Bangladesh can grab more attention as world shifts focus from China

Since the coronavirus pandemic has compelled many countries to source products from places other than China, Bangladesh has the potential to grab the world's attention, said Ahsan Khan Chowdhury, chairman and chief executive officer of Pran-RFL Group.

The US as an export destination of Bangladesh can now prove even more lucrative, as the world's number one economy has started to move away from products made in China.

"This pandemic could be Bangladesh's chance to grab a bigger pie of the Western market as many countries and businesses currently plan to build a non-China-based supply chain," Chowdhury told The Daily Star in an interview over the phone.

Given the current situation, profits should not be the main goal; rather, companies should now focus on finding new customers and markets.

Bangladeshi entrepreneurs should be on the lookout for new and promising export markets as it will strengthen the country's economy on the one hand and bolster their revenue on the other.

Pran-RFL has recently adopted a new policy that focuses on finding new consumers and markets for its products during the ongoing coronavirus pandemic.

Although the global economy continues to suffer due to the coronavirus outbreak, certain individual economies have not endured the same fate, Chowdhury said.

"Thanks to our endeavour, Australia and the Philippines are now two new markets for us," he added.

Bangladesh's export basket could be even bigger if the government uses its foreign missions to help find new markets for the country's products.

"By doing so, if even a single country is added to Bangladesh's export destinations, it would bring a host of opportunities for the country," Chowdhury said.

As Bangladesh lags behind its peers in terms of having a diverse export basket, it has to chase the export targets riding on the fate of apparel products that account for about 84 per cent of the country's total shipment.

"The banking sector is going through a storm and the turbulence seems to linger as the sector will be implementing the government's bailout packages for the affected industries."

It needs to be saved by any means such that the coronavirus fallout cannot leave a long-lasting impact on the economy, he said.

"The banking sector is the lifeblood of all industries."

Numerous industries and small entrepreneurs were able to strengthen their businesses through financing from banks and that is why the sector deserves extra attention from the government.

"If Bangladesh's banking sector crumbles, international buyers and suppliers will not continue trade with the country while opening letters of credit will be difficult."

Any new policies the government may adopt should ensure that neither the financial sector nor the country's dollar supply is disrupted, Chowdhury said.

Over the years, Bangladesh's economy has emerged relatively unscathed from numerous natural calamities such as cyclones and floods due to a resilient domestic market.

"People are now more eager than ever to continue working and this is a positive sign for any economy," he said, adding that another positive indicator is that the country has a robust agriculture sector.

"So there is no reason to drown our local market in lockdowns in fear of contagion."

With most manufacturers unable to maintain their operating expenses during the recently concluded two-month lockdown due to a lack of sales, many people lost their jobs while others had to accept partial salaries.

"All the losses made over the past two months can be blamed on the lockdown. But now that it has been lifted, I hope domestic trade will recover soon," Chowdhury said.

If private companies ensure full salaries for their staff, consumption will hold steady and benefit the economy.

"I urge all the companies to, if needed, compromise on their profits and luxuries to pay their workers' wages," he said.

For paying staff salaries, companies could also use their retained earnings, which are emergency funds collected from profits and not distributed to shareholders.