Investors identified Wednesday underdeveloped infrastructure, shortage of power and energy, procedural bottlenecks, lack of proper regulatory framework and political uncertainty as major challenges to Foreign Direct Investment (FDI) in the country.
The government needs to overcome challenges in infrastructure, business environment, and trade restrictions by establishing governance in order to attract more FDI in the country, said the investors attending the International Investment Forum-2014 held in the city.
However, many of them highlighted government's investment opportunities offered to the foreign investors.
"Everything is good. But we should keep in mind the challenges. Only then we can prosper further," said Rokia Afzal Rahman, President of Metropolitan Chamber of Commerce and Industry (MCCI), who also put emphasis on implementation of Economic Zones.
Board of Investment (BoI) Executive Chairman Dr SA Samad, who presided over a business session on "Unlocking Opportunities for Investment" also admitted about the impediments but pointed out that the authorities were committed to overcoming obstacles and trying hard to improve the situation. "We are trying to activate the services, joining the missing links and strengthening inter-ministerial coordination," said the Executive Chairman adding, "We are trying to set rules of law, not rules of table."
The business session was also addressed, among others, by Bangladesh Bank Governor Dr. Atiur Rahman, DCCI former president Asif Ibrahim, EPB Vice Chairman Shubhashish Bose and CEAT Bangladesh Managing Director Rajib Kumar Jain. BOI Executive member Dileep Kumar Das presented the keynote paper.
Earlier, the Prime Minister inaugurated the International Investment Forum-2014 at Pan Pacific Sonargaon Hotel. The BOI organized the Forum which was attended by about 273 local and foreign investors from about 21 countries, aimed at attracting investment in potential sectors.
While addressing the forum, the central bank governor said that the country's economy travelled a long way on a tremendously dynamic growth train and despite all external turbulences sustained decade long six-plus per cent GDP growth.
The economy of Bangladesh experienced more than a decade of resilient growth within a range of 5.3 to 6.7 per cent per annum. Furthermore, GDP growth has witnessed a higher trend compared to its peers (Hungary, Angola, Bolivia, Nigeria, Vietnam, India and Sri Lanka) in the last 5 years, he said.
"The country's stable and resilient financial sector is the most welcoming regime for attracting FDI and FPI (portfolio investment) inflows," said the BB governor urging the foreign investors to avail the advantage of the ample investment opportunities offered by the government.
While giving a powerpoint presentation, former Dhaka Chamber of Commerce and Industry (DCCI) president Asif Ibrahim also highlighted the urgency for policy reform with a view to making those updated to cater to the need of present day situation.
CEAT Bangladesh Managing Director, Rajib Kumar Jain, while addressing the session, also stressed the need for a level playing field between manufacturers and traders in case of customs duty and uniform implementation of VAT law.
