Product diversification, skill development and technology adaptation are some of the areas the new industrial policy should focus on to create a vibrant private sector after Bangladesh’s LDC graduation, speakers at a discussion said Sunday.
They also said policy reforms, private sector-led economic transformation, adequate training and small and medium-sized enterprises (SMEs) development, protection of the domestic market, facilitating import substitute industry, redefining SME, cluster development and participation of women entrepreneurs deserve attention.
Speakers focused on these areas at the webinar “Private Sector Expectation in the Proposed National Industrial Policy-2021” organised by the Dhaka Chamber of Commerce and Industry (DCCI) Sunday.
Industries Minister Nurul Majid Mahmud Humayun and State Minister for Industries Kamal Ahmed Mojumder joined the webinar as chief guest and special guest.
DCCI President Rizwan Rahman in his opening remarks called for redefining the definition of SMEs to ensure adequate access to finance and policy support to the small and cottage industries.
He also suggested Bangladesh follow the example of Vietnam to prepare a comprehensive industrial policy.
Research and development, innovation and e-commerce can play a vital role in future, and the government should address these sectors properly in the policy, Rizwan added.
After LDC graduation Bangladesh will have to face competition in the global export market due to a lack of product diversification. So, signing free trade agreements (FTAs) with potential countries and enhancing trade negotiation skills will be crucial, he continued.
Also, Rizwan called for extending the moratorium period for the loan for SMEs.
The industries minister said: “The government is industry-friendly, and before the formulation of industrial policy, we did a consultation with the private sector. However, coordinated efforts are needed to implement the One Stop Service (OSS) of the Bangladesh Investment Development Authority.”
“Also, combined efforts of public and private sectors are required to create employment opportunities, establish skilled backward and forward linkage industries and expand the domestic industry.”
The government is planning to create skilled human resources in the ICT sector of Bangladesh to reap the benefits of the 4th Industrial Revolution (4IR), he added. “The SMEs are the lifeline of our economy, and they should get maximum facility either in fiscal or non-fiscal format.”
The state minister for industries said protection of domestic industry, increasing productivity, product quality, intellectual property rights (IPR) management, a proper definition of SME, setting up cluster-based industrial parks, sustainable industrialisation and necessary policy reforms and infrastructure development will be considered in the next industrial policy as they are key to boost local and foreign investment in the country.
Also, economic zones (EZs), industrial parks, cluster-based industrial zones, OSS will be established in the comparatively underdeveloped areas, he added.
Md Salim Ullah, senior assistant secretary (policy) at the Ministry of Industries, said: “We need to take measures for import-substitute industrial development. To attain the goal of becoming a developed nation, export-oriented industrialisation will have to be fostered for economic transformation.”
The industrial policy will focus on increasing the contribution of the industrial sector to GDP from 35% to 40% as well as reducing poverty and unemployment by creating skilled manpower for the sector, he added.
Product diversification of potential exportable items, capacity building of the industrial sector to face the challenges of LDC graduation will also get special attention in the next policy, Salim said.
Sheikh Faezul Amin, additional secretary (policy, law and international cooperation) at the Ministry of Industries, said expanding business; fostering private sector, sustainable industrial sector; tackling 4IR challenge, technological advancement; ensuring OSS service for the private sector; vocational training, facilitating women entrepreneurs, and increasing productivity will get priority in the industrial policy.
Husne Ara Shikha, general manager of the SME and Special Programmes Department of the Bangladesh Bank, said specific definitions of cluster and startup should be included in the industrial policy.
The manufacturing and service sector are already included in the industrial policy, but trading is not included. Micro merchants should be included in the service industry sector, she added.
The industry sector’s contribution to GDP is 35% out of which only 9% comes from large industries, the rest comes from the SMEs, Shikha said.
Manwar Hossain, group managing director of Anwar Group of Industries, said the policy should not only focus on the overall industry but every industrialist or manufacturer.
The stability of policies is very much needed for progress, he said. “We should concentrate on our strengths. If we arrange skill development measures and training for the migrant workers, they will have more capacity to contribute to the national economy.”
ASM Mainuddin Monem, managing director of Abdul Monem, called for aggressive product diversification and technological advancement. “After LDC graduation, the cost of production will rise. So we will have to address this issue.”
Regarding land policy, Mainuddin said it is not friendly enough and called for reforms, especially for EZs.
Also, a target-oriented, time-bound EZ management is necessary, he added and urged the government to finalise at least 10 EZs out of 100 with focused fiscal incentives, quick infrastructure development and utility connections.
Source: United News of Bangladesh