‘Bangladesh now dreams of developing global brands’

“I believe Bangladesh will have its own footprints in the world of multinational companies (MNCs) in the next 50 years. We will have our own brands going global,” BGMEA President Faruque Hassan told The Business Post’s Ibrahim Hossain Ovi in an exclusive interview

Hassan shared his thoughts on Bangladesh’s development saga spanning 50 years and future goals.

Bangladesh is celebrating its 50 years of independence. How should you evaluate the present status of economic growth?

In its 50 years of independence, Bangladesh has emerged as a development surprise to the world. From a war-ravaged economy, it is now a ‘basket of wonders’. With the present economic indicators so far attained, the country has successfully established itself as one of the emerging economies in Asia as well as in the globe. Our socio-economic progress and human development indicators are widely acclaimed.

Bangladesh has now become a global model for development. Per capita income has reached $ 2,554, poverty rate declined to 20.5 per cent, GDP grew by 5.24 per cent among South Asian nations even amid the pandemic.

Forex reserves stood at $ 43.10 billion. Much of this development has been propelled by industrialisation whose contribution to GDP increased from 17.31 per cent in Fiscal Year 1980-81 to 35.36 per cent in Fiscal Year 2019-20.

Do you think the spirit of Liberation War is achieved?

From the economic perspective, it is almost attained in the last 50 years. Bangladesh is set to graduate to a developing country by 2026. It is a great achievement on the eve of Golden Jubilee.

Now we need fine tuning and it is high time the economy would be furnished with people-oriented services and improved coordination.

There is still more to do to improve services while corruption is still a headache for businesses and a bar to development of the private sector.

In attaining the full-fledged essence of liberation, we have to remove corruption, and focus should be given on equality and justice for all.

I believe in the next 50 years Bangladesh will have its own footprints in the world of multinational company (MNC). We will have our own brands going global.

How to materialise the dream of MNCs and own global brand?

“Made in Bangladesh” tag is already established and retailed in 167 countries across the globe with pride.

We have created our own brands in local markets to enter the global markets subsequently.

We need more state patronisation and proactive steps from the entrepreneurs. The role of wider stakeholders will be absolutely critical for guiding the nation towards the right path.

When the nation will celebrate its centenary of independence, Bangladesh will be a place of peace and prosperity; a safer and better living place for our next generation.

How has RMG paved ways to graduate to a developing nation?

Over the years, the apparel industry has contributed immensely to the economic growth and transformed the aid-dependent economy into a trade-oriented one. In four decades, the country has emerged as the second largest garment exporting country in the world.

Starting from almost nothing, the RMG export reached $ 34.13 billion in FY19. It contributes 11% to GDP.

The apparel and textile industry in particular has brought a silent revolution in our society by allowing women to enter the mainstream economy and by helping our nation to significantly reduce early marriage, infant and maternal mortality.

In the founding year of Bangladesh, the life expectancy was 46.6 years which has increased to 74.7 years now.

Associated linked sectors including service sectors such as banks, non-financial institutions, hotels and tourism have also expanded with the growth of RMG.

While as a primary industry, the textile and RMG sector is helping the economy develop a solid foundation.

What are the reasons for the robust export growth in 50 years?

The fact that amazes all of us is Bangladesh does neither grow cotton, nor is an integrated producer of textiles and apparel, but we have already become the second largest apparel exporter in the world.

An unparalleled entrepreneurial spirit reinforced by dedication and determination of millions of workers along with the policy support, well-timed delivery, rapid adoption of environmentally friendly and green concepts, rapidly developing backward linkage industry and endorsement from the brands are all behind our success story.

Today our clothing factories are not only safer, but also have become more dynamic, modern, energy-efficient and environmentally friendly. Bangladesh is the home to the most LEED green factories in the world with 152 LEED green factories.

Wherever could we focus to attain more development growth?

While pursuing a robust growth vision we need to put out aggressive investment efforts with special focus on developing the backward linkage industry and diversification of our industry.

Virtual Marketplace can also be a big source of our growth, plus moving from Original Equipment Manufacturer (OEM) to design and brand manufacturers could be a step towards further growth.

How to make the economic growth a sustainable one?

Bangladesh is going forward tremendous growth prospect to fulfill the “Vision 2041” and achieve excellence.

We should consider all possibilities with immense importance in the upcoming days since these are very crucial for creating an enabling environment, bringing necessary reforms to laws and policies for the envisioned growth of our economy and sustain the momentum that we have achieved.

Foreign investment will be crucial to us to pursue targeted growth. It will be very difficult to get FDI if we cannot continuously improve our business environment.

Stability in policies and regulation is also important to enhance the confidence of future investors, especially the young entrepreneurs and SMEs. Expeditious completion of mega projects will help the economy reap the benefit.

How to cater for the present opportunity made in these years?

We have to explore potentials of Free Trade Agreements, Preferential Trade Agreements and Regional Trade Agreements with prospective trade partners along with strengthening the Regional Value Chain.

To reap the benefit of demographic dividend, capacity building of this energetic workforce and re-skilling and up-skilling are absolutely necessary so they can drive the growth momentum with updated knowledge.

Where do you want to see Bangladesh’s economic growth in the next 50 years?

Moving on to a higher growth trajectory, Bangladesh has been able to successfully maintain a consistent growth despite our population size.

I think the qualitative difference in our economy in the next 50 years vis-à-vis the past 50 years would be made by a transition to knowledge-based economy from manufacturing to service-oriented one and from imitation to innovation.