H&M to raise apparel sourcing from BD

http://thenewnationbd.com/newsdetails.aspx?newsid=41140

H&M to raise apparel sourcing from BD
B&F Report

A Sweden-based clothing retailer Hennes & Mauritz (H&M) has announced to increase its sourcing from Bangladesh, said Dow Jones Newswires quoting H&M Head Helena Helmersson. It also intends to launch a trial programme for the current and next year, the news agency stated.

H&M head said they have already informed the Bangladesh Government, its other stakeholders and clothing producers regarding their growth plans. However the ongoing labour unrest in the country is restraining suppliers from planning production, as strikes and protests often hamper production and cause delays, she added.

She said that a stable market would prove to be greatly beneficial for the company as well as its suppliers and workers.

The firm intends to utilize its power to build pressure on its suppliers in Bangladesh to improve work conditions, and push for constitution of democratic labour committees that can negotiate with factory workers on wages and working conditions.

Operating a network of more than 2,500 retail outlets in 44 markets across the world, with a staff of 94,000 people, H&M is a leading buyer of garments from Bangladesh. It currently sources around 25 percent of its products from Bangladesh and it intends to raise this volume in future.

Bangladesh has now emerged as a reliable readymade garment-sourcing destination for leading global retailers, due to its competitive prices.

A recent study undertaken by McKinsey, a leading research company in US, states that Bangladesh’s apparel exports are expected to grow almost two-fold by 2015 and three-fold over the next 10 years. This is because leading buyers from China are shifting to Bangladesh as capacity constraints and rising labour costs in China are eroding their profit margins.

Trade with India’s north-east on rise

http://thenewnationbd.com/newsdetails.aspx?newsid=41185

Exports hit $700m
Trade with India’s north-east on rise
Faruque Ahmed

President of Bangladesh-India Chamber of Commerce and Industry and the country’s one of the leading businessmen Matlub Ahmed said India is opening up and specially its northeast is emerging as a big market for Bangladesh goods.

He said his business house the Nitol Group is now setting up two paper mills at Chhatak in the Sunamgonj district exclusively focused on the Indian market across the Meghalaya border.

Matlub said he is also working on a tyre manufacturing factory there in a joint venture with a Chinese firm and the market focus essentially remains the Indian northeast. He told The New Nation Friday evening that Indian investors have also shown interest to set up textile plants and other spare parts factories at Sunamgonj where gas supply may be available. He is working as a facilitator in all these projects. Some Indian corporate houses are also working on investment plans at Kishoregonj to manufacture small transport vans, tyres, motor parts and to set up textile plants, he said. These are long term projects but work is in progress at different levels, Matlub said.

He, however, believes most Indian business want investment projects in and around Dhaka and it may take time to refocus on other locations. He said the trade relation with India is growing faster in the recent years with an average 40 percent annual rise in the past two years.

Bangladesh is now enjoying hundred percent duty free market accesses to India in garment items while Dhaka is trying to expand the list, he said, adding: export to India has already hit $700 million last year while Indian export stands at $4.5 billion. Bangladesh’s exports are, however, catching up in the recent years, he said.

Matlub Ahmed said the ongoing India-Bangladesh Trade Fair in the city; which will end today (Saturday) at Bangabandhu International Conference Center, and such other regular exchanges will only contribute to strengthening the bilateral trade relations to be followed by increased volume of export to India.

The main problem for Bangladesh is its limited export basket, he said, adding it needs diversification at a faster space and the business community is capable to achieve it given the peace and policy support to open new export sectors and achieve its quality standard.

He said India understands that its Northeast will not be able to grow without allowing its closer business ties with Bangladesh and exporters here should exploit the situation. He said the policy outlook of Delhi has undergone tremendous change in allowing the northeastern states to enter into growing trade with Bangladesh.

Exports to Tripura has already gone phenomenally up, but to Assam and Meghalaya the pace remains slow in want of wide ranging products.

He said northeast is poor compared to the Indian mainland where GDP growth stands at 8 percent plus while it varies from 3 to 4 percent in the northeast. A closer business and economic ties can only bring the necessary boost to its socio-economic development. It requires closer ties and frequent consultation at political and business levels, he said.

Matlub Ahmed said the visiting Arunachal Chief Minister Nabam Tuki, now attending the trade fair, has called for Bangladesh investment in his state, including at a hydroelectric dam.  He said he has offered to take rod, cements and such other construction materials for the dam from Bangladesh and also spoke of his readiness to sell electricity here in return.

He said he was very optimistic of the growing market access to India.  The presence of a 40, member Indian delegation which also includes the Chief Minister of Meghalaya, Mukul Sangma, two ministers from Assam, one minister from Tripura along with its Chief Secretary and a number of  chamber leaders from the center and the sates have added new dimension to this year’s trade fair, he said.

Dhaka eyeing $250m Turkish suppliers’ credit

http://www.theindependentbd.com/paper-edition/frontpage/129-frontpage/113222-dhaka-eyeing-250m-turkish-suppliers-credit.html

Dhaka eyeing $250m Turkish suppliers’ credit
Author / Source : JAGARAN CHAKMA

DHAKA, June 2: Although most public-private partnership (PPP) projects still remain confined to drawing boards, the government is going to borrow US$ 250 million suppliers’ credit, as line of credit (LoC) from Turkey, to implement some of those planned projects. Sources in the Economic Relations Division (ERD) said that preliminary formalities, for the borrowing, have almost been completed. Türk Eximbank wants to give the USD 250 million LoC for implementing PPP projects, especially those in the infrastructure development sector, ERD sources said.

The Turkish government has already placed the proposal, raised by Türk Eximbank, at its cabinet meeting.

Earlier, on February 29, a meeting was held at the ERD, to discuss the framework of the agreement. Sources added that a two-member delegation of Türk Eximbank will visit Dhaka, on June 11, to negotiate the issue. Türk Eximbank has already sent the draft framework agreement to ERD. The two eximbank officials who will visit Dhaka, to negotiate the deal, are assistant general manager (buyers’ credits), Alaaddin Metin, and assistant manager (in charge of Bangladesh), Suzan Usta.

Earlier on April 24, the Türk Eximbank wrote to the councellor of Bangladesh embassy in Turkey, Shah Asif Rahman, saying, “The loan facility will be provided in accordance with the preference of government of Bangladesh. The selection of the projects, as well as, experts or construction firms, will be managed by the Bangladesh side.”

The bank also wrote, “As Türk Eximbank borrows on floating rates, all of our loans are also offered at floating rates. The rate offered to Bangladesh, and for any other party, are determined in such a way that they do not go below the cost of borrowing of Türk Eximbank.”

According to the draft framework agreement prepared by the finance ministry of Bangladesh, the credit facility would be made available by Türk Eximbank to the borrower, in order to finance 85 per cent of the goods and services that would be exported from Turkey to Bangladesh, under the LoC, to be issued by a bank nominated by the borrower, to Turkish commercial bank, in favour of the Turkish exporters.

It also said, “The goods, to be exported, should have a minimum Turkish component of 50 per cent.” According to a message faxed to the Bangladesh mission in Turkey, on April 29, the rate of interest and repayment period are: Libor plus 3.5%, with up to 10 years maturity, including grace period for construction projects undertaken by Turkish contractors; and Libor plus 3%, with up to 5 years maturity, for capital goods exported from Turkey to Bangladesh.

Meanwhile, the Federation of Bangladesh Chamber of Commerce and Industries (FBCCI) and Dhaka Chamber of Commerce and Industries (DCCI) has asked the government to use the Turkish LoC towards establishing economic zones, ETP plants under BSCIC or ministry of industries, an industrial zone in Savar, coal-based power plants, composite garments or tannery projects whose finished products can be sold back to Turkey, and water supply and sanitation units.

The Annual Development Programme (ADP) for the upcoming 2012-13 fiscal year has included 10 public-private partnership (PPP) projects, in sectors ranging from communications to energy.
Seven of the 10 projects are under the communications sector. Four are under the roads division—the Dhaka Elevated Expressway, a second Padma bridge between Paturia and Goalundo, Dhaka-Ashulia Elevated Expressway, and a tunnel under the Karnaphuli river.

Three are related to the railway—a double-line dual-gauge track on the second Bangabandhu Bridge, a rail line from Dohazari to Cox’s Bazar, and a rail bridge from Fulchhari to Bahadurabad ghat.

The remaining three projects are under the energy sector—renovation and modernisation of the Eastern Refinery Limited, setting up an LPG cylinder, and accessories manufacturing plant at Elenga, and a 0.10 million tonne capacity LPG bottling plant, which includes import facilities, storage tanks, pipelines and jetty.

Innovative power plants

http://www.theindependentbd.com/paper-edition/backpage/132-backpage/113239-they-set-up-power-station-at-buriganga-for-electricity-.html

Innovative power plants
Author / Source : MD JAMIL KHAN

[KERANIGANJ: Serious load-shedding has compelled the residents to hire barges and set generators on them. Photo: Tarif Rahman] DHAKA, JUNE 2: It is not government-sponsored quick rental project but rental it is. Endemic power shortage, and load-shedding have compelled the people to devise the way as an alternative source of power when the existing plants cannot meet the demand. Such plants are found in Keraniganj where a group of people supplies electricity to several markets by installing a dozen generators on a drum barge.  The barge was anchored in the river of Buriganga.

Saiful Islam, owner of the M.D. Alamnagar drum barge said, “We are operating the business for more than a year in order to give support to businessmen of the area in cheap rate.”

“But this year, the power crisis of the area has crossed the limit than earlier as we only get electricity for two hours in a day,” Saiful said adding, “If the authority concerned do not take initiative to increase the condition then we have no other option but to shut the businesses from here.”

Visiting the area, this correspondent found that six barges have been set up on the area having the capacity of providing two megawatt of electricity daily. It provides electricity, sometimes for 13 hours, to 3000 shops and 700 small garment factories which have grown on the bank of the Buriganga under Keraniganj.

Those who are taking the electricity service from the barge are the owners of Khaja Super Market, Alam Tower, Sahidul Alam, S. Alam and garment factories at Sholu Towers.

The owner of the barges charge Tk 300 for a bulb, Tk 800 for a machine of a factory and Tk 500 for a fan a month.

They need 10 barrels of oil everyday to run a generator normally. One barrel of oil costs Tk 12 thousand. In the process they spend Tk 1.2 lakh daily. But these days they have to spend Tk 2 lakh daily as the demand is rising every day.

It is our good luck that this commercial service is providing us electricity to keep our work going without any interruption, said Sahidul Islam, owner of a garment factory.

If they shut their service, then we don’t know what will happen for us and minimum 700 small factory owners of the area, he added.

The drum barge is not only supporting the business community of the area but also creating employment facilities for the jobless people of the area. According to sources, a total of 120 people are working in the six drum barge of the area. The workers said that earlier their family was in very poor condition but they are now living happily.

Mohammad Aziz, an operator of the barge said, “Earlier, I would spend a very miserable life with my family members but now I am happy as I am getting a standard salary from the owner of the barge.”

Mohammad Mizan, an inhabitant of the area said, “The barge owners are doing a valuable work as they are helping the business community to run their businesses by giving uninterrupted power supply.”

He also urged social NGOs of the country to come forward like this barge owner to help the people of the country so that they can lead a happy life and continue their regular work as electricity is essential for our daily life.

Gooryong Fashions plans green building

http://www.thedailystar.net/newDesign/news-details.php?nid=236799

Gooryong Fashions plans green building
Star Business Report

Gooryong Fashions Ltd, a Gazipur-based garment group, has signed agreements with two consultancy firms to set up a green building at its existing premises within the next one year.

Green building refers to a structure that is environmentally responsible and resource-efficient throughout the building’s life-cycle: from sitting to design, construction, operation, maintenance, renovation, and demolition.

The move comes in response to growing demand from international buyers for clothing items manufactured with environment-friendly technologies.

Spectrum Lanka Technology Solutions Ltd and Energy Solve International (Pvt) Ltd will provide consultancy services in exchange of a $90,000 fee for the construction of the sustainable building that meets the requirements of LEED (Leadership in Energy and Environmental Design), said Delwar Hossain, chairman of Gooryong.

US-based LEED provides building owners and operators with a framework for identifying and implementing practical and measurable green building design, construction and operation and maintenance solutions.

Farooq Hasan, vice-president of Bangladesh Garment Manufacturers and Exporters Association, said the government and the garment makers’ associations are working together to capacitate garment factories to move from traditional production methods to green technology.

Latest agri-technologies stressed for increasing paddy yield

http://www1.bssnews.net/newsDetails.php?cat=4&id=253464&date=2012-06-01

Latest agri-technologies stressed for increasing paddy yield

RANGPUR, June 1 (BSS) – Agriculture experts at farmers’ field day and crop cutting ceremony yesterday stressed for adopting the latest agri- technologies to increase paddy production at lower costs in ensuring food security.

For example, transplantation of 35-40 day old seedlings of BRRI Dhan 29 in straight lines along with adoption of guti urea could raise the average yield rate of this variety paddy to 80-maund per acre in place of 60-maund in general now, they said.

The Department of Agriculture Extension (DAE) organised the farmers’ filed day and crop cutting ceremony in a paddy field in village Purbo Shukhdebpur under Hamidpur union in Parbotipur upazila of Dinajpur.

Parbotipur upazila chairman Hafizul Islam Pramanik attended as the chief guest while Agriculture Officer AFM Rawshan Kabir and Polashbari union chairman Mofakkharul Islam were present as the special guests with farmer Mujib Uddin Sarker in the chair.

Sub-assistant Agriculture Officer Abdur Rahman, Lecturer Anwar Hossain, Farmers Rakibul Karim Dulal, Azgar Ali and Farhad Hossain also spoke.

The speakers suggested farmers for adopting the proven and latest agri-technologies in turning crop cultivation more profitable through increasing productions, improving soil health, environment and ecology amid climate change impacts.

They stressed for successful adoption of the latest agri- technologies that have been showing excellent results including more crop productions at reduced costs with minimum disturbances of the soil textures.

They emphasised the need for GO-NGO-Private collaborations to reduce crop production costs significantly and increase productivity further to improve the farm household incomes through raising crop intensification adopting latest technologies.

Adoption of the latest agri- technologies will help saving water, improving weeds, nutrient and fertilizer managements, escaping drought and saving production costs by reducing labours, fuel, irrigation and reduction of crop durations, they said.

oDesk to help transfer freelancers’ payments

http://www.thedailystar.net/newDesign/news-details.php?nid=235798

oDesk to help transfer freelancers’ payments
Senior official of the US-based company speaks on online payment system

Matt Cooper

Mamun Abdullah

Bangladeshi freelancers will be able to receive payments in their local accounts from their US clients directly through the accounts of oDesk, a global marketplace that helps businesses hire, manage and pay remote freelancers or teams.

oDesk is now working to develop a money transfer system for its Bangladeshi freelancers, said a top official of the company.

As the Bangladeshi freelancers are facing problems in getting payments from their clients in the US, oDesk is introducing the system, said Matt Cooper, vice president of marketplace operation division of the company, in an interview with The Daily Star.

He said, “An efficient payment system is the key to doing online work successfully.”

Cooper came to Dhaka last week to participate in an “appreciation day” for the freelancers of the company in Bangladesh.

oDesk is working on how easily the payment could be reached to the Bangladeshi contractors from their US client institutions, he said.

“No inter-media would be required and the fees are attractive for transferring the payments,” Cooper said, adding that the service will be available soon in Bangladesh.

Cooper earlier came to Dhaka at the end of last year to attend a “digital fair” — e-Asia — and came to know about the payment-related problems of the Bangladeshi freelancers, he said.

Bangladeshi freelancers have already urged the government to take initiative to open Paypal’s operations in the country. Paypal is a global online payment organisation based in the US.

After his first visit to Bangladesh, Cooper also met the chief executive officer of Paypal and requested them to start their operations in Bangladesh.

A group of officials of Paypal would come to Dhaka within this year to look for scope to work here, Cooper said. But before that, oDesk will work to facilitate money transfer from its own bank account, he said

In March, a member of Bangladesh Association of Software and Information Services (BASIS) went to California, the headquarters of Paypal, to request them to start their operations in Bangladesh.

oDesk offers employment opportunities globally and independent freelancer contractors can work with their clients through oDesk all over the world, said Cooper.

Maximum works are technical. About the works he said, 60 percent revenues of oDesk come from software development, while the rest are from search engine optimisation, data entry, market research and translations with a wide range of non-technical jobs.

Cooper said 30 percent of Bangladeshi contractors work for search engine optimisation, while 12 percent for data entry, 8 percent for software development and 6 percent for web research. Beyond that, a large segment of works is non-technical, he said.

“Growth of Bangladesh as a back-office is excellent,” Cooper said.

In 2009, Bangladeshis freelancers did 2 percent of the total work of oDesk, which now rose to 12 percent, said Cooper.

“It’s tremendous growth. Every year the growth rate almost doubled.”

A lot of young and highly educated Bangladeshi freelancers are working for oDesk.

Describing the success story of a Bangladeshi freelancer, Cooper said an employee of a private company in Bangladesh had been facing hardship in bearing her family expenses. Then she contacted oDesk and is now earning five times higher than she earns from the current job.

There are hundreds of such stories, he said, adding that some of the freelancers in Bangladesh even earn $100 per hour.

“You can earn $10, $15 or $20 an hour through online jobs.”

There are about 50,000 regular freelancers with oDesk, while the number of its registered freelancers is about 1.9 million globally, he said.

There are 150,000 registered contractors from Bangladesh. Among them 8,000 are working actively.

Bangladeshi freelancers earn $15 to $20 per hour on an average for technical works, while $5 to $10 for administrative or non-technical works.

But some of the top freelancers in the US earn even $150 per hour, said Cooper.

Most of the Bangladeshi freelancers’ average age is between 25 and 35 years with university education, and most of them do the work of data entry, while the rest do the technical jobs.

oDesk wants to see more Bangladeshi freelancers in technical works such as software development.

Bangladesh is competing with India, Pakistan and some eastern European countries. “It definitely indicates the higher quality of the Bangladeshi freelancers,” he said.

There are two types of freelancers with oDesk: individuals and small groups. But most of the freelancers working with oDesk are individuals, Cooper said.

According to the website of oDesk, more than 250,000 businesses use oDesk including Wikipedia, Hewlett-Packard, NBC, Travelocity and Aol. It also works with some of the fortune 500 companies.

Low-cost and high-speed internet should be made available across the country to help more people enter online jobs, Cooper said.

He also stressed the need for a friendly regulatory environment for easy transfer of money and low-cost computers so more people are involved in this type of work.