As Bhutan’s economy grows, so does its waste problem

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Despite its tiny population, Bhutan’s economic growth has led to increasing urbanisation and problems associated with biodegradable waste, which threatens the beauty of one of the most pristine environments in the world.

Bhutan’s rapid economic development over the last few decades has been striking. According to World Bank data the GDP of the country grew from USD 135 million in 1980 to USD 2.2 billion in 2016, or sixteen times. Based on its indicators, Bhutan has been recommended for graduation from Least Developed Country status by the UN.

While this is good news for the country, it is also accompanied by some negative indicators.

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The National Environment Commission’s (NEC) report “Bhutan State of Environment, 2016” has pointed out that, with rapid socio-economic development, increasing population and urbanisation, the country is seeing an increase in the amount of solid waste generated. More problematically the composition of that waste is shifting from biodegradable to non-biodegradable waste.

Nedup Tshering, a retired civil servant and environmentalist who started a civil society organisation based in Thimphu, Clean Bhutan, said compared to other countries, waste in Bhutan is not a huge problem. However, it is growing rapidly, and within since 2014, when Tshering started his initiative, the waste produced by individual household has doubled from 250 grams a day per person to almost half a kilogramme per person now.

Disposable diapers are becoming a growing concern across the country as more people have started to use them and they do not degrade well even in landfills, stated the NEC report. Another issue of concern is that municipal solid waste also contains hazardous and electronic waste.

Some examples of hazardous household waste are batteries, household cleaning products, cosmetics, automobile maintenance products and electronics such as phone, television sets, bulbs, and tube-lights.

With development and modernisation, there is growing trend of people discarding electronics like phones, laptops and TVs for newer models, which could lead to growing amount of e-waste, said the NEC officials.

In 2017, the Global Waterkeeper Alliance and Clean Bhutan launched a water quality monitoring programme and found that key rivers in Bhutan contained significant levels of E.Coli bacteria.

One of the major problems with the problem specifically to Bhutan’s capital is that the sewer system is connected directly into the river. Furthermore the leachate (the black water) from the wasteland fields in Memelakha also falls down into the Olarongchu river that connects to it. “If we don’t control this today in a decade or so, we will find Olarongchu quite toxic,” said Tshering.

The National Environment Commission said that their surveys and monitoring indicate that Bhutan’s water resources are healthy at the macro level, but there is an increasing concern that population growth, burial customs, and fast urbanisations are outpacing the installation of sewerage treatment and solid waste collection. This is threatening the water quality in downstream areas

Tshering explained that part of what is needed is a change in customs. People throwing waste into rivers is not a new thing, but as Bhutan has grown more prosperous and the urban areas have enlarged, the type and amount of waste have changed. There is far more plastic and other non-biodegradable waste. People have started changing their habits, with more segregation of waste, but the facilities to manage the waste is still catching up.

So far Clean Bhutan has conducted 115 cleaning campaigns in towns and villages around 16 districts involving 4,431 volunteers, and 20 clean-up programs along the four rivers of Thimphu-chu, Paro-chu, Punakha-chu (Po-chu/Mochu) and Chubachu stream in Thimphu. (“Chu” means water in Dzongkha, and many rivers are named after a prominent place with the chu suffix added.) It has also conducted 44 such clean-up campaigns along trail and trek routes.

Big city problems
But the problem is growing ever larger as the municipal services struggle to catch up. Tshering said that until a few years ago the trash was mostly found in the towns, but now it is also found in the jungle and rivers. The periphery of Thimphu is full of solid waste, which he attributes to the lack of facilities provided to people.

The NEC envisaged that by 2020, half of the Bhutanese population will live in urban areas. The two urban centres of Thimphu and Phuentsholing exhibit a complexity of environmental and social issues including the problem of municipal wastes. This growth is enormous, considering that Thimphu was a small hamlet in the 1960s before it was declared the capital of the country. It is now the most populous city in the country, with Phuentsholing, a border town in the south, close behind

“At this rate, the issue of solid waste management and associated environmental and social problems will be more pronounced in the absence of a proper solid waste management system,” said the NEC report.

According to Thimphu City Cooperation, less than 15 per cent of total households in the city are connected to the sewer system and rest rely on individual septic tanks. Between June 2010 to December 2012, 2,410 trips of vacuum tanker was used to empty 7,240 cubic metres of sewage. Domestic sewage, uncontrolled seepage, or overflows from septic tanks are some of the main sources of water pollution.

Additionally, in places like Thimphu and Phuentsholing where there are large concentrations of automobile workshops, the discharge of waste oil and other effluents is a significant source of water pollution.

Yeshey Wangdi, Chief Environment Officer with Thimphu thromde (municipal authority) said that the solid waste in Thimphu is growing along with the growth of the population of the city. As per the 2005 census, Thimphu’s population was 95,000, which he said is expected to have increased to more than 150,000. “Waste generation is directly dependent on population,” Wangdi said.

Since 2014 the municipal authority has outsourced the collection and disposal of waste to two private companies for. The two companies have to collect waste three times a week from every household. However, the thromde has been receiving many complaints from public that the waste collection is not happening on time. This he attributed to the breakdown of waste collection trucks or mismatch of collection timing with officer goers.

Another challenge is that unlike other countries every building has both commercial and residential functions. The collection services struggle to figure out when to send people where, whether during office hours, or not.

He said despite various problems, the department is committed to convert the waste problem into an opportunity. “Our present motto is reducing, reuse and recycle,” he said. Wangdi said the composition of the waste was 50 per cent organic, 17 per cent paper, and 12 per cent plastic. Therefore, the focus thromde’s focus is to “make trash into cash.”

Rules and regulations
Environmental officials also pointed that the problem is not just with the waste, but failure to implement the rules. A few years ago Thimphu thromde passed a rule which requires people to pay a fine if caught throwing waste in places other than disposal areas. In practice this rule seems totally nonexistent.

Yeshey Wangdi said that the rule is being implemented and that there were several cases reported to the city. In the first instance the thromde asks people to pay the fine, if they do not, the case is forwarded to court. However, no case has so far been reported to court.

Environmentalists said that there are at least nine Acts that are directly or partially related to solid waste management. However, implementing and collaborating agencies and stakeholders were faced with resource challenges. As Bhutan continues on its growth story, these gaps will also continue to grow, creating a bigger and bigger challenge to clean up in a country which had been, until recently, a pristine environment.

Source:https://www.eco-business.com/news/as-bhutans-economy-grows-so-does-its-waste-problem/

WB loan to Bhutan to improve growth equality

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The Royal Government of Bhutan and the World Bank have signed a $24 million credit that will help promote fiscal discipline, increase access to finance for enterprises, and improve the climate for business entry and investment in Bhutan.

Bhutan has made impressive progress in poverty reduction and economic growth over the past decade but high levels of investment in the hydropower sector have increased pressures on the country’s fiscal balance and external accounts.

“Together with other programs, this policy credit is effectively supporting the Royal Government’s reform momentum,” said Yoichiro Ishihara, the World Bank’s Resident Representative for Bhutan. “With this policy credit, Bhutan will be better equipped to enact policies to foster private sector development and create more employment opportunities, especially for its youth.”

The Second Fiscal Sustainability and Investment Climate Development Policy Credit (DPC2) was signed by Namgay Dorji, the Royal Government of Bhutan’s Finance Minister, on behalf of the Royal Government of Bhutan, and Yoichiro Ishihara, Resident Representative for Bhutan, on behalf of the World Bank.

This credit is the second of two World Bank-supported initiatives to support Bhutan’s Eleventh Five-Year Plan (11th FYP) (2013–2018) goals of promoting green socio-economic development and achieving self-reliance. DPC2 was approved by the Board of Executive Directors of the World Bank on December 21, 2016.

“The Royal Government of Bhutan has used the policy credit to support institutional strengthening measures in some key areas, building on the momentum and lessons learnt from the past budget support operations to accelerate development in Bhutan,” said Namgay Dorji, the Royal Government of Bhutan’s Finance Minister. “Improving fiscal sustainability, access to finance and investment climate are critical to achieve the goals of the 11th Five Year Plan.”

The development policy series will be funded by credit from the International Development Association (IDA), the World Bank’s grant and low-interest credit arm. The credit has a maturity of 25 years, including a 5-year grace period.

Source :http://www.bhutannewsnetwork.com/2017/03/wb-loan-to-bhutan-to-improve-growth-equality/

Japan to continue funding Bhutan’s development

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The government of Japan has agreed to continue its support for Bhutan’s socio economic development, during the 12th annual consultation on economic cooperation between the two countries.

The Bhutanese delegation at the consultation presented 10 projects for consideration under technical cooperation and four grant aid projects in the field of health, agriculture and infrastructure restoration.

According to the Foreign Ministry of Bhutan, since its inception in 2006, the annual consultation continues to serve as an avenue for the two countries to review and exchange views on ongoing and future bilateral cooperation programs.

The two Buddhist nations have had exchanges of royal visits to strengthen the bilateral relations. Japanese contributed USD 73.53M during the 11th Plan.

Japan’s assistance to Bhutan is focused in the sectors of agriculture and rural economy, infrastructure development, social development and strengthening good governance.

Diplomatic relation between Japan and Bhutan was established in March 1986.

Source:http://www.bhutannewsnetwork.com/2017/08/japan-to-continue-funding-bhutans-development/

Druk Air resume flights to Gelephu

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The wait for people in Gelephu to be connected by air is finally over with Druk Air resuming its flights to the town this week.

The first flight on November 11 had six passengers on board.

The airline now operates three times a week- Tuesday, Thursday and Sunday. The company had tested one weekly flight two years ago but discontinued citing not profitable.

The airline agreed to resume the domestic operations following the government’s decision to provide the company with a subsidy of Nu 0.30 million per domestic flight.

During the promotional period, a one-way flight to this southern town from Paro will cost Nu 3,570. Round trip for the public will cost Nu 6,250. Fare cost for flights from Bumthang to Gelephu will be Nu 3,750 (one-way) and Nu 6,250 for round trip.

Source:http://www.bhutannewsnetwork.com/2017/11/druk-air-resume-flights-to-gelephu/

Bhutan: rising holiday destination for Australians

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While Bali is still popular, Australians are gradually shifting their holiday destinations to Asia, including Bhutan gradually.

According to a Skyscanner survey, from 2016 to 2017, 12 of Australia’s top 20 international travel destinations were in Asia.

Bali still topped the list (more than a million Australians arrive in Indonesia each year, a very significant proportion in Bali) but Vietnam is rising in the rankings. Flight bookings to Ho Chi Minh City jumped 23 per cent making it the new Asian hotspot.

Singapore continues to entice Aussies – there was a 17 per cent increase in flight bookings ­– and a 16 per cent increase in flight bookings to Tokyo, which jumped to number seven on the top 20 list. Bhutan has not come to the top 20 list but the number is persistently increasing.

Bhutan government does not publish tourist arrival data based on the country of origin.

Source:http://www.bhutannewsnetwork.com/2018/01/bhutan-rising-holiday-destination-for-australians/

Air Mandalay shuts down amid overcapacity

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It is increasingly challenging to operate in Myanmar’s aviation sector.”

The fourth domestic airline has wind up as aviation businesses struggle to turn a profit in an industry overcrowded with competitors, amid high fuel price, lacklustre demand and lack of government support.

Air Mandalay, which had been in service for 24 years, has stopped all flight schedules and charter services in order to restructure the whole business, starting from September 4, the airline’s spokesperson Daw May Thandar Win told The Myanmar Times yesterday. Air Mandalay is the fourth domestic airline to be suspended after Air Bagan, Apex airline and FMI Air, while six domestic businesses remain.

Daw May Thandar Win did not name a date for resuming the operation. “We intended to reform our airlines, similar to FMI Air, so it is difficult to give an exact date [to resume],” she said, adding that resumption is subject to market conditions.

The company stated in a press release that it “has been extremely difficult” to operate in the country and the situation has worsened since 2011, when “a number of new airline licenses were approved to operate in the country resulting in too many domestic carriers, oversupply of seats and intense competition, with airlines suffering heavy losses.”

U Thein Sein’s administration since 2011 allowed a maximum of 10 airline operators. However, the level of competition in a small market has made business extremely difficult. “The main three challenges we faced in the market are overcapacity due to so many domestic airlines in the country, expensive operational costs and intense competition resulting in heavy losses for the airlines,” Daw May Thandar Win explained.

Other challenges Air Mandalay faced in 2014-15 were being unable to operate for more than one year due to the delay in issuance of import permit for its two (2) Embraer ERJ145 jet aircraft and a 9-month delay in 2017-18, which was due to waiting for approval to import and register aircraft for public air transport services. Air Mandalay Limited is a foreign private joint venture airline with the government formed under the Special Company Act 1950. The company was incorporated on October 6, 1994. Before it shut down, Air Mandalay’s routes covered Yangon, Myitkyina in Kachin, Sittwe in Rakhine and Tachileik in Shan.

Myanmar authorities continue to block any attempts to run domestic flights in order to protect the local players, having rejected two joint venture proposals. This includes Japan’s largest airline ANA Holdings’ Asian Blue JV with Golden Sky World, owned by local conglomerate Shwe Than Lwin, and AirAsia’s JV with FMI Air. FMI Air shut down on July 20, after more than five years in operation.

However, domestic players are still struggling because of the fuel import cartel and the staggering number of airlines given the small market size.

Fewer choices

While consolidation is inevitable in the country’s aviation business due to the disproportionate number of players, closure of airlines should not mean impeding connectivity, Pietro Borsano, lecturer at Mandalay International University, warned.

“Consolidation should not mean giving fewer choices to consumers in terms of flight schedules, destinations and pricing. This is particularly important for Myanmar, because – unlike countries with a well-developed rail system – travelling by train to Mandalay or other regions is not an option for most tourists and investors,” he explained.

Connectivity is vital to trade, tourism and inward investments for Myanmar, the academic added. The Myanmar government should incentivise airlines to expand their routes to otherwise commercially unsustainable destinations in order to boost tourism and businesses, but the ultimate goal should be for private players to flourish on their own.

Mr Borsano suggested that, for example, Bangkok Airways now has more direct flights to Mandalay than before, and this has drawn a considerable number of Thai and regional investors to the city.

On top of the high fuel price and lack of profitability for the sector, overcharging poses another problem. Flights within the country, which charge foreigners more, end up more costly than regional flights. This has severely hampered the market demand.

Domestic airlines are not the only ones with lacklustre performance.

Despite rapid growth in passenger traffic over the last six years, Myanmar has fallen short of expectations, according to a study from aviation industry consultancy CAPA-Centre for Aviation seen by The Myanmar Times, released in late August. This has affected the expanding international routes in the country.

“Myanmar at one point projected that it would attract 7.5 million visitors by 2020. Given the recent growth rates, Myanmar will not even reach 2 million visitors in 2020,” the report observed.

All but one of the foreign airlines serving Myanmar operate from Yangon. China’s Donghai Airlines is the sole exception, having started services from Shenzhen to Mandalay in July. Mandalay is being served by seven international airlines, while Nay Pyi Taw is served only by Bangkok Airways and China Eastern.

Source: https://www.mmtimes.com/news/extremely-difficult-air-mandalay-shuts-down-amid-overcapacity.html

Grameenphone announces 7 finalists for Telenor Youth Forum

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Grameenphone yesterday announced names of seven finalists for Telenor Youth Forum (TYF) Grand Finale 2018.

Over 1,400 applications were screened to select 60 applicants who presented their ideas on September 4-5 at GPHouse before the seven spots were filled in the TYF Grand Finale, the mobile operator said in a statement.

The finalists are Tasneem Omar Ava of Brac University, Sameen Alam and Syed Sameen Shahrear of the Institute of Business Administration at the University of Dhaka, Tarek Musanna and Md Nazib Intesar of the Bangladesh University of Professionals, Sabiha Saju Ibne Abedin of the Institute of Business Administration at Jahangirnagar University and Iftekher Mahmud of the Army Institute of Business Administration.

Two winners from the grand finale will head off to Oslo, Norway in December 2018 to attend the Nobel peace prize ceremony.

The Telenor Youth Forum is conducted in partnership with the Nobel Peace Centre every year. This year’s theme for the grand event is “Bright Minds Reducing Inequalities”.

Source:https://www.thedailystar.net/business/news/grameenphone-announces-7-finalists-telenor-youth-forum-1630423

Bhutan graduates from LDC

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Bhutan has finally graduated from the list of Least Developed Countries (LDC), the United Nations’ Committee for Development Policy has announced. Bhutan has become the second country in South Asia to graduate after Maldives.

Along with Bhutan, Kiribati, Sao Tome and Principe and the Solomon Islands have increased national earning power and improved access to health care and education, making them eligible to exit the group of LDCs.

“This is an historic occasion,” said Jose Antonio Ocampo, chair of the Committee for Development Policy (CDP), noting that only five countries have graduated since the UN established the LDC category in 1971.

LDCs are assessed using three criteria: health and education targets; economic vulnerability and gross national income per capita.

Countries must meet two of the three criteria at two consecutive triennial reviews of the CDP to be considered for graduation.

The Committee will send its recommendations to the UN Economic and Social Council (ECOSOC) for endorsement, which will then refer its decision to the UN General Assembly.

Globally, there are 47 LDCs, according to the UN Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States.

The majority, 33, are in Africa, while 13 can be found in the Asia-Pacific region, and one is in Latin America.

In the 47 years of the LDC category’s existence, only five countries have graduated (Botswana, Cabo Verde, Equatorial Guinea, Maldives and Samoa)

The CDP said two more countries, Vanuatu and Angola, are scheduled for graduation over the next three years.

Nepal and Timor-Leste also met the criteria but were not recommended for graduation at this time, due to economic and political challenges.

Bangladesh, Lao People’s Democratic Republic and Myanmar met the graduation criteria for the first time but would need to do so for a second time to be eligible for consideration.

Source:http://www.bhutannewsnetwork.com/2018/03/bhutan-graduates-from-ldc/

Economic prospects for Myanmar favorable, but downside risks intensified: World Bank

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While the economic outlook for Myanmar is looking “favorable,” with growth projected to rise to 6.8 percent in 2018-19 from 6.4pc before, the risks to those prospects have “intensified,” according to the World Bank’s Myanmar Economic Monitor (MEM), which was released in Yangon yesterday.

Lower tourism arrivals resulting from the ongoing Rakhine crisis could weaken tourism spending and demand for related services such as hospitality and transport, feeding into a broader slow down in the economy, for one.

Meanwhile, investor concerns about the reputational risk of operating in Myanmar as well as perceptions of a weakening in the pace of economic reforms could lead to declines in foreign direct investments. (FDI). This would come at a time when the funds are needed to stem a further widening of the current account deficit.

Fewer investments could also result in a slowdown in manufacturing and agriculture, the two sectors which drove a faster pace of growth in the previous fiscal year.

Policy priorities

However, a significant slowdown in growth is unlikely if the policies and government tools installed are deployed wisely. Among the policies in place is the upcoming Myanmar Sustainable Development Plan (MSDP), a draft of which is now being reviewed by the government.

The MSDP aims to translate the government’s 12-point economic plan and sector plans into “a clear set of policy priorities and has been welcomed as a significant step forward,” according to the MEM.

“The MSDP, which lays out a comprehensive and prioritised policy reform agenda, holds the promise of offering the much-needed unifying and coherent roadmap for reforms for the country,” the report said.

The other priority for Myanmar is to break out of the cycle of low revenue and low public spending. At 15pc of GDP, Myanmar has among the lowest tax collection as a share of GDP in the world.

Myanmar also spends less as a share of the budget on capital projects and on critical priorities such as education and health than other lower middle-income countries.

“In the last three years, budget execution rates have been 92 pc on average and have never risen above 94pc,” the MEM reported.

To break the vicious fiscal cycle of poor tax collection and public spending, the government has options such as reallocating capital spending from less important to priority areas like energy and transport as well as education and health.

The government is also working on reducing its reliance on central bank financing to the more sustainable option of issuing sovereign debt, or borrowing from institutional investors. Since last year in fact, the Central Bank of Myanmar has already wound down its financing of the fiscal deficit, which is also one reason why inflation has tapered to its current level of 5.5pc compared to 7pc the year before, according to the World Bank.

Positive prospects

On the whole though, the prospects are positive. Myanmar is expected to continue building on its new Investment Law and Company Law to enable foreign participation in key sectors such as banking and insurance.

Currently, Myanmar has one of the highest levels of restrictions for FDI on insurance and banking, so further liberalisation “can potentially generate new momentum for driving private sector investment,” the report said.

Meanwhile, global conditions also appear to be supportive of domestic growth. Global growth rose to 3.1pc in 2017 from a post-global financial crisis low of 2.6pc in 2016. So far, emerging economies like Myanmar have gained from higher demand in developed economies.

Supported by faster growth rates for output and new orders, the Nikkei Myanmar Manufacturing Purchasing Managers’ Index, or PMI, rose to 55.5 in April from 53.7 in March, implying a strong level of expansion in Myanmar’s manufacturing sectors.

Higher global demand, if it continues, will also bode well for the Myanmar agriculture sector. Last year, demand for locally-produced rice and other crops helped to accelerate the country’s GDP.

Source;https://www.mmtimes.com/news/economic-prospects-myanmar-favorable-downside-risks-intensified-world-bank.html

Bangladesh on way to be a gadget-making hub

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The availability of workforce at a competitive wage, growing domestic market demand and a favourable policy are some of the key factors that make Bangladesh an attractive hub for high-tech manufacturing, according to a survey.

In its report, International Data Corporation (IDC) found success stories of local and international manufacturing companies, such as Walton and Samsung.

Global tech leader Samsung has started producing mobile phones in Bangladesh following in the footsteps of three local firms—Walton, Aamra Companies and Symphony—and a China-Bangladesh joint venture, Transsion Holdings, it said in the report.

The Singapore-based firm also showed evidence of the support provided by the government in driving the growth of the high-tech industry in Bangladesh.

The government has reduced duties on import of raw materials for the tech industry, exempted 100 percent value added tax on rents along with providing cash incentives and 100 percent tax discounts, it said.

“Population is the main strength of Bangladesh, home to around 80 million people under 25 years of age,” according to the IDC report launched yesterday.

Gadgets and laptops worth around $1.5 billion are sold in the country every year; about 34 million mobile handsets worth $1.18 billion and laptops worth $300 million were sold last year, IDC found.

The youths are giving a boost to the sector, where the gadget and laptop market is growing at around 12-20 percent every year, said Zarif Munir, partner and managing director of the Boston Consulting Group.

The officials of the group presented the findings of the report as one of the partners of the survey, at a programme held in the ICT Division in Dhaka.

The IDC is a premier global provider of market intelligence, advisory services and events for the information technology, telecom and consumer technology markets.

Local companies are not lagging behind foreign peers. Walton has already completed production and shipment of laptops to Nepal, a major stride for a Bangladeshi company, the IDC report said.

Huawei Technologies, the largest telecom equipment maker based in China, has been investing to provide high-quality ICT infrastructure and network enhancement services in Bangladesh, the report reads. Another Chinese giant, Xiaomi, also plans to set up a plant in Bangladesh in the next two years, the IDC said.

“We have a huge local market and scopes are there to export tech products to the neighbouring countries like Nepal, Bhutan, Myanmar and even India’s seven-sister states,” Mustafa Jabbar, telecom and ICT minister, said at the report launching ceremony.

He said the government is developing 28 high-tech parks, all of which would be ready for use in the next two years.

“Some of the parks have already started manufacturing and exporting different ICT products.” Smartphone penetration in Bangladesh stands at about 30 percent now and will hit 80 percent in the next few years, he said.

The government is giving tax holiday and cash incentive to assemblers with high quality infrastructure support and now seeking global leaders’ investments, said Zuena Aziz, secretary to the ICT Division.

“Some developed nations, including China, are shutting down gadget plants due to the rising cost of production,” said Rezwanul Haque, CEO of Transsion Bangladesh and the former general secretary of Bangladesh Mobile Phone Importers Association.

The government has developed 79 economic zones spanning over 30,000 hectares and foreign companies will get all-out support if they want to invest in Bangladesh, said Kazi M Aminul Islam, executive chairman of Bangladesh Investment Development Authority.

Source:https://www.thedailystar.net/business/news/bangladesh-way-be-gadget-making-hub-1630471