Investments in deep-sea ports, airports and rail and road connections to land ports have positioned Bangladesh as a key player in the South Asian region, according to foreign development partners, as the country now offers more trade and investment opportunities.
According to them, the infrastructural investments, plus the country's multilayered connectivity in the Bay of Bengal, also make Bangladesh a potential candidate to become a hub for global value chains.
The discussants, at a seminar on Sunday, called for identifying potential trade and investment corridors and opportunities in Bangladesh, Northeast India, Bhutan and Nepal.
The Centre for Policy Dialogue (CPD), in collaboration with the Japanese Embassy in Bangladesh, organised the seminar titled 'Multilayered Connectivity in the Bay of Bengal: Positioning Bangladesh as an Economic Hub' at the embassy's conference room.
The speakers advocated for developing the right policies and planning to remove various barriers, including non-tariff ones, to leverage the Bay of Bengal connectivity.
State Minister for Commerce Ahasanul Islam Titu virtually addressed the seminar as the chief guest, while Indian High Commissioner to Bangladesh Pranay Verma and Japanese Ambassador to Bangladesh Iwama Kiminori spoke as guests of honour.
CPD Research Fellow Syed Yusuf Saadat presented the keynote paper, highlighting the investment scenario and barriers to unlocking the full potential of multi-layered connectivity.
Japan International Cooperation Agency (JICA) Chief Representative Ichiguchi Tomohide and Professor Kemmei Tsubota of the Faculty of Global and Regional Studies at Toyo University, Japan, discussed the current and historical status of connectivity in the region.
Other panel discussants included former foreign secretary Professor Shahidul Haque, Principal Public Sector Management Specialist at the Asian Development Bank Sonoko Sunayama, Chief Country Representative of the Japan External Trade Organization (JETRO) Yuji Ando, Pran-RFL Group Director Uzma Chowdhury and Chairman and Managing Director of Conveyor Logistics Ltd Kabir Ahmed.
CPD Executive Director Dr Fahmida Khatun moderated the sessions, underscoring policy formulation, securing political commitment and improving the business environment.
Japanese Ambassador Iwama Kiminori highlighted the current global economic shift towards shared prosperity for all countries.
He said the 'BIG-B' or the 'Bay of Bengal Industrial Growth Belt' initiative - an effort to accelerate industrial agglomeration along the Dhaka-Chittagong-Cox's Bazar belt area and beyond - will ensure peaceful, secure and shared prosperity for all nations in the region.
In support of this, he cited the example of the Matarbari Deep Sea Port, which has the potential to play a huge role in the entire region's development.
JICA Chief Representative Ichiguchi Tomohide outlined three key aspects of the Big-B and said JICA's investment has been supporting all necessary infrastructure development and related activities.
This includes the Marine Act and the Mongla-Khulna Improvement Project as well as the Matarbari Deep Sea Port and Integrated Infrastructure Development Initiative.
He said these projects are expected to contribute to Bangladesh's continued economic growth towards 6 per cent.
However, he also pointed out some barriers, such as unpredictable tax regimes, and complex licencing and approval procedures, that need to be resolved without delay.
Mr Tomohide said JICA remains actively involved in promoting infrastructure development, economic zones, utilities and townships through various projects.
JETRO Chief Country Representative Yuji Ando highlighted risk factors in the South Asian business environment. He identified underdeveloped legal systems with unclear operation procedures, time-consuming tax procedures, currency volatility and unclear policy management by local governments as ongoing concerns. Political instability remains a concern in some countries as well.
A recent JICA survey of Japanese investments in the region showed that Bangladesh was perceived to have the most underdeveloped legal system, while India was seen as having the most time-consuming tax procedures.
Sri Lanka and Pakistan were seen as having the highest levels of political and social instability, according to Mr Ando.
Professor Kemmei Tsubota stressed on establishing a stronger value chain network within the region and beyond. He suggested integrated special planning that considers agriculture, forestry, industry and the environment, reflecting the Big-B development goals.
CPD Research Fellow Syed Yusuf Saadat recommended several steps to promote industrial value chains and establish the Bay of Bengal region as an economic hub in Asia. These include improving the investment climate, tackling behind-the-border barriers, upgrading skills and investing in trade and digital infrastructure.
He said enhancing logistics performance, streamlining customs procedures at all borders and simplifying administrative processes must be prioritised.
The CPD fellow pointed out that South Asia's trade potential remains largely untapped. However, he noted that a 40 per cent reduction in trade costs could lead to a welfare gain for Bangladesh equivalent to 7.99 per cent of its GDP.
Trade between Bangladesh and Northeast India currently operates through 21 of the 31 land ports connecting the country with Assam, Meghalaya, Mizoram and Tripura. However, the Benapole-Petrapole border remains the main trading route.
smunima@yahoo.com