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Old February 2nd, 2008, 09:12 PM   #381
Tmac
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South Korea largest investor in Bangladesh

South Korea is reported to be the single largest foreign investor country in Bangladesh in terms of number of investments. The country alone operates 57 industries with 100 per cent ownerships in 10 different Export Processing Zones (EPZs) across the country.

S Korean companies have also established three companies under joint venture agreements with local companies, information revealed by the Bangladesh Export Processing Zones Authority (BEPZA).

According to their statistics, total 156 foreign companies with 100 per cent ownership have set-up their industries in different EPZs. Among them, S Korea alone is the largest investor in terms of number. Investment of Japan comes second with 22 complete Japanese ownership and two others in joint venture.

In S Korean investments, RMG and garment accessories production sector were on the top. Total 40 S Korean companies are involved in it. Beside that, production of plastic goods is the second largest S Korean investment sector, the report informed.

Other investment sectors are the footwear, leather goods, metal industry, electronic items and many others, the BEPZA statistics revealed.

Production of electronics and electrical items are the main attention for Japanese investment. Japanese targets total 11 out of 22 complete ownership and one out of two joint venture investments in this particular sector. Plastic goods, metal items and RMG industries attracted remaining Japanese investment, the statistics stated.

Among other major investors in Bangladesh, Hong Kong, Taiwan and China stands in the first row. Individually China has set up three complete ownership and six joint venture companies in EPZ areas.

But joint ventures companies by China, Taiwan and Hong Kong have established 23 absolute ownership industries.

In Joint venture agreements with Bangladeshi companies, this triangular alliance has invested to establish seven industries in Bangladesh.

Among the SAARC members, India alone is the largest investor country, holds 11 complete ownership industries and five joint venture industries in BEPZA areas.

Second position goes to Pakistan. The country has established two industries with 100 per cent ownership and also has four others in joint ventures with local companies.

USA and UK operates eight industries each with complete ownership where as Germany operates four, Canada three, Malaysia seven, the statistics further mentioned.

In sector wise investment in different EPZs in Bangladesh, RGM and garment sector have attracted maximum investments. Total 49 RMG and garments accessories producing industries are completely owned and operated by foreign investors. Textile industries are in the second position to attract foreign investment in Bangladesh, where the number is 38 with complete foreign ownership.

Other 10 plastic goods production industries, six agro processing, eight metal industries and 13 electrical items manufacturing companies are absolutely owned by foreign investments, which has been set up in Bangladesh.

According to the Executive Chairman BEPZA Brig. Gen. Ashraf Abdullah Yussuf, this rapidly growing foreign investment in Bangladesh is no longer a matter of surprise in the present global scenario.

"We have stopped issuing plots allocation to garments industries in all our EPZs. Still now, the number of applications we are receiving from foreign investors, we would need to establish another 10 EPZs to accommodate these companies," he said while addressing a press conference at his BEPZA office earlier.

According to him, the BEPZA has earned total US$451.82 million during the first half of 2007-08 FY from investment accords. It was net 36 percent growth against the previous years earning of US$333.72 million.

Moreover, export from the BEPZA during the first half of 2007-08 FY also grew to US$1076.96 million against US$1015million in the same period of the previous fiscal," he additionally added.

"Now what we need is to establish more EPZs as early as possible. Because the investors are showing their interest on Bangladesh for some geopolitical advantages," he said.

If we can't provide land for establishing these industries, our competitors like India, China, Thailand, Vietnam would avail the opportunity, he ended.

http://nation.ittefaq.com/issues/200...3/news0683.htm
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Old February 4th, 2008, 07:45 AM   #382
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This is a really good news Tmac. Thanks for the post. I really hope Govt. takes the responsiblity of knowinng what is right for the economy and take immediate steps to establish 10 oe 20 more EPZ is different location of the country. This will surely help in decentralizing the work force around country and less pressure on the capital city.
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Old February 8th, 2008, 08:27 PM   #383
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Saudi group signs deal to set up oil refinery in Chittagong

Hitech Group of Saudi Arabia and Cosmopolitan Group, a Bangladeshi private company, will sign an agreement to set up a $3.0 billion petroleum oil refinery in Chittagong today (Saturday).

The proposed refinery will be set up at Anowara, south bank of Karnaphuli river once the investment proposal is approved by the Board of Investment (BoI).

The refinery will be able to produce 300,000 barrels of oil a day.

About 5.1 million tonnes of crude will be imported by the plant every year from Saudi Arabia.

"We will be able to export the refined oil to Singapore and other neighbouring countries," Mohiuddin Jahangir, advisor to the Cosmopolitan Group, told the FE.

He also said it will be 100 per cent foreign direct investment proposal and the Cosmopolitan will be the managing partner of the venture.

Currently, Bangladesh has one state-owned oil refinery plant at Patenga situated just opposite to the Cosmopolitan proposed site, and has been facing numerous problems to operate.

The capacity of the proposed refinery will be more than three times of the state-owned Eastern Refinery.

"We have selected the site as the lighter vessels will be able to anchor here and we will need less time for unloading the crude from the mother vessels," Mohiuddin Jahangir added.

The project will be set up in 350 acres of land and directly employ around 1000 local skilled manpower.

"I think only the Bangladeshi workers who will be engaged in the plant will be able to earn around $5.0 million annually ," Mohiuddin added.

The plant will also use most modern fractional distillation and hydrocarbon cracking technology to refine the crude.

The cosmopolitan sources said both the companies are committed to take steps regarding environmental issues and the proposed plant will be eco-friendly.

http://www.thefinancialexpress-bd.co...&news_id=24908
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Old February 8th, 2008, 08:29 PM   #384
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Saudi group signs deal to set up oil $3.0 billion petroleum refinery in Ctg

This would be one of the most important and strategic investment. Not only in economic term, making Chittagong a true business and energy hub, this investment is immense. BOI and govt should pay utmost attention to this project. All regulatory permission and land allocation should be expedited.
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Old February 8th, 2008, 08:39 PM   #385
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Originally Posted by snoq View Post
Saudi group signs deal to set up oil $3.0 billion petroleum refinery in Ctg

This would be one of the most important and strategic investment. Not only in economic term, making Chittagong a true business and energy hub, this investment is immense. BOI and govt should pay utmost attention to this project. All regulatory permission and land allocation should be expedited.
Snoq, let's hope BOI actually goes ahead and approves this project. I have a feeling this will face the same challenges like so many other large FDI proposals. Somehow they never manage to get these projects started.
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Old February 8th, 2008, 09:25 PM   #386
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TMAC while I do share your concern but there are fundamental differences between this investment and other big ticket investment already proposed i.e tata, asia energy. This should be treated like setting up another industry, a big one, in EPZ.

Let’s look at why this project should not see delay and hurdle:
---------------------------------------------------------------

1) This refinery project does not require any precious Bangladeshi energy input such as gas or coal. So there is not contention or concern in this regard.

2) This refinery project does not require any pricing model or production sharing contract.

3) This refinery would not require any infrastructure or other spending whereas both Tata and Asia energy required huge infrastructure spending (in hundreds of millions) from Bangladeshi govt.

4) Be aware currently Bangladesh has to import refine product to meet demand, our only refinery (Eastern) could not meet out total demand.
This refinery project will meet Bangladeshi demand for refined product therefore Bangladesh will be net beneficiary.

5) This refinery does not have environmental concern like Asia energy project or even Tata project.

6) This refinary does not have any need for population displacement like Asia energy does.

7) This refinery does not need hundreds of acres of land as Tata and Asia energy needed.

8) This refinary will add high paying Bangladeshi job and source of huge tax revenue for Bangladesh.

9) In the long run this refinary project will provide some sort of energy security in the time of needs.


There are more reasons why this investment proposal should not face same fate as other big ticket proposal. But Hope you got the fundamental differences and the point why it should be expedited.

That being said, some quarter who always try to undermine our progress and independence (WB and people next to us) will try to find way to block this project. I think challenge would be overcoming those hurdle.
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Old February 8th, 2008, 10:26 PM   #387
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$3.0 billion, you sure this is not another scam?
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Old February 8th, 2008, 10:51 PM   #388
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$3.0 billion, you sure this is not another scam?
Why? was there a $3.0 billion scam in BD before?
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Old February 9th, 2008, 04:31 PM   #389
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Why? was there a $3.0 billion scam in BD before?
this firm alegedly spread news that a saudi company was investing 2 billion dollars in their company, and took money out of the stock market in the process, for details google!
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Old February 9th, 2008, 06:03 PM   #390
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This firm is not even listed in BD stock market. Show the proof of your allegation.

Last edited by snoq; February 9th, 2008 at 06:11 PM.
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Old February 9th, 2008, 06:08 PM   #391
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Saudi to invest $3bn in Bangladesh

ASIAN INVESTMENT: HTIG is to set up an oil refinery with capacity of 300,000bpd. (Getty Images)Bangladesh and Saudi Arabia on Saturday signed a deal to invest $3 billion to set up an oil refinery with a capacity to produce 300,000 barrels per day (bpd) of oil products.

Hi-Tech International Group (HTIG) of Saudi Arabia and Cosmopolitan Oil Refinery Management Limited (CPORML) of Bangladesh signed the deal to implement the project within the next 40 months, the chairman of CPORML said."If everything goes well, we will be able to go for production on time," Dewan Sultan Ahmed told reporters after signing the deal.

The plant will be set-up with 100% foreign direct investment and it will import more than five million tonnes of crude oil from Saudi Arabia, Sultan said. The entire final product will be exported in neighbouring counties, he added.

The production capacity of the proposed refinery will be more than three times of the state-run Bangladesh Eastern Refinery Limited (BERL), the lone refinery plant in the country, Sultan said.
BERL, located at the port city of Chittagong with 1.5 million tonnes of refinery capacity of crude oil, supplies refined oil to three state-owned oil firms for distribution across the country.
The plant will use most modern fractional distillation and hydrocarbon cracking technology to refine the crude, he said."We are committed to ensure the plant as environmentally friendly," Sultan said.

Yasin S. Indarki, chairman of the HTIG, said in the deal signing meeting that as the sponsor of the project they would be able to implement the project with assistance from its Bangladeshi partner.Bangladesh imports 3.8 million tonnes of fuel every year, including about 1.5 million tonnes of crude oil, officials said.

In Bangladesh, the price difference between refined and crude oil is up to $10 per barrel, they said. (Reuters)

http://www.arabianbusiness.com/51071...ngladesh?ln=en
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Old February 9th, 2008, 06:42 PM   #392
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Sounds good...however there is always some exuberance whenever such a big proposal is announced. We should thoroughly analyse what benefit the Saudi company expects from this invenstment and whether this would leave us vulnerable to any undue Saudi influence. If mutually beneficial then I am all for it, but we must be careful since we are still a relatively small economy. A decision should be made in a timely, but not rushed, manner.
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Old February 9th, 2008, 09:13 PM   #393
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$7b Saudi-Bangla oil refinery likely in 40 months
Deal on largest-ever FDI in private sector inked


The country's second crude oil refinery company is likely to come into operation in a span of 40 months as a US$7billion joint venture deal between a Bangladeshi company and a Saudi big investment company was signed yesterday.

The people close to the country's investment scenario believe it to be the single largest-ever foreign direct investment (FDI) in the first-ever crude oil refine industry in the private sector.

Eastern Refinery, a state-owned enterprise, is the present such lone unit to manufacture petroleum products.

Managing Director of the Cosmopolitan Group of Companies Nur-Nabi Bhuiyan and Chairman of Hitech International Group Dr Yasin S. Indekeri signed the agreement on behalf of their respective sides at a ceremony in Dhaka.

The new venture, which is a petrochemical complex, will be a cent percent export-oriented one having a capacity of refining 300,000 barrels a day and 5.1 million tonnes a year, a quantity that is three times higher than that produced by Eastern Refinery Limited. The state-run company refines crude oil for the local market.

Before the signing of the deal, Dewan Sultan Ahmed, chairman of Cosmopolitan Oil Refinery Management Limited, a concern of the Cosmopolitan Group, and also a former vice president of FBCCI (Federation of Bangladesh Chambers of Commerce and Industry), said, “The Saudi company's initial investment will be $3billion, which is to be elevated to an amount of $7billion.”

The Bangladeshi sponsor company's top official has expressed his hope that the new plant will go into operation in 3 and quarter years.

Both the companies have already submitted Expression of Intent (EoI) letter to the Board of Investment (BoI) to implement the project, Dewan further said.

Echoing Dewan's hope, the Saudi group chairman Dr Indekeri said, “ The refinery will go into production within 36 to 40 months.”

BoI Executive Chairman Kamaluddin Ahmed and FBCCI's former president Yousuf Abdullah Haroon were present among others at the epoch-making signing ceremony.

Pointing to the fact that there is no equity partner either from the government side or local private company for the refinery plant, Dewan said,“Hitech International will provide $3billion as 100 percent equity of the proposed project. Cosmopolitan Oil Refinery Management Limited of Bangladesh will be Hitech's joint venture partner and will endeavour and perform all local required activities and services.”

He said the project will need 500 hectares of land in the coastal belt for the convenient entry of vessels with crude oil from Saudi Arabia.

Dewan said more than 1000 skilled and semi-skilled workers would be employed in the state-of-the art technology run refinery.

Natural gas will be used as energy for running the plant, he said, adding that the Saudi company has already sought gas at a concession rate for more than 25 years.

Hailing the signing of the deal, Yousuf Abdullah Haroon said it is the right time to invest in oil refinery in Bangladesh. “We need energy security, so setting up of such oil refinery plant will contribute to forging future energy security”.

http://www.thedailystar.net/story.php?nid=22732
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Old February 9th, 2008, 09:18 PM   #394
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.....We should thoroughly analyse what benefit the Saudi company expects from this invenstment and whether this would leave us vulnerable to any undue Saudi influence......
Analysis is good but Daily Star type analysis where pro western interest bought news paper would not help Bangladesh and its interest. One should consider the idea of propagating “undue Saudi influence” as PURE speculation as there was no such evidence since independence of Bangladesh.

1) Bangladesh has its largest expatriate group 1.7 million working in Saudi Arabia sending more than $2 billion to Bangladesh each year.

2) Saudi Arabia had and has given FREE money to Bangladesh whenever we needed, no string attached.

3) Most recently Saudi Arabia donated more than $230 million to Bangladesh, no other country even did fraction of that.

4) It is Saudi Arabia who gave money to buy most modern frigate for our navy.

If Saudi Arabia wanted undue influence it could have done it long time ago. I should say rather than speculating foucs on how this could be made a fruitful investment.
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Old February 9th, 2008, 09:28 PM   #395
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$7b Saudi-Bangla oil refinery likely in 40 months
that's very nice.
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Old February 9th, 2008, 09:39 PM   #396
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that's very nice.
That will be the hallmark in FDI if comes true. Let's hope for the best.
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Old February 9th, 2008, 10:22 PM   #397
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Seems like the Saudi company is putting 100% equity and then later transforming into a joint venture. We have got nothing to lose if this FDI goes through. Also the refinery will not even be using our Gas it will use Saudi "concession rate" gas (cheaper gas) to produce consumer fuel. Hope this FDI goes through.
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Old February 9th, 2008, 10:43 PM   #398
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Originally Posted by snoq View Post
Analysis is good but Daily Star type analysis where pro western interest bought news paper would not help Bangladesh and its interest. One should consider the idea of propagating “undue Saudi influence” as PURE speculation as there was no such evidence since independence of Bangladesh.

1) Bangladesh has its largest expatriate group 1.7 million working in Saudi Arabia sending more than $2 billion to Bangladesh each year.

2) Saudi Arabia had and has given FREE money to Bangladesh whenever we needed, no string attached.

3) Most recently Saudi Arabia donated more than $230 million to Bangladesh, no other country even did fraction of that.

4) It is Saudi Arabia who gave money to buy most modern frigate for our navy.

If Saudi Arabia wanted undue influence it could have done it long time ago. I should say rather than speculating foucs on how this could be made a fruitful investment.
What dopekhor said about a scam involving a saudi firm promising $1 billion is actually true and was widely published in bd newspapers, but that's a different firm. Hope everything goes fine in this case!

I'd completely disagree with your fourth point. It was mistakenly stated in Janes defence magazine once and spread from there. BNS Khalid bin Al Walid (previously BNS Bangabandhu) was bought from South Korea with BD's own money (defence budget).
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Old February 10th, 2008, 12:36 AM   #399
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What dopekhor said about a scam involving a saudi firm promising $1 billion is actually true and was widely published in bd newspapers, but that's a different firm. Hope everything goes fine in this case!

I'd completely disagree with your fourth point. It was mistakenly stated in Janes defence magazine once and spread from there. BNS Khalid bin Al Walid (previously BNS Bangabandhu) was bought from South Korea with BD's own money (defence budget).
I would not elaborate how Saudi money got into defence budget as this is not right forum.

As the scam issue is raised, a proof is overdue parhaps in a different thread.
And like you we all hope investment goes well,
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Old February 10th, 2008, 01:32 AM   #400
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Hope Snoq is right and this investment is made soon.
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These days,I can finally go to sleep in peace.....for I know,that even when I am asleep,over 2 million workers are working on 15000 building projects including 750 skyscrapers so that I wake up to a new city every morning: Mirza from the changing city of Dhaka,Bangladesh
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