FE Report

The shipbuilding industry is likely to get a place on the list of priority sectors of the new export policy to be announced soon, according to a commerce ministry official.

The other sectors to be on the list are agro and agro-processing products, light engineering, footwear and leather, pharmaceuticals, software and ICT products and home textiles.

The commerce ministry on Sunday arranged an inter-ministerial meeting to discuss the draft export policy.

Bangladesh has become a popular destination to build small sea-going ships as South Korea, China, Vietnam and other countries pursue for larger container ships.

Foreign buyers are now coming to the country as ship building in East Asian countries has become more costly due to steep wage increases.

The country exported its first ship built by Ananda Shipyard and Slipways Ltd last year and about half a dozen entrepreneurs are ready to enter the market with big investment.

Ananda alone has struck deals worth around $225 million to build at least 24 vessels, including six ferries for leading companies in Denmark, Germany and Mozambique.

The meeting asked the committee responsible for drafting the policy to come up with new and potential industries within a week for inclusion in the highest priority sector list, the official said.

"Potential and new sectors will be given preference for export product diversification," he added.

In the meeting, a representative from the readymade garment sector demanded that the RMG sector should be included in the list but the committee felt that the sector does not need special attention, he added.

"It is a matured industry with export value of $10 billion and it can withstand any adverse impact without any special attention," he explained.

A representative also asked for the inclusion of the ceramic industry in the list but the meeting observed that the industry does not have the capacity to cater to the export demand, he said.

"Even if we give them extra facility under the export policy what will be the use as their export volume is insignificant," he added.

Stakeholders put forward their recommendations which have also been included in the export policy to make it more business-friendly, the official said.

About lending for export, the meeting said commercial banks will provide loans as per instruction from the Bangladesh Bank, he said.

"The central bank will encourage the scheduled banks to lend to the listed sectors at lower rate and may fix a maximum interest rate ceiling in this regard," he added.

The country earned $12.82 billion from export in the first 10 months of the last fiscal with the major earning coming from readymade garment sector.