As Bangladesh will face various challenges in export markets after the graduation from a least developing country to a developing country in 2026, local manufacturers should have to enhance value addition in order to build export competitiveness. Thus, the development of the local market and supply chain ecosystem is very essential for facing the challenges, experts have said. Besides, modernisation and automation of tax, VAT and duty structure; attraction of new investment and use of technology are important for post-LDC competitiveness, they said at a dialogue organised by the Dhaka Chamber of Commerce and Industry on Saturday.
As the total market scenario will change after graduation, development of local businesses, boosting local manufacturing capacity and enhancing product quality are also very important. With reformed duty and tax structure, good manufacturing environment and changed consumer behaviour pattern, we can make our supply chain ecosystem more competitive. According to media reports on Sunday, Bangladesh will have at least five years to deal with the challenges of transitioning from a least developed country to a developing country. Responding proactively with proper policy instruments and business strategy we can help our RMG industries face the challenges effectively. However under the current rules, Bangladesh will be able to enjoy duty and quota free market access for another three years until 2029. During this period, Bangladesh is expected to be able to improve its competitiveness in the international market.
In this context, the government is preparing an action plan that will focus on helping the businesses to be more competitive in export trade to face the new challenges. It has already taken steps to set up 100 special economic zones, high-tech parks for technological advancement and implementation of various mega projects, which are expected to help create new jobs, increase national income and encourage foreign direct investment in the country. Besides, the government is also in discussion with development partners, trade partners and relevant international organisations so that some important international facilities remain available even after the graduation.
The upgradation of the status of Bangladesh from LDC to the next level is good news for us, but we have to overcome the challenges of the transition efficiently. As the LDC facilities enjoyed so long will go, Bangladesh will have to stand on its own feet in the competitive world. This concern needs to be addressed through a sound national strategy.
