Focus on quality and compliance to thrive after LDC graduation

Bangladesh's transition from a least developed country (LDC) to a developing one will require a strong focus on quality, regulatory compliance, adherence to global standards, and environmental sustainability, an expert said today.

However, as businesses feared an erosion in duty benefits, the private sector had urged the interim to negotiate to delay the country's status graduation following the political changeover on August 5 last year. Yet, the interim government decided not to budge.

Bangladesh is scheduled to graduate from the group of least developed countries (LDCs) on November 24, 2026.

Now, the private sector needs to improve firm-level competitiveness to sustain a competitive market, Ferdaus Ara Begum​, chief executive officer of the Business Initiative Leading Development, said while making a presentation at a seminar.

The seminar, styled "LDC Graduation Strategies and Readiness of Private Sector", was held at the Holiday Inn Hotel in the capital's Tejgaon, jointly organised by the Bangladesh Plastics Goods Manufacturers and Exporters Association (BPGMEA) and the Business Promotion Council under the Ministry of Commerce.

Compliance with international regulations, including labour standards, is essential, she said, adding that adopting environmental, social and governance (ESG) standards would help integrate into the global value chain and attract foreign investment.

She further said ensuring product quality in the local market can boost exports and that more research and development to foster innovation is crucial. Finally, Begum urged the private sector to assist the government in trade negotiations by providing necessary information.

Shamim Ahmed, president of the BPGMEA, said they are quite anxious about LDC graduation.

"We don't know what the coming days will bring," he said.

"However, whatever the situation may be, we will have to face it. I believe that no matter what challenges arise, we will be able to overcome them."

He explained that graduating from LDC status would pose a significant challenge for Bangladesh as incentives such as duty-free facilities and Generalized System of Preferences will no longer apply, meaning the country will have to compete in the global arena on its own.

To rise to this challenge, preparations must begin immediately, he said.

"We need to focus on producing quality products, exploring new export markets, and taking necessary steps to manufacture and export innovative technologies and diversified products that align with the evolving demands of foreign buyers," he added.

Abdur Rahim Khan, an additional secretary to the Ministry of Commerce, said many businesspeople are quite anxious about LDC graduation. But he believes there is no reason to be alarmed.

"It should be viewed like this: there's a river ahead that needs to be crossed. As long as one doesn't start swimming, the task will seem difficult," he said.

Mahbubur Rahman, secretary to the Ministry of Commerce, said Bangladesh's apparel sector has secured a better position in export diversification on its own merits.

However, other major sectors with similar potential have not shown the same level of advancement, he said, adding that the plastic market is larger than the apparel market globally.

"Although we are not specialised in producing high-end plastic products, we do have a presence in the low-end segment. Despite this, the expected level of diversification in the low-end plastic segment has not been achieved," he added.

However, Rahman also said export diversification is possible in Bangladesh through the plastic sector.