FDI
Expect more FDI from Japan, says envoy
Mentioning Bangladesh is a very attractive country for foreign investors, the Ambassador of Japan in Bangladesh Naoki Ito on Saturday said the Japanese big companies are very keen to invest more in the country’s special economic zones.
“The location of Bangladesh is very important strategically and economically. Around 300 Japanese companies are operating in Bangladesh. Many Japanese big companies including Mitsubishi will invest more in Bangladesh’s economic zones including Araihazar, Mirsarai and Matarbari,” Ambassador Ito said while addressing a webinar.
The virtual discussion was jointly organized by Bangladesh Investment Development Authority (BIDA) and Better Bangladesh Foundation (BBF) while BBF chairman Prof Masud A Khan moderated the function.
Naoki Ito said 50 percent of Japanese companies are going to invest in Association of Southeast Asian Nations (ASEAN) countries. Bangladesh is a regional hub for investment. The coronavirus has created vulnerability in supply chain. However, it’s time to invest in Bangladesh.
Also read: Japan confirms largest-ever loan package to Bangladesh
“Bangladesh is a potential country for investment. So infrastructure development is very important. Japan government has been supporting Bangladesh for long in this regard,” he also said.
Naoki added that Bangladesh can catch new markets in Asian countries including Japan and Korea with its diversified RMG products.
Planning Minister MA Mannan said the government has been working hard for better living. “Our economy is a win-win situation. We have made smooth places for investors. BIDA has opened one stop services to make services easy for all,” he also said.
Former Governor of Bangladesh Bank Dr Atiur Rahman positioned Bangladesh as a very good destination for investors. "The country has been able to develop in all sectors. There is no power cut now," the ex-head of the central bank pointed out.
Also read: Economic ties with Bangladesh to make leap: Japanese PM
“The major projects including Padma Bridge, Metro rail and Matarbari are game changers for the country. We need to skill up our youths. The country is an attractive destination for all investors,” he also said.
BIDA Executive chairman Sirazul Islam said they are trying to facilitate investment process for local and international investment.
“We have run one stop services to make hassle free activities. I believe that it will improve our ease of doing business rank. Our rank is 168 now that’s not good. We have recently reformed many things. I hope this position will improve much more in the upcoming ranking,” he added.
Sirazul also said they arrange all things for foreign investors such as receiving in airport, transportation and hotel services.
Also read: BIG-B important for Bangladesh, others with enhanced connectivity: Japanese economist
“With the experience, I am so excited about the services offered by BIDA, and 100% confident about Bangladeshi economy. Now, I am managing foreign investment here in Dhaka. I am willing to contribute what I have learnt from Harvard and China’s economic growth to Bangladesh. Indeed, I am willing to share my experience and stories to attract more young talents and investors to Bangladesh,” said Nicole Mao, one of the Chinese investors in Bangladesh.
Presenting key-note paper titled-“Bangladesh is a land of opportunities for trade and investment,” BIDA director Ariful Hoque said Bangladesh’s trade –GDP ratio has increased to 38 percent in 2018 from 18.9 percent in 1990.
“Bangladesh became the most gender-equal country in South Asia. Per capita income rises to $2079 in 2019 from $928 in 2010. Bangladesh achieved around 7 percent growth during the last decade,” he also said.
He added that 150 services of 34 agencies will be offered through One Stop Services (OSS). 41 services of 11 agencies are included from OSS.
KEPZ Hi-Tech park will attract huge FDI, hopes Palak
The Korean Export Processing Zone (KEPZ) Hi-Tech park will play a significant role in attracting Foreign Direct Investment (FDI) to Bangladesh, said State Minister for ICT Division Zunaid Ahmed Palak on Wednesday.
"Korea is a pioneer country to invest in Bangladesh and has extended and enhanced its cooperation beyond textile to ICT, energy, blue economy, climate change and infrastructure development for over 45 years," he said.
Palak made the remarks at the groundbreaking ceremony of the KEPZ Hi-Tech Park mentioning that the collaboration between Bangladesh and South Korea goes a long way.
The Hi-Tech Park was jointly inaugurated by State Minister Zunaid Ahmed Palak and South Korean Ambassador to Bangladesh Lee Jang-keun with the physical presence of Kihak Sung, Chairman & CEO of Youngone Corp & KEPZ.
It was a remarkable day for KEPZ in the field of Hi-Tech industrial development, said the Youngone Corp adding that the vision of the company to establish a state-of-the-art Hi-Tech park is coming to a reality.
Also read: S Korea sees brighter ties with Bangladesh with multifarious success stories: Envoy
Speakers for tapping potential for FDI in agro processing, light engineering, blue economy, education sectors
Speakers at a webinar on Saturday stressed the need for reforming the taxation system alongside tapping the Foreign Direct Investment (FDI) potentials in a wide range of sectors like agro processing, light engineering, non-cotton apparel, home textile, blue economy and education in Bangladesh to ensure export diversification and smooth LDC graduation.
They also suggested extending the scope for whitening undisclosed money in the health infrastructure, economic zones, and in other infrastructure sectors alongside the existing sectors to create more employment opportunities.
The participants also opined that all the concerned stakeholders need to extend their all-out cooperation to the Bangladesh Investment Development Authority (BIDA) to attract more FDI in the country.
The webinar was organized as part of the Economic Reporters Forum (ERF) Webinar Series in partnership with the Asia Foundation and Research and Policy Integration for Development (RAPID).
As the chief guest, Planning Minister MA Mannan spoke at the Webinar titled-“FDI for Export Diversification and Smooth LDC Graduation” while ERF Vice President Shafiqul Alam was chair.
Chairman of RAPID and Director of Policy Research Institute (PRI) Dr Mohammad Abdur Razzaque made the key-note presentation and ERF general secretary SM Rashidul Islam moderated the function.
MA Mannan said it is a fact that the country does not receive that level of FDI that it needs. “In this regard, all the concerned agencies need to accomplish their tasks in due time to attract more FDI,” he also said, suggesting overcoming the “cultural context” and thus move forward together with modern attitude.
Also read: BIDA, BBF join hands to boost FDI
BIDA Executive Chairman Md Sirazul Islam said BIDA needs to be empowered fully as it still needs to depend on others to facilitate the private sector.
Noting that there is no lacking from BIDA to create enabling environment for attracting more FDI, he added that the Authority has made effective the One Stop Service (OSS) platform to ensure transparent and hassle free service delivery.
Sirazul informed that some 47 services have so far been brought under online while the services of some 16 organizations including BIDA have already come under OSS platform.
Listing various steps of the BIDA to further ease the doing business index, he informed that separate courts would be lunched in Dhaka and Chattogram to speedily resolve the commercial disputes.
“We'll definitely try our best to face the challenges emerging before us. But for that the public and the private sector need to work together,” he said adding that the door of BIDA would always remain open for the private sector.
Sirazul also opined that if the local Investment could be promoted further, there would be more FDI inflow.
He suggested for providing COVID-19 vaccination facility to the legally employed foreigners in Bangladesh to show that Bangladesh values all lives equally and also to send a good signal to the outside world.
Also read: FICCI roundtable upholds importance of FDI to Vision 2041
President of Metropolitan Chamber of Commerce and Industry (MCCI) Barrister Nihad Kabir said the now defunct Board of Investment (BOI) was earlier regarded as the “Dead Stop Service” or ‘Full Stop Service’, but now BIDA has somehow managed to overcome that bad name, but still there is a lot to do.
Expressing her resentment over the treatment of the businessmen in the country, Nihad said if the businessmen are not treated with respect in the country, then the foreign investors would not come to a big extent.
She said although Bangladesh has an extremely courageous leader to run the country, but others are not moving ahead with the same pace that the Prime Minister has.
Nihad also suggested for targeting the potential sectors, adopting a coherent policy strategy by BIDA, signing more Preferential Trade Agreements with potential countries, and thus extending all-out support to BIDA to attract more FDI.
The President of Dhaka Chamber of Commerce and Industry (DCCI) Rizwan Rahman underscored the need for reforming the tax rate as it is still high compared to the global and Asian average.
He also suggested extending the provision for whitening undisclosed money in the health infrastructure, tourism and in economic zones alongside the real estate and capital market, otherwise there would be bubbles in the economy.
Rizwan said that there is much more scope for attracting more FDI in the Blue Economy and education sectors of the country.
He said that if the non-RMG sectors could be nurtured properly apart from the RMG sector, then the country would be able to realize billions of dollars of export earnings.
Also read: Bangladesh seeks increased FDI in economic zones
Citing an example that the Bangladeshi exports earn $1,089 by exporting 1000KGs of tea shirts, whereas the Vietnamese exporters earn $2,157 by exporting the same volume, Syed Nasim Manzur, Managing Director of Apex Footwear Ltd, said “bargaining power’ makes the difference here which needs to be addressed.
He said it is the high time to recapture the Japanese Investment from Myanmar to Bangladesh adding, “This is the chance we must not lose,”
About the taxation system, the country's leading entrepreneur in the footwear sector alleged that taxation system in the country is totally taxpayer unfriendly adding that new entrepreneurs would not come while the existing businesses would not flourish unless the taxation system is reformed.
He also suggested ensuring duty free and quota free access in markets like Japan, EU, India and China by not looking forward only to the market of USA.
Manzur cited huge FDI and Investment potentials in the country's agro processed food, light engineering, non-cotton apparel and home textile sectors for which there is a need for necessary tax reforms.
In his key-note address, Dr Abdur Razzaque said the tax-GDP ratio needs to be revamped in Bangladesh while FDI can create modern job opportunities and bring in new technology and management practices for Bangladesh.
Mentioning that public health expenditure is one of the lowest in Bangladesh, he said this budget needs to be increased while more investment is needed in the education sector.
Mentioning that countries like Vietnam and Indonesia are greatly benefitting from FDI, Razzaque said their good practices can be applied in Bangladesh.
Executive Director of RAPID and Dhaka University Professor of Development Studies Dr M Abu Yusuf and Country Representative of the Asia Foundation Kazi Faisal Bin Seraj gave the welcome addresses.
FICCI roundtable upholds importance of FDI to Vision 2041
Foreign Direct Investment, or FDI, remains a critical enabler for Bangladesh to attain its aspirations of becoming a developed country by 2041, as well as to secure positive development outcomes including more and better jobs, and economic diversification.
Bangladesh seeks increased FDI in economic zones
Foreign Minister Dr AK Abdul Momen on Thursday laid emphasis on increasing the foreign direct investment (FDI) into the Economic Zones placing Bangladesh on a higher development trajectory to achieve the dream of ‘Sonar Bangla’.
UK keen to invest in Bangladesh’s higher education sector
British High Commissioner in Bangladesh Robert Chatterton Dickson paid a courtesy visit to Dhaka Chamber of Commerce & Industry (DCCI) to discuss various bilateral issues relating to trade and commerce.
Investment decline in productive assets spells trouble for poorer nations: UNCTAD
Although developing countries attracted a record share of global foreign direct investment (FDI) in 2020, finance for infrastructure and productive sectors fell significantly, weakening their COVID-19 recovery prospects.
FDI down 42pc globally in 2020; UNCTAD expects further weakness in 2021
Global foreign direct investment collapsed in 2020, falling by 42% to an estimated $859 billion from $1.5 trillion in 2019.
Virtual 3-day international B2B conclave underway
The first and largest 3-day international business-to-business (B2B) virtual conclave began Tuesday aiming to attract foreign direct investment (FDI) in the country.
Korea ranks 6th in providing FDI in Bangladesh
South Korea is a pioneer country to invest in Bangladesh and ranks 6th in providing Foreign Direct Investment (FDI), according to the Bangladesh Embassy in Korea.