Beximco PPE and K2 Logistics signs agreement

Beximco PPE limited and K2 Logistics Bangladesh Limited on 24 November signed an agreement on production and quality consultation.

Japanese Ambassador to Bangladesh Naoki Ito attended the signing ceremony hosted by Beximco Group Chairman ASF Rahman, Beximco Group Director and CEO Syed Naved Husain, and Dr Mohidus Samad Khan, executive director of Beximco PPE Ltd, said a press release. The ceremony was attended virtually by Private Industry and Investment Adviser to Honorable Prime Minister Salman F Rahman, and a member of the Jatiya Sangsad.

Tetsuro Kano, general manager of Itochu Dhaka Office and President of Japanese Association, Hikaru Kawai, the general manager of Marubeni Dhaka Office and President of Japanese Commerce and Industry Association of Dhaka, Yuho Hayakawa, the chief representative of Japan International Cooperation Agency (JICA) Bangladesh Office, Yuji Ando, chief representative of JETRO Dhaka Office, Dr Moazzem Hussain, advisor of K2 Logistics Bangladesh Limited, Ryoma Mitani, executive director of Ken2 Japan, Toshihide Yuda, COO of K2 Logistics Bangladesh Ltd were also present at the event. Guests at the event gave speeches highlighting the importance of Japanese expertise in professional-level inspection and quality control techniques which are of extreme importance in PPE/medical supply chains.

After the signing ceremony at the Beximco PPE Park, the Japanese ambassador moved to Beximco Industrial Park where he visited Beximco Industrial Park. The ambassador was very impressed to see Beximco's fully vertical state of the art Textiles, Garment Manufacturing, and World Largest Modern Sustainable Washing Plant, the press release added. At the Beximco Industrial Park, Naoki Itoalso inaugurated the startup and launch of the World Class State-of-the-Art Tsudakoma Looms, Sizing Machine and Warping Machine which Beximco has sourced from Japan, financed by JICA.

Weak banks should consider mergers: Salman F Rahman

Financially weak banks should consider mergers in a bid to reduce the pressure of default loans, according to Salman F Rahman, the prime minister's adviser on private industry and investment."There are systematic issues in our banking industry as borrowers are allowed to take short-term loans for long-term investments, resulting in many bad debts," he said during a press meet at the Dhaka Reporters Unity.Rahman then suggested that establishing more specialised banks for investment could help relieve the country's financial constraints in this regard.

Besides, the economic impact of Covid-19 increased the amount of non-performing loans (NPLs) worldwide and Bangladesh is no exception as borrowers struggled to pay back instalments amid the coronavirus-induced economic downturn. The adviser also emphasised widening the tax net to increase government revenue as the tax to gross domestic product (GDP) ratio in Bangladesh is among the lowest in the world. "Still though, the size of the national budget is about 10 times what it was back in 2009, when the current government assumed office," Rahman said, adding that regular taxpayers bear the brunt of this expense as many people remain outside the tax net.

 

He went on to say that the Bangladesh Investment Development Authority (Bida) would provide the necessary support required to facilitate foreign direct investment through its One-Stop Service (OSS) platform from next year. Potential clients can already avail more than 40 services from the OSS, an online platform integrating relevant government agencies to streamline the investment procedure in Bangladesh.

"However, complexities regarding certain policies of the National Board of Revenue are always raised by both foreign and domestic investors," Rahman said. Regarding the recent hike in fuel prices, Rahman said it was tough for the government to bear the huge amount of subsidies required to keep costs low. And although fuel prices recently fell in the international market, the demand is rising as the global economy has reopened. Responding to a question about the capital market, he said there was weakness in the market as 80 per cent of all investments come from retail investors and institutional investors make up the rest.

The case should be the opposite, he said, adding that the market is quite dependent on equity instead of bonds. "We are working to improve the bond market. Bangladesh Securities and Exchange Commission is also sincere in this regard." Explaining the reasons behind remittance outflow, Rahman said local companies often hire foreign experts for senior positions due to the lack of skilled domestic workers. And although more local experts are being employed by the garment industry, its emerging manmade fibre segment requires foreign expertise. But since these foreign employees spend much of their income while staying in Bangladesh, outgoing remittance does not exceed more than $300 million per year.

Regarding developments in the health sector, Rahman said the treatment for all maladies would eventually be available in Bangladesh. In addition, local pharmaceutical companies are gearing up to manufacture Covid-19 vaccines next year. "Beximco Pharmaceuticals will set up a dedicated facility for Covid-19 jabs within the next six weeks while Incepta Pharmaceuticals has signed a deal with Chinese companies to manufacture vaccines," said the vice-chairman of Beximco Ltd.

Beximco is in talks with the Serum Institute of India, Pfizer, Moderna, and other global vaccine makers to manufacture Covid-19 vaccines in Bangladesh. Vaccines will be required in the future as well since there is a possibility that the Covid-19 pandemic will continue indefinitely. "So, local vaccine manufacturing is required," he added.

Salman urges US entrepreneurs to invest in Bangladesh

Salman F Rahman, Prime Minister Sheikh Hasina’s adviser on private investment affairs, said the US entrepreneurs should take the opportunity of Bangladesh’s highly liberal investment regime.He said this during his meeting with US Deputy Assistant Secretary of State Kelly Keiderling at his office. Mr Rahman briefed her about the huge reform initiatives taken by the government during recent years, said a spokesperson of Bangladesh Investment Development Authority (BIDA).

In response to Ms Kelly’ query regarding the social compliance’s and safety issues in the factories, Mr Rahman said that the government has taken a string of measures to address those issues. Ms Kelly lauded the Bangladesh government’s management of the pandemic situation and said that the bilateral ties will enhance further in the coming days, the spokesperson added.

Both sides stressed the need for holding the next economic partnership dialogue at the earliest convenient time.

Transport operators' countrywide strike

 

The transport operators' countrywide strike  affected export and import of goods at a time when businesses have been attempting to make a recovery from the fallouts of the Covid-19 pandemic.Any disruption to business, including in transportation of goods, in the time of revival will only prolong the recovery.

 

Many exporters faced difficulties to carry goods from their factories to the Chattogram port and vice-versa. Moreover, all types of activities at the Chattogram port almost came to a halt as a faction of owners and workers of goods transporting vehicles enforced the countrywide 72-hour work abstention since yesterday morning over a 15-point demand.

 

Goods and container transport to and from the port as well as loading and unloading of goods and containers at the vessels berthed at the jetties remained suspended yesterday as no goods-carrying vehicles like trucks, covered vans and prime-movers operated. Activities at the 18 private inland container depots (ICDs) also were badly disrupted due to the work abstention of vehicle workers. Bangladesh Covered-Van, Truck, Prime Mover Goods Transportation Owners Association and Bangladesh Truck Drivers Workers Federation jointly enforced the countrywide work abstention. Some of the major demands are cancellation of the decision of hiking advance income tax imposed on the vehicle owners and removal of complications in issuing driving licences for heavy vehicles, they said.

 

Stoppage of harassment by police through stopping vehicles at any place in the name of checking documents and setting up of adequate terminals and restrooms for the goods-carrying vehicles on both sides of the highways are some of other demands.

 

But the berth operators said loading and unloading activities also came to a halt as prime-movers engaged in carrying the unloaded containers from the hook point to different yards did not operate. Saif Powertech handles container movement at seven jetties under Chittagong Container Terminal (CCT) and New Mooring Container terminal (NCT).

 

On an average day, 1,000 TEUs (twenty foot equivalent units) of import containers are usually unloaded from a vessel. Transport of import and export containers between the port and 18 private ICDs was also suspended.

Xiaomi starts assembling mobile phones

Smartphone giant Xiaomi announced that it had began assembling mobile phones in Bangladesh.

The factory in was set up with $10 million in Foreign Direct Investment (FDI) under the "Made in Bangladesh" scheme.The factory will assemble 3 million units of smartphones annually.

The Chinese brand is also eyeing local production soon, said Xiaomi Bangladesh officials. DBG Technology BD Ltd, a leading Chinese electronics manufacturing service (EMS) company, will assemble the smartphones in Bangladesh.

Xiaomi revealed its "Made in Bangladesh" plan at a special programme. Salman F Rahman, adviser to the prime minister on private industry and investment, and Zunaid Ahmed Palak, state minister for Information and Communication Technology (ICT) Division, attended the event. Salman F Rahman said the partnership with Xiaomi will create more employment opportunities for the youth in Bangladesh. "We are delighted to be a partner in setting up Xiaomi's first manufacturing unit in Bangladesh as part of the Digital Bangladesh initiative. We believe that this partnership will create more opportunities for the country's youth and establish a world-class electronics manufacturing ecosystem," he said.He urged the Chinese company to make Bangladesh a hub to produce their IT and electronic devices.

Mobile handset manufacturing and assembling began in Bangladesh in 2017 when Walton started producing electronic products locally. Later, cellphone giant Samsung as well as Symphony, and other brands started manufacturing in the country.With Xiaomi's new factory, there are now at least 10 local and global companies that are producing smartphones in Bangladesh.

As of now, Bangladesh Telecommunication Regulatory Commission has issued 14 licences for setting up mobile manufacturing and assembling factories in Bangladesh. Market insiders say Nokia is also expected to set up a factory in Bangladesh, but the brand has not announced anything yet. Currently, there is a demand for 32 million units of mobile, of which 12 million units are smartphones, says Bangladesh Mobile Phone Importers Association (BMPI). According to Statcounter's data, Xiaomi is now the second top mobile brand in Bangladesh's smartphone market, having around 20% of the market share, while Samsung is in the top position with 30.46% share.

Salman F Rahman invited Saudi companies to invest in Bangladesh

Prime Minister's Private Industry and Investment Affairs Adviser Salman F Rahman has invited Saudi firms to invest in Bangladesh, promising to set up a Special Economic Zone (SEZ) for investors from the Kingdom. Meeting in Riyadh attended by various renowned Saudi businessmen, chamber representatives, investors and local Bangladeshi businessmen

During a discussion on Saudi-Bangladesh trade and investment, organized by the Bangladesh Embassy at Marriott Hotel in Riyadh on Monday night, Salman spelt out the steps taken by the Sheikh Hasina government to attract foreign investment.He also offered to set up the SEZ for Saudi investors, as promised by the PM. "All facilities have been ensured for foreign investors," he said.

"Bangladesh is moving forward under the leadership of Prime Minister Sheikh Hasina. The government is working to make Bangladesh a high-income country by 2041 with the aim of building Bangabandhu's ‘Shonar Bangla’," Salman added.

Highlighting the friendly relations between Bangladesh and Saudi Arabia, Bangladesh's Ambassador in Riyadh Md Jabed Patwari said that the economic ties between the two countries would be further enhanced in the days to come.

Executive Chairman Sirajul Islam of the Bangladesh Investment Development Authority (BIDA), Executive Chairman Sheikh Yusuf Harun of the Bangladesh Economic Zones Authority (BEZA), and CEO of the Bangladesh Public-Private Partnership Authority (PPPA) Sultana Afroz also spoke about the economic development and investment facilities in Bangladesh. The meeting was also attended by various renowned businessmen, chamber representatives, investors and local Bangladeshi businessmen from Saudi Arabia.

Beximco LPG signed a deal with Jamuna Oil Company

 Beximco LPG Unit 1 said it had signed a deal with Jamuna Oil Company Ltd, a subsidiary of Bangladesh Petroleum Corporation, to sell its autogas by setting up pumps at the registered filling stations of the state-owned company. The signing ceremony took place at the Chottogram office of Jamuna Oil Company on. The agreement was signed by Gias Uddin Ansary, managing director of Jamuna Oil and Mrinal Roy, chief executive officer of Beximco LPG. 

Jamuna Oil and Bangladesh Petroleum Corporation will each receive a royalty of Tk0.50 per litre of LPG that is sold by Beximco LPG through their established Auto LPG pumps. 

According to the agreement, it will ensure rapid penetration of liquefied petroleum gas (LPG) for use in automobiles across the country. LPG is also known as autogas while is used in motor vehicles. 

Currently, Jamuna Oil has a network of 750 filling stations while Beximco LPG was granted 500 franchise licenses for Auto LPG stations and 25 licenses for Conversion Workshops by the Ministry of Energy and  Mineral Resources earlier in 2016, said a press release of the Beximco. 

Speaking at the ceremony, Mehedi Hasan, GM, sales and marketing of Beximco LPG, said, "This agreement with Jamuna Oil Company will stand as a milestone for the rapid progress and development of the automotive fuel sector of the country. He said Beximco LPG commits delivery of the best quality LPG mix of Propane and Butane to ensure that the fuel reaches the required Octane number and causes no damage to the engine of the vehicle. 

The number of refuelling stations for liquefied petroleum gas (LPG) or autogas and its consumption are growing fast with the big LPG players ramping up their operations as the government looks to cut dependency on other fossil fuels. The energy ministry has already given the approval for setting up 2,550 autogas stations across the country to 13 LPG operators, with many attaining permission to erect conversion centres for the fuel use mechanisms in vehicles.

The operators have already set up about 400 autogas stations with over 200 to 300 vehicles converting to LPG per day, according to industry people. Signing agreements with Bangladesh Petroleum Corporation's (BPC) three companies -- Padma Oil Company, Meghna Petroleum and Jamuna Oil Company, the operators are signing deals with registered refuelling stations of those companies for setting up autogas stations and supplying LPG.