Traders are facing difficulty in opening letters of credit (LC) for import and export of goods, which is considered a major obstacle by 40 percent of entrepreneurs. The researchers presented this information on the second day of the four-day Annual BIDS Conference on Development (ABCD) 2024 of the Bangladesh Institute of Development Studies (BIDS).

This result has emerged in the study entitled Supply Chain Dynamics for Sustainable RMG Growth in Bangladesh.

This research paper was presented at a conference organized by Bangladesh Institute of Development Research (BIDS) at a hotel in the capital on Sunday (December 8).

BIDS conducted the survey on 63 medium and large factories in post-LDC Bangladesh to explore barriers and identify solutions for efficient and cost-effective supply chains in the garment sector in post-LDC Bangladesh.

In addition, 16 percent of entrepreneurs in the clothing sector are late in receiving bills and 13 percent think that the high interest rate of banks in this country is a big obstacle for business.

Besides, 3 percent of the entrepreneurs blamed the dollar crisis and the complexity of online banking transactions.

Meanwhile, 46 percent of the entrepreneurs asked to reduce the interest rate of the bank in transition from this situation. 22 percent recommended simplification of Telegraphic Transfer (TT).

Besides availability of dollar, same LC charge of all banks is 6 percent by traders.

Along with tax reduction, use of high technology in all services is mentioned by 3 and 2 percent entrepreneurs respectively.