Fringe sectors have huge prospects

The local light engineering parts makers can supply 40 of the 900 components needed for assembling a motorcycle, meaning the sector has ample growth opportunities.

The demand for the remaining spare parts for the growing sector is met through imports, said Ashraf Ibn Noor, vice-president of Bangladesh Engineering Industries Owners' Association.

On the other hand, the local light engineering sector can supply 70 percent of the spare parts to the local and export-oriented bicycle industry as the sector has grown a lot over the years, he said.

Currently, Bangladesh mainly needs to import chains and gears for assembling the bicycles meant for domestic and export purposes.

Four or five bicycle exporters use the local spare parts to shorten the lead-time.

Similarly, if the government provides proper policy, the local manufacturers can also supply the power tillers, which are imported to meet the demand.

Noor was speaking at a seminar on sectoral diversification, organised by the Bangladesh Investment Development Authority at the capital's Sonargaon hotel.

“These are two simple examples of spare parts sector of the country,” Noor said, adding that Bangladesh has scope to grab more of the market share in the $6 trillion global spare parts market if the government can formulate a comprehensive policy for the sector.

Md Jashim Uddin, president of the Bangladesh Plastic Goods Manufacturers and Exporters Association, echoed the same. Each person consumes seven kilogrammes of plastic in a year, which is one of the lowest in the world, according to Jashim. In contrast, the per person plastic consumption in the US is 100kgs and in Singapore 130kgs.

Many non-compliant plastic goods manufacturing units, mainly in the city's Lalbagh area, are struggling to survive due to the government policy of just jute bags for rice packing.

“The plastic goods sector is on the verge of destruction only to save the jute industry,” Jashim said.

However, the plastic goods makers are now trying to revive the sector by supplying plastic bags for sand packing.

Kamrul Hossain Chowdhury, vice-president of Bangladesh Cold Storage Association, said in the absence of adequate facility for processing of potato, 29 lakh tonnes of tubers will become surplus this year.

The country's annual demand for potato is 80 lakh tonnes, but last year the growers produced more than 110 lakh tonnes, he said. The country could export only 45,000 tonnes of potato so far. “We are concerned that nearly 20 lakh tonnes of potato will remain unused,” he added.

Shahriar Mollah, a member of the National Board of Revenue, said the government cannot give tariff and non-tariff facilities to businessmen for a long time.

While chairing the meeting, Kazi M Aminul Islam, executive chairman of BIDA, said he will introduce a one-stop service centre from March next year on a trial basis and on pilot basis from June or July next year.

Primarily, the one-stop service centre will provide facilities involving eight vital areas such as that for registration of companies and issuance of work permits for foreign workers.