[🇧🇩] Light Engineering Industry in Bangladesh

[Saif]

Light engineering sector eyes dedicated industrial zone

Light engineering products manufacturers of the country demanded dedicated industrial park or zones to establish compliant and global standard factory units to compete with international competitors.

www.newagebd.net

Light engineering sector eyes dedicated industrial zone
Staff Correspondent 29 May, 2025, 22:53

Guests visit the stalls at the Bangladesh Light Engineering Expo 2025 at the Shahid Abu Sayeed International Convention Centre Auditorium of Dhaka on Thursday. | Sony Ramani

Light engineering products manufacturers of the country demanded dedicated industrial park or zones to establish compliant and global standard factory units to compete with international competitors.

They also urged the government to provide adequate policy support, removal of tax and VAT related issues.

They were speaking at the inauguration ceremony of the Bangladesh Light Engineering Expo 2025 at the Shahid Abu Sayeed International Convention Centre Auditorium of Dhaka on Thursday.

The two-day expo, organised jointly by Bangladesh Engineering Industry Owners’ Association (BEIOA) and Export Competitiveness for Jobs (EC4J) Project under the Ministry of Commerce, will continue till May 30.

In his speech as chief guest, Mahbubur Rahman, secretary of the Ministry of Commerce, said that Bangladesh needs to prioritise engineering and technology exports in the coming days, with the local light engineering sector playing a crucial role in this regard.

He also said that they want to meet multiple times with entrepreneurs from this sector, as small changes can improve the industry.

He added that the United States has imposed reciprocal tariffs on Bangladesh. Despite a trade deficit of only 6 billion dollars, Bangladesh is still struggling to manage it.

‘To unlock the potential of the light engineering sector, policy support is necessary. Although it is difficult to allocate separate land for this industry, we will consider it as the sector can be allocated a dedicated zone,’ he added.

He urged stakeholders to provide ideas on what can be done and the light engineering sector could be an alternative to the readymade garment sector.

He noted that a significant portion of Vietnam’s export income comes from engineering and technology products, whereas Bangladesh’s export composition is quite the opposite.

Hosne Ferdous Sumi, Senior Private Sector Specialist and Task Team Leader, EC4J Project, World Bank, said that the light engineering sector must focus on the global value chain and they have to capture the global market trends.

‘There are opportunities for innovation and diversification of the light engineering sector, Bangladesh should work to capture these,’ she added.

Hafizur Rahman, administrator of the Federation of Bangladesh Chamber of Commerce and Industry, said that this sector could be a game changer.

‘However, light engineering exports have remained stagnant for a long time. Entrepreneurs in this sector face capital shortages and have limited connections with international markets,’ he added.

He also said that according to the BIDA roadmap, this sector has the highest potential. Therefore, the government should seriously consider matters related to tariffs and taxes.

Abdur Rahim Khan, Additional Secretary and Project Director of EC4J, said that the sector has some issues in policy and coordination, which need to be addressed.

‘If we can remove the hindrances related to duties and policy, the boost of the sector will be a must,’ he added.

In his welcome speech, the BEIOA President Md Abdur Razzaque expressed his gratitude to the Chief Guest, Special Guests, participating member companies, representatives from the print and electronic media, and leaders from the central and district branches of the association.

He extended special thanks to the EC4J Project under the Ministry of Commerce for implementing various programs according to the needs of the light engineering sector.

He said that the light engineering sector has five sub sectors, like mold, electrical and electronics, agro manufacturing machineries, foundry, and bycyle where they produce all types of engineering products for almost all sectors.

‘There is immense potential in this sector. To utilize that potential, a separate industrial park like that for leather is required. We also need policy support and exemptions on taxes and duties for importing raw materials,’ he added.

Commercial Counselors from some countries also joined the event, who suggested the manufacturers go more micro or subsector level, as light engineering is a vast concept.

A total of 27 industrial enterprises are participating in the fair.

The expo is expected to play a meaningful role in promoting local engineering products, services, and technologies.

Moreover, entrepreneurs from the domestic engineering industry presented various policy proposals in front of policymakers and media for the holistic development of the sector.

These proposals are anticipated to encourage the government and development partners to initiate programs for the sector’s growth.

The expo is open to all from 11:00 AM to 8:00 PM every day.​

 

[Saif]

Govt should afford needed fillip to light engineering sector

LIGHT engineering, which could fetch up to $100 billion from export if properly nourished, warrants that the government should provide the sector with policy support, scopes for investment and the needed infrastructural development. It is in this...

www.newagebd.net

Govt should afford needed fillip to light engineering sector
31 May, 2025, 00:00

LIGHT engineering, which could fetch up to $100 billion from export if properly nourished, warrants that the government should provide the sector with policy support, scopes for investment and the needed infrastructural development. It is in this context, people involved in the sector have called for dedicated industrial parks or zones for the establishment of factories, keeping to global standards, to compete on the international market. The stakeholders have also demanded adequate policy support, which includes tax issues especially on the import of raw materials, at the inauguration of a two-day light engineering exposition held in Dhaka on May 29. The Bangladesh Engineering Industry Owners’ Association and the Export Competitiveness for Jobs Project of the commerce ministry have organised the exhibition. The commerce secretary, who attended the occasion as chief guest, has said that Bangladesh needs to prioritise engineering and technology export, where the light engineering sector could play an important role. The sector is said to have accounted for 3 per cent of the gross domestic product in the 2022 financial year whilst the apparel sector accounted for 9.25 per cent of the gross domestic product that financial year.

A Bangladesh Investment Development Authority report on the light engineering sector, published in June 2024, shows an almost consistent growth in light engineering product export, beginning with $355.97 million in the 2018 financial year that reached $795.63 million in the 2022 financial year, with a decline in the 2020 financial year. The report, however, shows a decline to $585.85 million in the 2023 financial year. The sector is reported to be generating about Tk 200 billion and the market is reported to be growing at 10 per cent. There are about 7,500 units — factories, shops and workshops — at Dholaikhal and Jinjira, the light engineering hubs of the capital city, that employ about 60,000 people. The needed fillip for the sector could create an opportunity for the innovation and diversification of the sector and Bangladesh should seize the opportunity. The commerce secretary at the programme has said that the government wants to meet light engineering entrepreneurs as small changes could improve the industry. The export of light engineering products, which have fetched some money, has remained somewhat stagnant for long. Because the entrepreneurs in the sector are faced with the shortage of capital and have limited connections on the international market. The government should now seriously take note of the barriers that hinder the growth of the light engineering sector.

The government should, therefore, afford the needed fillips to the light engineering sector on issues that have come up to reap the benefits. It should also attend to the issue of skills of the people employed in the sector.​