Develop local market, supply chain to face post-LDC challenges: experts

The development of the local market and supply chain ecosystem is very essential to face the post-LDC challenges, stakeholders said at a dialogue today.

Besides, the modernization and automation of tax, VAT and duty structure; attraction of new investment and use of technology are also important for post-LDC competitiveness, they said.

Dhaka Chamber of Commerce and Industry (DCCI) virtually organised the dialogue on "Local Market Development: Preparedness for the post-LDC era."

In his opening remarks, DCCI President Rizwan Rahman said after graduation, the country's export market will have to face compliance, barding, inverse participation ratio (IPR), international support measures, duty and non-duty related challenges.

"Based on our present economic situation, development of the local market is also equally important besides the export market," he said.

As the total market scenario will be changed after graduation, for that reason development of local businesses, boosting local manufacturing capacity, increasing products quality are also very important, Rizwan.

"Therefore, in consideration with reformed duty structure, tax structure, good manufacturing environment, changed consumer behaviour pattern we can make our supply chain ecosystem more competitive."

Tapan Kanti Ghosh, secretary of commerce ministry, said, "In terms of building export competitiveness we have to enhance value addition."

Ensuring low-cost financing, ease of doing business, efficiency in port and customs and skill development are some of the major issues for the post-LDC period, he added.

Md Masud Sadiq, member (VAT policy) of the National Board of Revenue, said ensuring easy funding, VAT system automation, infrastructure development and technology adaptation are some of the major issues to be focused on more.

Md Habibur Rahman, executive director (research) of Bangladesh Bank, said in the latest monetary policy interest rate has been cut drastically and therefore, the private sector will get access to low-cost funding in the system as there is enough liquidity in the banks.

"We have to strengthen our backward linkage industry," said Sha Md Abu Raihan Alberuni, member of Bangladesh Trade and Tariff Commission.

Ahsan Khan Chowdhury, chairman and CEO of PRAN-RFL Group, and some others spoke at the programme.