TDS Desk:

Bangladesh Investment Development Authority (BIDA) Executive Chairman Chowdhury Ashik Mahmud Bin Harun on Sunday said the government’s responsibility is to create a business-friendly environment that fosters entrepreneurship and drives economic growth.

“We are not a perfect country, and I do not claim that we are. However, it is our duty as a government to remove negativity and facilitate a conducive environment for businesses,” he said at the launch of the Customs Strategic Plan 2024-28, Authorised Economic Operator (AEO) system, and Import-Export Hub at the National Board of Revenue (NBR) Multipurpose Hall.

He expressed optimism that the AEO and National Single Window (NSW) projects would set an example for other government agencies to follow, encouraging further initiatives to enhance trade facilitation.

The BIDA chairman reiterated Bangladesh’s potential as a prime investment destination with unique advantages.

He stressed the need for a broader perspective when planning industrial expansion.

“If we establish a manufacturing plant in Bangladesh, we should not limit our focus to the domestic market alone but also consider export opportunities in neighboring regions like the Seven Sisters of India and Myanmar,” he said.

He underlined the importance of port connectivity and an efficient supply chain to enhance Bangladesh’s competitiveness.

The BIDA Chairman cited the example of Youngone Group, which has identical factories in Chattogram and Vietnam.

Buyers prefer Vietnam due to its shorter turnaround time from raw material arrival to final production.

“Our turnaround time is significantly higher than Vietnam’s. We need to regain our competitive advantage in this area,” he stressed.

He lauded NBR’s efforts in launching the National Single Window, which has already issued over 100,000 certificates, and highlighted the AEO system as another milestone.

“The AEO, once fully operational, will reduce the burden on both the NBR and business communities, leading to improved port facilitation,” he noted.

He pointed to positive indicators in Bangladesh’s economy.

“Despite supply chain disruptions in July and August, exports grew by 13% from July to December. Chattogram Port recorded its highest trade volume, and January saw a 7% growth based on these trends. These are all encouraging signs,” he said.

However, he cautioned that infrastructure, technology, and capabilities must be improved in parallel with trade facilitation efforts to sustain this progress.

The AEO system aims to simplify import and export processes by enabling certified businesses to transport cargo directly from ports to their factories or warehouses through a green channel, bypassing physical inspections.

The NBR finalised the AEO operational procedures in December and upgraded its digital infrastructure to support the initiative.

The system also offers international benefits, allowing certified businesses to enjoy similar trade privileges in partner countries under reciprocal agreements.

This initiative will reduce clearance times, cut costs, and enhance trade efficiency. To qualify for AEO certification, businesses must meet compliance requirements, including self-declaration of tax status and adherence to financial regulations.

NBR Chairman Md Abdur Rahman Khan presided over the event.

FICCI president Zaved Akhtar, NBR member Md Moazzem Hossain, Rupali Chowdhury of Berger, Mohammed Mesbah Uddin of Fair Elections, Animal Health Companies Association of Bangladesh (AHCAB) Secretary General Mohammad Aftab Alam, Chief of Party of the Bangladesh Trade Facilitation (BTF) Project Michael J. Parr, Asian Development Bank (ADB) country director Hoe Yun Jeong and NBR Member Kazi Mostafizur Rahman also spoke at the programme.