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Basic facts about some potential sectors in Bangladesh

 

 

A.     Shipbuilding/Maritime:

 

  Currently, two shipyards are building small size ocean going vessels for foreign clients. A report published by the Danish Embassy in Dhaka, predicts that another ten shipyards will start building for the international market within the next few years. Main advantage of Bangladesh is that it is perceived 15% cheaper then its main competitors- such as Vietnam- mainly due to low labour costs. For a link to the website of the Danish Embassy click here

 

  Moreover, Bangladesh offers opportunities in the component and service supplying industry. Currently, Bangladesh has to import 60% of the components needed to build vessels for local demand, and 90% of the components needed for ships for the international market.

               

B.    (Renewable) energy, including oil and gas

 

  In the energy sector the current supply-demand gap is 1500 MW. Existing generation capacity is 4300 MW (also see ‘weaknesses/threats’). The government aims to overcome the demand supply gap by 2012 and increase generation capacity with 9500 MW, by 2015. It is eager to involve the private sector (4600 MW has to be generated by the private sector within 2014).  This requires an investment of approximately 9.5 billion USD for the 2009-13 period.

 

  Proposed solutions are an increase of generation capacity, improvements in the gas sector, diversifying the energy mix including an increase of the share of renewable energy from 5% in 2015, to 10% in 2020. Improvement of energy efficiency does not play a prominent role while (smart) metering and energy saving technologies offer opportunities.

 

C.    Agribusiness

 

  Food processing sector in Bangladesh basically means processing of agricultural products, mainly for the domestic market, and fish and shrimps processing, mainly for the export market. The food processing sector relies on domestic agricultural production and is oriented mainly to domestic needs. It includes rice and wheat milling, sugar refining, production of edible oils, processing and preserving of fruits and fruit juices as well as fish processing, both white fish and shrimps.

 

  Bangladesh has generally favorable climate and soil condition and in the agriculture sector huge efficiency gains can be made. For example; productivity of vegetable cultivation in Bangladesh is low with 2.85 MT yield/Acre compared to China 6.95, India 5.18, Vietnam 5.09 (FAO statistics, 2009).

 

  Dutch companies might be able to bring in agriculture techniques and technologies needed to improve efficiency.

 

  Shrimp is the second largest export earning sector of Bangladesh and the leading agro-export sector. It had an annual export of USD 445 Million in 2007-08. Over the years, freshwater shrimp production increased. But Bangladesh only caters to around 6% of worlds demand.

 

D.    ICT

 

  The ICT sector is not at the same level as neighbouring countries such as India, Pakistan or the Philippines, However the ICT sector is growing at a quick pace, with an increased involvement from local and foreign investors and companies. The sector consists of 3,000 local companies and the size of the Bangladesh ICT industry currently totals USD 160 million.

 

  The ICT sector in Bangladesh has potential to develop because of the following comparative advantages. Cheap labour (attractive cost-effective wage level for programmers; about half of India) that is traditionally renowned for quick learning abilities. Bangladesh is producing about 7,000 ICT related graduates a year from 21 Public and 51 Private Universities; and a large number of Bangladeshi students are studying overseas in computer related subjects, especially in India.  Bangladesh gains as an outsourcing partner who can operate at the lower strata of outsourcing since neighbouring countries are moving up the ladder. Bangladeshis have generally better skills in English compared to Chinese and Vietnamese.

 

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