The invention of the mobile phone and mobile technology was groundbreaking. One gadget with so many capabilities is transforming the world by placing everything in the palm of our hands.
China, Vietnam, and India are the world’s leading manufacturers of mobile phones. Bangladesh joined those ranks through the hands of local tech giant Walton Group in 2017. Also, world-renowned companies like Samsung, Nokia, Vivo, and Xiaomi have started assembling and manufacturing operations locally in recent years.
Because of the government’s supportive fiscal policy throughout the journey, the mobile phone manufacturing and assembling industry, which began in 2017, is now capable of meeting more than 80% of local market demand. Furthermore, the industry is showing enormous export potential.
Howbeit, the mobile phone manufacturing industry seems to have high growth potential; the industry is facing a branch of challenges, i.e., import dependency for key components of mobile phones, lack of strong R & D facilities, and trading of unofficial handsets, etc. In addition to that, it has been proposed in the budget for the fiscal year 2022–23 to withdraw the existing 5% VAT exemption at the trading stage of mobile phone sets, which will affect the affordability of mobile phones consumers in Bangladesh.
Even after being faced with multiple challenges, it is undeniable that Bangladesh is the 9th largest mobile device market globally. The thriving mobile phone manufacturing industry in Bangladesh has almost all the right things going for it for another “Made in Bangladesh” dream to come true.
Md. Shah Jalal
Assistant Manager
IDLC Finance Ltd.