Bangladesh can replicate South Korea's transformation from labour- intensive industries to export-oriented industrial sector, in order to face challenges after its LDC graduation, speakers said at a programme on Tuesday.
Besides, Bangladesh should solemnly try to sign a free-trade agreement (FTA) with South Korea after LDC graduation, as Bangladesh is the 10th-largest export destination for South Korea while the latter is also the 5th-largest foreign investor in Bangladesh, they added.
The suggestions came at a virtual dialogue on 'Bangladesh-South Korea Trade and Investment Cooperation: In the context of LDC graduation' organised by the Dhaka Chamber of Commerce & Industry (DCCI).
Senior Secretary of the Ministry of Foreign Affairs Masud Bin Momen addressed the event as the chief guest, with DCCI President Rizwan Rahman in the chair.
Chairman and CEO of Youngone Corporation Kihak Sung attended the event as the guest of honour, while Ambassador of Bangladesh to South Korea M Delwar Hossain as a special guest.
Mr Momen said about 150 South Korean companies were operating in Bangladesh now, showing their willingness to do business in the country.
After LDC graduation, he said, Bangladesh would request South Korea to continue preferential treatment for Bangladeshi export items.
The Bangladesh government will give special focus to revisit decades-old bilateral agreements, exploring the possibility of signing FTA to facilitate deeper partnership, regular exchange of trade missions, and direct connectivity between Dhaka and Seoul, he said.
The senior secretary also underscored the importance of creating skilled human resources to face the upcoming challenges of enhancing productivity.
In his opening remarks, DCCI President Rizwan Rahman said South Korea was the 10th largest exporter to Bangladesh in 2021.
In 2021, bilateral trade between Bangladesh and South Korea was around US$ 1.53 billion with a negative balance of $727 million for Bangladesh.
Bangladesh has many promising and priority industrial sectors - agro and food processing, plastic manufacturing, jute and jute goods, light engineering and automobiles are among the potential sectors, said DCCI president.
Besides, hi-tech parks, 4IR technologies and structured economic zones can also be a good destination for Korean investments in the form of joint ventures, he said.
Around 95 per cent of Bangladesh's export to South Korea enjoys duty-free quota-free (DFQF) facility which will not exist after LDC graduation, Mr Rahman mentioned, adding that the two countries should assess feasibility of signing FTA.
Meanwhile, mentioning that Youngone Corporation invested over $600 million in Bangladesh, the company's CEO Kihak Sung said RMG export to South Korea would reach $1.0 billion in the next five years.
He said after LDC graduation, Bangladesh should focus on signing a win-win FTA with South Korea prior to a high level consultation.
As South Korean investments are entering Bangladesh's high-tech industries, therefore, stable and high quality energy supply is very important, he opined.
Moreover, he underscored the need for smoother customs and port facilities, easy tax regime, smooth inland transportation system and product diversification for easy export process.
Terming the IT sector a very promising one, Mr Sung said that Youngone Corporation had already made a high-tech park together with the Bangladesh government, and in the next few years, they were going to invest around $200 million.
Bangladesh envoy to South Korea M Delwar Hossain said that after LDC graduation, Bangladesh would be in need of robust product diversification to increase its export to South Korea to mitigate the trade gap.
He also mentioned that regular communication between the trade bodies of both the countries was also crucial for boosting bilateral trade.
Korea Trade-Investment Promotion Agency (KOTRA) Director General Jong Won Kim also spoke at the programme.
