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The annual bilateral trade between Bangladesh and the United States would go up to $22-25 billion from the current $11 billion in the next five years if logistics can be improved, President of the American Chamber of Commerce in Bangladesh (AmCham) and also Managing Director of Expeditors (Bangladesh) Limited Syed Ershad Ahmed told The Business Post's Rafikul Islam in an exclusive interview
You have been organising the US trade show in Dhaka for the last 28 years. How has this benefitted Bangladesh?
AmCham started the trade show culture in Bangladesh in 1992. Due to the Covid-19 pandemic, we could not arrange it in the last two years. This year, we arranged the 28th show. The bilateral trade between the two countries was around $10-12 million when the first show was arranged, which has now increased to $11 billion. It is our great achievement. Besides, improving logistics can increase this amount to $22-25 billion in five years while only better management of the Chattogram port can raise bilateral trade by 20 per cent then.
Many new companies take part in our shows and get to know Bangladeshi products. We bring both investors and users of Bangladeshi products together to introduce more items through the trade show. American companies like The Boeing Company and SESCO have set up offices in Bangladesh, thanks to the trade show.
The two countries have shared diplomatic relations for 50 years. How does AmCham play a role in strengthening the ties further?
We basically work for commercial and economic progress. Our key work is to develop business and promote economic relationships between Bangladesh and the US. We worked a lot since our organisation’s inception in 1988. At the beginning, our organisation’s name was the American Bangladesh Economic Forum. AmCham was formally established after eight years in 1996.
We have participated in business development over the years. At the 28th trade show, we arranged a good number of seminars, including “Logistics for regional connectivity”, “Intellectual property rights and impact on cross border business”, “Education USA”, “Business/investor visa”, and “USAID: Support for private sector growth”.
Now we focus on intellectual property rights (IPR), logistics, health, education, and new technology. We need IPR to achieve Sustainable Development Goals. We cannot achieve these goals if we do not focus on IPR. That is why we discussed this at the latest trade show.
We also work on US visa processing and disseminate education-related information so that Bangladeshi students can go there for higher education. We strengthen the ties between Bangladesh and the US through our various activities. We also motivate Bangladeshis through trade exhibitions to learn about American products and new technologies.
Will Bangladeshi products face any big problem in the US market after the LDC graduation?
I do not think Bangladesh will face any big problem after the Least Developed Countries (LDC) graduation. We are not worried about the Generalised System of Preferences (GSP) and the free trade agreement. Bangladesh does not get the GSP facility for garments in the US market now, but we export a large volume there.
Besides, we will have to be competitive after the LDC graduation. Why will we think about privileges then? After graduation, our products will be sold based on their quality. On the other hand, we have a big domestic market. We will have to meet its demand as well.
There are lots of potential sectors for investment in Bangladesh. Which ones do American investors prioritise?
US investors want to invest in knowledge- and technology-based industries. They prefer artificial intelligence and robotics sectors.
The Bangladeshi authorities are building 100 economic zones across the country, and there are lots of investment opportunities. US companies can invest in energy, blue economy, big infrastructure, and railway sectors here.
What types of challenges do the US companies investing in Bangladesh face?
Not only US companies but all investors face almost the same problems in our country. We have a lot of nice policies, but those are not implemented properly. Port management is poor here, and customs are not automated. Our shipments face delays, and we cannot deliver products on time.
Bangladesh must improve its position on the global logistics index. We cannot be competitive if we do not improve. Vietnam, Indonesia, Malaysia, India, Pakistan, Thailand, and Sri Lanka are in better positions on the index. Bangladesh ranked 100th among 140 nations this year on the index.
We cannot diversify our products. Garment manufacturers cannot make high-end products due to poor logistics. We should keep an eye on that. We need to form a national logistics policy and automate ports as soon as possible.
We built the Padma Bridge but are unable to get its benefits properly. For example, different types of flowers are cultivated in Khulna and Jashore and are sold at Tk 20-50 per piece in Dhaka. But they can be sold at $100-200 if we can export them. However, we cannot export them by air as there are no cold storage facilities in airports.
We need scanning facilities in ports. We have to unload products fast. The logistics industry is regulated by nine ministries and 20 agencies, but there is no coordination among them. We have to solve this.
The National Board of Revenue (NBR) is full of problems. There is no NBR wing where we have not faced problems. It is not business-friendly. Its three wings – customs, VAT, and income taxes – must be business- and investor-friendly.
We are not worried about our tax structure. Everyone has to pay taxes. But we have to ensure equal taxes for all investors. There should be no discrimination. It cannot be accepted that someone pays taxes regularly while another pays bribes.
Corruption must be eliminated. Besides, only 2.5 lakh people among over 16 crore in the country pay taxes. The tax net has to be widened.
What Bangladeshi products have good demand in the US market?
There is great demand for agricultural goods in the US market. We need a proper supply chain to export agro goods, but we do not have that.
Bangladesh is an agriculture-based country. We can export a large amount of agro products and flowers easily. Besides, we can export bicycles, leather goods, and light engineering items.
China manufactures pins, pencils, and safety pins. Why cannot Bangladesh make these? There is huge demand for these items across the globe.
The US embassy in Dhaka recently opened a commercial service office. How will it benefit businesses?
The commercial service office at the embassy was inaugurated to increase bilateral trade. This will further strengthen our cooperation. We will be able to easily discuss various business matters. This will make doing business easier. Besides, big American companies will have confidence that there is a commercial service office in Bangladesh.
How did you start your business?
I joined Philips, a multinational company, in 1982. I then got to know many big businesses, which was a turning point in my life. Later, I started a logistics business and introduced US logistics services in Bangladesh in 1996.
My company provides different types of services, such as air and sea freights as well as project cargo. We are trying to build warehouses, but there are policy problems. We can invest more in Bangladesh if the existing problems are mitigated. Besides, the investment will be bigger if the problems are solved.
What is your future plan?
There is no business across the globe that does not need logistics. There are big investment opportunities in Bangladesh’s logistics sector, which is growing vastly. Big investments can be made here as well.
Our business will grow further if Bangladesh’s economy flourishes. I would like to invest more in the logistics sector for further growth.
