Only 9 new products have been added to the export sector in 16 years

After transitioning from a Least Developed Country (LDC) to a developing country, Bangladesh's opportunities will be limited. The product export sector of the country will face challenges. Bangladesh has to make major reforms to face that challenge. Apart from this, the education system should also be reformed to build skilled manpower.

The speakers said these things in the seminar titled 'Preparation of Bangladesh's export sector after LDC' organized by Dhaka Chamber of Commerce and Industries (DCCI). They said that in order to increase domestic and foreign investment in the country's export sector, it is necessary to control high inflation, introduce a single exchange rate of the dollar, reduce import duties, and increase the capacity of government agencies related to trade. Increases reliance on banks as well as capital markets for trade, delinquency reduction and financing. .

Salim Raihan, executive director of the private research institute Sanem, presented the main article in the seminar held in the Dhaka Chamber auditorium in Motijheel of the capital under the chairmanship of the organization's president Ashraf Ahmed. He said that Bangladesh's exports have increased in the last five decades. However, compared to competing countries, Bangladesh is lagging far behind in terms of product diversity.

In the 16 years from 2006 to 2021, Bangladesh was able to add only nine new products with a four-digit HS code to its exports. In 2021, the export value of these products was 82 million USD. However, Vietnam exported 41 new products during this period. The export value of the product was 1450 million dollars. Salim Raihan said with such information, "When industrialization happens, clothes made in other countries move to other sectors. But in Bangladesh it is the opposite. We cannot bring new products in that way. Many are trying. But they could not survive. As a result, Bangladesh still produces ordinary products and exports. Vietnam on the other hand produces complex products. But in the nineties Bangladesh and Vietnam's exports were almost close.

As the main article states, several challenges remain in the export sector. Import duties on raw materials are high in the country as compared to other countries, which hinders the development of the export sector. Companies are facing problems due to high tariffs. Their costs are increasing. A country's tax system encourages or discourages domestic and foreign investors. According to a study by PwC, Bangladesh was ranked 151 out of 189 countries on the Ease of Paying Taxes Index in 2020. Multiple dollar exchange rates are sending wrong messages to foreign investors. According to the World Bank, the quality of regulatory agencies in Bangladesh is lower than that of competing countries. On the other hand, due to the high number of defaulted loans, those who want to produce diversified products face problems in getting loans.

Salim Raihan said, there is no opportunity to export new products to Japan. However, Bangladesh's potential in exporting new products is limitless. A great leap must be made to harness that potential. Major reforms are needed. Taking small initiatives will not yield much profit. Vietnam's new product exports do not need much reform.

The more favorable the business environment in the country, the more successful the export sector will be. And if the duty rate is high, trade and investment will be disrupted. Therefore, Dhaka Chamber President Ashraf Ahmed thinks that there is no alternative to the supportive revenue policy.

Malik Talha Ismail Bari, senior vice-president of Dhaka Chamber gave a welcome speech at the seminar. It was also attended by the vice president of the organization. Junaid Ibn Ali, Director of BGMEA Asif Ashraf, Managing Director of Sonali Ansh Industries Mohammad Mahbubur Rahman Patwari.