Hasina highlights shock-resistant nature of B'desh economy to woo US investors
Saturday, 26 September 2009
NEW YORK, Sept 25 (UNB): Prime Minister Sheikh Hasina has exhorted US investors to consider Bangladesh as their next Asian investment destination saying that her country's economy proved shock-resistant amid the global economic meltdown, which ravaged even many developed economies.
"You can rest assured that you will be fully welcome and have the full support of my government," she said at a seminar on 'Why Bangladesh is an Attractive Investment Destination' at Hotel Grand Hyatt on Thursday afternoon.
The Prime Minister highlighted Bangladesh's three key attractions for global investors and multinationals: low-cost labor, large domestic market and market access to nearly 3 billion people in Asia.
She said it is credible for Bangladesh to emulate Vietnam's FDI (foreign direct investment) performance of tenfold increase over seven years. Assuming FDI worth 7 billion US dollars in 2008, this suggests that Bangladesh should aim to attract such substantial FDI by 2015.
On the current economic crisis, Hasina said it has caused many economists and bankers to redefine what they perceive as risky. It has encouraged them to be more open-minded about new investment opportunities that offer attractive returns without extreme volatility that characterizes the complex financial instruments fuelling the current crisis.
The PM said "frontier" emerging markets such as Bangladesh may have appeared as 'high risk' relative to developed markets in past years.
"However, our economy has proved, as a matter of fact, to be one of the most resilient in the world with GDP growth forecast to decline by less than 1 percent from 6.5 percent in 2008 to 5.8 percent in 2009," she told the US investors.
US-based money transmitter Trans-Fast sponsored the talk attended by representatives from leading financial companies, including JP Morgan.
The Prime Minister's son, Sajeeb Wazed Joy, who lives in America, also made a presentation at the investment-promotion seminar arranged on the sidelines of the current UN General Assembly session she is attending.
Painting a rosy picture of Bangladesh economy, Hasina said the country's stock market proved to be one of the most resilient ones last year, and in 2009, remained essentially uncorrelated with the majority of developed and emerging markets that are in jitters.
"Nor is it the case that we are cut off from the rest of the world," she said, adding that Bangladesh's export-GDP ratio has risen steadily over the past 15 years and now stands at around 15 percent.
The Prime Minister mentioned that the two pillars of Bangladesh economy are textiles and RMG, along with remittances, each contributing almost 10 billion US dollars to an economy whose GDP is now worth around 90 billion dollars.
Hasina said the RMG (readymade garments) sector has benefited from the so-called "Walmart effect", just as Walmart has outperformed other US retailers in the downturn by offering better-value products.
Bangladesh, being one of the lowest-cost manufacturing hubs in the world, has similarly seen increased market share and a greater ability to persuade companies to relocate from other higher-cost countries in Asia, she further said in projecting the prospects the country holds out for businesses.
She noted that the remittance flows have continued to grow despite the extreme swings in oil prices that ought to have had a bigger shock to the oil-rich Middle East.
Hasina said what one might call 'Bangladesh paradox' can be seen as surprising economic resilience in the face of natural disaster, overpopulation and infrastructure challenges.
"Even if growth has lagged in a number of other economies in Asia, the volatility of Bangladesh's growth has been lower," she said.
The PM said potential that Bangladesh offers, particularly in the light of favorable demographics, has been recognized by some of the world's leading investment banks, a number of whose representatives were present at the seminar.
Foreseeing a steady growth at 7.0 per cent plus on a consistent basis over the next 10 years, she said it should take Bangladesh towards its goal of becoming a middle-income country.
"You can rest assured that you will be fully welcome and have the full support of my government," she said at a seminar on 'Why Bangladesh is an Attractive Investment Destination' at Hotel Grand Hyatt on Thursday afternoon.
The Prime Minister highlighted Bangladesh's three key attractions for global investors and multinationals: low-cost labor, large domestic market and market access to nearly 3 billion people in Asia.
She said it is credible for Bangladesh to emulate Vietnam's FDI (foreign direct investment) performance of tenfold increase over seven years. Assuming FDI worth 7 billion US dollars in 2008, this suggests that Bangladesh should aim to attract such substantial FDI by 2015.
On the current economic crisis, Hasina said it has caused many economists and bankers to redefine what they perceive as risky. It has encouraged them to be more open-minded about new investment opportunities that offer attractive returns without extreme volatility that characterizes the complex financial instruments fuelling the current crisis.
The PM said "frontier" emerging markets such as Bangladesh may have appeared as 'high risk' relative to developed markets in past years.
"However, our economy has proved, as a matter of fact, to be one of the most resilient in the world with GDP growth forecast to decline by less than 1 percent from 6.5 percent in 2008 to 5.8 percent in 2009," she told the US investors.
US-based money transmitter Trans-Fast sponsored the talk attended by representatives from leading financial companies, including JP Morgan.
The Prime Minister's son, Sajeeb Wazed Joy, who lives in America, also made a presentation at the investment-promotion seminar arranged on the sidelines of the current UN General Assembly session she is attending.
Painting a rosy picture of Bangladesh economy, Hasina said the country's stock market proved to be one of the most resilient ones last year, and in 2009, remained essentially uncorrelated with the majority of developed and emerging markets that are in jitters.
"Nor is it the case that we are cut off from the rest of the world," she said, adding that Bangladesh's export-GDP ratio has risen steadily over the past 15 years and now stands at around 15 percent.
The Prime Minister mentioned that the two pillars of Bangladesh economy are textiles and RMG, along with remittances, each contributing almost 10 billion US dollars to an economy whose GDP is now worth around 90 billion dollars.
Hasina said the RMG (readymade garments) sector has benefited from the so-called "Walmart effect", just as Walmart has outperformed other US retailers in the downturn by offering better-value products.
Bangladesh, being one of the lowest-cost manufacturing hubs in the world, has similarly seen increased market share and a greater ability to persuade companies to relocate from other higher-cost countries in Asia, she further said in projecting the prospects the country holds out for businesses.
She noted that the remittance flows have continued to grow despite the extreme swings in oil prices that ought to have had a bigger shock to the oil-rich Middle East.
Hasina said what one might call 'Bangladesh paradox' can be seen as surprising economic resilience in the face of natural disaster, overpopulation and infrastructure challenges.
"Even if growth has lagged in a number of other economies in Asia, the volatility of Bangladesh's growth has been lower," she said.
The PM said potential that Bangladesh offers, particularly in the light of favorable demographics, has been recognized by some of the world's leading investment banks, a number of whose representatives were present at the seminar.
Foreseeing a steady growth at 7.0 per cent plus on a consistent basis over the next 10 years, she said it should take Bangladesh towards its goal of becoming a middle-income country.