Bangladesh needs promotional campaigns in Turkiye to attract FDI (foreign direct investment), said Dhaka Chamber of Commerce and Industries (DCCI) President Rizwan Rahman. An 86-member business delegation of the Dhaka Chamber led by its president attended a forum on “Exploring trade and investment opportunities between Bangladesh and Turkiye” in Istanbul organized by Foreign Economic Relations Board of Turkiye (DEIK) on Thursday, according to a press release. Rizwan said Bangladesh is ready to take Turkish investment right at this moment. It needs to be figured out if there are any tariff and non-tariff barriers in terms of exporting to Turkiye, he added. He also stressed on knowledge transfer and technology transfer, research and knowledge sharing. He invited Turkish carpet makers to import quality jute from Bangladesh. He further termed RMG value chain, automotive, leather and footwear, pharmaceutical, plastic and infrastructure as the potential sectors for Turkish entrepreneurs in Bangladesh. Mentioning that export grew by 34.38% till June 2022 despite Covid situation, he said that Bangladesh has a good demographic dividend. The total working age people is 65% in Bangladesh. The Turkiye-Bangladesh Business Council was established in 2011 and the Bangladesh-Turkiye Business Forum was established in 2022. Moreover both the countries are member states of D8 and OIC. He also suggested forming a joint economic commission with an active participation of the private sector. During the meeting Chairman of DEIK/Turkiye-Bangladesh Business Council Onur Ozden said Turkish entrepreneurs are already in operation in Bangladesh and the others are very keen to explore these possibilities further. But the bilateral trade between these two countries should be increased and for that exchange of such business delegations would be the best option. Ambassador of Turkiye in Bangladesh Mostafa Osman Turan said Bangladesh is giving different fiscal and non-fiscal incentives to the foreign investors. B2B in that case plays a vital role for enhancing trade and investment. He also said that at present bilateral trade has crossed USD1.3 billion and it has a potential to grow more. Bangladesh’s market is a large market and Turkish investors may explore this opportunity. Infrastructure development, policy reforms and ease of business registration process will attract Turkish investors in Bangladesh, he added. Ambassador of Bangladesh in Ankara Mosud Mannan said private sectors of both the countries need to play a catalytic role. Despite there being a language barrier between the two countries but still it can be overcome, he added. Bangladesh government will establish 100 economic zones with different lucrative packages and that will foster foreign investors to come and invest in Bangladesh, hoped Mosud. More than 110 companies invited by DEIK joined for an interactive B2B session with the DCCI business delegation members after the business forum. At the end, a memorandum of understanding was signed between Dhaka Chamber of Commerce & Industry and Istanbul Gedik University. DCCI President Rizwan Rahman and President, Board of Trustees, Istanbul Gedik University Hulya Gedik signed the document on behalf of their respective organizations. Mohammad Nore-Alam, Consul General of Bangladesh to Istanbul was also present during the meeting.
Foreign Minister AK Abdul Momen has called on the British Bangladesh Chamber of Commerce and Industry (BBCCI) leaders to help attract more foreign direct investment (FDI) to Bangladesh. He had a courtesy meeting with BBCCI – which works in close cooperation with agencies specialised in Bangladeshi business, the Bangladesh High Commission in the UK, the British High Commission in Dhaka, the UK's Department for International Trade, the Federation of Bangladesh Chambers of Commerce and Industry and other local chambers – at a London hotel Sunday. "Bangladesh's biggest strength is its human resources, which can be exported abroad to earn foreign currencies and raise people's standard of living. But for this to happen, we will have to turn our human resources into skilled ones," Momen said. Read: Your democracy is for you to develop: Doraiswami He assured them of all the required support in setting up catering institutes in the country to meet the great demand for skilled people in the UK's catering sector. Momen also called on them to invest in Bangladesh's health and agriculture. Replying to a question from BBCCI President Sayedur Rahman Ranu, he said the government will do what it takes to stop the harassment of expatriates, especially those from the Middle East, at the airport. He also talked about Prime Minister Sheikh Hasina's instruction to launch the cargo service of Biman Bangladesh Airlines. BBCCI Director General AKM Nurujjaman, Finance Director Ataur Rahman Kuti, former president advisor emeritus Shahagir Bakth Faruk, ex-president Bashir Ahmed, and Director and Advisor Shafiqul Islam were also present at the meeting. Momen, the chief patron of BBCCI, is now in the UK as a member of Sheikh Hasina's entourage.
Bangladesh does not want foreign direct investment (FDI) only in the form of funds, but also in the form of minds, thoughts, intelligence and individuals, the foreign ministry told US global investment management firm T. Rowe Price Group Thursday. Syed Muntasir Mamun, director general (international trade, investment and ICT) at the foreign ministry, and officers of the International Trade, Investment and Technology Wing and ICT wings had a meeting with the representatives of the US firm. The delegates suggested that for successful utilisation of the special economic zones and attracting foreign companies there, Bangladesh would need to highlight shining examples of companies that achieved great success after setting up business here. Founded in 1937, T. Rowe Price manages a portfolio of nearly 1.5 trillion $ funds. Johannes Loefstrand, portfolio manager of the frontier markets equity fund, Sebastian Murphy, investment analyst, and Rainbow Moore, investment analyst from T. Rowe Price, participated in the meeting. Read: Global FDI recovered to pre-pandemic levels in 2021 but uncertainty looms in 2022: UNCTAD They enquired about the actions taken for attracting more foreign direct investment, changes taking place in Bangladesh, initiatives for increasing export volume to strengthen the export-led economy of Bangladesh, activities and success of special economic zones and the digitalisation process. Muntasir mentioned the strength and technical excellence of human resources in Bangladesh, the size and texture of the domestic market, strong connectivity to northeastern India and South and East Asia in general, increased participation of women in the workforce and also in the leadership roles, booming local businesses, digitalisation, infrastructure in terms of connectivity and investment options that available here. Agencies like the Bangladesh Economic Zones Authority (BEZA), Bangladesh Export Processing Zones Authority (BEPZA), Public Private Partnership Authority, Bangladesh Investment Development Authority, Bangladesh Securities and Exchange Commission (BSEC), and the Ministry of Commerce are working very hard to improve the ease of doing business and the Ministry of Foreign Affairs (MoFA) is work as a bridge to give the foreign investors full support 24x7, the DG said. MoFA has set up the International Trade, Investment and Technology Wing to facilitate and support foreign investors in every step of the process, he added. Muntasir also shared the ministry's plan to build a neural network for facilitating connections among markets and facilitating the flow of funds and technology. MoFA is also working on deploying a blockchain solution to entrench a data authentication protocol into the existing paper-based system, the DG said.
Flows of foreign direct investment (FDI) recovered to pre-pandemic levels last year, hitting nearly $1.6 trillion but the prospects for this year are grimmer, the latest UNCTAD World Investment Report said. The report entitled "International tax reforms and sustainable investment" said that to cope with an environment of uncertainty and risk aversion, developing countries must get significant help from the international community. Developing Asia, which receives 40% of global FDI, saw flows rise in 2021 for the third straight year to an all-time high of $619 billion. FDI in China grew 21% and in Southeast Asia by 44% but South Asia went the other way, falling 26% as flows to India shrank to $45 billion. "The need for investment in productive capacity, in the Sustainable Development Goals (SDGs) and in climate change mitigation and adaptation is enormous. Current investment trends in these areas are not unanimously positive," said Rebeca Grynspan, Secretary-General of United Nations Conference on Trade and Development (UNCTAD). Read: Padma Bridge to lead to unprecedented improvement in communication system: Kamal "It is important that we act now. Even though countries face very alarming immediate problems stemming from the cost-of-living crisis, it is important we are able to invest in the long term." Coming off a low base in 2020, global FDI flows rose 64 percent to $1.58 trillion last year with momentum from booming merger and acquisition (M&A) activity and rapid growth in international project finance due to loose financing and major infrastructure stimulus packages. Explore UNCTAD’s interactive data visualization on FDI inflows and outflows in countries and regions over the last 30 years. While the recovery benefitted all regions, almost three-quarters of the growth was concentrated in developed economies as FDI flows rose 134% and multinational companies posted record profits. Flows to developing economies rose 30% to $837 billion – the highest level ever recorded – largely due to strength in Asia, a partial recovery in Latin America and the Caribbean and an upswing in Africa. The share of developing countries in global flows remained just above 50%. The reinvested earnings component of FDI – profits retained in foreign affiliates by multinational companies – accounted for the bulk of the global growth, reflecting the record rise in corporate profits, especially in developed economies. The top 10 economies for FDI inflows in 2021 were the United States, China, Hong Kong (China), Singapore, Canada, Brazil, India, South Africa, Russia and Mexico. 2022 Prospects This year, the business and investment climate has changed dramatically as the war in Ukraine results in a triple crisis of high food and fuel prices and tighter financing. Other factors clouding the FDI horizon include renewed pandemic impacts, the likelihood of more interest rate rises in major economies, negative sentiment in financial markets and a potential recession. Read: xBudget FY23: Kamal sees rising inflation as a major challenge Despite high profits, investment by multinational companies in new projects overseas were still one-fifth below pre-pandemic levels last year. For developing countries, the value of greenfield announcements stayed flat. "UNCTAD foresees that the growth momentum of 2021 cannot be sustained and that global FDI flows in 2022 will likely move on a downward trajectory, at best remaining flat," the report underline. "However, even if flows should remain relatively stable in value terms, new project activity is likely to suffer more from investor uncertainty." In 2021, FDI in Latin America and the Caribbean rose 56% – with South America’s growth of 74% sustained by higher demand for commodities and green minerals. For structurally weak, vulnerable and small economies rose by 15% to 39 trillion, however influx to the least developed countries, landlocked and small island developing states combined accounted only for 2.5 percent of the world total in 2021, down from 3.5 percent in 2020. The impact of the pandemic intensified fragility and investment in sectors relevant for the SDGs – especially food, agriculture, health and education – continued to fall. "In 2022, FDI flows to developing economies are expected to be strongly affected by the war in Ukraine and its wider ramifications, and by macroeconomic factors including rising interest rates," the report said. "Fiscal space in many countries will be significantly reduced, especially in oil- and food-importing developing economies." Investing in Sustainable Development Goals After taking a significant hit in the first year of the pandemic, international SDG investment jumped 70% last year. But most of the recovery growth came in renewable energy and energy efficiency, where project values reached more than three times the pre-pandemic level. "While the 2021 recovery in value terms is positive, investment activity in most SDG-related sectors in developing economies, as measured by project numbers, remained below pre-pandemic levels," the report said. Read: Around US$ 4 billion invested in private economic zones : Kamal "Across developing Asia, investment in sectors relevant for the SDGs rose significantly," the report said. "International project finance values in these sectors increased by 74% to $121 billion, primarily because of strong interest in renewable energy." International project finance is increasingly important for Sustainable Development Goals and climate change investment. Some positive steps in these areas in 2021 could be tested this year. Announced international project finance deals hit a record of 1,262 projects last year and more than doubled in value to $656 billion. The introduction of a global minimum tax on foreign direct investment will have important implications for the international investment climate but both developed and developing countries are expected to benefit from an increased revenue collection.
Even as the jury is still out on the extent of capital account convertibility, the reforms in the capital account have been strong enough to attract among the highest foreign direct investment (FDI), finds a study by RBI economists. An analysis of the recent trends in FDI flows at the global level and across regions/countries suggests that India has generally attracted higher FDI flows and continued to remain among the top attractive destinations for international investors in line with its robust domestic economic performance and gradual liberalisation of the FDI policy as part of the cautious capital account liberalisation process, reports The Economic Times. " An empirical analysis of factors influencing inward FDI, considering major countries in terms of its FDI stock position in India reflects that inward FDI is significantly influenced by the trade openness, economic growth prospects, market size, labour cost and capital account openness of the host countries" said a study published in the Reserve Bank of India's latest monthly bulletin. Besides, foreign trade had a substantial share in the business where import intensity in purchase remained higher than export in sales for foreign subsidiary companies, the study notes. Read: No foreign leader at India's Republic Day parade this year FDI in India initially picked up in the mid and late nineties following a series of policy measures to liberalise and strengthen the FDI environment in the country. But they slowed down after the global financial crisis of 2008 because it affected India macro-economic fundamentals which continued till FY '2013-14. FDI again got a major push during September 2014 after the government launched the ‘Make in India’ initiative to facilitate investment, foster innovation and build best in class manufacturing infrastructure. The reform made a positive foreign investment climate in India and helped in increasing growth in FDI inflows mainly due to strong investment in top three industry recipients viz., ‘manufacturing’, ‘communication’ and ‘financial services', the study notes. During 2015 to 2019, India received a cumulative FDI inflow to the extent of $ 173.3 billion and the share of top five investing countries in India stood at 76.7 per cent. Three major sectors viz., ‘manufacturing sector’, ‘communication services’ and ‘financial services’ together accounted for more than 50 per cent share in FDI inflows amounting US$ 89.6 billion during 2015-2019 Read: India seeks FBCCI's cooperation in boosting bilateral trade Over the period the quality of FDI data has also improved in lines with globally best standards. A number of information bases on FDI Statistics for India have become available. Global concepts help in understanding the statistical methodologies that countries employ in compiling the statistics and the resultant statistics can be used for cross-country comparison though countries with liberal investment schemes experience major challenges in estimation of foreign investment.
Two-day International Investment Summit, 2021 will begin at a city hotel on Sunday, aiming to promote Bangladesh as an attractive Foreign Direct Investment (FDI) destination and highlight different opportunities for private investors.The slogan of the summit has been selected as "Bangladesh Discover Limitless Opportunities" marking Mujib Borsho, the birth centenary of Father of the Nation Bangabandhu Sheikh Mujibur Rahman, said Md. Sirajul Islam, executive chairman of Bangladesh Investment Development Authority (BIDA). READ: FBCCI seeks enhanced trade, investment ties with UK Prime Minister Sheikh Hasina with inaugurate the summit virtually while ministers, domestic and foreign delegations, experts in the sector will join physically. All preparations have been completed, Sirajul Islam said. BIDA will organize the summit in association with Bangladesh Economic Zones Authority (Beza), Bangladesh Export Processing Zones Authority (Bepza), Bangladesh Hi-Tech Park Authority (BHTPA), Public Private Partnership Authority (PPPA), Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and Foreign Investors' Chamber Of Commerce and Industry (FICCI).Representatives of the government and investors from different countries, including the USA, the United Kingdom, Japan, South Korea, Singapore, China, Saudi Arabia, United Arab Emirate, India, Turkey, Thailand, Malaysia, and the Netherlands are expected to take part in the summit.Local policymakers, investors and economists will also participate in the summit, the BIDA chairman added. READ: Weeklong trade summit ends with $1.16 bn investment prospect The BIDA chief said there will be a string of sessions where potential of 11 prospective sectors will be thoroughly analyzed by the policymakers and experts. There will be one technical session on the second day, he added.
Commerce Minister Tipu Munshi on Sunday said Bangladesh’s upcoming trade and investment summit will help the country attract foreign direct investment (FDI). The minister said this while addressing a press conference at the conference hall of Dhaka Chamber of Commerce and Industries (DCCI) ahead of the ‘Bangladesh Trade and Investment Summit-2021’. Marking birth centenary celebrations of Father of the Nation Bangabandhu Sheikh Mujibur Rahman and the Golden Jubilee of Independence, the Ministry of Commerce and DCCI is going to jointly host the week-long International virtual Summit from October 26 to November 1. Turning to the price hike, the minister said the prices of essential commodities have increased recently due to the impact of price hike in the global market. Also read: Bangladesh Trade and Investment Summit to kick off on Oct 26 “We’re working to keep the prices under control, but the most consumed items like oil, sugar and onion are imported to meet the domestic demand. The prices of these products have gone up in the global market and that reflection is also seen here,” Tipu Munshi said. The minister said the government set a $51 billion export target in the current fiscal year through product diversification. Currently, Bangladesh makes 83-84 percent export income from the garments sector alone. Bangladesh has a lot of potential to export many other products like leather, jute, light engineering, IT, agro-based products, the minister said. DCCI President Rizwan Rahman made a presentation on the summit and mentioned that this includes nine sectors underscoring critical enablers and avenues of the economy, demanding massive investments, especially in infrastructure (Physical, logistics and Energy), IT/ITES and FINTECH, leather goods, pharmaceuticals, automotive and light engineering, plastic products, agro and food processing, jute and textiles and FMCG (Fast-moving consumer goods) and retail business. He said 552 companies form 38 countries alongside Bangladesh will participate in 450 business to business (B2B) match-making sessions, which will help explore new business opportunities and attract FDI to Bangladesh. Also read: Multiple initiatives taken to remain competitive in global market: Tipu Munshi Besides, he said, six webinars on different trade and investment issues will be organized with the participation of representatives from the business community, experts from local and international and policy makers. The DCCI President said this virtual summit will showcase Bangladesh's preparedness at this time of Covid-19 pandemic among the investors and entrepreneurs. Commerce Secretary Tapan Kanti Ghosh, DCCI Senior Vice President NKA Mobin, Vice President Monowar Hossain, DCCI Board members and senior officials of the commerce ministry were, among others, present.
The Foreign Investors’ Chamber of Commerce and Industry (FICCI) is going to have an event on November 21 to commemorate the 50 years of Bangladesh’s Independence with a roadmap for FDI and facilitating the economic progress of Bangladesh with three growth drivers. A research report titled “3 Growth Drivers of Bangladesh: Accelerating Investment Opportunities in Agribusiness, Digital Economy and Green Finance” will be unveiled at the event. Planning Minister MA Mannan will be present at the programme as the chief guest, while Salman F Rahman, Private Industry and Investment Adviser to Prime Minister will join it as special guest. Read: Growth target achievable if GDP-Investment ratio increases: FICCI Shwapna Bhowmick, EC Member of FICCI and Country Manager of Marks and Spencer will chair the event.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan has sought the support of the Bangladesh High Commission in London regarding non-payment by some of the British brands to their Bangladeshi suppliers during the Covid-19 crisis. Bangladesh High Commissioner to the UK Saida Muna Tasneem met BGMEA President Faruque Hassan at the latter’s office and discussed trade related issues. Read:BGMEA seeks 10-yr extension of GSP in Swiss market BGMEA Vice President Miran Ali was also present at the meeting. They discussed various trade issues including export opportunities for Bangladesh in the UK market and generating ways to attract more foreign direct investment from the country. Read: BGMEA chief underlines importance of enhanced productivity The discussions also encompassed issues regarding graduation of Bangladesh from LDC, possible changes in the tariff regime and how Bangladesh could retain its market access in the post-LDC status in the UK.
The government has launched its first ever IT Desk and B2B Connectivity Portal, the `Bangladesh IT Connect-UK’, at the Bangladesh High Commission in London to attract more foreign director investment in the IT sector. The desk will also help create greater business connectivity between entrepreneurs and vendors from IT Industry in Bangladesh and the UK, said a press release from the London mission. It has been developed by the LICT Project of Bangladesh Computer Council (BCC) under the ICT Division of the Government in collaboration with the London High Commission. Read: Virtual desk at Bangladesh's UK mission soon to attract FDI The Virtual IT Desk and B2B Connectivity hub was inaugurated on Friday by State Minister for ICT, Zunaid Ahmed Palak with British Foreign, Commonwealth and Development Office Minister Lord Tariq Ahmad, at a high-profile B2B event tilted,Bangladesh-UK@50 : Forging a Digital Economy Partnership. Lord Ahmad pledged UK’s unremitting support and collaboration in promoting a knowledge and technology-based digital economy partnership. He said: “Tech collaboration between the governments and the people of Bangladesh and the UK will take bilateral relations of the two countries into the next digital age”. Zunaid Ahmed Palak said, “The virtual desk would help foster Bangladesh-UK trade and investments as well as knowledge partnerships in the technology and BPO sectors of both countries.” The Minister recommended signing of an MoU between Bangladesh and the UK in the ICT sector towards further strengthening of technological and business co-operation in ICT, digital businesses, skills, knowledge and innovation. High Commissioner Saida Muna Tasneem in her welcome remarks said, the London mission is proud to launch the Virtual IT Help Desk on the occasion of 50 years of “our historic diplomatic relations that was pioneered since 08 January 1972 by Father of the Nation Bangabandhu Sheikh Mujibur Rahman and British Prime Minister Sir Edward Health. The virtual desk to be manned by a dedicated officer of the Mission will work as a ‘one-stop IT portal.” Already nearly 100 firms have registered in our portal”, said the press release.