Bangladesh Economy: News & Updates

[BanglaBhoot]

Orders diverted from China shield RMG industry

Kazi Azizul Islam

Many EU and US importers, who had earlier sourced apparels mostly from China, are diverting a part of their orders to Bangladeshi suppliers which protects Bangladesh’s garment industry from adverse impacts of the current depression in the western markets.

Industry people, however, said all US and EU apparel importers, hit hard by financial crisis, are pressuring for price cuts. So, they urge the government to make a contingency support package.

They pointed out that Indian suppliers, backed up by huge devaluation of their currency, are trying to allure more and more orders form the US and EU importers.

‘Significant diversions of orders from China and elsewhere in the recent weeks have been a boon for the Bangladesh garment manufacturers,’ said Zulfiqure Ali Turaz, a senior executive of Synergies, a top buying house.

Even if the recent decline in apparel sales in EU and US markets has resulting in a 10 per cent reduction in orders from those markets, on the other hand at least 20 per cent additional orders have been being diverted from China and elsewhere to Bangladesh in the recent weeks, Zulfiqure said citing a random poll he has conducted.

Industry sources said many giant retailers including Wall Mart, VF Corporation and Carrefour hinted at increasing procurement from Bangladesh in the coming days.

Ghulam Faruk, chairman of SQ Group, a leading exporter of sweaters, said recently he received $10 million worth of fresh orders from EU’s top retailer H&M, adding those orders earlier had been bagged by Chinese suppliers.

‘Some exporters are also receiving orders diverted from Indonesia and Sri Lanka,’ Ghulam Faruk said, pointing out that a growing uncertainty regarding continuation of duty- and quota-free market access of Sri Lanka under the GSP might be making new groups of EU importers turning to Bangladesh.

He said, ‘Some Sri Lankan entrepreneurs are even considering relocation of their factories in Bangladesh to avail GSP facilities.’

Bangladesh exported $10.7 billion worth of readymade garments, including $5.5 billion worth of knit wears, in 2007-2008. The industry has projected a 16 per cent export growth in the current fiscal.

The Bangladesh Garment Manufacturers and Exporters’ Association and the Bangladesh Knitwear Manufacturers and Exporters’ Association said they had processed satisfactory volumes of orders in September and October.

Leaders of the two associations admitted that they were informed of diverting orders, which they termed a blessing for Bangladesh’s garment industry in this period of recession in EU and US markets – the major destinations of made-in Bangladesh garments.

‘We are tracing swelling orders for trousers, especially from the US buyers, and sweaters from EU importers,’ BGMEA president Anwar ul Alam Chowdhury Parvez told New Age.

Citing a US Commerce Department data Anwar said shipment of cotton trousers, including jeans, from Bangladesh to USA had increased by 25 per cent in January-October this year compared to the same period in 2007.

‘In the past two years, Bangladeshi suppliers have again proved that they are highly competitive and efficient in managing large size of orders. The resulting confidence in Bangladeshi suppliers is wooing new groups of buyers to this country, who had earlier been used to source apparels mostly from China.’

‘But, one thing that makes us worried now is the strong taka,’ Parvez said, arguing that with the value of Euro and pound sterling against dollar declined much in the recent months, many EU importers were pressing for further and further price cut.

Knitwear manufactures have also received increased orders in September and October, although those are not at par with the robust increases in the previous few months, said BKMEA president Fazlul Hoque.

He, however, sounded cautious, saying, ‘For assessing the real impacts of the recession on Bangladesh’s garment suppliers, the industry has to wait until early January.’

According to him, the industry will be in a position to assess the impacts of the current economic volatility after the Christmas sales are over and fresh orders start to come in.

The diversion of orders to Bangladesh has also been scanned by suppliers of apparel raw-materials in Pakistan, as reported by the Business Recorder, a leading business daily of the country. The report quoted Karachi Cotton Exchange president Ghulam Rabbani as saying that ‘More and more EU and US garment orders are diverting to Bangladesh; so Pakistani cotton and yarn suppliers desire to capture more market there.’

He urged the authorities concerned to develop a direct shipping service with Bangladesh, as transit shipment requires Pakistani cotton or yarn exporters to spend at least $700 on a container.

http://www.newagebd.com/2008/nov/13/busi.html

 

[Neo]

China’s high prices boost BD garment exports ​

Tuesday, November 25, 2008

DHAKA: Bangladesh’s garment industry is growing rapidly despite the global economic turmoil as China loses orders due to high prices and worldwide demand for cheap clothing soars.

Nearly 5,000 apparel makers here initially sought government help when some top US and European buyers postponed and cut orders in the wake of the worst financial crisis since the 1930s Great Depression. But clothing makers say that a massive diversion of orders from China, the world’s largest producer of apparel, has more than compensated.

In the first quarter to September, garment shipments grew by a record 45 per cent to $3.4 billion, government data this week showed, with more than 90 per cent of the exports going to the US and Europe. “It’s a huge change in fortune for us,” said Golam Faruq, owner of the country’s largest sweater manufacturer and a key supplier to British up-market retailer Marks and Spencer. “This month I got an unexpected $12 million order to make sweaters for a Swedish manufacturer. They told me in the past they used to give the order to Chinese manufacturers. But this year we offered a far better price,” he said.

Faruq said his SQ Sweaters had also received dozens of small orders diverted from China as Bangladesh has became the top choice for producing low-priced basic items like T-shirts, denim pants, sweater and shirts. Now the government’s Export Promotion Bureau, which monitors shipment trends, is urging the industry to prepare for a “flood of orders” as the global recession boosts sales of the low-cost items it produces.

“We held several expositions in Europe and North America in the past month and top buyers told us to be prepared for a massive increase in orders in the months and years ahead,” said Export Promotion Bureau head Shahab Ullah. “They said people in the West have cut purchase of luxury goods and are switching to cheaper items. And it’s our manufacturers, not the Chinese, who can supply the items at a price they now want.”

Bangladesh’s garment sector specialises in low-end clothing and is the impoverished country’s main industry, pumping $11 billion a year into the economy. It accounts for about 80 per cent of exports and employs more than 40 per cent of its industrial workforce.

Bangladesh logged 6.2 per cent economic growth last year, bolstered by a 17 per cent increase in garment sales. This year, the government projected growth of 6.5 per cent, banking on garment exports remaining strong. Knitted items, led by T-shirts which last year made up a quarter of garment exports, were the main drivers of the growth, manufacturers said.

“This year thousands of Chinese factories have shut as they are no longer competitive because of higher wages and currency appreciation,” said Fazlul Haque, head of the Bangladesh Knitwear Manufacturers and Exporters Association. “The buyers have no choice but to switch orders to another country. It has emerged as a new pattern in global sourcing. And so far it looks like Bangladesh is the main beneficiary,” said Haque. Haque said his group, which includes 1,500 factories, had enough orders to the end of the year, although it was still a bit worried over the long term impact of the global financial turmoil.

The Export Promotion Bureau’s Ullah said Bangladesh, now the world’s second largest producer of apparel according to the International Monetary Fund, would continue to dominate in the basic apparel sector if it scales up investment in new factories. “Data shows we’re cashing in on the new trend,” he said. “But we can do more, provided our factories increase capacity and set up backward linkages such as yarn manufacturing, dyeing and washing facilities as early as possible.”

 

[BanglaBhoot]

Bangladesh to become mid-income country: EU

News Report

Bangladesh will win renewed confidence and business opportunities in the EU, the US and other markets and emerge as a middle-income country if there is genuine switchover to sustained democracy, good governance, strong institutions, the rule of law and commercial dynamism after the next parliament election.

Head of the Delegation of the European Commission Dr Stefan Frowein said this while speaking on ''election, democracy and development'' at the monthly luncheon meeting of American Chamber of Commerce in Bangladesh at the Dhaka Sheraton Hotel on Wednesday.

"The successful holding of credible elections is only one indicator of the health of democracy in a given country: however, it is a vital one. I stress the adjectives "successful" and "credible" as the world is only too used. to witnessing deeply flawed and rigged elections that are mere vehicles for rubber-stamping the rule of despots" said Dr Stefan.

He said the next elected political government will face a heavy task to run the country as it will have to take some unpopular decisions on economic issues that may go against expectations of the general people.

" I would prefer to remain in the opposition bench of the parliament rather than in the treasury one as the next elected government will have to take some decisions on economic issues including in the power and energy sector, " Dr Stefan Frowein said.

Stefan said the present government regime has carried out some reforms that the next government should continue the process in the greater interest of the country.

He hailed some initiatives of the present regime like reorganizing Anti-Corruption Commission, Public Service Commission, Human Rights Commission and separation of judiciary system.

The striking endeavours of the interim government in the past two years - in hardly the most auspicious of circumstances - to foster a more congenial business environment through initiatives such as the Better Business Forum, the Truth Commission, the Regulatory Reform Commission and the thoroughgoing reform of Chittagong Port, must be recognized and apprehended.

To a question of qualitative change in politics after the December election, the EU head said he does see it will happen overnight, but gradually Bangladesh will be back to transparent, accountable and meaningful democratic system where both government and opposition parties will work together for the prosperity of the country.

He also mentioned that the authorities in Bangladesh have constructed an electoral system that includes an impeccable voter list with photographs and constituencies which better reflect the distribution of voters in the country.
He deplored that the political system in Bangladesh has for many years endured a culture of confrontation, where responsible co-operation in a parliamentary context has appeared elusive, where boycotts of the legislature and the resort to hartals are the norm, with a corresponding impact on the social and business climate of the country.

"We can draw one conclusion immediately: it is not only undemocratic states that struggle to maximize their development potential. Dysfunctional and unstable democracies lose out too, by frightening off potential investors and undermining the cultivation of the trade links that are essential for survival in a globalised world" the EU head said.

Dr Stefan Frowein said that the recent redeployment of EU election observers, with the strong support of the government and Election Commission, is a corollary of that relationship and a clear reflection of the EU''s commitment to a strong, stable and democratic Bangladesh.
The EU Head said that Bangladesh will remain the foremost recipient of EC trade-related technical assistance in Asia with an average of 10 million euros per year to tackle issues such as diversification of export products and fulfilment of quality and labour standards, said Dr. Stefan Frowein, Head of Delegation of the European Commission.

Ruling out the possibility of decline in overseas development assistance (ODA), Stefan said donors work on a long term basis and what is in the pipeline will come on stream in the next two three years.

Dr. Stefan stated that the country has sustained a creditable GDP growth rate, millions of new jobs have been created in the RMG sector, real efforts have been made to create a sustainable and prosperous future for other industries in order to ensure that the economy does not remain over-specialised on garments.

He also noted that the country has attained an impressive progress towards achieving the Millennium Development Goals.

The EU head said that local ship building industry is going to be a major source of export earnings after the readymade garment industry (now the major earner) as Bangladesh has attained a competitive edge over its Asian rivals because of its cheap and trained manpower.

He said that political stability, good governance, improved transport and communication system, rule of law and diversification of export basket will help Bangladesh become a mid-income country within next 10 years.
President of American Chamber of Commerce Syed Ershad Ahmed said the country has witnessed steady growths during democratic period (1991-2006 ).

He said that political stability and democratic system can regain confidence of investors as the people of Bangladesh and the whole world are watching the events related to the election with great enthusiasm.

However, inflation affected seriously the living of common Bangladeshi people, although they have utmost restraint and resilience during the hardship.

He also expressed the hope that national parliament election will be held in a festive mood, to be participated by major political parties.

Ershad said the members of the American Chamber of Commerce in Bangladesh wish and hope that the post election scenario would be encouraging, business environment would be more congenial and treatment to investors and businesspeople would be equitable, fair and friendly.
Vice president Trevor MacDonald and Executive Director A Gafur also spoke on the occasion.

The News Today

 

[TopCat]

I throughly understand. I have a colleague who works in Climate change, he is currently on a three month tour in Japan. When he comes back, I shall gauge his views and describe the problem in detail.

Before coming to an conclusion regarding sea water level rise and its affects on Bangladesh, you need to study, the geology of Bangladesh. 3/4th of Bangladesh was under the sea anyways and the land mass created by silt from Himalaya. The land is still rising (both inland and offshre). If we just let natural flood to take place and remove all the obstacle in the upstream (like damn and embarkment), Bangladesh will be just fine. Bangladesh government also taken a stand, not to put any more embarkment on major rivers, thats a good move. Also bangladesh people are very used to in dealing with water, there will be some displacement of people, but dont worry, you wont see millions of Bangladeshis plying to India or any other place only for that. People flock to this sweet land from all over india and asia only for water and fertility of this land for thousands of years there is no reason doing it other way.
The main problem bangladesh will face from Climate change is the uncertainty of weather, salt water coming inland(due to artificial obstacle of normal river water), cyclone etc.

 

[Al-zakir]

Asia's 'biggest' mall launches sales campaign in Dec, Bangladesh - T&G Supply

November 3, 2008 - By Muntazir Zaidi
Jamuna Future Park, which is said to be the biggest shopping mall and entertainment complex in Asia, will kick off its sales campaign in December with a plan to open it for public by July 2010.

Sprawling over 33 acres of land in Baridhara, the park won the clearance of the city development authority, known as Rajuk, on October 21 after a six-year long legal battle.

One of the key objectives of the establishment of the park is to reduce the number of people going abroad for shopping and treatment, Nurul Islam Babul, chairman of the Jamuna Future Park, tod a press conference in Dhaka yesterday.
It would rather attract foreign businessmen and tourists to Bangladesh, he hoped.

The park's projected annual turnover is Tk 40,000 crore.

Babul said space at the park would relatively be expensive, with each square foot costing up to Tk 60,000.
“Small vendors will not be able to afford a shop at the JFP as it will be meant for higher and higher-middle-class people,” he said, expressing his high hope that the gorgeous park would escalate the economy of Bangladesh.

“As the twin tower has improved the image of Malaysia, the world will know Bangladesh by Jamuna Future Park,” said Babul.

The JFP will house over 4,000 shops of local and international brands, a food court with the capacity of 3,000 persons, a well spacious exhibition hall, a cineplex with seven hall rooms and an amusement park.

In addition, a 22-line bowling alley, health club, gymnasium, swimming pool and a banquet hall with the capacity of 500 persons will attract people from home and abroad, the journalists were told.

A five-star hotel and a hospital will be built on the JFP premises.

The centre will have parking spaces for 5,000 cars and is surrounded by a 26-foot ring road in order to allow customers to bring their own vehicles.

The JFP will set up its own power plant with a capacity of 45 megawatts to ensure uninterrupted power supply inside the complex.

An automatic system along with CCTV, auto alarm, surveillance and guard patrolling would ensure security.

Construction of the JFP started in 2001, but political disputes delayed the process.

In February 2007, Babul was arrested under the emergency power rules for anti-state activities and land grabbing. He was released on bail in December.

 

[Al-zakir]

:The Daily Star: Internet Edition

Asia's 'biggest' mall in Dhaka
Md Hasan
The interior view of under construction Jamuna Future Park, a giant shopping mall in Dhaka (left) Photo: Syed Zakir Hossain
The giant glass and steel arch hangs like an upturned smile above the concrete and scaffolding, each day welcoming hundreds of construction workers and prospective store holders into the cavern like atrium of what is claimed will be Asia's biggest shopping centre.

No, this monster of a building is not on some retail park on the outskirts of Shanghai, or Kuala Lumpur, but in Dhaka, Bangladesh. And whether or not the claim of its Asian predominance is true, the sheer scale of 'Jamuna Future Park' cannot be questioned.

Standing in the entrance of the nine story building with sunlight cutting down through the glass ceiling, Future Park's designer AJM Alamgir can roll off a list of staggering figures as testimony to its scale.

So far more than 5.5 million bricks, 40,000 tones of steel, 2 million bags of cement and 3.6 million cubic feet of sand have been consumed in its construction. On average 1,200 workers are busy on the site each day and when completed there will be 4.5 million square feet of shopping, entertainment facilities and offices.

It is the largest ever private infrastructure venture, and will be three times the size of Bashundhara City, the country's current number one shopping mall, according to the Jamuna Group.

With space for more than 4,300 shops, a food court, children's theme park, cinema halls, an exhibition centre and offices the centre's total yearly turnover will be around TK16,000 crore, according to Nurul Islam Babul, chairman of Jamuna Group.

“It’s not only the biggest in the country, I must claim that it is the biggest ever shopping mall project in South Asia,” said Babul.

But getting it built has not been easy. Work started on the site in 2001, but political disputes delayed development. In February 2007 Babul was seized and sent to Dhaka Central jail, accused under the emergency power rules of anti-state activities and land grabbing. He was released on bail in December and is unwilling to comment on the accusations or the reasons for the project's delay.

At present around 80 percent of work has been completed and the aim is to open the first phase of the complex by mid 2009 with 140 escalators and 42 lifts still needing to be installed. A second phase involving the construction of a hotel and hospital will come later.

But will there really be enough customers to keep the 4,300 shops going?

Babul has no doubt. “When I dreamed of such a big venture, I considered a place which must be surrounded by areas that would be able to provide customers for Future Park.. I think this is the right spot.”

The centre is well located for most of the more affluent parts of the city, Gulshan, Baridhara, Uttara, DOHS, and Banani, he said, adding that “Its population density will encourage the prospective shoppers to become a part of the country's biggest business centre.”

The centre will have parking spaces for 5,000 cars and is surrounded by a 26 feet ringroad in order to allow customers to bring their own vehicles.

Babul also insisted that Future Park, with its entertainment focus ranging from restaurants to karaoke and bowling lanes to swimming pools, would attract non-shoppers.

“The park should not be considered a mall only, it's a city where you can find whatever you want for passing a day time.”

One common question asked is about power supply, but Babul said power supply is not a problem. “We will supply uninterrupted power to the mall by setting a 40MW private power plant inside the area.”

Bangladeshi engineers have already proved their skills by developing huge projects around the world. For example, everyone can recollect the name of Fazlur Khan, a Bangladeshi structure engineer who designed the Sears Tower in Chicago.

But here in Bangladesh it still comes as a surprise to many that a local engineer, such as AJM Alamgir is behind such a huge project as Future Park. Indeed Alamgir is involved in several of the major developments going on in and around Dhaka at the moment such as the Unous Tower at Motijhil, Silver Tower at Gulshan, and North Tower at Uttara.

Yet sometimes it is difficult to remain engaged in such a long running project as Future Park. “Sometimes I feel a little bored. But when I realize this project is likely to be part of history, any reluctance I have turns into enthusiasm,” he said.

It's a feeling echoed by Jamuna Group's Babul. “I will not be alive forever, but the 18,000 tones of concrete used in the Jamuna Future Park will make me immortal,” he said smiling.

 

[Al-zakir]

Official web site for Jamuna future park.

.: Jamuna Future Park || The Biggest Shopping Mall in South Asia !

 

[BanglaBhoot]

Remittance earning boom

A total of 9,81,102 workers from Bangladesh went abroad in fiscal 2007-08 representing a 74 per cent increase over 5,63,584 who had gone in 2006-07. Earning-wise growth was 44 per cent during first quarter of 2008-09 compared to that of the corresponding period in previous fiscal. Non-Resident Bangladeshis (NRBs) sent US$ 2.345 billion to Bangladesh in three months between July and September, topping US$ 1,629 billion during the same period in the last fiscal.

The higher remittance earning is attributed to anti-money laundering drive of the central bank which has reduced recourse to 'hundi' or dispatch of money through unofficial channels. Basically, the commercial banks are in a fierce competition among themselves to attract remittance, which has become a major source of foreign currency transactions for them. The quick and reliable services offered by them have prompted Bangladeshi wage earners to depend on the banking channel. The banks could reduce their charges to attract more remittance. They could think of offering counselling services for productive investment by remitters through pooling of resources.

As a major pillar of foreign exchange earning next to the readymade garments (RMG) sector, manpower export and consequent earnings from Bangladeshi wage earners need to be promoted by recourse to a special strategy. The country's foreign missions abroad should be tasked to negotiate new employment opportunities for Bangladeshis in their countries of operation. There is a large potential to tap in on employment prospects in Latin America, Africa and Europe. Bangladesh needs to break some new ground.

Taking a cue from other countries known for their astounding success in the manpower export sphere, Bangladesh must try and build a domestic infrastructure for training its manpower in keeping with the demand patterns of the importing countries.

Remittance earning boom

 

[leonblack08]

Bangladesh bags $20m orders for two small vessels

Bangladesh has received orders worth $ 20 million for building two small vessels and a tugboat from Middle East countries at the region's biggest shipbuilding fair in Dubai.

The fresh orders give testimony to Bangladesh's emergence as a global hub for small ocean-going ship building.

The country's ship builders, Ananda Shipyard and Slipways, bagged the new orders at the fair called Seatrade Middle East Maritime 2008, the largest maritime event of its kind in the region.

"We have received orders worth $ 11 million from Iraq to build two crew supply vessels and $ 9 million from Iran for building a tugboat," said Abdullahel Bari, the chairman and the managing director of Ananda, the country's largest ocean-going ship building company.

The two vessels weighing 100 tonnes each will be delivered to Iraq by June, 2010 and a tugboat to Iran by March, 2010, he added. With the latest orders, Ananda's total 'confirmed' export orders have now crossed worth $400 million.

Another two local shipbuilding companies -Highspeed Shipbuilding and Engineering Company Ltd, and Karnaphuli Ship Builders-took part in the fair. A total of 313 companies from 33 countries attended the three-day fair that ended December 16 in the United Arab Emirates. The exhibition is held every two years in Dubai.

Though the two companies did not receive any spot orders they are in negotiations with some Middle East countries for contracts, according to the officials.

"The atmosphere was subdued at Dubai fair because of global financial downturn," said Kazi Amirul Islam, captain of Karnaphuli Ship Builders.

In October this year, Bangladesh made a big impact in the world's biggest shipbuilding fair in Hamburg, bagging export orders worth US$250 million.

"We are, however, hopeful that the demand for Bangladeshi built ships will gather pace because of its lower cost and geographical strategic position," said Islam of Karnaphuli Ship Builders that has already built a number of tugboats for Chittagong Port Authority (CPA).

Previously, such boats were imported from Denmark.

He said: "There will be talks with an Iraqi company for building water vessel and a tugboat. A Sharjah-based shipping company is expected to visit our shipyard soon."

Bangladesh came into limelight in April 2007 when Ananda signed deals worth around $100 million with two German shipping companies to build eight vessels with capacity for carrying 325 containers by June 2010.

The country has become a new destination for construction of small sea vessels, which have an annual market of $400 billion, as traditional shipbuilding nations such as South Korea, Japan and China now focus on large vessels.

Even Vietnam, which is relatively new in shipbuilding, is no longer interested to build ships weighing less than 25,000 tonnes.


Bangladesh bags $20m orders for two small vessels

 

[Al-zakir]

Your Industry News - Bangladesh To Export 12 Ships To Europe By 2011

Bangladesh To Export 12 Ships To Europe By 2011

Wednesday, Dec 24, 2008
Western Marine Shipyard Ltd. (WMSL), a local shipbuilding company, will export 12 ships, weighing 5,200 tonnes each, by 2011 to Germany, Holland and Denmark, the Bangladesh's news agency BSS reported.

Commerce and Education Adviser Dr Hossain Zillur Rahman inaugurated building of the 12 ice class ocean-going multipurpose vessels at the WMSL yard at Shikalbaha on the south bank of the river Karnaphuli in the district.

Quoting Dr Hossain, BSS reported that the export of such a big number of ships as a milestone for the country's shipbuilding sector and said it would definitely help Bangladesh find a secure place in global ship manufacturing market.

""The sector has enormous potentials and it would contribute to making Bangladesh a middle-income country soon.

""The sector has huge potential of contributing to the economy after garment sector and shipbuilding companies should not compromise with the quality in keeping the reputation in global export market,"" he said after the ""keel-laying ceremony that symbolizes with hitting the hammer on iron-plate on the proposed structure of a ship to start the work.

Also present were German Ambassador to Bangladesh Frank Meyke, Denmark Ambassador Bea M Ten Tusscher and Shipping Secretary ATM Mokter Hossain, Managing Director of AB Bank Ltd Kyser A Chowdhury and Managing Director of WMSL Sakhawat Hossain.

He said separate rules and regulations are needed for the shipbuilding sector.

The adviser said pledges of giving special attention by two major electoral alliances in their polls manifestos for the promotion of the sector is really encouraging.

Dr Hossain Zillur asked the commercial banks to come forward in providing soft-term loans to the entrepreneurs in the sector.

Meanwhile Danish Ambassador Bea M Ten Tusscler said Bangladesh is not only a ship breaking country but also has emerged as a strong ship manufacturing and exporting state through concerted efforts.

She urged the concerned authorities to increase the facilities for flourishing the sector and to work with dedication to uphold the image of Bangladesh in the international arena.

WMSL has already built 54 various types of vessels. Of them, 49 were supplied in the local market and the remaining are for international market.

Trade body leaders from Dhaka and Chittagong, and entrepreneurs and bankers also attended the colourful inaugural function.

The adviser went round the WMSL establishment over 20 acres of land enriched with state-of-the-art technology.

 

[Al-zakir]

Overseas employment exceeds 8.75mln in 2008


Nearly US $9bln received as remittance


Friday January 02 2009 00:00:46 AM BDT
http://newsfrombangladesh.net/view.php?hidRecord=238851

The number of Bangladeshis cleared for overseas employment in 2008 exceeded 8,75,000 creating a new record. A record amount of nearly 9 billion US dollar has also been received as remittances in 2008. Previous year (2007) witnessed the employment abroad of over 8,32,000(The Bangladesh Today)

which was then a record too. Foreign Adviser Dr Iftekhar Ahmed Chowdhury, who is also in charge of the Ministry of Expatriates' Welfare and Overseas Employment, expressed his deep satisfaction at this.

"It is my hope that the next government would continue with this effort, because the opportunities of new markets are vast", he said.

Iftekhar said "At all times, however, we must remember that the welfare of our workers must remain a priority. A migrant worker is not just a revenue generating machine. He is also a human being. Indeed, he is our pride."

 

[Al-zakir]

1,520 Bangladeshis to get jobs: Korean company to invest $9.996m in Chittagong EPZ

NATION BUSINESS REPORT

M/s Young An Hat (BD) Limited a Korean company will set up a cap manufacturing industry in Chittagong Export Processing Zone.

This 100 per cent foreign owned company will invest US$9.996 million to set up their unit and will produce hats and caps. The company will also create employment opportunity for 1,520 Bangladeshi and three foreign nationals.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and the M/s Young An Hat (BD) Limited in BEPZA Complex, Dhaka on January 4 last.

Prasanta Bhushan Barua, Member (Investment Promotion) of BEPZA and Kyoung Seb Shin, Director of M/s Young An Hat (BO) Limited signed the agreement on behalf of their respective organizations.

Brig General Jamil Ahmed Khan, Executive Chairman of BEPZA and other officials from respective organizations were present on the occasion.

The New Nation - Internet Edition

 

[Al-zakir]

'BD Taka maintains impressive stability'

FE Report

Bangladesh taka (BDT) maintained impressive stability while the world currency market was recuperating from the shock of US sub-prime crisis, Standard Chartered bank in its 'Financial Markets Round-up 2008 made this comment.

Taka remained broadly steady at 68.50-69.50 per US dollar through out the year. Though import growth outpaced export, record high home remittance eased the pressure causing the rate to move within a limited range, the roundup noted.

The Bangladesh Bank supported the market all year round by managing liquidity time to time. Import growth has been 25.63 per cent in 2007-2008 against export growth of 15.70 per cent. But remittance grew by 32 per cent to $ 7.9 billion tagging a positive figure to the balance of payment. Aid and Grant also increased by 75 per cent, bank said.

It noted that though taka stood out of the league showing strong character against the dollar, other currencies in the region, such as Pakistan rupee and Indian rupee, lost ground against the greenback. During the yearend, Indian rupee stood at 48.8 per dollar, down around 24 per cent, while the Pakistan rupee was down by 28 per cent from January to 78.80 level. Non-US majors such as Euro and Sterling were extremely volatile against BDT in tandem with their volatility against the US currency. Euro went up to Tk 111 in middle of July and came as low as Tk 88 level in middle of November before bouncing back toward Tk 100. Pound went up as much as Tk141 in March but went down as low as Tk 103 level in November 2008, the round up said.

The local money market however experienced some volatility in 2008. The market remained calm in 2007, contributed by surplus liquidity in the system. The scenario started to change from the third week of January 2008 and call money rates started to rise. The central bank acted prudently and injected liquidity into the system, which helped stabilise the market. Call rates hovered mostly between 7.00 per cent and 15 per cent in 2008 compared to 6.5 per cent and 9.5 per cent in 2007, the bank observed.

The central bank used the Repo tools allowing banks to borrow taka against government approved securities and also bought back government bills and bonds that were sold earlier. The continuous liquidity support allowed banks to manage funding and help credit growth in the economy, it noted.

In addition, primary dealer banks were comfortably able to fund the securities that were devolved on them and pursue secondary bond trading activities, it added.

Disclosing its observations on secondary market the roundup said the central bank's initiatives to activate a deep secondary market for government bills and bonds started to see results in 2008 with significant rise in secondary trading led by primary dealer (PD) banks and some other non-PD banks. There is now a widespread understanding of bond trading dynamics and settlement processes among the banks.

The central bank continued to publish semi-annual monetary policy statements adapting accommodative monetary stances. The central bank repo rate, rate at which central bank lends money to banks) and reverse repo rate, rate at which banks park surplus liquidity with the central bank) were increased to 8.75 per cent and 6.75 per cent from 8.50 per cent and 6.50 per cent respectively to keep inflation under control. The issuance of 28 days treasury bills were discontinued in order to further boost secondary trading of government securities, the roundup said.

'BDT maintains impressive stability'

 

[Al-zakir]

Bangladesh's Nov exports up 13.4 pct on textiles

Mon Jan 12, 2009 11:52am IST Email |
DHAKA, Jan 12 (Reuters) - Bangladesh's exports in November surged 13.4 percent to $1.297 billion from a year earlier on the back of increased sales of clothing and other textiles, data from the Export Promotion Bureau showed on Monday.

Export earnings in the period from July to November, the first five months of the 2008/09 financial year, also grew 26.8 percent to $6.55 billion, the data showed.

Earnings from knit textiles during the period rose 35 percent to $2.7 billion from the previous year, while exports of woven garments rose 25 percent to $2.3 billion.

Exports hit a record $14.11 billion in the 2007/08 financial year, of which almost $10.7 billion came from garments.

Bangladesh has set an export target of $16.298 billion for the year to June 2009. The projected target for knitwear is $6.58 billion, up 19 percent from the last fiscal year. The target for woven garments is $5.68 billion, up 10 percent.

Exporters say many foreign buyers are now flocking to Bangladesh for low-end textile products because key markets hit by the global financial crisis, such as the United States and Europe, are looking for cheaper goods. ($1=68.95 taka) (Reporting by Ruma Paul)

Bangladesh's Nov exports up 13.4 pct on textiles | Reuters

 

[Al-zakir]

Bangladesh to build $1.5 bln bridge over Padma
Tue Jan 13, 2009 6:17pm IST
DHAKA, Jan 13 (Reuters) - Bangladesh will soon start implementing a plan to construct a $1.5 billion bridge over the river Padma to connect the southwest of the country with the capital Dhaka, a government minister said on Tuesday.

The bridge -- the country's largest -- will help boost business and the movement of goods between the country's second seaport, Mogla, and the rest of the country.

Construction of the 5.58 km (3.5 mile) long bridge, at Mawa, 50 km south of Dhaka, will be funded by international financial institutions including the Asian Development Bank and the World Bank.

"We will engage consultants by this month and then will go ahead for tender process to select builders," Communication Minister Syed Abul Hossain told reporters after meeting ministry officials.

The decision to build the Padma bridge follows the construction of a 5 km long bridge over the Jamuna river at Tangail in 1998. That bridge, 100 km north of Dhaka, connects the western region of the country with the capital.

Bangladesh will provide some $200 million for the Padma bridge, which will carry railway and gas transmission lines, officials said.

The bridge will cut travel time between the capital and the Sundarbans mangrove forests, the UNESCO World Heritage site, by several hours, officials at the tourism ministry said. (Reporting by Nizam Ahmed; editing by Simon Jessop)


Bangladesh to build $1.5 bln bridge over Padma | Reuters