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.

Silicon Valley appriciates Bangladesh

 

Silicon Valley, the pinnacle of global technology and innovation paid tribute to Bangladesh’s Father of the Nation Bangabandhu Sheikh Mujibur Rahman for his outstanding contribution to social, economic and political transformation. Santa Clara’s Mayor Lisa M. Gilmore presented the Silicon Valley honour on the birth centenary of the Father of the Nation.

 

Salman F Rahman, Adviser to the Prime Minister on Private Industries and Investment, received the memorandum of honour on behalf of Bangabandhu’s daughter Prime Minister of Bangladesh Sheikh Hasina. He said Bangladesh has facilitated the ICT sector and increased support from the public and private sectors. He added that now is the time for everyone to come and invest in Bangladesh. This is a new Bangladesh and we are all determined to move forward.

 

In collaboration with the American Chamber of Commerce in Bangladesh and in partnership with Venture Capital and Private Equity Association of Bangladesh (VCPIAB) and Tie Global, the conference was organized by the Bangladesh Securities and Exchange Commission (BSEC).

 

The current government’s efforts to use technology to reduce poverty, and transform the lives of the general population in Bangladesh has played a key role in this growth. The government recognizes digital inclusion as the only way to facilitate rural economic activities, and enable rural workers to capture a larger piece of the economic pie. The government very carefully designed digital services to ensure they are relevant for all three groups of Bangladeshi citizens: digital natives – younger, tech-savvy, generations growing up with technology; digital adapters – middle-aged individuals who have adopted technology; and outliers – the minority who stay away from technology.

 

The government has made a concerted effort towards achieving the Digital Bangladesh Vision by 2021, marking the 50th anniversary of Bangladesh's independence. The Digital Bangladesh philosophy of the Prime Minister Sheikh Hasina is to protect people's democracy and human rights, ensure transparency and accountability, establish justice, and ensure delivery of government services to the citizens of Bangladesh through maximum use of technology, with the ultimate goal being the overall improvement of the daily lifestyle of the general population.

The government plans to replicate this on other remote islands that dot the country’s Bay of Bengal coastline. Fibre optic connectivity has been established, providing high speed Internet connectivity. The government plans to roll out the fifth-generation cellular network technology (5G) in Bangladesh by 2021, ensuring faster and more reliable internet coverage across the country.

 

A key component of the government’s digital inclusion strategy is to promote the uptake of mobile money and other digital payment platforms. Efforts are being made to boost the popularity of Mobile Financial Services (MFS) to ensure higher penetration at the bottom of the pyramid.

 

In recent years, MFS has made a significant impact on reducing the unbanked population, rural-urban capital flow, and growth of online e-commerce transactions. In the last five years, growth of mobile financial services in Bangladesh has skyrocketed, with bKash leading the way. In 2018, registered users of Non-Banking Financial Institutions (NBFIs) were more common among the rural poor than among the adult population as a whole. Mobile money transfers were the most popular digital use case in Bangladesh and uptake of mobile money transfers was three times greater than bank transfers.

Export-oriented factories must begin to open

Country's export-oriented factories must begin to open slowly, said Prime Minister Sheikh Hasina's private sector adviser Salman F Rahman. But of course by maintaining necessary health protocols.

According to the policy maker and parliament member, "We have to take a decision. We have the Sweden model in front of us; they did not enforce lockdown. In China's Wuhan, a second wave of infections is taking place. Germany and France are still suffering, new infections and deaths are happening, but still they are opening up their factories."

He said this virtually where business leaders, economists, editors and policymakers joined the discussion. he later asked the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) to prepare a guideline on how this could be done.

The session was moderated by FBCCI President Sheikh Fazle Fahim. The discussion was also attended by the leaders of DCCI, BGMEA, BKMEA, BTMA, Editors' Guilds, ATCO and various business chambers and associations. Sheikh Fahim said the government was talking to the World Health Organization (WHO) and other global bodies to prepare the health protocols so that opening up factories could be done in line with global standards.

Rubana Huq, president of the BGMEA, said they were under pressure to allow opening of 856 factories. She said global buyers had cancelled orders worth more than $3 billion and now it was crucial to reopen the factories. She also suggested opening up the factories zone-wise, in a limited way and under a decided timeframe.