Business

Plastic, light engineering sector can attract huge foreign investment


Published : 18 Jan 2022 09:23 PM

The country’s plastic and light engineering sector has huge potentials to attract foreign direct investment. Reducing its dependency it can emerge as one of the major export earnings sector. 

Commerce Ministry Senior Secretary Tapan Kanti Ghosh made this comment while speaking as the chief guest a validation workshop to finalize the Export Roadmaps on Plastic and Light Engineering Sectors jointly organised by Business Initiative Leading Development (BUILD) and Ministry of Commerce held in Export Competitiveness for Jobs (EC4J) Project office on Tuesday. 

BUILD shared  two presentations on Export Roadmaps on Plastic and Light Engineering Sectors respectively.

Senior secretary Tapan Kanti Ghosh endorsed the projection of BUILD for the plastic sector  roadmap to be the 40th largest exporter by 2030. In order to meet the target, he asked the stakeholders regarding the needs to support since the Government is keen to see higher export growth  through  relevant policy interventions. He also directed relevant agencies to accomplish their tasks outlined in the action plan ahead of the deadline.

 Commerce Ministry Senior Secretary Tapan Kanti Ghosh mentioned that Viet Nam could enhance its light engineering and bicycle export because they secured significant FDI. After 2026 when Bangladesh will graduate from LDC status, the government will not extend cash subsidy but provide support in the forms of research, knowledge, logistics, and so on. Bangladesh needs to shift its product concentration to sectors like light engineering so that it can gradually move upwards in its industrialization pathway. As Bangladesh will upgrade from being the 43rd largest economy to 25-26th economy in 2030, greater FDI may be attracted and the ease of doing business may be gradually improved. With proper factor analysis, the projected target for 2030 can be upgraded. 

He informed that MOF has commissioned a study to  seek alternatives of subsidies considering  the changed  situation after  LDC graduation, stakeholders can also suggest in these aspects.

Refering different projections of the light engineering sector, Commerce Senior Secretary told that considering the global export of 700 trillion, economic situation, supportive policies extended by the Govt and the target of perspective plan to be a developed  country, there is a need for alternative projections. He suggested BUILD to revisit the target considering the global issues and economic development.

BUILD CEO Ferdaus Ara Begum informed that plastic toy has got huge potential to be a significant export product along with automobile components, provided that the sector is supported with policies such bonded warehouse facilities and reduced lead time. She also urged to officiate the deemed export figures for calculating total export of the sector. 

Hafizur Rahman, Additional Secretary(Export), MOC  said, we have target to reach export of 80 billion dollars by the marginal year of Export Policy 2021-2024, sectoral targets in the roadmaps should be aligned with export policy target.