Experts push for reforms to attract more foreign direct investment

The interim government should make some visible progress on reforms in key areas, including institutional framework, customs and logistics, to boost foreign direct investment in Bangladesh, experts said at a seminar on Tuesday.

They also stressed the need to address challenges related to permission and regulations, and financial and foreign exchange policies.

Also, easing visa and work permit procedures for expatriates and improving the country's overall business environment and international image were identified as critical steps in attracting more foreign investment.

The seminar on 'Strengthening FDI and Economic Partnership between Japan and Bangladesh' was held at a city hotel.

Foreign Investors' Chamber of Commerce and Industry (FICCI), in collaboration with JETRO, the Japan Chamber of Commerce and Industry Association in Dhaka (JCIAD), and HSBC Bangladesh jointly organised the seminar to foster deeper economic ties between Japan and Bangladesh, focusing on enhancing FDI and strengthening economic partnerships.

Lutfey Siddiqi, Special Envoy on International Affairs to the Chief Adviser, was present as the chief guest and Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of BIDA and BEZA, and Iwama Kiminori, Ambassador of Japan to Bangladesh, were present as special guests.

Japan Ambassador Iwama Kiminori requested the interim government to do whatever they can within its limited tenure, stressing the importance of implementing at least one or two of the proposals discussed in the seminar.

"If you take too much time for discussions and no implementation, the interim government will lose credibility with both the citizens and the business community, as well as with foreign investors," he said.

He also said that time is limited for Bangladesh as it has to compete with other ASEAN countries, which are currently more attractive to foreign investors.

He also spoke about the issues related to the country's graduation from the least developed country status and preferential market access.

Lutfey Siddiqi has pledged to enhance Bangladesh's business environment, aiming to align the country's practices with global standards, including fair wages and increased productivity.

Bangladesh does not want to remain a low-cost labour market but rather seeks to improve its position in global business environment rankings, he said.

Delivering his keynote presentation on 'Business Opportunities and Challenges of Doing Business in Bangladesh', Yuji Ando, Country Representative of JETRO, shed light on the growing interest of Japanese SMEs in expanding their businesses in Bangladesh.

About 45.5 per cent of companies in the region plan to expand operations within the next 1-2 years, with Bangladesh emerging as a top destination at 61.2 per cent, he said. .

Mr Ando also highlighted significant challenges, such as high dissatisfaction with the business environment, with 70.8 per cent of respondents pointing to areas for improvement.

He emphasized the need to address issues such as customs clearance procedures, transparency, and local procurement practices, adding that the production costs in Bangladesh were competitive, being less than 60 per cent of those in Japan.

He further stressed the need to ensure policy consistency, eliminate corruption and improve the services of government agencies.

Ichiguchi Tomohide, Chief Representative of JICA Bangladesh, outlined seven priority proposals, including creating a minister-level position and ministry overseeing investment promotion with strong coordination mechanism among relevant ministries/organisations.

"The One Stop Services (OSS) in Bangladesh are limited to providing coordination support for procedures with concerned ministries," he said, adding that the multiple OSSs exist in several government agencies, such as BIDA, BEZA and NBR.

Outlining ongoing projects such as the Bangladesh Special Economic Zones (BSEZ) and the Multi-layered Connectivity in the Bay of Bengal (MIDI), he emphasised that JICA's efforts are focused on diversifying industries and improving institutional frameworks, particularly in terms of permissions, regulations, and logistics.

FICCI President Zaved Akhtar said, "This seminar is a landmark event that underscores the deep economic ties and potential between our two nations."

Atsushi Hirakuru, President of JCIAD, stated, "This seminar marks a significant milestone in strengthening the economic relationship between Japan and Bangladesh."

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