More Swiss investment to come if conditions are promising

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FE Report
Bangladesh will be able to attract increased Swiss capital in future if Dhaka can create congenial environment for foreign investment, a senior diplomat of Switzerland said Sunday.
"If conditions are promising, more Swiss investment will come," ambassador of Switzerland to Bangladesh Dora Rapold told a luncheon meeting.
"… Listening to (Swiss) businessmen who are engaged in Bangladesh, I would put emphasis on the conditions as important to attract more foreign investment: business and investment friendly regulations, functioning institutions and adequate infrastructure," Rapold said as she delivered a speech at the monthly luncheon meeting of the Foreign Investors' Chamber of Commerce and Industry (FICCI). FICCI president Masih Ul Karim chaired the meeting.
The Swiss envoy saw good prospects for investment in the service sector such as banking apart from the existing industrial sectors.
Currently, investment from Switzerland stands at US$ 150 million in pharmaceuticals, chemicals, dairy and food, cement and technical services.
An agreement to avoid double taxation between Bangladesh and Switzerland would be inked soon, she said.
"It (agreement) will contribute to favourable conditions for Swiss investments in Bangladesh," the Swiss ambassador noted.
Talking to this correspondent, Repold said the deal would be signed sometime in early August in Dhaka.
"If signed, it will take at least one year to make the agreement operational," she said.
Noting that the first Swiss investment in the country went back to the early 70s, the ambassador said Novartis and Syngenta blazed the trail, followed by Nestle and Holcim.
Turning to the trend in the bilateral trade, Repold said Switzerland's exports to Bangladesh are predominantly textile machinery as well as textile dyes and pharmaceuticals.
Swiss textile machines are number two in Bangladesh, behind China, despite the fact that Swiss machines cost about two to three times the price of Chinese machines, she added.
Over 100 Swiss companies are represented in Bangladesh by themselves or by agents, which is a proof of a strong inter est in Bangladesh and the potential identified by Swiss business in this country, she said.
Trade represents an important and growing area in the bilateral relations between Bangladesh and Switzerland, she said, adding that the export-import figures hovered at US$ 80 million.
"Obviously, the absolute figures are still low. But they are not that low when we compare them with the trade figures between Bangladesh and other European countries," she quipped.
Repold said trade is more or less balanced between Bangladesh and Switzerland, while most other European countries show a trade deficit with Dhaka.
She underscored the need for diversification and quality control for increasing Bangladeshi exports.
"But increasingly values and norms as defined in the Global Compact will gain weight. Adherence to international standards of workers rights and social and environmental regulations are key elements for boosting Bangladeshi exports to Switzerland as well as other European countries," the envoy told the business audience.
The Swiss envoy said her country has remained involved in the development process of Bangladesh since 1971.
The annual development assistance of Switzerland is estimated at US$15 million with focus on employment generation in rural areas and the capacity building for the local governments, she told the FE.