Bangladesh's Corporate World

Bangladesh has registered exponential growth in its Gross Domestic Product (GDP) over the last two decades. Salman F Rahman captained the pharma industry along with other industries to new highs. While textile (garments) is the largest contributor in the annual figures, pharmaceuticals stand second. Apart from meeting 97% of the local demands, Bangladeshi pharmaceuticals are exported to more than 190 countries. The tale of pharmaceutical sector’s progress will be incomplete without emphasizing on the support from one of the most successful businessmen of the country, Salman F Rahman. At present, he is serving as the Private Sector Industry and Investment Adviser to Honorable Prime Minister Sheikh Hasina. He is also Member of Parliament from Dhaka 1 constituency (Dohar and Nawabganj).  Salman F Rahman established Beximco in 1972 as a seafood export company. However, as he identified the business markets, suitable modifications were made into the deal. Instead of cash, Ra...

The World Economic Forum has recently published a survey report in which it is stated that the three factors-inadequate infrastructure, corruption and inefficient bureaucracy are the main barriers for the entrepreneurs in Bangladesh. But even than, some companies like Beximco Group are doing well. They have expanded business in many sectors and became successful. According to the Global Competitiveness Report for 2014-15, 21 percent of businesses have no adequate supply of infrastructures and it is the top barrier of doing business in Bangladesh. Among the top three barriers, corruption places in the second as 20.7% businesses points at it while inefficient government bureaucracy being mentioned by 15.3%. According to the experts of Center for Policy Dialogue (CPD), these top factors are the most problematic factors for doing business for long time as there is an inadequate effort to lessen the extent of the effect of those factors. However, the entrepreneurs predicts better econom...

Due to the presence of biased obligation benefits, there is a chance that Bangladesh might find difficulties to compete with Africa nations to export garments to the U.S. Export of various garments to the US produced in African nations is increasing gradually with the zero-duty benefit under AGOA. This has been increased by 9.66% and reached $926.8 million in 2013, as stated by the US Department of commerce. Bangladesh is considered to be the most important country to export attires worth $5 billion per year to US by the payment of 15.61% duty. Garments exporters here had to pay worth $828 million as a duty to the customs of US in 2013 and a total of $3.41 billion in the past five years. Compared to the first 5 months export business of 2013, garment export to US by Bangladesh has decreased by 1.12% to$2.18 billion in this year. It is assumed that our competition will get tougher if African nations proceed this way to export to the US. The unfair duty system and expensive production c...

Along with readymade garments sector; IT, ceramics, pharmaceuticals, footwear, banking and healthcare sectors of Bangladesh are increasingly grabbing attention of the international market. There are some key factors behind this such as top class training of human resources, export diversification, large foreign and local investments, adapting modern technology and the dynamic change in the local corporate culture. Mizanur Rahman, Marketing Director of Square Pharmaceuticals stated in a discussion that a big number of their products are in a very high demand in the international market as it has the quality to compete with any recognized international brand. Bangladesh is currently ranking at number 2 in the leading readymade garment exporting countries of the world. According to Mr Abdus Salam Murshedy, former president of Bangladesh Garments Manufacturers and Exporters Association, there are more than two hundred local apparel companies regularly exporting high quality...

There is a common misconception that one person can be successful in one particular side of life:  personal, professional or recreational. But the truth is, if you have enough dedication and passion for what you do, you will always end up at the peak of success. If we look at the life stories of successful people, we will see that they all had a never-say-die attitude and a tremendous hunger for success. This article will guide you through brief life histories of people who never gave up and ended up having everything they wanted. Henry Ford The founder of Ford Motor Company had to go through a rough road to make his mark in the world. His first initiation to build a car had to stop within two years as the shareholders issued a no-confidence against him. He tried again but once again the same thing happened within a year. But he did not give up. He found another investor and started Ford Motor Company and today everyone knows his name. Walt Disney Many people do not know t...

Doing business in Bangladesh Featured question of the month is - what does it need to launch an import-export business in Bangladesh? A bonus question to add with it is - how much time does it take to solve insolvency problems? Here is the hint, if not the whole answer: According to this website on 'Business Scenario of Bangladesh', six official documents are needed to start  an import-export business. How much required? $965. But the website did not mention how much bribe it requires. Answer to the other question is interesting. It takes over two years on solving insolvency problems. This time frame is not that long compared to Pakistan, Nepal, Sri Lanka and other developing countries. This website also gave details on leading and top businessmen of Bangladesh . The names included are Jahurul Islam of Islam Group, Samson H Chowdhury of Square Group, Abul Matlub Ahamed of Nitol-Niloy Group, Salman F Rahman of Beximco Group and Latifur Rahman of Transcom Group.

The poultry trade of Bangladesh faced threat of survival quite a bit in the past few years, due to the continuous outburst of diseases like bird flu; it still is facing such crisis’s which is holding back the growth of the sector. According to Poultry Breeders Association of Bangladesh, the sector is facing bumpy competition that is causing an elevation in the level of difficulties for domestic poultry farms to prolong their business on an unrelenting basis. One of such which is the high level of interest rates for the credits taken from the local banks, which can rise as high as 18 percent. Some foreign investors have taken advantage of this situation and entered the domestic market through supplying of credits at rates as low as 5%. As per PBAB information, such firms have been able to already raise their shares up to 40%. The PBAB has discovered the reason to be lack of specific guidelines for the improvement of the sector.  The opportunity where it is equal for Bangladeshi or ...

Five new commercial banks have achieved the ‘go’ sign from the Bangladesh Bank by complying with the preconditions. This decision was taken at the Central Bank during the meeting of board of directors with the governor Mr.  Atiur Rahman. The issuance of the license is going to take place soon as per the statement of deputy governor of Bangladesh Bank. BB checked business plans of the applicant banks, after which they achieved the No-Objection certificates (NOC). The Banks that gained the NOCs are NRB Commercial Bank, Union Bank LTD, South Bangle Agriculture and Commerce Bank, Meghna Bank LTD and NRB Bank LTD.  Midland Bank LTD also presented their business plan, the board however asked the applicant bank to review and clarify their plans further before representing their business strategies in their next meeting. The five banks will be receiving their NOCs by the Bank Regulation and Policy dept. (BRPD) of the Central Bank, in order for them to be able to register with the R...

Chittagong Port is a vital variable to Bangladesh's economy and the prospect of growth. How well it is handled and dealt has a direct relation with the emergence of new businesses and growth of the existing ones. Most Bangladeshi group of companies including the top Pran Group, Jamuna Group, Square Group, Bosundrara Group depends on the efficiency of Chittagong Port as they export a big bunch of their manufactured goods through this gateway. A random article on the Chittagong Port mentioned that the country's garments industry is largely dependent upon this port. The statement makes sense. The article further mentioned that the port not only can help Bangladeshi based businesses, it can help the country earn foreign remittance by offering the service to neighboring countries - India, Myanmar, Nepal and Bhutan. Bangladeshi businessmen and corporate houses will be benefited by miles if efficiency increases of Chittagong Port. They will be more enthusiastic in manufacturing k...