Diversify products, markets to increase exports: experts
Bangladesh should undertake rigorous programmes for diversifying its products, markets and brands in order to increase exports and thereby face challenges after graduating from a least developed country (LDC), according to various experts and policymakers.
Besides, certain policy and regulatory reforms are needed to facilitate business activities and improve the overall investment environment, they said.
These observations came at a seminar, styled "Economic diversification and global market: Bangladesh's opportunities and way forward", organised by the Bangladesh Institute of International and Strategic Studies (BIISS) at its premises yesterday.
"Today, the contribution of industries to the GDP is 33 percent. We would like to take it to 50 percent and become an industrialised country soon," said Foreign Minister Hasan Mahmud.
Citing how Bangladesh's exports have increased but are still not diverse, Mahmud said it is time to go for rigorous programmes to diversify not only the country's products, but its services and markets as well.
He also informed that the changing geopolitical scenario presents both opportunities and challenges.
"So, Bangladesh is undertaking prudent policies to attract foreign direct investment and upskilling its human resources," he added.
At present, Bangladesh's major export markets are the EU and US, with 85 percent of all shipments to the two markets mainly comprising garment items.
Against this backdrop, experts suggest that Bangladesh explore markets in South America, Africa, Southeast Asia, East Asia and South Asia, where export levels have been very low.
They said the country has huge potential in exporting agro-processed items, leather, jute and related goods, pharmaceuticals, and ICT products.
Also, Bangladesh has a largely young population that can be provided with the necessary skills for meeting global demands, the experts added.
Abul Kalam Azad, former country coordinator for Sustainable Development Goals, said it is high time for the Bangladesh Investment Development Authority, commerce ministry and private sector to work together for identifying priority sectors with high potential.
"We should identify the challenges for these sectors and address them on priority basis. Let us find out where policy changes are required," he added.
Foreign Secretary Masud Bin Momen said that as Bangladesh is set to graduate by 2026, export diversification and bringing foreign direct investment are imperative to make the country's economy resilient.
"Bangladesh needs to safeguard local industries as well as diversify the markets. The foreign ministry will be working with other ministries, agencies and private sector towards this goal," he added.
Dr Md Deen Islam, an associate professor of economics at Dhaka University, said Bangladeshi producers often forget the need of market research and marketing.
"We have products but don't know the market. We also have lacking in branding and packaging. Here, our ministries of commerce and foreign affairs need to collaborate," he added.
Islam also said there are cases where there are quality products, but those are not well recognised.
"Here comes the aspect of branding," he added.
Syeda Rozana Rashid, a professor of the international relations department at Dhaka University, said Bangladesh's overseas migrant population plays a significant role by sending home their hard-earned remittance, which totalled $23 billion last year.
However, only 25 percent of them are skilled, indicating a huge need for improving the skills of migrants and finding new labour markets in developed countries.
Currently, the Arabian Gulf and Southeast Asia are the main regions for Bangladeshi migrants, she added.
Rashid also said a very small part of the low skilled migrants are able to reap benefits of migration as their wages are low while their vulnerability is high.
"We must come out of this cycle," she added.
Chinese Ambassador Yao Wen said his country will continue to support Bangladesh for diversifying its export basket and increasing exports.
He said China will start importing mangoes from Bangladesh this year, which can notably increase exports.
Also, the local private sector can send branded jute products to China, Wen added.
Japanese Ambassador Iwama Kiminori suggested eradicating the obstacles for foreign direct investment and assured of supporting Bangladesh's efforts for export diversification.
BIISS Research Director Dr Mahfuz Kabir presented keynote at the seminar, which was moderated by BIISS Chairman AFM Gousul Azam Sarker.
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