Key issues that could play an effective role in creating a vibrant private sector should be incorporated when formulating the National Industrial Policy-2021, according to speakers at a webinar.
For example, the upcoming policy should focus on product diversification, skills development, policy reforms, technology adaptation and facilitation of import subsidies, they said.
A private sector-led economic transformation, safeguarding of the domestic market, increasing participation of female entrepreneurs, redefining small and medium enterprises (SMEs), and developing the sector as a whole could help raise Bangladesh’s competitiveness, they said.
This will turn critical at the international stage once the country makes the United Nations status graduation from a least developed to developing country in 2026, they added.
The webinar, styled “Private Sector Expectation in the Proposed National Industrial Policy-2021”, was organised by the Dhaka Chamber of Commerce and Industry (DCCI).
Speaking as chief guest, Industries Minister Nurul Majid Mahmud Humayun said they had consulted various stakeholders in the private sector before formulating the policy.
He emphasised on the need for a coordinated effort between public and private entities to generate employment, establish skilled backward and forward linkage industries, and thereby expand the overall economy.
Kamal Ahmed Mojumder, state minister for industries, said protecting the domestic industry, improving productivity and product quality, setting up cluster-based industrial parks, and ensuring sustainable industrialisation and infrastructure development would be addressed in the policy.
Presenting the keynote paper, Md Salim Ullah, senior assistant secretary to the industries ministry, said the policy would focus on increasing the industrial sector’s contribution to the GDP from 35 per cent to 40 per cent.
It will also aim for reducing poverty and unemployment by creating skilled workers, he said.
Product diversification of potential export items and capacity building in the industrial sector are also needed to face the challenges of LDC graduation and so, these two aspects will get special attention in the policy, he added.
Ullah stressed on the need to take measures for import-substitute-based industrial development as well.
ASM Mainuddin Monem, managing director of Abdul Monem Limited, urged for aggressive product diversification and technological advancement.
“We need to diversify as the country is still service sector dependent while garments is the only major industry here,” he said.
Terming the land policy as “not friendly enough”, he urged for reforms, particularly for economic zones.
He went on to say that target-oriented and time-bound economic zone management was necessary.
Monem urged the government to have at least 10 economic zones out of 100 up and running, putting focus on fiscal incentives, quick infrastructure development and utility connections.
Manwar Hossain, managing director of the Anwar Group of Industries, said the industrial policy should focus not only on the overall industry but also on every individual industrialist or manufacturer.
“Ensuring that policies are sustainable is very much needed to make progress,” he said.
“If we arrange skill development measures and training for migrant workers, then they will have more capacity to contribute to the national economy,” Hossain added.
Husne Ara Shikha, a general manager of Bangladesh Bank, said the manufacturing and service sectors have already been included in the industrial policy but trading was still left out.
Micro merchants should also be included in the service industry sector, she said.
DCCI President Rizwan Rahman emphasised on addressing the issue of developing the e-commerce sector in the proposed policy.
Mentioning that Vietnam advanced 27 steps in the competitive industrial performance index between 2006 and 2016, he suggested taking cues from that country’s industrial policy for formulating Bangladesh’s one.
Due to their current definitions in the existing industrial policy, cottage, micro, small and medium sized enterprises are facing various problems, with many deprived of their due benefits or loans, said Rahman.
Citing that different bilateral and multilateral trade agreements will get priority after Bangladesh’s status graduation, he emphasised on taking steps from now to enhance the negotiation skills of different related ministries as well as private sector entities.
