The fact that Bangladesh has already crossed its export target by $1 billion in export earnings from eleven countries in the fiscal 2018-2019 is a testament of high demand of our products in global market. As the country is producing quality goods maintaining global standard, various new countries have been attracted in the recent times to import goods from Bangladesh.
Bangladesh’s total export earning reportedly comes only from ten countries and five products including readymade garment (RMG), agriculture products, leather, jute and fish. However, as some 84 percent of the total export earnings come only from RMG sector, Bangladesh needs to add more diversified products to the export basket in order to come out of the over-reliance on readymade garments. To compete with other Asian countries, notably China, India, Indonesia, Malaysia, Sri Lanka, Thailand and Vietnam, Bangladesh needs to explore new and potential export destinations besides adding more diversified products to its export basket.
A comprehensive policy package
(which provides improved climate for foreign investment)
coupled with supportive governmental incentives will help boost our export industry
Bangladesh needs to pay more attention to an alternative development strategy that encourages and supports diversification of exports, both in terms of products and destination. Recent initiatives to promote thrust sectors including agro-products, plastics, leather, pharmaceuticals, software and ICT, home textiles, ocean-going shipbuilding, furniture, terry towel, and tourism are moving in the right direction. Our efforts to solve infrastructure, power, and institutional bottlenecks need to be followed through.
Bangladesh is now capable of making quality products at low prices. Therefore, the government needs to encourage entrepreneurs by giving several fiscal and technical supports. Also there is a need for exemption of taxes on raw materials and backward linkage industries to survive competition with others.
And finally, a comprehensive policy package (which provides improved climate for foreign investment) coupled with supportive governmental incentives will help our export industry.