Local manufacturers can easily meet the domestic demand of Tk 8.0 billion low-end computer accessories if necessary policy supports are provided, the industry insider said.
They think abolition of current 15 per cent tax on import of raw materials of computer accessories, infrastructural facilities including setting up separate industrial estate, providing low interest credit etc. certainly will help manufacture the low-end computer accessories.
According to Bangladesh Computer Samity (BCS), the country's total computer hardware market is worth about Tk 80 billion, of which 10 per cent or Tk 8.0 billion can be considered as low-end computer accessories.
Low-end computer accessories mean low-cost and not much advanced accessories that are used to bring together a computer. Such as: keyboard, power supply unit, caching, cable, cable connector, mouse etc.
"It is not easy to manufacture semiconductor based parts like motherboard, but Bangladesh can easily manufacture low-end accessories," Mustafa Jabbar, former president of BCS, told to The Financial Express.
He said no country in the world manufactures all hardware of a computer. More or less all countries import accessories to assemble a computer.
He said some entrepreneurs tried to start manufacturing some accessories like keyboard, power supply units but had to stop move as it won't be possible to compete with the imported Chinese low-cost products.
Mr. Jabbar said Chinese computer accessories manufacturing market is too large that Bangladeshi manufacturers could not compete them.
"If Bangladesh government removes all taxes on raw materials import for accessories manufacturing, entrepreneurs can sustain and compete with Chinese computer accessories," he said adding that there are also ample opportunities of export.
He also blamed local entrepreneurs' apathy of creating own brands.
Mr Jabbar, who is also famous for his Bijoy Bangla keyboard, said Bangladesh's total computer hardware market would be Tk 300 billion by 2021 and low-end accessories market would be at least Tk 3.0 billion.
Habibullah N Karim, chief executive officer(CEO) of Technoheaven, said for Bangladesh it is too difficult to compete with China on computer accessories manufacturing.
"It is nothing about capacity, Bangladesh is capable to manufacture low end computer accessories..it is very much possible," he said.
He also thinks proper policy supports can encourage new entrepreneurs in the sector.
He also said joint venture with Chinese companies can also open scope for local entrepreneurs in this sector.
Present general Secretary of BCS Nazrul Islam Milan thinks low-end accessories can be manufactured in the country easily.
He thinks there must be serious study on this and find real reason why some failed and new entrepreneurs are not showing interest in manufacturing computer accessories.
Bangladesh Computer Samity (BCS) wanted a seven-year tax holiday facility for information and communication technology (ICT) industry and Tk 7.0 billion fund for the government's specialised digitisation programme in a pre-budget proposal.
The Samity also demanded withdrawal of value added tax (Vat) on Internet use to help e-business and outsourcing flourish.
But budget for fiscal year 2014-2015 did not give much to the sector.
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