Technology, skills development keys to face challenges after LDC graduation

Competitiveness, skills development and technological advancement are key to overcome the challenges of LDC graduation for Bangladesh, speakers said at a webinar yesterday.

Besides, policy reforms and equal treatment to the potential export-oriented sectors are also crucial for Bangladesh, they said in a dialogue on "Challenges and Way forward on Export diversification of Bangladesh upon LDC graduation- A regulatory reform perspective".

Dhaka Chamber of Commerce and Industry (DCCI) organised the programme in association with Export Promotion Bureau (EPB).

At the opening remark, AHM Ahsan, vice chairman and CEO of EPB, said despite the Covid-19 pandemic, non-RMG export increased though it is not in line with the faster pace of the RMG sector.

Policy reforms and policy support will expedite boosting non-RMG export, he said.

Md Tofazzel Hossain Miah, secretary, Prime Minister's Office, addressing the programme as chief guest, said, "It inevitable that we may lose a lot of waivers after graduation."

He also stressed the need for the development of the human resource, research and value chain and backward linkage.

While presenting a keynote paper, DCCI President Rizwan Rahman said the light engineering, jute and jute goods, IT and ITES, pharmaceutical, agro and agro-processing, leather and leather goods are some of the promising sectors other than RMG that should be facilitated before entering into the reign of middle-income country status.

He said limited access to finance, shortages of skilled human resources, high duty on import of raw materials, non-tariff barriers, lengthy customs and testing processes, and lack of certification are the major challenges of these sectors in the international market. 

To promote these potential sectors ahead of LDC graduation, especially in this transition period, Rahman suggested providing bonded warehouse facilities like RMG, arrange low-cost funds and rationalized land prices for the light engineering sector.

Shaikh Yusuf Harun, executive chairman of Bangladesh Economic Zones Authority (BEZA), said Bangladesh need to be engaged with different regional trade group to diversify products and market.

Selim Raihan, executive director of SANEM, said Bangladesh needs to develop its negotiation skills and emphasized doing proper homework for identifying impact after LC graduation.

There are two types of challenges --one is a policy-induced challenge and the other is a supply-side challenge -- and these two are interlinked.

Md Abdur Rahim Khan, joint secretary of commerce ministry, said "We have to be more focused on product diversification rather focusing on market diversification."

Andalib Elias, director general, Economic Affairs Wing of the foreign ministry, suggested increasing Bangladesh's commercial wings in all 78 foreign missions.