German envoy for diversification of products to increase export

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FE Report
Outgoing German Ambassador Frank Meyke Sunday emphasised diversification of products for increasing Bangladesh's export to Germany, and raising German investment here.
"This will not only have positive impact on export earning, job generation and technology transfer for Bangladesh, but also open new market and investment opportunities for German investors here," he added.
The German ambassador said these at a Meet-the-Reporters programme at Dhaka Reporters Unity (DRU).
Bangladesh-German trade relationship has been developing rapidly over the recent years, and it is flourishing despite ongoing global recession. Besides, Bangladesh's export to Germany increased by 27.5 per cent in the first four months of the current calendar year, and the bilateral trades between the two countries have reached almost two billion Euro in 2008, he also said.
Calling the ship-building a new promising business sector for Bangladesh, the ambassador said Bangladesh has already received construction orders for more than 30 ships worth about 250 million Euro (Tk 24.00 billion) from Germany.
Referring to some constraints in doing business, Meyke said Bangladesh has attractive legal framework for foreign investors, but the practical situation here is often unmanageable. Besides, administrative processes in Bangladesh are still complicated and time consuming.
"All of these might be a drawback for Bangladesh in the very competitive global business arena."
Restricting foreign investors' ownership to a maximum of 49 per cent in joint ventures as recently seen in the case of shipping agencies makes these sectors lesser attractive to them, especially when compared to other countries in the region, he said.
Although foreign companies investing in manufacturing sector here find a legal framework, considered to be among the best in Asia in terms of tax holidays, repatriation of profits and various fiscal incentives, they have so far been rather reluctant in investing further in Bangladesh.
"Unlike trade, German investment in Bangladesh is still at a modest level," he also said.
Meyke, however, said a number of positive steps like regulatory reforms, strengthening the capacity of Board of Investment, and encouraging public private partnership (PPP) have been taken to improve the business environment.