Welcome

OAV Delegation to
Bangladesh

October 25-29, 2009

Bangladesh Undiscovered Gem of Asia
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Bangladesh

Bangladesh Undiscovered Gem of Asia

03/02/2009

Country Profile
Official Name Government Population Area Standard Time Borders Capital Official Language Currency Fiscal year
03/02/2009

The People's Republic of Bangladesh Parliamentary form of Government, headed by the Prime Minister 145 million 147,570 sq km GMT +7 hours India on the west, north and east, Myanmar on the south-east and the Bay of Bengal on the south Dhaka Bangla (Bengali) English is widely used Taka (BDT) currently US$ 1 = BDT 69 1 July - 30 June
Bangladesh Undiscovered Gem of Asia

Demography & Education

Population (million) Forecasted annual growth rate (%), 2005 2015 Life expectancy at birth (years) Urban population (% of total population) Population aged 15 to 65 (% of total population) Adult literacy rate (% aged 15 and older) Youth literacy rate (% aged 15 24) Net primary enrolment rate (%)
Bangladesh Undiscovered Gem of Asia
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145 1.6 63.1 25.1 61.3 47.5 63.6 94

Infrastructure
Railways Roadways Bridges Waterways International airports Domestic airports Seaports Mobile phone operators 2,854 km 21,571 km 130 km 8,046 km Three - Dhaka, Chittagong & Sylhet 9 Two - Chittagong & Mongla Six including Telenor, Telekom Malaysia, Singtel, Orascom affiliates/subsidiaries Approaching 49 million (33% of population)

Mobile phone users (Apr 2008)

Bangladesh Undiscovered Gem of Asia

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Growth of Economy
Real GDP Growth (%)
8 7 6 5 4 3 2 1 0 FY 2006 2007 2008 2009 2010 (E)
12 9 8.2 6 3 0 FY 2006 2007 2008 2009 2010 9E)

6.0

6.5

6.2

5.9

6.0

Industrial Production Growth (%)

9.7

9.8 8.5

8.8

Bangladesh Undiscovered Gem of Asia

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Gross Domestic Product (GDP)

GDP (US$ Billion)
100 89 80 69 60 60
49% 21% 30%

98

80

Agriculture Service Industry

Per Capital GDP (US$)

40

800 690 700 640

750

20 FY 2006 2007 2008 2009 2010 (E)

600 500 400 300 200

595 540

FY 2006

2007

2008

2009

2010 (E)

Bangladesh Undiscovered Gem of Asia

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Exports and Imports

Exports (US$ Billion)
20 18 16 14 12 10 8 6 4 2 0 FY 2006 2007 2008 2009 2010 (E)
10 20 17.2 15 14.6 25 21.6 22.5 21.9

17.6 15.8 14.1 12.2 10.4

Imports (US$ Billion)

0 FY 2006 2007 2008 2009 2010 (E)

Bangladesh Undiscovered Gem of Asia

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Export Products

Jute goods (4%) Others (14%)

Leather (2%) Frozen Shrimps & Fish (4%)

Woven Garments (38%)

Knitwear Products (38%)

Bangladesh Undiscovered Gem of Asia

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Foreign Exchange Reserves

12 10

US$ Billion

8 6 4 2 0 FY 2006 2007 2008 2009 2010 (E)

Remittances from Bangladesh diaspora Foreign exchange reserves

Bangladesh Undiscovered Gem of Asia
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Bangladesh: Financial market

Market capitalization: 20 Bn USD in 2009 (10 Bn in 2007) Avg. daily turnover 75 Mio USD (24 Mio in 2007) FDI crossed USD 1.0 Bn mark in 2008 Infrastructure development through capital markets Introduction to BASEL II guidelines by Bangladesh Bank Dow Jones SAFE index already included 5 Banks and a power company No bankruptcy during the recession due to efficient financial management. Stable currency
Bangladesh Undiscovered Gem of Asia
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Distinct Position in South Asia

The highest child Immunization rate (including measles77% & DPT -85%) even higher than USA The highest primary school enrollment The greatest proportion of women in the labor force (43%), India (32%), Pakistan (30%), Nepal (39%) Spends most on education (as 14 % of GDP). Experienced the most rapid decline in poverty in 1990s The lowest military expenditure (as 12 % of GDP)

Bangladesh Undiscovered Gem of Asia

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Current Macroeconomic situation

World economy to shrink for first time in 60 years. (GDP 2009 in %: world -0.5 / 1.0) Oil prices dropped from USD 147 to < 70 USD per barrel FDI to Bangladesh will shrink further due to global financial trauma as well as poor development on infrastructure & utilities. Spinners demands bail out packages as demand and prices have gone down significantly (investment: 270 Mio and inventory of 0.15 Mio tons worth 250 Mio ) BKMEA and BGMEA leaders demand cash incentive and other bail out packages to save guard the sectors, employing more than 5 million people and exporting goods 14.0 bio USD.
Bangladesh Undiscovered Gem of Asia
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Mid term outlook

Garments & Textile export will fetch USD 25.0 billion by 2015 Many infrastructure projects to be completed in next 5 years (Padma bridge, Deep Sea Port, Power plants, STP of Dhaka). More and more FDI are coming in shoe & textile manufacturing due to cheap labour.

First Automotive and PET chips manufacturing plant in the country by 2012. Local manufacturing are manufacturing for export.
03/02/2009

growing:

E/E

as

well

Ship

Bangladesh Undiscovered Gem of Asia

Opportunities
Bangladesh among the next 11 countries after Brazil, Russia, India and China which have potential to be substantial economics in the next decades. If Bangladesh remains on track in the economic reforms it could become the 22nd largest economy in the world in the year 2025. Goldman Sachs, issue 134, Dec.2005 JP Morgan named Bangladesh as one of the Frontier five markets, owing to the countrys promising macroeconomic performance, demographic trends & social developments
Bangladesh Undiscovered Gem of Asia
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At a glance
BASF The Chemical Company
The worlds leading chemical company Offers intelligent system solutions and high-value products for almost all industries Sales 2008: 62,304 million Income from operations (EBIT) 2008: 6,463 million Employees at year-end 2008: 97,000
Bangladesh Undiscovered Gem of Asia
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03/02/2009

59 73 BASF

GERMANY 91,193.4 15.0

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BASF Bangladesh Limited (BBL) at a Glance

Operating in Bangladesh since pre-liberation. Private limited company with majority holding by BASF SE. High performing, self financed, law abiding company. Dedicated, motivated and committed work force (~ 100) Annual sales performance more than BDT 5 billion in 2008. Leader in the local chemical market segment
Bangladesh Undiscovered Gem of Asia
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Invisible Partners of all visible things

We are everywhere

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Social Business Rolled out

J/V with Grameen to improve health care and promote business opportunities for the poor.

Bangladesh Undiscovered Gem of Asia

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Social Business Rolled out

Initially two products are identified: MMS and LLIN
MMS will help reducing the malnutrition among children and mothers (8 million children under age 5 suffer from malnutrition- UNICEF child report 2008)

LLIN will save people from insect borne diseases (2.9 mio people suffer from malaria WHO)

Bangladesh Undiscovered Gem of Asia

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Other activities
Bringing latest technology to Bangladesh. Creating awareness to stakeholders. Promoting business ethics, transparencies and highlighting issues need Govt. attention & support

Bangladesh Undiscovered Gem of Asia

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Other activities
CSR activities: School cum cyclone shelter Relief & rehabilitation Community development, EHS initiatives Assistance to the poor

Bangladesh Undiscovered Gem of Asia

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Thank You

Bangladesh Undiscovered Gem of Asia

03/02/2009