Around $25b export earnings possible from LE sector

Staff Reporter :
Only five countries– China, USA, India, Singapore and Japan– import about $2.51 trillion per year and Bangladesh enjoys market access in all these destinations. If we export at least one percent to these places, Bangladesh can export around $25 billion from the Light Engineering (LE) sector, say experts.
Achieving the target, the country needs a dedicated industrial park and industrial cluster, an e-commerce platform for LE entrepreneurs, re-skilling and up-skilling to form a technologically skilled workforce, enforcement of AI, rationalisation of raw material import duty and encourage TT export, strategy to attract domestic and foreign investment to organise the sector are required, they said.
The experts came up with the remarks while speaking at the 8th meeting of the SME Development Working Committee of the Business Initiative Leading Development (BUILD) at the Industries Ministry in the city on Monday.
In the key notepaper, BUILD CEO Ferdaus Ara Begum appreciated the active role of the Ministry of Industries in formulating the Light Engineering Industry Development Policy 2022 and pointed out, “We have room to improve the policy by developing strategy and action plans considering the situation of post-graduation, Made in Bangladesh Campaign for the LE sector.”
She recommended setting a year-wise GDP and export target along with a well-defined action plan to implement development strategies for this sector.
Referring to different policies where the importance of LE has been highlighted, she informed about the LE road map prepared by BUILD for the commerce ministry, where the export projection for the sector in 2030 is $12.56 billion, with specific action plans that need supportive financing for implementation.
Regarding the definition in the policy to be only an OEM producer, Bangladesh would need to transform to ODM, and eventually OBM giving examples of Vietnam, India and China, she said.
Speaking at the event, Zakia Sultana, Secretary of the Ministry, said, “We would extensively support the Light Engineering Sector while exploring ways to set up a separate industrial park in BSCIC for the sector and giving special incentives to the sector that shares the domestic market worth $12 billion.”
Understanding the need for promoting grassroots entrepreneurs of the sector and getting them on board, she said, “We will set out specific priorities in line with the Light
Engineering Policy, which can be achieved at the earliest.” Echoing the policy’s objectives as raised by the BUILD keynote, focusing on 4IR and ICT, she informed that the Ministry is already working to promote the sector.
“While we have policies in place, without aligned action plans, we go nowhere. So, we will be setting out targeted actions that truly facilitate small entrepreneurs and hugely contribute to the employment generation and eventually export, and greening the sector is our top priority,” she added.
Dr Md Mafizur Rahman, Managing Director of SME Foundation, informed that SME Foundation is currently formulating a cluster development guideline for working cluster development and promoting SMS in the sector.
He also emphasised on tax-related issues for importing raw materials and accessories for the entrepreneurs.
Mirza Nurul Ghani Shovon, President of NASCIB, Mohammad Monjurul Islam, Additional Director of Bangladesh Bank, Dr Nadia Binte Amin, President of WEND, among others, spoke on the occasion.