Lack of skilled recipients limits tech transfers

A major lift in digital technologies has happened in Bangladesh for absorption of technical know-how from Chinese technical assistance and investments, although the technology transfer remains limited for skills deficiency.
Investment promoters and industry people are of such view in evaluation of the spinoffs that could be derived from the execution of megaprojects in the country with China's capital investment and application of high technologies in implementation works.
Chinese investments often include training programmes for local workers and professionals helping transfer of technical skills and knowledge, improving the human capital in Bangladesh, they said, but pointed out the inadequacies in the process.
Apparel export at competitive prices, digitisation in payment systems, expansion of mobile technology, light engineering as well as construction of large infrastructure projects have been largely contributed by China's technology in Bangladesh, industry people said about gains.
Involvement in megaprojects like Padma Bridge, Karnaphuli Tunnel and Payra power plant also helped local engineers and workers to get hands-on experiences from Chinese contractors which would help them develop such projects on their own in future.
Local engineers and workers got exposed to modern construction methods and 13 advanced new technologies applied to the Padma Bridge project, considered one of wonder works of modern engineering.
Md Shafiqul Islam, Project Director of the Padma Bridge, says obviously the local engineers have gained experiences from Chinese contractors to build such large infrastructure projects and mitigate the challenges.
"China has excellent technological expertise which prompts many developed countries to hire its contracting firms for large infrastructure projects," the PD says.
"Not only the public sector, technology transfer from China also paid off in private sectors, too," he adds.
Currently, 4IR in the apparel industry is changing traditional operational methods through automation, artificial intelligence, 3D printing and knitting, robotics and intelligent manufacturing and so. As a result, Bangladesh has great strides in garment exports by ways of reducing cost and delivery time.
Shams Mahmud, former president of Dhaka Chamber of Commerce and Industry (DCCI) and also Managing Director of Shasha Denims Ltd, says apparel exporters have found China a convenient country to absorb its technical know-how due to smooth bilateral relations and trade scenario.
"Apparel exporters usually sign contracts with a Chinese company keeping provisions of training before taking technical assistance or buying advanced machinery," he adds.
Use of cost-effective technology of China helped many small readymade garment industries to compete and survive by complying with buyers' requirements, he mentions.
The former president of DCCI said mid-career management capacity has been boosted due to tech transfer from China.
He also acknowledges contribution of Chinese technology to expansion of country's manufacturing capacity with advanced machinery and production techniques, and boost in light-engineering sector and agriculture mechanization.
Though Bangladesh has dearth in recipient end in some sectors, the second-latest digital economy has expedited adoption of new technology in various sectors in a bid to help the country in preparing for the fourth industrial revolution or 4IR-driven principally by brain-teasing artificial intelligence.
Chinese investments in special economic zones (SEZs) and industrial parks have facilitated the establishment of manufacturing facilities.
Al Mamun Mridha, Secretary-General of Bangladesh-China Chamber of Commerce and Industry (BCCCI), mentions that China has also invested in renewal-energy sector, particularly in solar and wind power, and supported agricultural modernization.
"The adoption of advanced farming practices, including the development of high-yield crop varieties and aquaculture techniques, is also its outcome," he told the FE writer.
Also, Chinese pharmaceutical companies have collaborated with Bangladeshi counterparts, leading to technology transfer and knowledge sharing in the pharmaceutical sector.
The largest mobile financial service in Bangladesh, bKash, has been providing AI- based complete solutions to the consumers under the strategic partnership with Ant Financial Services Group, the operator of China-based Alipay.
Shamsuddin Haider Dalim, Head of Corporate Communications, bKash, terms its digital loan service, in partnership with City Bank, a groundbreaking initiative that is enabling the customers, specially unbanked population, to access formal financing 24/7 through mobile wallet.
"This product innovation can be attributed to the strong technology-support role played by bKash's strategic partner, Ant group," he says.
The Chinese tech giant is undertaking credit assessment on potential borrowers for this project.
The company is also offering advanced AI-based credit-assessment facilitates for digital loans in Bangladesh apart from different countries, including China, India and the Philippines.
In the telecommunications sector, Chinese companies like Huawei, ZTE have played a significant role in expanding Bangladesh's telecommunications networks by providing cutting-edge equipment and expertise.
On exchange of technology from China, Habibullah N. Karim, the founder and Chief Executive Officer of Technoheaven Co Ltd, and also director of Bangladesh Association of Software and Information Services (BASIS), says sharing technical know-how would be effective if local tech companies are allowed to participate in a project under Chances partnership.
"Long-term benefit would be gained if IT projects ensure participation of both technology companies of China and Bangladesh," he adds.
He, however, also suggests ensuring international-standard quality in project implementation by Chinese investors.
A senior official of Bangladesh Investment Development Authority (BIDA) finds lack of skilled manpower as the major barrier for Bangladesh to exploit the opportunities of technology transfer, artificial intelligence and adopt the skills to meet challenges of fourth industrial revaluation due to its dearth of skilled manpower.
Both Mr Karim and Shams Mahmud, however, expressed a different observation on the claim, saying that ICT is working internationally now.
"Obviously, each of the individual companies has some business secretes and technological expertise which they would not share with others," said Mr Mahmud.
Former finance adviser and economist Dr Mirza Azizul Islam thinks strategic planning, advanced infrastructures and willingness and efficiency in bureaucratic system are required to reap benefit from tech-transfer from investors or contractors.
He suggests that attention should be given on signing deals on transfer of technology while signing technical-assistance deal with the contracting party.
He also stressed the need for prioritizing financial investment to embrace certain technology from China.
Earlier, in a policy paper to the World Trade Organisation (WTO), the Ministry of Commerce (MOC) showed how Bangladesh remained ill-equipped on technology-transfer front from developed countries.
Industry-insiders also found upward trend in brain drain in recent years creating a vacuum in the country's skilled-manpower pool as young fresher are migrating on a large scale to the developed countries, including Canada, the United States, Australia and the UK.
Workforce having capacity to absorb the opportunity of tech-transfer is being hired by developed countries with better remuneration packages and better livelihood.
The BIDA official said one of the three main objectives in luring FDI is technology transfer from developed countries which remained at bay for the lacking in recipient- end.
He said adoption of technical skills from China is imperative for Bangladesh if the country's self-sufficiency after graduation from the least-developed country (LDC) status is taken into consideration.
In a recent interview with The Financial Express, Country Director for HR of Standard Chartered Bank, Bangladesh, Khairun Nahar Haque expressed concern over higher brain drain from Bangladesh that makes it difficult to find talents skilled in IT.
Mr Mridha, who is also Managing Director at Mridha Business Ltd, observes that starting from agriculture mechanization to large infrastructure, Chinese investors have made their vibrant footprint in Bangladesh since 2010.
Now, Bangladesh has adopted capacity to assemble mobile phone, establish and operate green apparel factories successfully.
Chinese investors are, now, moving ahead to introduce AI-based service-delivery system in the country's two seaports---Mongla and Chattogram, he mentioned.
Huawei and ZTE have brought diverse cutting-edge technologies to the visitors. Transsion Holdings, a China-based smartphone manufacturer, has also launched ISMARTU factory in Bangladesh.
At the Digital Bangladesh Mela (expo) 2023, Ma Jian (Nicky), chief technical officer of Huawei's South Asia Representative Office, said they had brought technologies like 5.5G, cloud solution, smart education, and smart ports to bring Bangladesh to a fully connected intelligent world and face the challenges of 4IR and 5IR as well.
BIDA data show at least 15 Chinese companies brought direct investment in Bangladesh last year alone. Besides, another US$1.5 billion worth FDI proposals were also submitted in 2022.
Bangladesh Bank (BB) data show the country's yearly growth of FDI from China stood at 13.5 per cent. The country witnessed a surge in investment from China in the last seven years by 11.5 times.
However, industry-insiders alleged Bangladesh's poor preparedness to absorb tech from foreign contractors and technical assistances.
For example, Vietnamese company FPT has developed Integrated VAT Administration for the National Board of Revenue (NBR), but the authority is unable to take over the system for not having skilled and sufficient manpower on the technology.
Industry sources said considering country's dependence on Chinese tech-expertise to materialize Smart Bangladesh vision by 2041, the hurdles that make Chinese investors shy away have to be addressed properly as experiences of existing investors play a vital role in attracting more investment.
However, an opportunity has been created for Bangladesh to attract more Chinese investment in technology as an alternative to relocating businesses after US sanctions on investment by Chinese entities in three sectors: semiconductors and microelectronics, quantum information technologies, and certain artificial intelligence systems.

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