Potentials of vehicle manufacturing industries in Bangladesh

Political stability and good governance require institutional changes and cultural norms that can take many years, even generations, to become established; and investment in human capital is not likely to yield results until a new generation of better skilled workers enter the workforce. Does this mean Bangladesh is not likely to experience another sustained increase in economic growth any time soon? In countries like Bangladesh the growth take-offs are not normally preceded by major economic and political reforms such as dramatic improvement in the political settings or shock therapy style economic reforms. Rather, economic accelerations are caused predominantly by idiosyncratic, and often small-scale, changes. Potential of vehicle manufacturing industries in Bangladesh: The young Bangladeshi engineers have already proved their engineering know-how in making vehicles for domestic uses. Hereunder are produced some facts in favour of the growing vehicle industries in rural Bangladesh. l A goods carrier manufactured in Bangladesh villages costs approximately Tk 85,000-Tk 100,000. This carrier can transport around two tons (1800 kgs approx) of goods; whereas, a vehicle, such as pickup, of the same capacity if imported from international market would cost around Tk 700,000 - Tk 800,000. l These local vehicles carry goods, such as sugarcane, from crop fields to nearby mills in 4050 minutes, while bullock carts would have taken around 12 hours or more to cover the same distance. l At least 300,000 such vehicles have been produced so far, i.e., 300,000 families are making their living and livelihoods from these vehicles. l Around 2000 young people are engaged in around 100 vehicle manufacturing workshops in Kushtia district alone, and 70 such vehicle manufacturing workshops at Vadalia Bazar alone have employed youth from around 1500 rural families. l The workers aged 22-35 in these manufacturing factories earn around Tk 6,000 --- Tk 10,000 each per month. l The tra-ined workers of these industries in welding, gas cutting, lathe operations etc. can switch to many other industries in and outside the country. l Twenty engineers from Rashid Engineering Workshop have so far migrated to foreign countries as skilled labours, and they are now remitting handsome amount of money to their families. Future of the industry: The more the industry is expanded, the better for the rural youths as well as economy of the country. With advancement of technology, the more lasting and polished vehicles are produced now. Compared to the imported vehicles, locally produced vehicles are more efficient and greatly cheap, while the locally produced vehicles also use 4-stroke engines. Therefore, demand of the local vehicles is increasing day by day. People are pouring in with their orders because they want efficient vehicles at very reasonable prices, which can access remote places, save time, and which help rural business. As the industry is growing, the employees are getting higher wages with better working conditions. If we find some technical constraints in these vehicles, why do not we ask our engineers from BUET to correct those in order to fit them in the transportation system? If due attention and incentives are provided to the industry, the industry owners of the Vadalia Bazar estimate, they can transact in next five years around Tk 400---Tk 500 million, employing five thousand workers, paying due amount of vat and taxes to the government exchequer. We see in near future locally made vehicles plying all the roads in the country. Thrust to backward linkage industries: Except for engine, chain and bearings which are now imported from mainly China, the local vehicle manufacturers make and use parts like body, angle, rod, shaft, plate, nut, bolt, tire, ring, drum, brake shoe, etc. from the domestic market. Support iron stores are growing in the vehicle manufacturing belt to supply irons to these industries. Tyre shops are growing in the locality for supplying tyres to these industries. A painting section is attached with this workshop employing a number of painters. If our local vehicle manufacturing companies grow with proper care and incentives from the state, the backward linkage industries of different types will also grow to feed the manufacturing of vehicles. If expanded across the country under friendly rules and regulations for its growth, the vehicle manufacturing industry will create huge employment, cut import of vehicles and spare parts, and accelerate money circulation, and thus contributing to the national economy. The government in the National Industrial Policy 2010 recognises SMEs as vehicles for enhancing the standard of life, economic growth and poverty alleviation of the common people. The primary role of the government shall firstly, be that of a facilitator removing policy obstacles and neutralising market failures and, secondly, providing necessary promotional support of various kinds. We demand that country's policymakers pay attention to tackling infrastructure bottlenecks, opening new export markets, maintaining existing ones, and resisting protectionism in local manufacturing industries against burdensome import bases, and reducing regulatory and bureaucratic burden on the private enterprises, which are potential for the future of the country. If Bangladesh could save the colossal amount of money spent for vehicle import, this could be reinvested in export oriented manufacturing industries. If we can catch up with the zeal of vehicle manufacturing of India in 1940s and that of China in 1930s, and take sweeping measures to nurture the current rural vehicle manufacturing industries, Bangladesh can supply sufficient number of both passenger and commercial vehicles to meet its huge domestic needs in near future. A clear vision and a sound state framework to support private enterprises of vehicle manufacturing would make it a success. The writer is a researcher and can be reached at email: msaidurbd@yahoo.com rsmcenter@yahoo.com