Now is Your Opportunity to Invest in Bangladesh

Tuesday, January 5, 2010

Recently Government of Bangladesh appointed Dr. S A Samad as the Executive Chairman of BOI in the rank and status of Minister. With more than 35 years of experience as a civil servant, economist, academic and development consultant Dr. SA Samad brings a great wealth of experience and expertise to the post. He has held various positions including Principal Secretary, Economic Advisor to the Honorable President of Bangladesh, Secretary, Energy & Mineral Resources, Secretary, Post & Telecommunications and Program Director / Coordinator (Economic Management & Information Technology) of the United Nations Asia Pacific Development Centre. He was professor of economics, business administration Division, at the Hankuk University of Foreign Studies, Korea, for the period 2007-2009. Here are the excerpts of his interview with Asia – Pacific Business and Technology Report.

Question: Congratulations on becoming the Chairman of board of investment! First of all can you please introduce us your organization. What kind of role it plays in promoting Investment in Bangladesh? Currently what is on its radar in terms of expansion and promoting investment in Bangladesh?

Answer: Board of investment is the main agency for attracting and promoting foreign direct investment in Bangladesh. It was created in 1989 and is a part of the Prime Minister’s Office. To give it the necessary high profile and effectiveness the current chairman has been accorded the rank and status of a full cabinet minister of Bangladesh. Global Foreign Direct Investment (FDI) has been severely affected by economic and financial crisis of 2008. Inflows are expected to fall from 1.7 trillion to 1.2 trillion in 2009. Against this backdrop it is not easy to mobilize FDI on a vastly augmented scale, but attempts would be made to increase the flow. Attractive package of incentives have been put in place for this purpose

2. With a population of over 150 million, Bangladesh has one of the largest labor pools to draw from. How doest that labor pool has can play important role in attracting foreign investment into Bangladesh?

Answer. Labour pool is one of the main attractions for potential foreign investor. Bangladesh has one of the lowest effective wage rates in the world and the labour force is trainable

3. What is the current status of Investment in Bangladesh? Can you please provide us with some latest statistics about investment in Bangladesh?

Answer. In 2008, net inflows of FDI stood at US $ 1.087 billion, which was the highest ever single year total for Bangladesh. The economic meltdown of 2008 did not allow this trend to continue and we have posted a 9 per cent decline in FDI flows for the first 8 months of 2009. We expect this to reverse. I am optimistic about mobilizing FDI flows of between $3 to $5 billion per annum on a sustained basis.

4. What is the latest policy incentives provided by the Bangladesh Government? What are the potential areas where you are looking for investment? So far what have been the main hindrances in attracting foreign investment? Is the government of Bangladesh making efforts to make it easier for foreign companies to operate and invest in Bangladesh?

Answer. Sectors of priorities are energy, telecommunication, industry, information and communication technology, food and allied products, biotechnology. We try to attract investment from USA, Japan, Korea, Malaysia, China and some European countries. India is a favoured source as well. Currently, Egypt, USA, Japan and Korea are among the major investors. Major hindrances include infrastructures, utilities, land and port facilities. Attempts are on to improve each of them. Bangladesh has a large middle class, larger in size than the total population of Thailand, Singapore, Brunei, Fiji and Timor. On line registration, e-commerce, simplified procedures and policies, fiscal and repatriation incentives are among the components of the package of attractions. Visa on arrival, liberal allowances for the family and an open door policy on employment of personnel are also attractive features of the current investment policy.

5) What are your country’s relations with Asia- pacific countries? What are the possible area of co operations between Bangladesh and Asia- pacific?

The investment and trade links with the Asia-Pacific is rather weak at the moment. South Asian Alliance for Regional Cooperation (SAARC) has not bee effective as a regional forum for giving a fillip to economic cooperation within the region. Most of the countries of South Asia in particularly prefer to trade with and or invest in America or Europe. South South cooperation has not grown. This needs to be addressed.

6) Korea has been one of the biggest investor in Bangladesh. What are the important sectors where Korea has invested? What are the future potential areas of Korean investment in Bangladesh? Is there is any special policy incentives for Korean Investors.

.Answer. Korea in vests in special economic zones, garments, leather, shoe and electronics. It also does many major construction projects. Korea can be a major investor in Bangladesh and that is widely recognized. Korean investors have been allotted a special economic zone only for the Koreans. I believe high tech and green tech investment can flourish in that zone.

7. What will be your message to potential investors in Bangladesh?

Answer. My message is: A new democratically elected popular government is now in charge. It is market, trade and investment friendly. The prime minister of Bangladesh Ms Sheikh Hasina is a strong and charismatic leader. She leads the economic and social programs from the front. Now is your opportunity to knock on our doors and you are certain to find very friendly and responsive chords. Bangladesh is an open and transparent economy and has a large modern sector, trained human resources, vibrant middle class, free press and high class universities.

Please visit Bangladesh and the Board of Investment before the investors do!!

For more information about investment opportunities in Bangaladesh please visit http://www.boi.gov.bd/