Changes in digital commerce policy mooted

The government has taken the initiative to make changes in the digital commerce policy, following objections from foreign e-commerce ventures. The gazette notification, issued by the commerce ministry on January 31, has barred the holding of majority stake by foreign firms in e-commerce ventures in the country.

Foreign e-commerce ventures have raised objections to 49 per cent equity limit for foreign investors in the National Digital Commerce Policy-2018, and asked the government to increase their stake.

Commerce ministry sources said the government has decided to make changes in the digital commerce policy following objections from Uber, which is yet to get licence, e-commerce company Alibaba and Daraz.

The government is considering that the equity limit for foreign e-commerce ventures will be set at 51 per cent, instead of 49. But the final decision has not yet been taken, the sources said.

It had been decided earlier that there would be 51 per cent local stake in telecom VAS-providing entity, but later the decision was changed, considering the foreign companies’ investment aspect. If the government takes such a decision in this case, local companies will have to face difficulties in their business, said a section of the e-commerce entrepreneurs.  

An e-commerce entrepreneur, preferring anonymity, said there will be pressure from the foreign companies, but it will not be wise to bow to pressure all the time. It is the responsibility of the government to pave the way for local companies to grow, otherwise everything will be valueless at the end. "We will turn into consumers, instead of being entrepreneurs," he added.

According to the commerce ministry, it has taken the initiative to clear the e-commerce site run by telecom operators of the country. Now Grameenphone, Robi and Banglalink are running the e-commerce site.   

When asked, posts, telecommunications and ICT minister Mustafa Jabbar said: “We want everyone to run their business following rules. We will take measures by reviewing the issues which have ambiguity and resentment. But first of all, we will consider the interest of consumers and the interest of the country.”

According to the policy, a foreign company cannot run a digital commerce business without forming a joint venture with a local company.

An action plan under the policy states the government would take steps to facilitate foreign investment in the e-commerce sector under joint ventures, in which 51 per cent of the equity should be held by a Bangladeshi company.

The government took steps to have a separate policy for e-commerce in 2016 to help the sector flourish and to curb fraud. The draft policy was prepared by the e-CAB, as instructed by the ICT Division.

The e-CAB had handed over the draft to the ICT Division in August 2016.

 

Changes in digital commerce policy mooted

The government has taken the initiative to make changes in the digital commerce policy, following objections from foreign e-commerce ventures. The gazette notification, issued by the commerce ministry on January 31, has barred the holding of majority stake by foreign firms in e-commerce ventures in the country. Foreign e-commerce ventures have raised objections to 49 per cent equity limit for foreign investors in the National Digital Commerce Policy-2018, and asked the government to increase their stake. Commerce ministry sources said the government has decided to make changes in the digital commerce policy following objections from Uber, which is yet to get licence, e-commerce company Alibaba and Daraz. The government is considering that the equity limit for foreign e-commerce ventures will be set at 51 per cent, instead of 49. But the final decision has not yet been taken, the sources said. It had been decided earlier that there would be 51 per cent local stake in telecom VAS-providing entity, but later the decision was changed, considering the foreign companies investment aspect. If the government takes such a decision in this case, local companies will have to face difficulties in their business, said a section of the e-commerce entrepreneurs. An e-commerce entrepreneur, preferring anonymity, said there will be pressure from the foreign companies, but it will not be wise to bow to pressure all the time. It is the responsibility of the government to pave the way for local companies to grow, otherwise everything will be valueless at the end. We will turn into consumers, instead of being entrepreneurs, he added. According to the commerce ministry, it has taken the initiative to clear the e-commerce site run by telecom operators of the country. Now Grameenphone, Robi and Banglalink are running the e-commerce site. When asked, posts, telecommunications and ICT minister Mustafa Jabbar said: We want everyone to run their business following rules. We will take measures by reviewing the issues which have ambiguity and resentment. But first of all, we will consider the interest of consumers and the interest of the country. According to the policy, a foreign company cannot run a digital commerce business without forming a joint venture with a local company. An action plan under the policy states the government would take steps to facilitate foreign investment in the e-commerce sector under joint ventures, in which 51 per cent of the equity should be held by a Bangladeshi company. The government took steps to have a separate policy for e-commerce in 2016 to help the sector flourish and to curb fraud. The draft policy was prepared by the e-CAB, as instructed by the ICT Division. The e-CAB had handed over the draft to the ICT Division in August 2016.