Abu Sazzad :
Bangladesh has proved to be resilient and attractive Foreign Direct Investment (FDI) destination even in the thick of severe global economic downturn and political unrest of the country, Industry Minister Amir Hossain Amu said this while he was addressing at a seminar on “Macro-Economic Policy Convergence” at the auditorium of Bangladesh Institute of Administration and Management (BIAM), organized by the Board of Investment (BoI) on Sunday.
New opportunities are emerging for foreign investors in Bangladesh every year, said the minister and adding that FDI inflow gradually increased due to investment friendly atmosphere and policies of the present government.
As per the latest information of the United Nations Conference on Trade and Development (UNCTAD) Bangladesh received $1.6 billion in the last year 2014. Now Bangladesh has achieved the second position among the Asian countries for attracting FDI.
Amu observed that production cost in Bangladesh is lower than China for which the Chinese investors are considering to set up their companies in the country.
To attract more FDI, Board of Investment started visa service, work permit and online services.
The government is trying to reduce the bank interest and within short time the bank rate will come down at a single digit, hoped the minister.
Mohammad Yunus, Senior Research Fellow of Bangladesh Institute of Development Studies (BIDS) presented a keynote paper on “Macroeconomic Policies in Bangladesh: Issues and Challenges”.
He lamented, co-ordination among various authorities and institutions responsible for attracting more FDI to attain a sustainable economy.
“More improvement of the economic policies, governance indicator, skilled manpower and infrastructure with the financial and other special incentives needed for attracting more inflow of investment in the country”, he observed.
He said in absence of a widely encompassing law on investment, the entry, establishment, treatment and protection of FDI are regulated by a number of laws including the Foreign Private Investment Promotion and Protection Act (FPIPPA, 1980), the Investment Board Act (1989), the Bangladesh Export Processing Zones Authority Act (1980), the Bangladesh Small and Cottage Industries Corporation Act (1957),the Companies Act (1994) and the Acquisition of Immovable Property Ordinance (1982).
Still, FDI inflows remain at below 1 per cent of GDP and more than 40 per cent of annual FDI flows in recent years have come from reinvested earnings and intra-company loans from foreign companies already operating in the country, he opined.
To meet the investment targets set out in the Sixth Five Year Plan we need a comprehensive plan to attract more FDI near about $5.4 billion to fulfill the dream of getting middle-income status.
Presently, Bangladesh ranks 122nd among 183 countries of the world in terms of business environment.
The Industrial Policy 2010 is not connected to land management and allocation of land for industrialization. Expansion of industries needs more electricity and gas services but separate authorities provide utility services and they are not well coordinated, he observed.
Talking on trade policies he said, the commerce ministry is responsible for domestic and international trade but in many instances it shared with a wide variety of institutions including Chief Controller of Imports and Exports, Bangladesh Tariff Commission, National Board of Revenue and Board of Investment.
Open monetary policy will help to boost business environment, he indicated. He further underscored the need for reducing business cost to attract FDI.
The other discussants are: Dr Toufic-e-Elahi Chowdhury, Adviser to the Prime Minister’s Office, Biru Paksha Paul, Chief Economist of Bangladesh Bank and Md. Farid Uddin, Member of National Board of Revenue.
Dr SA Samad, Executive Chairman of the Board of Investment presided.
Bangladesh has proved to be resilient and attractive Foreign Direct Investment (FDI) destination even in the thick of severe global economic downturn and political unrest of the country, Industry Minister Amir Hossain Amu said this while he was addressing at a seminar on “Macro-Economic Policy Convergence” at the auditorium of Bangladesh Institute of Administration and Management (BIAM), organized by the Board of Investment (BoI) on Sunday.
New opportunities are emerging for foreign investors in Bangladesh every year, said the minister and adding that FDI inflow gradually increased due to investment friendly atmosphere and policies of the present government.
As per the latest information of the United Nations Conference on Trade and Development (UNCTAD) Bangladesh received $1.6 billion in the last year 2014. Now Bangladesh has achieved the second position among the Asian countries for attracting FDI.
Amu observed that production cost in Bangladesh is lower than China for which the Chinese investors are considering to set up their companies in the country.
To attract more FDI, Board of Investment started visa service, work permit and online services.
The government is trying to reduce the bank interest and within short time the bank rate will come down at a single digit, hoped the minister.
Mohammad Yunus, Senior Research Fellow of Bangladesh Institute of Development Studies (BIDS) presented a keynote paper on “Macroeconomic Policies in Bangladesh: Issues and Challenges”.
He lamented, co-ordination among various authorities and institutions responsible for attracting more FDI to attain a sustainable economy.
“More improvement of the economic policies, governance indicator, skilled manpower and infrastructure with the financial and other special incentives needed for attracting more inflow of investment in the country”, he observed.
He said in absence of a widely encompassing law on investment, the entry, establishment, treatment and protection of FDI are regulated by a number of laws including the Foreign Private Investment Promotion and Protection Act (FPIPPA, 1980), the Investment Board Act (1989), the Bangladesh Export Processing Zones Authority Act (1980), the Bangladesh Small and Cottage Industries Corporation Act (1957),the Companies Act (1994) and the Acquisition of Immovable Property Ordinance (1982).
Still, FDI inflows remain at below 1 per cent of GDP and more than 40 per cent of annual FDI flows in recent years have come from reinvested earnings and intra-company loans from foreign companies already operating in the country, he opined.
To meet the investment targets set out in the Sixth Five Year Plan we need a comprehensive plan to attract more FDI near about $5.4 billion to fulfill the dream of getting middle-income status.
Presently, Bangladesh ranks 122nd among 183 countries of the world in terms of business environment.
The Industrial Policy 2010 is not connected to land management and allocation of land for industrialization. Expansion of industries needs more electricity and gas services but separate authorities provide utility services and they are not well coordinated, he observed.
Talking on trade policies he said, the commerce ministry is responsible for domestic and international trade but in many instances it shared with a wide variety of institutions including Chief Controller of Imports and Exports, Bangladesh Tariff Commission, National Board of Revenue and Board of Investment.
Open monetary policy will help to boost business environment, he indicated. He further underscored the need for reducing business cost to attract FDI.
The other discussants are: Dr Toufic-e-Elahi Chowdhury, Adviser to the Prime Minister’s Office, Biru Paksha Paul, Chief Economist of Bangladesh Bank and Md. Farid Uddin, Member of National Board of Revenue.
Dr SA Samad, Executive Chairman of the Board of Investment presided.
