Private sector urged to prepare for LDC graduation challenges

The private sector should prepare to face new challenges of the country's graduation from the Least Developed Country (LDC) status, Md Jashim Uddin, president of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI), says.

"Bangladesh's graduation from the LDC status will open new paths in trade and it will also increase foreign investment. However, several challenges are also waiting for the country's private sector," he said while addressing the Annual General Meeting of the FBCCI in the capital on Wednesday.

Two AGMs of the session 2020-21 and 2021-22 were held on the same day as the AGM of the session 2020-2021 could not be held due to Covid-19, reads a press release.

The FBCCI president said, "Bangladesh will lose special trade privileges in several markets including Europe, one of the top export destinations of the country, after the LDC graduation. The private sector has to face competition in maintaining the price and product quality. This is why emphasis should be given to research, innovation, and product diversification."

To make the export market sustainable, the government should initiate more bilateral trade agreements including Free Trade Agreement (FTA), Preferential Trade Agreement (PTA), he opined. 

Md Jashim Uddin emphasised on obtaining certificates from various institutions, reducing complexity in its renewal, effective automation, and increasing the capacity of port management to attract more foreign investment.

The FBCCI president said, "The Covid-19 pandemic and the Russia-Ukraine crisis have resulted in an abnormal increase in energy price, food price, agricultural production cost, industrial raw materials, parts, and transportation cost. High inflation is also occurring in currency exchange rates. Rising costs of doing business have made it difficult for local entrepreneurs to survive in the global competition."

In such a situation, the private sector should focus on increasing the use of technology in the industry, creating a skilled workforce, increasing efficiency in business management, and increasing the capacity to produce goods at competitive prices, he added.

In the ongoing situation, the FBCCI President urged the District Chambers and Associations to be more proactive to maintain productivity. 

He also suggested identifying sector-wise problems and bringing them up at the policy-making level through FBCCI.

Mentioning that a three-day long programme has been chalked out to celebrate the golden jubilee of the FBCCI, he said, "We are going to hold a two-day international business summit to brand Bangladesh as an investment-friendly country. On the third day, we will honour distinguished businessmen, freedom fighters, and entrepreneurs who have contributed to the national economy."

Moreover, a three-day international fair titled "Best of Bangladesh" will be organised to highlight Bangladeshi local products and services to the world, he opined.

He also inaugurated the logo and website of "Bangladesh Business Summit 2023" which is going to be held in March next year.

Md Jasim Uddin also said the private sector is closely working with the government in many sectors including achieving the SDGs, LDC graduation etc.

FBCCI Senior Vice President Mostofa Azad Chowdhury Babu, Vice Presidents Md Aminul Hoque Shamim, Md Amin Helaly, Salahuddin Alamgir, Md Habib Ullah Dawn and MA Razzak Khan, and directors were also present.