BIDA urges Chinese entrepreneurs to invest in BD
Post-US election trade scenario
FE REPORT | Monday, 25 November 2024
The head of the Bangladesh Investment Development Authority (BIDA) has invited China-based manufacturers to invest in Bangladesh in the wake of the post-US election development.
Chowdhury Ashik Mahmud Bin Harun, executive chairman of the BIDA, has written an open letter to investors in China, saying that Bangladesh is now ready to emerge as a potential destination for manufacturers planning to relocate or diversify their footprint.
"The post-election developments in the US signal big increases in tariffs and duties for China-based manufacturers," Chowdhury, a former senior banker with HSBC, wrote.
"In this context, we extend an open invitation to our investor friends in China and are committed to supporting them in navigating the evolving landscape."
"We see potential in industries like garments, electronics, solar value chain and automotive. We are committed to tailoring a favourable investment environment for the investors with attractive incentive programmes and benefits," he said.
The BIDA chief who in the past month met at least 200 CEOs of multinational and local companies, said contrary to what some political experts were predicting, Bangladesh economy is set to benefit hugely in the new Trump presidency.
"We are already witnessing quite a lot of interests from China based manufacturers seeking to diversify their risks and manufacturing bases," he said.
China has been a long-standing partner of Bangladesh and in 2022 became Bangladesh largest source of Foreign Direct Investment (FDI).
Chowdhury said this trend will accelerate once the new Trump administration takes over in January 2025.
He said he has been following the regional expansion of Chinese manufacturers in the last decade and was fortunate to support them in his previous capacity as an investment banker. "With the new US political landscape, the trend is likely to grow," he said. Bangladesh is keen to welcome these investors with tailored solutions.
"That's my commitment as the chief marketing officer of Bangladesh," he wrote.