Swiss envoy for removal of snags barring FDI flow

FE Report Trade volume between Bangladesh and Switzerland can get a further boost through developing infrastructure and removing energy crisis, the Swiss envoy in Dhaka said Sunday. Dr Urs Herren, the ambassador, said the government should take immediate measures to overcome the problems to attract more foreign direct investment (FDI) in the country's potential sectors. "Bilateral trade volume between the countries is increasing steadily. My office, with the help of various trade bodies, is working to explore new avenues for expanding bilateral ties and encouraging Swiss entrepreneurs for more investment in Bangladesh," he said at a luncheon meeting. Foreign Investors' Chamber of Commerce and Industry (FICCI) arranged the event at a city hotel where the envoy was present as the guest of honour. According to available statistics, Bangladesh witnessed an 8.0 per cent growth through exporting goods worth US$ 166.5 million to Switzerland in 2010 while shipment of the European nation to Bangladesh was estimated at $ 95 million in the same year. The export volumes of other European nations namely Denmark, Sweden and Netherlands to Bangladesh were recorded at $ 51 million, $ 82 million and $ 93 million respectively. Mr Herren said the main problems that are affecting the business climate in Bangladesh are bureaucratic barriers, poor legal security for long-term investment, energy and land crises, poor infrastructure and port facilities. "Many Swiss companies have held back their plans to invest here due to these problems," he said. Around 90 Swiss firms are doing business in Bangladesh with investments in sectors like pharmaceuticals, chemicals, food, construction and services. FICCI President AM Hamim Rahmatullah said shortage of energy will temporarily remain a barrier to foreign investment in Bangladesh but an immediate solution can be derived from captive power generation. "Bangladesh needs more FDI and hopefully more Swiss investors will come forward to invest in Bangladesh in the coming days, which will further strengthen the bilateral trade relation between the two countries," he said. The FICCI president said the government should look into continuity of policies, speedier decision making, uninterrupted supply of gas, electricity and water, improvement in law and order situation and protection of intellectual property to pave the way for more FDI flow in the country.