Cost of doing business increases for lack of infrastructure, limited use of ICT, absence of coordination: CPD Study

By AKM Moinuddin

Dhaka, Oct 21 (UNB) – Despite generally business-friendly export and import processes in Bangladesh, it often takes too much trading time resulting in higher cost of doing business that poses a threat of losing competitiveness in global market, says a CPD study.
The survey-based study identified the bottlenecks as inadequate infrastructure in the port areas, lack of coordination among various actors involved in the business process, use of paper-based documents and limited use of ICT in the overall business process.
Center for Policy Dialogue (CPD), a civil society think-tank, carried out the study - ‘Simplification of Trade Processes and Procedures in Bangladesh: Results from Business Process Analysis of Export and Import Procedures for Selected Commodities - which was presented at a dialogue on ‘Trade Promotion through Trade Facilitation’ held at the CIRDAP auditorium in the city on Thursday.
CPD arranged the dialogue in collaboration with Asia-Pacific Research and Training Network on Trade (ARTNet), UNESCAP.
Commerce Secretary M Golam Hossain was the chief guest while former FBCCI president Mir Nasir Hossain the special guest at the dialogue chaired by CPD executive director Prof Mustafizur Rahman. Bangladesh Tariff Commission Joint Chief Dr Mostafa Abid Khan took part in the discussion.
The study presented by senior CPD research associate Syed Saifuddin Hossain showed that it takes 40 days to export RMG products to neighboring India through seaway and an exporter has to follow twelve steps in finalizing the export process.
Likewise, it takes 38 days if any exporter wants to export RMG products to India by land with the completion of ten steps. On the other hand, an exporter has to count 36.75 days to export shrimps to Japan through the completion of 12-step formalities.
However, it takes fewer days while importing cotton fabrics from India and sugar from Thailand, the study report shows. Ten days and less than nine days (9.5) are required to complete import process of cotton and sugar respectively.
The study recommended immediate automation of all customs houses, establishing a ‘single window’ so that all the actors involved in the business process can be brought under a single umbrella, development of infrastructure in port areas, expediting the process of issuing inspection certificates and strengthening collaboration between government and business chambers to ensure better business environment.
In his remarks on the presentation, Commerce Secretary M Golam Hossain said: “Export is doing well. Credit goes to the exporters and I admit the government’s role is very minimal.”
He said although the policy is there, its implementation and enforcement part is very weak
Speaking as special guest former FBCCI president Mir Nasir Hossain said: “We’re stuck up everywhere…we need better coordination among various agencies.”
He said the country’s key seaport Chittagong is ill-managed which eats up valuable time. “Infrastructure has become a major issue…I say Chittagong port is ill-managed in terms of equipments. It increases cost of doing business and consumes too much time.”
Mir Nasir Hossain said if these issues are not addressed, Bangladesh might lose its competitiveness in global market. “Commerce Ministry should have a permanent set up to deal with trade issues.”
CPD executive director Prof Mustafizur Rahman said: “Bangladesh is doing well but there are a lot of things to do to remain competitive in global market.”
Earlier, Yann Duval of Trade and Investment Division of UNESCAP presented a paper on `Trade Facilitation: An Asia-Pacific Perspective’.
END/UNB/