The production and sales of ‘Made in Bangladesh’ handsets are increasing rapidly amid a sharp fall in imports, according to bdnews24.com.
Locally manufactured handsets from around a dozen small and large factories are meeting the lion's share of the demand for smartphones and feature phones in Bangladesh.
Many top foreign brands have started manufacturing handsets by setting up factories in the country. Some home-grown brands are now leading the local market by producing handsets at affordable prices.
Consumers can buy high and medium-configuration handsets at an affordable price as these are locally made. Moreover, according to sector experts, low-budget customers can also fulfil their desire to use smartphones.
The import and production data of the last few fiscal years show the amount of imports is gradually decreasing, and the amount of manufacturing and assembly of phones in the country is increasing.
However, many phones are still coming to the country illegally. From time to time, entrepreneurs and importers have been saying that the phones brought under the baggage rule are hurting their business.
According to data from Bangladesh Telecommunication Regulatory Commission, imports and local productions were the same three years ago. But imports have gradually fallen as local factories scaled up production.
In the 2021-2022 financial year, out of the total 45 million handsets in the market, the imported sets numbered 10 million. The factories in the country manufactured 35 million sets.
The factories in Bangladesh made approximately 12.91 million handsets in the first half of the current fiscal year. The country imported only 50,000 handsets during this period.
More than 31.47 million mobile phone handsets were manufactured in 2022, while around 306,000 were imported. Imported handsets accounted for less than one per cent of the total devices.
Making the most of the government-offered tax and duty benefits under the Made in Bangladesh campaign, local manufacturers are meeting the local demand fully, according to people involved in the sector.
The government introduced the policy in 2017 for production with 30 percent value added in the country.
Tariffs on imported handsets increased under the policy, which encouraged brands to go for local manufacturing and 14 brands, including Samsung, Walton, Nokia, Symphony, Xiaomi, Oppo and Vivo, opened their plants in the country.
A total of 58.6 per cent duty, including 25 per cent customs duty, 15 per cent value-added tax, 5 per cent added tax value, 3 per cent regulatory duty and 2 per cent advance income tax, have been imposed on importing mobile handsets, according to the latest statutory regulatory order data.
On the contrary, the local factories need to pay 18 per cent tax, including 10 per cent customs duty, 5 per cent VAT and 2 per cent AIT, for imports necessary for production.
Despite the efforts to introduce full-fledged local production, the factories are making phones by bringing most of the important parts from abroad and assembling them.
Some factories have started manufacturing many of these parts locally. Many local manufacturers are also making chargers, casings and other parts.
BTRC Chairman Shyam Sunder Sikder said that the government would monitor the industry for some more time. After that, a new policy will be made to keep order in the sector.