Different strategic approaches need to increase global mkt share

Staff Reporter :
Higher inflation in advanced economics, geopolitical instability, disrupted sourcing, volatile energy prices, change in trade policies and supply chain disruptions are the top risks for fashion businesses in the current year, businesses said.
There are opportunities to further penetrate into global markets, which requires a different strategic approach, they said while speaking at a three-day long Bangladesh Business Summit 2023 on Sunday.
 It was organised by Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) in cooperation with the foreign partners and commerce ministries along with the Bangladesh Investment Development Authority at Bangabandhu International Conference Centre in the capital.
Addressing the event, Commerce Minister Tipu Munshi urged foreign businesses to invest more in Bangladesh as the economy with immense trade potential has conducive business environment at present.
Bangladesh is providing investors with various fiscal and non-fiscal incentives like tax holiday, reduced import tax on capital machinery and raw materials, low value-added tax along with provision of availing export subsidies, the minister said.
Companies located inside economic zones, export processing zones are entitled to different types of incentive packages of tax exemption, he said.
The BIDA has established platform to extend one-stop services and the government is keen to set business-friendly policies, as it is running many projects to facilitate trade and investment, Tipu Munshi said in a plenary session titled “Bangladesh: $100 Billion Investment Opportunities in Key Sectors for Investors to Leverage.”
Bangladesh’s priority is to find out new export destinations and efforts are also going on in full swing, he said.
The successes Bangladesh has achieved prove that the country will surely make the

dream come true of reaching the target of doing $100 billion trade, the minister said.
In his key-note presentation, Prime Minister’s Adviser Salman F. Rahman said the foreign investors are actually reaping the benefits of domestic market in Bangladesh.
He said the strategic location of Bangladesh between two large markets like China and India alongside other regional markets has put the country in an ideal place for making investment.
Referring to the prime minister’s zero tolerance against terrorism and militancy, Salman said in Bangladesh, the government has really been able to control this menace although the situation is a bit different in other countries.
Salman noted that the next challenge Bangladesh would be facing is 4th industrial revolution and all needs to be prepared to face the challenge.
Answering to a question, the adviser said that blended finance would not be a solution to tame the impacts of high energy prices on the businesses.
State Minister for Foreign Affairs M Shahriar Alam said the foreign investors would be able to draw a steep growth trajectory in the coming days if the benefits of the mega projects and other transformational projects are considered.
Noting that Bangladesh has ratified the highest number of instruments over the years, Shahriar said that the highest number of green factories is now situated in Bangladesh while the clothes made in Bangladesh are the cleanest in the world.
Anne-Marie Trevelyan, UK Minster of State said that both the countries enjoy a historic and deep relationship while the UK businesses have a very active and important role in the economy of Bangladesh.
She said that more UK investments are likely to come in the higher education and financial sectors of Bangladesh.
“Many UK businesses want to expand here …UK will continue to be a steadfast partner of Bangladesh. Our relationship will continue to flourish in the years to come,” she added.
BGMEA President Faruque Hassan said, “Despite having a smaller share, the growth rate of non-cotton apparel imports from Bangladesh has rapidly increased in recent years and there are opportunities to further penetrate into the global market, which requires a different strategic approach.”
Bangladesh’s share of RMG exports to non-traditional markets increased to 18.13 per cent in July-February period of current fiscal year (2022-23), which was 8.65 per cent in 12 years ago.
Faruque said around 70.58 per cent of Bangladesh’s exports enjoy duty free access as LDC, which will come to an end as the LDC graduation takes effect.
Following this, market diversification, product development, efficiency enhancement, circular economy and carbon neutrality, strengthening backward linkage and re-skilling and up-skilling are the major priorities in order to face the LDC graduation challenges, he added.
Prime Minister’s Principal Secretary Tofazzel Hossain and Former FBCCI President AK Azad, among others, spoke on the occasion.