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Seminar on “Improving export capabilities of SMEs: succeeding globally upon LDC graduation”
Technology advancement, access to finance, marketing facility, research and innovation, product diversification, cluster base, infrastructure are some of the important issues for the overall development of SME sector of Bangladesh. Speakers told these at a seminar on “Improving export capabilities of SMEs: succeeding globally upon LDC graduation” organized by Dhaka Chamber of Commerce & Industry (DCCI) on 7th October 2023. Dr. Shirin Sharmin Chaudhury, MP, Honourable Speaker of the Bangladesh Parliament graced the occasion as the chief guest.
DCCI President Barrister Md. Sameer Sattar in his speech said that we need to take preparation as the exporters including SMEs will face tariff ranging from 8% to 16% on their export later 2026. However, we have a very strong SME base in Bangladesh. SMEs contribute 28% to the country’s GDP, 45% manufacturing value addition and account for 90% of the jobs in the private sector. To facilitate enhancing export capabilities of our SME sector, he suggested to redefine SME definition by excluding ‘Medium’ businesses as medium are largely privileged. He also recommended banks to provide SME tailored export financing like credit insurance, export development fund, working capital loan to address export related financial challenges. He also underscored the importance of having a central SME database with updated information. He also endorsed foreign investment, easy technology transfer and cluster development for export-oriented SMEs.
Speaker of the Bangladesh Parliament Dr. Shirin Sharmin Chaudhury, MP said that the SMEs of Bangladesh are resilient enough and contribute more than 30% to our GDP. Still this sector has various challenges and she hoped that the policymakers will try to address these issues to solve the existing problems. She also added that despite covid pandemic and Russia-Ukraine war, Bangladesh has become able to continue its commendable progress securing 6.5% GDP growth. She later invited the SME entrepreneurs to utilize technology for getting access to virtual market. She requested them to use the platform of Joyeeta Foundation to sell their products. We can also give them a One Stop Services so that they can avail all required services from one place and for that we need to take coordinated efforts. Women entrepreneurs can take up to taka 10 lakh loan collateral free, she informed. Policy makers may think about to lessen the customs duty for import of raw materials that needed for SMEs, she added.
Ambassador of Canada to Bangladesh Dr. Lilly Nicholes said Canada said that Canada is working with Bangladesh in the technology and vocational sector. She also underscored to sign FTAs with potential trading partners. SMEs face various challenges like access to finance, technical barriers, skills gap etc. Later she emphasized on more research so that SMEs can add value to their products and enhance their capacity in the export market. Canada is happy to work with Bangladesh in terms of capacity building, research, collaboration and skills development.
Ambassador of Saudi Arabia in Bangladesh Essa Yousef Alduhailan said Saudi Arabia put more emphasis on SMEs. In the post pandemic time, Saudi Arabia facilitate their SMEs by supporting them to revive. These supports include Implementation of new regulations, reform measures financial assistance by the Saudi Government. Bangladesh has a strong and diversified export market. Jute, shrimp, vegetables, pharmaceuticals and RMG are some of the major products of Bangladesh. Bangladesh is going to graduate into middle income country and this transition needs more investment in education, technology and innovation. If Bangladesh can take similar policies and programmes likewise the SMEs in Saudi Arabia to benefit Bangladesh.
Dr. Selim Raihan, Executive Director, SANEM gave the keynote presentation. He said that Bangladesh’s SMEs face few challenges like capacity constraints, lack of policies and regulatory issues, financing, infrastructure and skills gap. He also said that import tariff for SMEs in Bangladesh is a bit high. He emphasized on faster customs and trade regulations. He also urged for conducive and investment friendly tariff regime, consistent tax rates, predictable policy regime and stable macro-economic situation. We have to address the high rate of NPLs, weak capital market, high operational cost of SME financing and weak integration with financial system.
Kohinoor Yeasmin, CEO of Tarango, Rezbin Begum, MD, People’s Leather Industry, AFM Asif, CEO Bengal Meat Processing industries Ltd and Executive Director of Bangladesh Bank Dr. Md. Kabir Ahmed were also present as panel discussants.
DCCI senior Vice President SM Golam Faruk Alamgir Arman and vice President Md. Junaed Ibna Ali were also present on the occasion.
Published on: 2023-10-07