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Virtual Dialogue on “Building a Sustainable Ecosystem for Ecommerce
Transparent automation, easy regulations, access to finance, inter-ministerial coordination, easy tax structure, cross border digital commerce trade facilitation are key to foster ecommerce in Bangladesh, stakeholders told in a discussion meeting titled “Building a Sustainable Ecosystem for Ecommerce” organized by Dhaka Chamber of Commerce & Industry (DCCI) on August 14, 2021. Commerce Secretary Tapan Kanti Ghosh joined the discussion as the chief guest.
In the opening remarks, DCCI President Rizwan Rahman said that the ecommerce ecosystem saw a massive vibe in recent past. Despite we have seen some challenges the sector is facing recently, but with the intervention of the government, regulators and stakeholders a sustainable development will come in the sector, he said. He said according to an estimated data, in 2020 transaction in the ecommerce sector was about USD2 billion, which may increase up to USD2.5 billion in the current year. According to an estimated data, in 2020 transaction in only f-commerce sector was about 320 crore taka, he cited. He also said that 15% VAT imposed on ecommerce sector may hamper the growth of small investors in this sector. Moreover if international market leaders like Amazon comes in our market, it may create opportunity for local CMSME traders and manufacturers, he said.
Commerce Secretary Tapan Kanti Ghosh said private sector is playing the dominant role in the economy. In the ecommerce sector, reliability is the key issue to help this sector to grow, he said. Government does not want to impose strong regulations upon the sector so that small entrepreneurs can come on board easily. Recently the Escrow system to see the compliance has been introduced but the number of transactions fell down. He therefore suggested for a coordinated platform to overview the compliance. He also said that government is working hard to create a congenial regulatory atmosphere for ecommerce business. But he also requested the consumers not to be greedy or discount hunter. He termed ecommerce a dynamic way of business, and for that newer provisions will be added in the policy time to time. Government will also review the consumers’ protection law in line with the ecommerce regulations. He said there is a need of a Data Protection Law. Government is working on automation of its different service providing agencies like RJSC, NBR and after automation, entrepreneurs will get smooth service without hassle.
Barrister K. M. Tanjib-ul-Alam, Head of the Chamber, Tanjib Alam and Associates also underscored importance of reliability for a sustainable market. For sustainability, repeat customers are needed and depending on only discount hunter and for a few opportunists, the market may be hampered. He thus urged for a proper policy and guidelines with a scope of reward and punishment. Government should come forward to safeguard the ecosystem, he added. Government should upgrade the national postal system so that ecommerce platform can utilize this trusted system. Moreover, we need to prepare our law enforcing and related agencies to make them aware of fraudulent in this sector. Lastly he urged for a complete data protection law.
Fahim Ahmed, President, Pathao said policy and regulatory guidelines are needed for a sustainable ecosystem. Unsuccessful ecommerce platforms with a huge liability and discounting method cannot sustain in the market as it is not economically viable. Based on short term investment and huge discount-giving model may create a bad name to the industries. For creating infrastructure, technological assistance and to create confidence of consumers long term investment is needed he said.
Khorshed Anwar, Deputy Managing Director, Eastern Bank Limited said small e-commerce, startups or f-commerce entrepreneurs are sometimes deprived of access to finance due to lack of documentation. We are working on the issue and do training programmes for the small startups.
Khondoker Tasfin Alam, Chief Operating Officer, Daraz Bangladesh said excessive discounting model is not sustainable. Customer readiness as well as seller’s readiness is equally important. Sometimes wrong model can become famous for the time being but it is not sustainable but will hamper the ecosystem. He also said that Daraz Bangladesh has already invested BDT 500 crore in last 2 years in logistic infrastructure. He lastly emphasized on improving products quality for sustainability.
Ashish Chakraborty, Chief Information Officer, Nagad said Mobile Financial service plays a vital role in ecommerce. Customers from rural area can get products from anywhere in the country using mobile wallet. Bangladesh Bank now allows to get small investors having NID onboard which is a good move, he told. For the growth, he emphasized on full automation of this sector and this system will ensure service delivery information.
Muhammed Abdul Wahed Tomal, General Secretary, e-CAB said that the ecommerce sector in Bangladesh has got a tremendous growth right at this moment which was supposed to come in 2030. The growth momentum came at a faster rate due to Covid, he informed. Ecommerce is an integrated sector, agencies like Bangladesh Bank, NBR, LGRD, Commerce Ministry, ICT Division all are involved. Regarding Escrow service he suggested to make it more automated and easy functioning. All the regulations should come under one umbrella in a combined manner, he suggested. He also underscored the importance of data protection to create confidence in the market. We have focus on our rural market and creating skilled workforce. He also said that through the ecommerce sector, cross border digital trading will be a billion dollar industry in future. At present around 5 to 10 lakh f-commerce entrepreneurs are in operation in the country, he informed.
Professor A. K. Enamul Haque, Professor, Department of Economics, East West University said the booming ecommerce ecosystem in Bangladesh can be termed as a revolution. During the time of Covid situation people could avail the best use of it. But he said too much regulations may fuel the cost of doing business and it will discourage small investors to come in. “Let them grow”, he said. He said e-CAB can be empowered to deal with the fraudulent. In terms of imposing regulations, we have to be cautious. He also suggested for a faster dispute settlement mechanism and rating system both for service providers and consumers.
Khairul Majid Mahmud, Director, DCCI, Sameer Sattar, former Director, DCCI and Riyadh Hossain, former Vice President, DCCI also spoke on the occasion. DCCI Senior Vice President N.K.A. Mobin, FCS, FCA gave a vote of thanks.
Published on: 2021-08-14