Electronic industry, over the years, has emerged as one of the highly potential industries of the country. This industry is currently exporting products abroad after meeting the demand of local market as it has been able to create a demand in the global market, said MA Razzak, Chairman of Minister Group.
MA Razzak, also the Vice-President of the country's apex trade body FBCCI, mentions that Prime Minister Sheikh Hasina has given the facility of value added tax or VAT exemption to the electronic products including refrigerators, televisions and air conditioners so that the industry can stand on a farm base.
"As a result, now there is no need to pay 15 percent VAT on manufactured goods", he added.
Replying to a set of queries made by Bangladesh Post, MA Razzak discussed elaborately about the impact, progress, investment and obstacles of the country's electronics industry.
The excerpts of his interview is produced for the valued readers of Bangladesh Post.
Bangladesh Post: We know that Covid-19 pandemic has impacted every sphere of economy and industrialization in the country. How would you evaluate the impact of the pandemic upon the country's electronics industry?
MA Razzak: The country's economic activities have suffered the most from the Corona outbreak. The big industrial organizations have also become debt defaulters. Moreover, about 35 percent of Bangladesh's annual imports are with China. The rest is from other countries. All kinds of manufactured products including industrial raw materials, intermediate raw materials, capital equipment and parts, chemicals, electrical equipment, other electronics are imported from different countries. Equipment and raw materials for manufacturing industries such as steel, cement, plastics, electronics, food, medicine etc are also need to be imported. At the same time, the impact of declining imports has pushed up the prices of many domestic products. As a result, the cost of production is increasing, but the contract with the buyer to supply the product at a predetermined price also does not cope up. The industrial owners are in huge trouble.
Bangladesh Post: Would you please brief us about the potential of the electronics industry in Bangladesh?
MA Razzak: Bangladesh has huge potential ahead in the electronics industry. We can meet the demand of the country and also take the opportunity to export electronics products to the world. All the necessary facilities including market, capital, and technical skills are available in this regard. We also need to be involved in the tide of advances in information technology around the world. If investors move forward, Bangladesh may one day be able to meet the majority share of the world's demand. A revolution in the electronics industry is possible only if we can go a long way in manufacturing.”
Bangladesh Post: What kind of opportunities do you think the government is providing in this promising industry?
MA Razzak: At present one the emerging industry of the country is the electronic industry. This industry is currently exporting products abroad to meet the demand of other country. As a result, in order to keep the industry strong, the Prime Minister of our country Sheikh Hasina is giving the facility of value added tax or VAT exemption to these products including refrigerators, televisions and air conditioners. As a result, there is no need to pay 15 percent VAT on manufactured goods.
Bangladesh Post: What kind of investment do you think is coming in the electronics industry?
MA Razzak: In response to such a question, M.A Razzak Khan Raj said that development is taking place in all sectors from small and medium industries to large scale industries. Companies from China, Japan, Middle East and even Europe are showing interest in setting up heavy industries in Bangladesh due to catch a market about 160 million people for easy and cheap labor and domestic demand. Apart from these foreign companies, domestic companies including Minister have gained a reputation in the electronics industry with their own brands. The country's banks must also come forward to maintain their reputation.
Bangladesh Post: How about the current state of electronics and home appliances products
MA Razzak: Nowadays refrigerators, televisions, mobile phones and even laptops and computers are within the reach of more people as brands are focusing on local production in Bangladesh. We can see electronics market is no longer monopolized by Philips, Sony and Panasonic. Domestic products have played a role in bringing equality in the technology market. It already owns three-quarters of the refrigerator, 40 percent of the television and 20 percent of the air conditioner. Brands like Minister, Vision, and Walton are also making significant strides here. As a result, the prices of these products have come down in the country's market, at the same time millions of people have been employed in these organizations.
Bangladesh Post: What should be your suggestions for the new entrepreneurs in the electronics industry?
MA Razzak: not only life-saving items, but also consumer goods like electronics, household appliances have become much more affordable than before. This has been possible due to the supportive policies of the government and the local production of products by the entrepreneurs. Our entrepreneurs are doing this by producing various products and materials in the country.
Bangladesh Post: Now please tell us what kind of obstacles you had to face in bringing the Minister Group to such a stage?
MA Razzak: We had to face various obstacles to bring the Minister Group to this stage today. Notable among them are various regulations of the previous government, aggressive marketing of competitors, surrounding environment etc. Even though, with the help of the present government, our electronics industry has come a long way. Moreover, in order to take the electronics industry forward in our country, technical manpower is needed. If it can be overcome, the electronics industry will become more advanced.
Bangladesh Post: Lastly, as an expert in the electronic industry, please brief us the future of the country's electronics industry.
MA Razzak: The future of electronics industry is much better in the context of our country. In each sector the use of digital technology and the electrification system in the country has created more possibilities. Nowadays, the use of electronics products by the common people has increased a lot.
Also our domestic electronics companies are delivering products to the people at low prices.
We hope to deliver our domestic electronics products all over the world in a few years. We are working towards this goal.