Frame simple policies, implement those to promote export diversification, investment
Export diversification is crucial for the development of various industrial sectors and for building a sustainable economic foundation. Currently, our exports are largely dependent on ready-made garments and a few other items, even though it has been 53 years since Independence.
Both the government and private sectors acknowledge and agree that we must diversify our exports. After long efforts, the government has finally decided on and published policies with clear instructions for providing bond facilities against bank guarantees in the Export Policy 2021-24 and 2024-27, Import Policy Order 2021-24, and the National Tariff Policy 2023. However, these policies have yet to be implemented due to the lack of consideration and cooperation from the NBR, which is unfortunate and unexpected for the greater national interest.
Such important government policies should be implemented immediately after they are approved and published. Otherwise, they will have negative and detrimental impacts, which will severely affect investments, the progress of industrialization, and Foreign Direct Investment (FDI). It will also undermine the spirit of business, hindering our ability to achieve anticipated economic growth.
The specialized bond facilities have helped the ready-made garments sector develop, and we are currently the 3rd largest exporter of garments. According to the National Tariff Policy 2023, the bond facility against a bank guarantee for export diversification is much safer and more secure compared to the current specialized bond facilities, such as the 100% (80% export and 20% local market) model. In this sense, there are no opportunities for abuse. The government must provide opportunities for partially export-oriented industries in all sectors to diversify. In the near future, these partially export-oriented industries will become fully export-oriented.
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To build a sustainable economy, the government must formulate simple and effective policies to encourage export diversification and investment. Immediate steps should be taken to implement the policies that promote diversification, industrialization, and investment in multiple industrial sectors. Otherwise, it will be difficult to achieve sustainable economic growth and strong industrial development.
Vietnam, which became independent after Bangladesh, achieved exports of $354 billion in 2023, with a target set far higher than this figure, while our target is $47. This is shameful for us. Immediate action must be taken to create more effective policies and ensure prompt implementation for the sake of diversification and investment. If the government implements the National Tariff Policy 2023 and provides opportunities for diversification and investment in partially export-oriented industries across various sectors, there is great potential to achieve annual export volumes of $200 billion or more within the next 5 to 10 years.
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Selim H Rahman, Chairman, HATIL and President of the Bangladesh Furniture Industry Owners Association
