'Transform industrial sector like South Korea to face post-LDC challenges'
Bangladesh should transform its labour-intensive industries into export-oriented industrial sector to overcome the upcoming challenges of its graduation to a developing country, experts said today.
They were speaking at a virtual dialogue styled "Bangladesh-South Korea Trade and Investment Cooperation: In the context of LDC graduation" organised by the Dhaka Chamber of Commerce and Industry (DCCI).
Highlighting the steps taken by South Korea after it graduated from the LDC status in the late 70s, the speakers said the country put more emphasis on diversified export-oriented industrial sectors.
Bangladesh also should focus on the diversified export-oriented industrial sector and its diversification to face the post-LDC challenges.
DCCI President Rizwan Rahman said South Korea was the 10th largest exporter to Bangladesh in 2021. In 2021, the bilateral trade of Bangladesh and South Korea was around $1.525 billion with a negative balance of $727 million for Bangladesh, he said.
Rahman said Bangladesh has many other promising and priority industrial sectors like agro and food processing, plastic manufacturing, jute and jute goods, light engineering and automobiles sector, hi-tech parks, 4IR technologies and structured economic zones where South Korea can invest in the form of the joint venture.
He said currently, around 95 per cent of our export items to South Korea receives Duty-Free Quota-Free (DFQF) facility under the preferential scheme for the LDCs.
Masud Bin Momen, senior secretary of the foreign ministry, said, "South Korea is our trusted partner and we always have assistance from the country. About 150 South Korean companies are now in operation in Bangladesh which indicates their keenness to invest in Bangladesh."
Kihak Sung, chairman and chief executive officer of Youngone Corporation, said that the investment of this company in Bangladesh is about $600 million.
In the next five years, RMG's export to South Korea will reach $1 billion, he hoped.
After LDC graduation, Kihak Sung said that Bangladesh should focus to sign a win-win FTA with South Korea before a high-level consultation.
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