The European Union (EU) has said Bangladesh must look at export diversification and attracting more foreign direct investment (FDI) seriously to make the country's "very admirable and amazing" economic growth sustainable, reports UNB.
It said Bangladesh has witnessed over 7.0 per cent growth in GDP over the last couple of years.
"It's still a challenge and progress in these areas will depend on domestic reforms agenda," EU Ambassador in Dhaka Rensje Teerink told the news agency in an interview.
She said Bangladesh really needs to look at how it can attract businesses and give this confidence to the investors that there will be ease of doing business.
"Bangladesh isn't performing well at all in terms of ease of doing business," said the EU ambassador.
Bangladesh has gone one notch down in the World Bank's ranking of ease of doing business mainly due to the hurdle businesses face here at the start of their operations.
The country holds 177th position among 190 economies, according to the WB's Doing Business report 2018.
Despite this huge impediment, Ambassador Teerink said Bangladesh is growing so fast and mentioned that the Bangladesh economy could grow more if the country could be a better host for those businesses. "Because this (growth) is happening despite challenges."
Asked about the government's 100 economic zones plan, the EU ambassador referred to a female private sector speaker at Bangladesh Development Forum (BDF) saying why not one or five economic zones first and do that properly and take lessons learned.
She said the government's plan to have 100 economic zones sounds good at the same time it sounds very ambitious.
Responding to a question, the EU envoy said democracy, governance and human rights -- these are something they follow closely worldwide and laid emphasis on addressing concerns in these areas.
On irregular Bangladeshi migrants living in Europe, the Ambassador said, "We have made very good progress. Migration has become a big concern in Europe in the last couple of years."
The European Union (EU) and Bangladesh signed the Standard Operating Procedure (SOP) to bring back all irregular migrants from Europe. A technical team will be coming to Dhaka soon to see the progress.
The EU Ambassador laid emphasis on rebranding Bangladesh saying the whole image of Bangladesh is completely different now than it was 10-15 years ago.
She said they will continue to work with the private sector and garment sector leaders so that the whole readymade garment sector becomes ILO-compliant.
"There is still some work to be done. Bangladesh Labour Law needs to be ILO standard," Ambassador Teerink said reiterating their joint commitment to the Sustainability Compact, including the respect of labour rights, in particular with regard to freedom of association.
Talking about Bangladesh's aspiration to become middle-income country, the EU envoy said it is a good goal and there is of course always danger middle income trap. "Bangladesh needs to look at it and export diversification remains the key issue."
Bangladesh will have to go for the GSP Plus status from the European Union when it graduates to the developing country bracket in 2021.
As a least-developed country Bangladesh has been enjoying zero-duty benefit to the EU under its Everything but Arms scheme since 1971. But once it becomes a developing country, Bangladesh will no longer be eligible for the privilege.
Strengthening workplace safety, improved labour rights, saving the environment and reduction of corruption are some of the major conditions for receiving the GSP Plus status from the EU, destination for 60 per cent of Bangladesh's garment products.
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