Delhi Tariq Ahmad Karim said Dhaka sees huge opportunities for collaboration with Chennai, a leader in both manufacturing and services.

Bangladesh's envoy also expressed his country's intention of being the hub of connectivity between the South East Asian countries as well as India's north-eastern part, commonly known as Seven Sisters.

M Velmurugan, executive vice chairman of Tamil Nadu Industrial Guidance and Export Promotion Bureau, said there is ample scope for Bangladesh to invest in Tamil Nadu and vice versa.

Tamil Nadu, being a hub for automotive, leather, IT, textile and electronics sectors, provides a huge opportunity for Bangladesh companies to collaborate with Indian counterparts, Velmurugan pointed out.

T T Ashok, deputy chairman, CII southern region, said both India and Bangladesh offer natural markets for each other's exports and have advantages of reduced transaction costs and quicker delivery due to geographical proximity.

Bangladesh is a strong business partner for India in South Asia. Indian exports to Bangladesh in 2008-09 stood at US$ 2497.84 million and imports from Bangladesh touched US$ 313.11 million, Ashok informed the seminar.

Abdul Matlub Ahmad, IBCCI's president, the chamber was formed over three years back to promote bilateral trade and investment between the two countries.

Dhaka-Delhi trade is worth about $7 billion, he said.

S Sen, principal adviser, special projects, CII, Bangladesh wants to grow in the field of IT and India would be the best partner as the country is doing very well in this sector

 

[British_Bangladeshi]

Automobile industrial estate to be built in country: Barua

Tuesday, 10 August 2010 23:24

The New Nation - Internet Edition


Automobile industrial estate to be built in country: Barua
BSS, Dhaka

The government will build a separate automobile industrial estate through Bangladesh Small and Cottage Industries Corporation for the country's potential sector, Industries Minister Dilip Barua said here on Tuesday.

"The automobile sector has been considered as the thrust sector in the National Industry Policy which will be announced by the government soon," he told a workshop at his ministry.

Industries Secretary Dewan Zakir Hossain was the special guest at the national workshop titled 'Framing of a roadmap for automobile sector development'.

Chairman of Bangladesh Steel and Engineering Corporation Mohammad Abu Hafiz presided over the function, while Head of the Mechanical Department of BUET Dr Muhammad Mahbubul Alam presented the keynote paper.

Among others, Additional Secretary of the Industries Ministry ABM Khorshed Alam, Director of BUET Institute of Appropriate Technology Dr M Kamaluddin, ADB International Staff Consulatant Dr Nayeem Chowdhury and Director General of BITAC Ashish Kumar Paul also took part in the discussion.

For the knowledge-based industrialization, Dilip Barua said, initiatives have been taken to build a close link between BUET and the Industries Ministry to utilize innovative power of BUET.

He said the industrialized nations have brought prosperity in industry and economy through revolution in technologies.

"Though many Bangladeshi talented engineers and technologists played an important role in achieving prosperity of the industrialized nations, they could not contribute to the development of Bangladesh due to lack initiatives and working atmosphere," he said.

Dilip Barua said the country's light engineering sector would go far ahead if this talented and creative manpower is utilized for local industrial development.

Against the backdrop of the global economic context, he hoped, massive investment will be made in the country's automobile sector.

Other speakers said there is a medium-standard manpower skilled in technology and knowledge to build automobiles in the country. It is possible to build automobiles with local technologies through this manpower by utilizing the skill and creative power of different engineering universities including BUET, they opined.

More than 100 persons including owners of automobile firms, engineers, teachers, technologists and automobile entrepreneurs took part in the daylong workshop.

 

[British_Bangladeshi]

Japan holds out hope for Bangladesh apparel

Sunday, 08 August 2010 22:13

Japan holds out hope for Bangladesh apparel

Japan holds out hope for Bangladesh apparel
Seminar spotlights exports
Star Business Report

Japan could be a bright spot for apparel exports from Bangladesh if the quality of products and lead-time are adhered to strictly, speakers said.

At a Saturday seminar on the quality control and inspection of apparels for the Japanese market held at Hotel Lake Shore in Dhaka, Harumitsu Hida, deputy chief of mission at the Embassy of Japan, said Japan's adoption of the China+1 policy is a great opportunity for Bangladesh.

"We should work toward further strengthening relationships between the two countries in a positive manner," Hida reiterated.

That Bangladesh has received the signal and initiated widening its niche in the Japanese market was evident from its performance last year compared with the earlier figures, the speakers said.

Bangladesh exported knitwear worth $21.98 million in fiscal 2008-09, registering 203.9 percent growth, compared to 2007-08.

From woven product exports, Bangladesh earned $52.39 million in fiscal 2008-09, a 151.9 percent rise from fiscal 2007-08, according to Japan External Trade Organisation (JETRO) data.

Takashi Suzuki, Dhaka representative of JETRO, said Cambodia has demonstrated productivity improvement and achieved competitiveness despite high labour costs at home.

"Although Bangladeshi manufacturers enjoy relative cost advantages, yet its total size has been shrinking due to little or no productivity growth. While new entrants registered good performances, efforts of the existing firms need to be geared up to survive in the competition," Suzuki said.

Cambodian firms bagged increased profits by improving productivity significantly whereas the profit earnings of the Bangladesh firms fell, because of a rise in wages and modest growth of productivity. "But the profits are still not negligible, thanks to low labour costs," he added.

On the recent increased apparel import from Bangladesh by Japan, he said this has been mostly due to the Japanese giant Uniqlo's expansion, and many other Japanese companies are also looking for good suppliers in Bangladesh, he said.

Akihiro Miyata from Konoike-Euro Logistics (Bangladesh) Ltd said timely shipment and transport of goods are important for Japanese buyers.

He said if the consignments are at all delayed, buyers will have to be notified in advance along with detailed reports dispatched for such failures.

The packing materials -- cartons and boxes -- are also part of the goods and the exporters must take strict care about not wetting or damaging the cargoes while shipping goods for the Japanese importers, he said.

Akhtaruzzaman, managing director of Pacific Quality Control Co Ltd, and Hisao Nishiyama, general manager of QTEC Dhaka Lab, also spoke.

 

[British_Bangladeshi]

Taiwan company increases Investment to US$ 16.666m in Comilla EPZ

Tuesday, 10 August 2010 23:23

Bangladesh Sangbad Sangstha (BSS)

Taiwan company increases Investment to US$ 16.666m in Comilla EPZ

DHAKA, Aug 10 (BSS) - Taiwanese Company M/s Xin Chang Shoes (BD) Ltd will expand their shoes manufacturing industry in Comilla Export Processing Zone.

Earlier their proposed investment was US$ 8.194 million which will be increased upto US$ 16.666 million.

Due to this increased investment, there will be employment opportunities for 2,138 Bangladesh nationals including 52 foreign nationals in the company, a press release said.

Earlier 1267 persons including 30 foreign nationals were employed in the company.

An agreement to this effect was signed between the Bangladesh Export Processing Zone Authority and the M/s Xin Chang Ghoes (BD) Ltd in BEPZA Complex on Monday.

Jnan Ranjan sil, member (engineering) of BEPZA and Chien James Ho, Chairman of M/s Xin Chang Shoes (BD) Ltd signed the agreement on behalf of their respective organizations.

Executive chairman of BEPZA Brig Gene Jamil Ahmed Khan was present on the occasion.

 

[British_Bangladeshi]

Local demand for fancy glass curbs exports

Tuesday, 10 August 2010 23:21

Local demand for fancy glass curbs exports




Sajjadur Rahman

A recent building boom has forced modern window-glass manufacturers to cut exports, market players said.

A surge in construction, which was almost stalled during the army-backed caretaker government in 2007-08, is behind the local demand for “float glass.” (The term refers to sheets of glass made by floating molten glass on a bed of molten metal, typically tin.)

“We have reduced our export by nearly 1,000 tonnes per month due to meet the growing demand in the domestic market,” said Nasiruddin Biswas, chairman of Nasir Group, which owns Nasir Glass Industries, a local pioneer in float glass.

Nasir Glass now exports 1,500 tonnes a month, off 1,000 tonnes from earlier levels. On the other hand local market consumption increased nearly 1,000 tonnes a month to 3,500 tonnes.

“Construction works have got its momentum after a gap of nearly three years,” said Biswas.

The other premier float glass-manufacturer, PHP, also saw a jump in domestic demand. PHP produces 3,500 to 4,000 tonnes of float glass a month.

“Now 100 percent of our production is being sold,” said Mizanur Rahman, head of marketing of PHP Float Glass Industries. “But it was maximum 70 percent a few months ago.”

Rahman attributed the good sales on construction, increases in wood prices and consumer appreciation of natural daytime light through the panes.

The use of float glass in buildings is relatively new in Bangladesh. Before Nasir and PHP entered into the market -- in 2005 and 2006, respectively -- it was imported in small quantities.

The glass market is now nearly Tk 1,000 crore, up from Tk 600 crore a couple of years ago. Two established glass-sheet factories -- Usmania Glass and MEB Glass -- made a cheaper glass used in more affordable structures, according to market players.

Silica and gas, the primary needs of makers of float glass, are available in Bangladesh. Secondary raw materials (dolomite, feldspar and limestone) are imported from neighbouring Bhutan, Nepal and India.

Biswas of Nasir Group said float glass is non-combustible, easy to clean, prevents harmful ultraviolet-ray penetration, reduces the solar heat entering into the building and is cheaper than wooden panel: “Yet, it is aesthetically much more elegant,” he said.

 

[British_Bangladeshi]

UK-China Invest $ 6.155m in Comilla EPZ

Tuesday, 10 August 2010 23:18


The New Nation - Internet Edition


UK-China Invest $ 6.155m in Comilla EPZ
Business Report

M/s Kadena Sportswear Ltd, a UK-China company, will set up a Knit and Woven Garments Manufacturing Industries in Comilla Export Processing Zone. An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and M/s. Kadena Sportswear Limited at BEPZA Complex in city recently.

Moyjuddin Ahmed, Member (Investment Promotion) of BEPZA and MA Zhuang, Managing Director of M/s. Kadena Sportswear Ltd signed the agreement while Brig General Jamil Ahmed Khan, ndc, psc, Executive Chairman, Jnan Ranjan Sil, Member (Engineering), AKM Mahabubur Rahman, Member (Finance), AIM Azizur Rahman, General Manager (Investment Promotion) and other Officials of BEPZA were present at the signing ceremony.

This foreign owned company will invest $6.155m in setting up their unit and will manufacture garments items. The company will also create employment opportunity for 1012 persons including 10 foreign nationals.

 

[British_Bangladeshi]

Govt to draw roadmap for auto sector

Tuesday, 10 August 2010 23:18

Govt to draw roadmap for auto sector


Govt to draw roadmap for auto sector
Star Business Report

The government is set to develop a comprehensive roadmap for the automobile sector by December in a bid to help the sector flourish.

"We are now opening the forum for designing the automobile sector roadmap and this will remain open until a comprehensive development plan for the sector is made," said ABM Khorshed Alam, additional secretary for the industries ministry, at a workshop organised by the ministry yesterday.

"The automobile industry is slowly but surely shifting toward the Asian countries, mainly because it has reached a saturation point in the western world," said Prof M Mahbubul Alam, head of the mechanical engineering department at Buet.

He cited an example that people from the advanced countries such as the USA and Canada boast at least one car for every three persons. On the other hand, a scanty number of people in Bangladesh have cars.

Currently, the principal users of the Asian automobiles are China, India, and Asean nations.

Low-cost vehicles namely scooters, motorcycles, mopeds and bicycles have led to the massive growth of some of the fastest developing economies such as China and India.

"We believe a bright future in this sector awaits us and it is possible to achieve, provided an appropriate and targeted comprehensive policy is developed," said Alam.

He suggested the government introduce one-stop service centres, especially for education and hospital services, which might reduce traffic tailbacks in cities considerably.

In the proposed Industry Policy 2010, however, the government has prioritised the light-engineering sector, which is capable of making almost 75 percent of the medium to high-tech auto parts.

"We have already picked the light engineering sector as a priority sector in a bid to develop it further," said Industries Ministry Dilip Barua.

"We are going to set up a separate industrial park for the automobile sector."

Dewan Zakir Hussain, industries secretary, said: "It is time to decide whether Bangladesh will turn into a dumping park for the international car makers or pursue a policy for the development of local car-manufacturing potential."

The sector people also said some former car assembly houses have now converted to trading joints due to oppressive tax regimes.

 

[British_Bangladeshi]

Beacon Pharma debuts tomorrow

Tuesday, 10 August 2010 23:17


Beacon Pharma debuts tomorrow



Beacon Pharma debuts tomorrow
Star Business Report

Beacon Pharmaceuticals Ltd, which serves the domestic market, will make its debut on the bourses on Thursday.

The Dhaka Stock Exchange set the drug maker's first share-trading day at a meeting yesterday, DSE officials said.

The pharma company will join the market with 22 crore in ordinary shares of Tk 10 each.

The company has raised Tk 30 crore through an IPO (initial public offering) by issuing 3 crore primary shares. The IPO was to meet the working-capital needs of the company.

The paid-up capital of the company now stands at Tk 220 crore.

Beacon manufactures and markets pharma-ceuticals and their active ingredients, intravenous (IV) fluids, anti-cancer drugs, bio-tech and genetic-engineering products. The company also provides contract manufacturing and tool manufacturing services.

Beacon Pharmaceuticals will be 21st company in the pharmaceuticals and chemicals sector of the DSE. As of June, the market capitalisation of these companies was more than 7 percent of the DSE's total capitalisation, Tk 2,27,631 crore

 

[British_Bangladeshi]

Samsung plans to set up software R&D centre in Bangladesh

Sunday, 08 August 2010 22:18

Business


Samsung sets sight on Bangladesh IT, software potentials
Plans to set up software R&D centre in Bangladesh
Kazi Azizul Islam

Samsung, a top South Korean business and industrial chaebol, has set its sight on Bangladesh’s IT potentials and now plans to set up a software research and development centre in the country.

A highly-placed source told New Age that the Korean chaebol, meaning an economic power house, has grasped the untold potentials of Bangladesh’s IT and software sector—particularly the growing availability of young software developers in country.

‘We want to come in with investment and utilise them.’ the source said dropping a broad hint, requesting anonymity.

He said the Korean electronic, cell phone and IT giant has already embarked on the ground work to acquire licence for investment and other initial requirements for the project.

A camp office for Samsung’s proposed venture has been set up at Samsung Dhaka branch that now mainly deals marketing of Samsung mobile sets and electronic appliances.

‘The Samsung software centre in Bangladesh will be a separate business entity apart from their existing businesses here,’ said an IT business partner of Samsung in Dhaka.

‘They are working for acquiring a licence from the Board of Investment for the project.’

He said Samsung planned to develop and outsource mobile application software, gaming software and other varieties of software to Bangladesh.

Samsung IT hardware, especially computer monitors, hard disks and other accessories, have a leading position in Bangladesh market. Its electronic appliances like TV sets, refrigerators and air-conditioning sets also have a significant market shares here.

Sales growth for Samsung mobile sets in the local market is expanding sharply in recent months and it has already grabbed 15 per cent of local market share of the high-end and mid-end markets where Nokia controls more than half of the market share.

Earlier, a top Samsung executive at Samsung headquarter in Seoul the proposed Samsung software centre in Dhaka would be its twelfth research and development (R&D) centre. This new facility is expected to start operation from early next year.

‘There is a number of skilled IT and software workers in Bangladesh... just give a few chances to work for big IT companies and they could perform wander. Samsung could use the highly-competitive human resources in Bangladesh rather than those in India,’ a top Samsung executive told Korea Times on Thursday.

He added that Samsung has acknowledged that Bangladesh could run various models that are similar to those seen in India and the South Korean technology powerhouse now wants to utilize more of the proven workforce to actively respond to rising calls over software-related capabilities.

Not detailing the size of the new facility and the amount of the initial investment, Samsung executives said they would allocate more for the relative spending to maintain human-driven policy consistencies in Bangladesh.

Faisal Alim, secretary general of the Contents Providers and Aggregators Association of Bangladesh, said Samsung R&D centre would acknowledge the growing potentials of Bangladesh in the sector.

He said despite Bangladesh is at an early stage in the industry, its potential availability of a huge pool of trainable IT enthusiastic young people could allure other global companies as well.

Alim’s company, Wintel Limited, has employed 66 of such people who develop mobile applications and gaming software and it pioneered exports of these products from Bangladesh.

Some 20 local companies are developing such products and some of them are sourcing such products to Finland mobile giant Nokia. Some Scandinavian companies are also now outsourcing their work to Bangladeshi companies.

Having assets worth $250 billion, Samsung’s manufacturing, research and marketing networks around the world employ nearly three hundred thousands people.

 

[British_Bangladeshi]

Any else want to give some news about BD's economy?

 

[Justin Joseph]

'Foreign firms want to invest only near Dhaka, Chittagong'

Asian investors want to set up manufacturing units or relocate their existing industries only around the national capital and port town of Chittagong in Bangladesh, says an official.

In the first six months of 2010, the Board of Investment (BoI) had received demands for over 800 acres of industrial land, mainly in the two cities or on their outskirts.

BoI executive member Abu Reza Khan says the investors are only interested to establish or relocate their industries in either Chittagong or Dhaka.

There are no takers for the Special Economic Zones (SEZs) and Export Promotion Zones (EPZs), apparently for lack of adequate infrastructure.

'When we approached them for other cities or EPZs at other locations, they directly refuse our proposals,' The Daily Star newspaper reported Tuesday quoting Khan.

Lured by cheap labour, top executives of the world's biggest contract manufacturer of shoes, Taiwan-based Pou Chen, intended to relocate their factories from Sichuan to Chittagong.

BoI is stuck between increasing demands for industrial land by potential foreign investors and dearth of land in and around Chittagong and Dhaka.

Taiwanese executives from shoe manufacturers Hui Dong Wei Ming, Guangzhou Luo Lin and Sichuan Lujiayi Shoes Co, visited Dhaka hoping to relocate factories in Bangladesh, Khan told the daily.

Textile, leather goods and glass manufacturing companies also interested to relocate factories from China and Taiwan to Bangladesh.

Taiwanese factories in China are facing shortages of workers for low-end products due to rising expectations and salaries in higher-end goods factories.

The investors only want to be in or near the two cities, because they are worried about Bangladesh's poor infrastructure in other areas, another BoI official said.

'It is apparent that the government has no plan to create more EPZs at the two cities; but the government will ensure all facilities to private entrepreneurs to develop private EPZ and SEZ in the two cities,' a senior official of Bangladesh Export Processing Zone (Bepza) said.

'Foreign firms want to invest only near Dhaka, Chittagong'