Badrul Ahsan :
Local entrepreneurs in different sectors are increasingly making foray to form joint ventures (JVs) with foreign giants with the objective of manufacturing high quality products.
The local entrepreneurs are inviting foreign counterparts to harness modern and high technology in helping manufacture of world-class products.
This partnership is taking place mainly in apparel, construction, information technology, logistics, real estate, leather, electronics, chemicals, power generation, pharmaceuticals and service sectors.
A Board of Investment (BoI) official said, as per its registrar book, joint venture firms have grown by around 11 per cent this year.
BoI record shows that in the January-November period of the last calendar year (2015), a total of 86 JV firms were registered with the office, which was 77.
The BoI source said, “Many JV firms in textiles and apparel, BEPZA and other sectors do not register with our office in initial stage. So the overall growth of JVs in the country is likely to be higher than our estimates.” “The entrepreneurs are encouraged to diversify their businesses through the deployment of foreign technology to meet the buyers’ required quality of products,” a Director of BoI told the New Nation preferring anonymity.
He said currently JV partnership is increasing as foreign firms prefer a ready setup and the local firms expect a JV partner experienced in relevant fields which will help both of them produce a world class goods with competitive cost.
The participating foreign firms are mainly from China, South Korea, Taiwan, Malaysia, Thailand, Japan, India, the US, Denmark, Norway and some other European countries.
President of the Foreign Investors’ Chamber of Commerce and Industry (FICCI) Syed Ershad Ahmed said, currently FICCI has issued at least 18 memberships to new JV companies.
He said, in joint venture business, foreign finance and technology strengthen the muscle of local entrepreneurs and help produce quality goods.
He said, also following foreign firms’ participation some local products have already attained global standards, which is helping increase country’s export volume.
A source in the BEPZA said, at least 61 JV companies are there in eight EPZs across the country.
He said though in most cases partnership investments are in existing businesses, fresh investments involving foreign firms’ technical assistance are also taking place.
Former BGMEA President Abdus Salam Murshedy said, joint venture investments are good for the country as it is replacing old manufacturing trends by introducing new technology.
He said, “We need more joint venture investments in textile sector as a major percentage of top quality fabrics are still being imported for export purposes.”
According to a Bangladesh Association of Software and Information Services (BASIS) source currently more than 53 joint venture firms are engaged in developing software and IT enabled services.
Insiders said the partnering IT firms are producing global standard products as per buyers’ requirements. It was not possible by the local firms as they are still lagging behind in technology implementation, he added.
“To do export based business, foreign-local joint ventures are a must to thrive in the competitive market,” Abu Abdulla, proprietor of a software developing firm said.
He said, “I myself develop software as per my outsourced orders with the technological assistance from a Danish firm.” He said JVs are helping earn foreign currency and it is also bringing in new technology to the local IT firms.
Md Abu Nasir Khan, Managing Director of ‘BCHI’ Consortium, a construction entrepreneur said, “We have formed JV with a Chinese company. Now with our experts we can vie for any kind of project.”
He said, “Earlier, we had to pay a large amount of money as consultancy fees and for employing foreigners. Under JV, such payments are not necessary”.
However, a number of entrepreneurs in other sectors also showed their interest to form JV to upgrade their expertise and thus to produce a high end products
“To meet buyers required quality and design, local entrepreneurs are forming joint venture with their foreign counterparts for their technical know how, design and marketing strategy, President of The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Abdul Matlub Ahmed said.
He said, “As per my knowledge, a good number of partnership businesses are also in the pipeline to bring in technology, design and marketing strategy to strengthen export market. It is a good news for us.”
Local entrepreneurs in different sectors are increasingly making foray to form joint ventures (JVs) with foreign giants with the objective of manufacturing high quality products.
The local entrepreneurs are inviting foreign counterparts to harness modern and high technology in helping manufacture of world-class products.
This partnership is taking place mainly in apparel, construction, information technology, logistics, real estate, leather, electronics, chemicals, power generation, pharmaceuticals and service sectors.
A Board of Investment (BoI) official said, as per its registrar book, joint venture firms have grown by around 11 per cent this year.
BoI record shows that in the January-November period of the last calendar year (2015), a total of 86 JV firms were registered with the office, which was 77.
The BoI source said, “Many JV firms in textiles and apparel, BEPZA and other sectors do not register with our office in initial stage. So the overall growth of JVs in the country is likely to be higher than our estimates.” “The entrepreneurs are encouraged to diversify their businesses through the deployment of foreign technology to meet the buyers’ required quality of products,” a Director of BoI told the New Nation preferring anonymity.
He said currently JV partnership is increasing as foreign firms prefer a ready setup and the local firms expect a JV partner experienced in relevant fields which will help both of them produce a world class goods with competitive cost.
The participating foreign firms are mainly from China, South Korea, Taiwan, Malaysia, Thailand, Japan, India, the US, Denmark, Norway and some other European countries.
President of the Foreign Investors’ Chamber of Commerce and Industry (FICCI) Syed Ershad Ahmed said, currently FICCI has issued at least 18 memberships to new JV companies.
He said, in joint venture business, foreign finance and technology strengthen the muscle of local entrepreneurs and help produce quality goods.
He said, also following foreign firms’ participation some local products have already attained global standards, which is helping increase country’s export volume.
A source in the BEPZA said, at least 61 JV companies are there in eight EPZs across the country.
He said though in most cases partnership investments are in existing businesses, fresh investments involving foreign firms’ technical assistance are also taking place.
Former BGMEA President Abdus Salam Murshedy said, joint venture investments are good for the country as it is replacing old manufacturing trends by introducing new technology.
He said, “We need more joint venture investments in textile sector as a major percentage of top quality fabrics are still being imported for export purposes.”
According to a Bangladesh Association of Software and Information Services (BASIS) source currently more than 53 joint venture firms are engaged in developing software and IT enabled services.
Insiders said the partnering IT firms are producing global standard products as per buyers’ requirements. It was not possible by the local firms as they are still lagging behind in technology implementation, he added.
“To do export based business, foreign-local joint ventures are a must to thrive in the competitive market,” Abu Abdulla, proprietor of a software developing firm said.
He said, “I myself develop software as per my outsourced orders with the technological assistance from a Danish firm.” He said JVs are helping earn foreign currency and it is also bringing in new technology to the local IT firms.
Md Abu Nasir Khan, Managing Director of ‘BCHI’ Consortium, a construction entrepreneur said, “We have formed JV with a Chinese company. Now with our experts we can vie for any kind of project.”
He said, “Earlier, we had to pay a large amount of money as consultancy fees and for employing foreigners. Under JV, such payments are not necessary”.
However, a number of entrepreneurs in other sectors also showed their interest to form JV to upgrade their expertise and thus to produce a high end products
“To meet buyers required quality and design, local entrepreneurs are forming joint venture with their foreign counterparts for their technical know how, design and marketing strategy, President of The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Abdul Matlub Ahmed said.
He said, “As per my knowledge, a good number of partnership businesses are also in the pipeline to bring in technology, design and marketing strategy to strengthen export market. It is a good news for us.”
