Bangladesh is yet to use its trade potentials in exporting diversified products despite having huge opportunities in the global market, a new report of the Asian Development Bank (ADB) said. The report titled “Transforming Bangladesh’s Participation to Trade and Global Value Chains” was published by the ADB on Sunday. According to the report, to make export growth sustainable, the government should add more diversified products to the export basket.
It is inevitable to state that the existing policies implemented by the government over the last years have been fruitful towards boosting the country’s export earnings. RMG exports from Bangladesh rebounded strongly in the last year, recording 24 per cent annual growth. Reportedly, Bangladesh holds the second position in the European market and the third position in the US market in the export of ready-made garments. However, Bangladesh needs to diversify its export basket in order to sustain accelerated economic growth, increase investment opportunities and create more jobs.
Bangladesh needs to diversify
its export basket in order to
sustain accelerated economic
growth, increase investment
opportunities and create more jobs
Over the last few years we have seen some remarkable changes in our industrial infrastructures. Also, international retailers have got back their confidence to invest in Bangladesh. Besides, some of the biggest apparel exporters have been losing their share in global market because of higher costs of production and shortage of workers. As a result, work orders are being diverted to Bangladeshi factories. Therefore, we should take the privilege of low cost production that we are enjoying in Bangladesh.
New and potential markets must be explored for diversification and sustainability of the sector. In order to boost the export earning, export of Halal products can play a big role. Halal products have a huge demand in the international market, even in the European market, because of their distinct quality. We believe, with proper support from the authorities concerned, Bangladesh can earn more by exporting Halal products.
The government's recent initiatives to promote thrust sectors including pharmaceuticals, agro-products, plastics, ICT, shipbuilding, furniture, are moving in the right direction. But at the same time it is true that in order to sustain the current tempo of the country’s export growth, our efforts to solve infrastructure, power, and institutional bottlenecks need to be followed through.
A comprehensive policy package coupled with supportive governmental incentives will help our export industry grow further. Bangladesh needs to pay more attention to devise an alternative strategy that encourages diversification of exports, both in terms of products and destination.