1.
9 Importance of Export Business in the Economy of Bangladesh
Bangladesh is a developing country of the third world. Export trade is one of the most supportive tools
for changing the fate of its people and for the rapid development of the economy. The importance of
export business in Bangladesh’s economy is discussed below:
1. Increase of Foreign Currency Reserve:
To pay the value of imported goods and settle foreign debts, it is essential to create a satisfactory
reserve of foreign currency. Through the export of traditional and non-traditional products, valuable
foreign currency can be earned, which improves the reserve position.
2. Creating Overseas Market:
Through the expansion of export trade, markets for domestic goods can be created abroad. As a result,
the national economy becomes stronger.
3. Removing Barriers to Foreign Trade:
In Bangladesh, the volume of imports has always been higher than exports. This leads to an unfavorable
balance of foreign trade. To remove this imbalance, export growth is the only alternative.
4. Promotion of Industries:
Export trade accelerates the development of domestic industries. As exports increase, new industries
are established in the country, making rapid industrialization possible.
5. Increase of Revenue Income:
Export trade increases government revenue. At different stages of the export process, the government
earns a large amount of money through VAT, duties, and taxes. This helps reduce the budget deficit.
6. Creation of Employment Facilities:
Export trade creates employment opportunities. Numerous people get jobs in export-oriented
industries, thereby reducing the pressure of unemployment in the country.
7. Securing Economic Self-sufficiency:
In the modern age, every country aims for self-sufficiency in the economic field. Through export trade,
any country can achieve economic independence.
8. Increase the Goodwill of the Country:
Export trade not only builds widespread international recognition for the country but also reduces
dependency on foreign aid through self-sufficiency. As a result, the country’s image improves abroad.
9. Increase of Per Capita Income:
Export trade increases production, which raises the per capita income of the people.
10. Utilization of Natural Resources:
Export trade ensures the proper utilization of natural resources. Increased export earnings allow the
implementation of various development projects, ensuring efficient use of resources.
Conclusion:
From the above discussion, it is clear that export trade plays a vital role in the economy of Bangladesh. If
government and private sectors work together under the slogan “Export is Prosperity”, our economy will
undoubtedly become stronger.
1.10 Problems of Export Trade of Bangladesh
The positive role of export trade in creating a favorable flow of foreign trade is universally
acknowledged. Despite its importance, Bangladesh has to face various obstacles in export trade. The
major problems in Bangladesh’s export trade are as follows:
1. Lack of Diversification of Export Goods:
One of the main problems is the lack of diversity. Our exports rely heavily on a few items such as jute,
tea, leather, and ready-made garments. Without introducing new items, export income cannot grow.
2. Inferior Quality of Export Goods:
Most of the goods exported from Bangladesh are of low quality. In highly competitive markets, these
cannot survive. Since foreign buyers are very quality-conscious, our goods fail to secure a strong
position.
3. High Production Cost:
Due to devaluation of currency, delays caused by power outages, increased tariffs on imported raw
materials, inefficient management, etc., the production cost of exportable goods in Bangladesh is rising.
This high price makes it difficult to compete in international markets.
4. Irregular Supply of Export Goods:
Because of natural disasters, political unrest, labor disputes, shortage of raw materials, working capital
problems, and smuggling, there are frequent shortages of export goods. Despite demand, we often fail
to supply on time, leading to the loss of markets.
5. Inadequate Transport Facility:
Due to insufficient domestic shipping facilities, Bangladesh depends mostly on foreign ships for exports.
Lack of space on ships often delays deliveries, creating uncertainty in export trade.
6. Lack of Publicity:
Promotion of Bangladeshi products in foreign markets is neither planned nor strong. Due to poor
publicity, foreign buyers are often unaware of our products, causing market contraction.
7. Complexity in Export Finance:
Export trade requires a large amount of capital. But banks in Bangladesh do not provide sufficient
financial assistance. Exporters face financial crises, preventing business expansion.
8. Lack of Institutional Assistance:
For improving quality, exploring new markets, and completing export procedures, exporters do not get
enough support from government or private institutions. Although the Export Promotion Bureau
provides some assistance, it is very limited.
9. Limited Experience:
People and institutions involved in export trade in Bangladesh have limited experience. This lack of
expertise hampers export growth.
10. Adverse Attitude of Foreign Buyers:
Due to illegal activities by some dishonest exporters, foreign buyers often develop a negative perception
of all Bangladeshi businessmen. This severely threatens export potential.
11. Facing Business Combinations:
Industrially developed countries enter into trade agreements and alliances with one another, enjoying
tariff and trade benefits. Bangladesh cannot compete with such alliances, thus losing advantages in
global trade.
12. Lack of Export Research:
Continuous research is essential for identifying weaknesses in marketing, product pricing, and other
export-related issues. But such research is almost absent in Bangladesh, making it difficult to improve
export performance.
Conclusion:
These problems create significant obstacles to Bangladesh’s promising export trade. The government,
chambers of commerce, and other stakeholders must work sincerely to resolve them.
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1.11 Recommendations to Remove the Problems of Export Trade in Bangladesh
It is now the right time to take realistic measures to remove the prevailing problems in export trade. The
following recommendations are suggested:
1. Increase Production:
To boost exports, the production of exportable goods must be increased.
2. Increasing Export of Non-Traditional Items:
Given the limited market for traditional items, focus must shift to non-traditional exports such as
shrimp, hosiery, chemicals, frozen foods, frog legs, paper pulp, snake venom, etc., which are gaining
global demand.
3. Increase Standard of Export Goods:
In today’s competitive global market, quality is the key condition. Therefore, emphasis must be given to
improving product standards.
4. Giving Financial Assistance to Exporters:
Export business requires large investments. Banks should adopt liberal policies in financing exporters to
encourage them to expand export activities.
5. Arrangement for Training of Exporters:
To enhance efficiency, exporters must be given institutional training on exportable goods and export
procedures.
6. Reduce Export Duty:
If export duties are reduced, exporters can offer products at lower prices internationally, thereby
increasing demand for Bangladeshi goods.
7. Participation in Trade and Export Fair:
Regular and active participation in domestic and international trade fairs will introduce Bangladeshi
products to foreign buyers, boosting exports.
8. Sending Trade Delegation in Foreign Countries:
Regularly sending trade delegations abroad can help identify new markets and increase export demand.
9. Resist Black Marketing:
Smuggling is a major obstacle in export trade. The government must take strict legal action against it.
10. Increasing the Role of Export Promotion Bureau:
The Export Promotion Bureau must expand its activities and restructure its administration to provide
better support to exporters.
11. Development of Transportation Facility:
Bangladesh needs its own transport system for timely export deliveries. Without improving transport
facilities, export development is impossible.
12. To Arrange Trade Agreements:
Through the Ministry of Commerce, Chambers of Commerce, and foreign missions, Bangladesh must
sign agreements with various countries and join important trade blocs to gain commercial advantages.
13. Easier Utility Services:
Exporters should get easy and affordable access to utilities such as water, electricity, gas, telephone, fax,
and air tickets.
14. Establishment of Special Export Cell:
A high-powered special export cell should be established to resolve exporters’ problems quickly.
Conclusion:
If these recommendations are implemented, a new horizon of success will open for Bangladesh’s export
trade, and the foundation of the national economy will become stronger.
