Bangladesh needs to prepare for deeper tech use in manufacturing: Experts

Bangladesh needs to maximise its preparation now to keep the pace with the upcoming global wave of deeper technology-dependency in manufacturing, experts said in a dialogue in the capital on Sunday.

The discussion on "Technology Use in the Manufacturing Industries of Bangladesh" organised by the Centre for Policy Dialogue (CPD) highlighted the changing dynamics of the world's manufacturing competitiveness, their impact on businesses, jobs, export earnings and the economy.

Attending the dialogue as chief guest, Industries Minister Nurul Majid Mahmud Humayun expressed the government's willingness and preparation to leverage modern technologies in manufacturing as well as urging the private sector investing more in research and development and skilling up the workforce.

CPD Research Fellow Syed Yusuf Saadat said in keynote that manufacturing value addition as percentage of GDP in Bangladesh increased to 23% in 2021, from 10% in 1990. "However, medium and hi-tech manufacturing's share in total manufacturing shrank to 8% from 24% over the period."

The term "medium and hi-tech" refers to the level of technology used in manufacturing processes.

Additionally, the contribution of manufacturing to total exports in Bangladesh rose from 85% two decades ago to 98%, but the share of medium and hi-tech manufacturing in total manufacturing exports dropped from over 5% to 2% over the same period.

CPD Executive Director Dr Fahmida Khatun, who chaired and moderated the session, said Bangladesh's manufacturing mainly emerged on a price-led competitiveness edge thanks to the low wage.

United Nations Industrial Development Organisation (UNIDO) Country Representative Zaki Uz Zaman said in terms of manufacturing value addition's contribution growth Bangladesh outperformed other South Asian nations, but lagged behind the countries like Thailand, Vietnam over the past two decades.

While medium and hi-tech manufacturing's share in total manufacturing shrank to 8% in Bangladesh it rose to 35% in Indonesia, 41% in Thailand and 45% in India, he said.

Zaki Uz Zaman noted that Bangladesh exports approximately $55 billion annually, whereas Thailand exports $266 billion, and Vietnam exports $338 billion. These statistics underscore the importance of technologically advanced manufacturing in boosting export earnings and economic growth, he said.

Syed Almas Kabir, a technology entrepreneur and president of the Bangladesh-Malaysia Chamber of Commerce and Industry, highlighted that Bangladesh had missed out on previous industrial revolutions.

He emphasised the need not to miss the fourth industrial revolution, which includes robotics, artificial intelligence, and the Internet of Things. Almas Kabir also noted that while new technology might displace existing jobs, it would create more value-added jobs, making it crucial to invest in workforce skills and adaptability.

New technology killed many of the existing jobs in each of the industrial revolution and the fourth one would not be an exception, he said citing an A2i forecast that by 2040, 55 lakh jobs will be cut in Bangladesh's manufacturing sectors due to adoption of the industrial robots.

However, more value-adding jobs will be created as well, said Almas Kabir, stressing for huge coordinated efforts for new skills of the workforce so that they can cope up with the new work environment and earn more.

Experts at the event echoed the need for well-thought national policies to ensure a smooth transition, avoid sudden job losses, and prepare for the technological changes that are inevitable in the future.