Car manufacturing in Bangladesh: preparing for the next biggest industry after apparel
Bangladesh will soon start manufacturing cars, that too electric ones, according to a news report published in The Daily Star with the headline “Local firm to set up a $200m plant to make electric vehicle” in July last year. Presently the country has 12 million people of the medium-income generating affluent bracket and this segment of the population is growing very fast — by 10 per cent a year. Meanwhile importing automobiles requires paying import duties ranging from 130 per cent to 850 per cent. This inevitably results in some consumers not getting their desired vehicles within their affordability. Automobile density, which is the number of vehicles per unit length of the roadway, in Bangladesh is as low as 0.5 per cent, when the global average is 12 per cent. The Bangladesh Economic Zones Authority (Beza) has been selecting locations in different districts all over the country for special economic zones. Bangabandhu Industrial Park is an industrial town being built on 30,000 acres of land by the river Feni. This industrial city is being set up on the west side of Mirsarai. This industrial park is expected to generate 1.5 million jobs. In the next 25 years, 1.5 billion new generation smart vehicles will be manufactured in the world. The smart vehicles’ market size is $30 trillion. While the BAIL is preparing to manufacture two, three and four wheeler EVs, its sister concerns are gearing up to manufacture lithium-ion batteries, motors, controllers and chargers. These are crucial components of EVs. Thus, it is a 360-degree EV manufacturing ecosystem in development. However, the NSDA should prepare plans not only for the human resource just entering the job market but also those intending to make a switch over apprehensions their existing sector might come to be abandoned eventually.
Coronavirus hits clothing business
As virus-wary shoppers stayed home in the United States and Europe, apparel retailers braced for a blow to sales and a potential inventory glut. Some slashed orders at readymade garment (RMG) factories while others began discounting merchandise. In Europe, Zara owner Inditex said on Friday it would temporarily close stores in the areas of Spain worst affected by the novel coronavirus, including Madrid. Kohl’s Corp said it had experienced softer demand, especially in areas most affected by coronavirus. On Thursday, Gap Inc. said it expected a $100 million revenue hit this quarter due to the new coronavirus outbreak. In China, the country where the first new coronavirus case was detected and most fatalities happened, consumer demand has remained a major concern even as shoppers have begun to venture out of quarantine. Further up the supply chain in Bangladesh, the world’s second-biggest apparel manufacturer after China, brands are asking for cuts in orders of up to 30 per cent and seeking discounts, said Rubana Huq, head of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Luxury leather goods maker Salvatore Ferragamo, known for its Vara shoe and Ferragamo Studio bag.
Training on setting up new business held
A two-day training course on creating new entrepreneurs concluded in the city on Saturday. A total of 16 business professionals took part at the training on ‘How to Establish a New Business’, organised by DCCI Business Institute at its office. Chief Financial Officer of Rahimafrooz Bangladesh Limited Mohammad Zahid Hossain and Professor of Finance Department at United International University Dr. Md Mohan Uddin conducted the training as resource persons. The aim of the training was to help broaden the mental horizon of the professionals and make them conversant with very important issues of establishing a new business. DCCI Vice-President Bashiruddin said most of the entrepreneurs are not adequately prepared for going into business despite having motivation, desire and talent.
Banker – SME Women Entrepreneur and Product Display- 2020
Bangladesh Bank Governor Fazle Kabi gave an award to Managing Director & CEO of Agrani SME Financing Company Ltd Md Nurul Haque at the closing ceremony of ‘Banker – SME Women Entrepreneur and Product Display- 2020’ at Bangladesh Bank Training Academy in the city recently. Agrani SME Financing Company, an NBFI owned by Agrani Bank Limited, got the award for its contribution to development of cottage, micro, small and medium enterprises in the country.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|DSEX||4,129.96194||↓ 101.52574||↓ 2.93 %|
|↑ 1,985.00||↑ 9.36 %|
|FTSE100||5,366.11||↑ 128.63||↑ 2.46 %|
|Nikkei 225||17,431.05||↓ 1,128.58||↓ 6.08 %|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 31.73 ||↑ 0.23||↑ 0.73 %|
|Crude Oil (Brent)||$ 33.85 ||↑ 0.63||↑ 1.90 %|
|Gold Spot||$ 1,529.84 ||↓ 46.31||↓ 2.94 %|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.2518|
|GBP 1||BDT 102.147|
|EUR 1||BDT 92.4128|
|INR 1||BDT 1.12439|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<