South Korean Ambassador in Dhaka Park Young-sik has called upon the government to reduce dependency on imported cars and encourage local production to prepare Bangladesh for graduation from the LDC in 2026.
“Duty-free quota will be removed as Bangladesh moves from the LDC status. There will be many difficulties when you enter the competitive global market. A lot of things need to be done both in the private and public sectors,” he said on Saturday.
The ambassador was interacting with the members of the Diplomatic Correspondents Association Bangladesh (DCAB) during a visit to the manufacturing plant of Hyundai Motors -- a joint venture of Bangladeshi company Fair Technology and Korean Hyundai -- at the Kaliakoir Bangabandhu Hi-Tech Park in Gazipur.
The plant was inaugurated in January this year. The company is making 150 cars per month with a capacity to produce 7,000 per year.
The ambassador said such a manufacturing factory was “very important for Bangladesh because it creates jobs for local youths, it works as a way of technology transfer and you get brand new cars, instead of second-hand cars whose carbon emission is higher than new cars.”
He said the government needs to pay attention to consolidating the foundation and increasing the productivity of the manufacturing sector before the LDC graduation.
The current policy is not supportive of the manufacturing sector, he said.
For example, in Bangladesh, 98% of cars are being imported and only 2% of cars are locally assembled or manufactured.
“If at least 15% of cars are locally manufactured, it can create lots of jobs and help the local economy,” the ambassador said.
Replying to a question about the challenges, he said: “Even my colleagues faced difficulties in getting visas or renewing visas. Not only Korean companies but also other foreign companies face difficulties in opening LC. The taxation and customs system are not always transparent. These basic aspects need to be improved.”
“Before asking for foreign investments, improve the environment for investments,” he said.
South Korea is the biggest foreign investor in Bangladesh’s export processing zones (EPZs) with 75 companies operating in the EPZs employing more than 80,000 local workers.
Bilateral trade surpassed the $3 billion mark last year.
The Korean government allows preferential market access of about 95% – that is 4,000+ Bangladeshi products – to their market through the Asia-Pacific Trade Agreement (APTA), and WTO arrangements since 2008.
State Minister for Foreign Affairs Md Shahriar Alam recently sought a "comprehensive strategic partnership" with South Korea and Seoul's consideration for further expanding duty-free coverage for Bangladeshi products and continuing tariff concession benefits beyond 2026.
