Regional co-op a must to boost FDI in post-corona era

Speakers at a seminar have underscored the need for increasing regional cooperation aligning with ASEAN, BIG-B, and Belt and Road Initiative to boost Foreign Direct Investment (FDI).

To harness the investment relocation and export opportunities opened up amid the pandemic, improvement in the investment ecosystem, faster completion of mega infrastructure projects and public-private fraternity are needed, they added.

Discussants came up with the views at a virtual seminar on “Implications of COVID-19 on FDI inflow to Bangladesh: Challenges and Way Forward” on Saturday.

Private Industry and Investment Adviser to the Prime Minister Salman Fazlur Rahman joined the seminar as the chief guest while Executive Chairman of Bangladesh Export Zones Authority (BEZA) Paban Chowdhury spoke as special guest

Ambassador of Japan to Bangladesh ITO Naoki joined as the guest of honour while Chairman of Policy Exchange Dr. M Masrur Reaz presented the keynote paper with DCCI President Shams Mahmud in the chair.

Explaining the post-pandemic economic situation, the DCCI president suggested the government about some of the crucial measures to be provided like equal fiscal and non-fiscal facility, accelerate multilateral regional economic ties.

To attract FDI inflow, he stressed the need for strengthening local backward linkage, adopting timely policy reforms and inter-agency coordination.

The DCCI president also invited the US and Japanese investors to invest in conventional manufacturing, service sectors and diverse infrastructure works.

Dr. M Masrur Reaz said Bangladesh needs to improve in few competitiveness areas like innovation, infrastructure, goods market efficiency, technological readiness, business sophistication.

“We have $350 billion investment gap in infrastructure, private investment to GDP ratio should be 26.6 per cent,” he added.

Japanese ambassador to Bangladesh ITO Naoki said Japanese companies are interested to invest in Bangladesh.

Once the existing companies feel convenient business environment, it will lead further investments as well as lead to new investments, he added.

The Araihazar Economic Zone in Bangladesh established by Japan will be the best in Asia, he informed.

Two key persons of the government who are working to change the paradigm of investment in the country Salman Fazlur Rahman and Paban Chowdhury also discussed investment development.

“The government is working on policy reforms and this initiative will attract more FDI. Almost in all top level of the government, the realization has come that we need to change the mindset to reform,” said Salman F Rahman adding that now this mindset needs to slide down to the field officer level who will actually play the role in implementation level.

He also said the government will reform the bankruptcy law and companies act soon and the tax regime will also be re-designed soon comparing with other countries for ensuring a better position in ease of doing business index.

BEZA Executive Chairman Paban Chowdhury said BEZA, BEPZA, BIDA and High-tech park authority should be empowered more for better regulatory reforms along with the policy reforms and increasing ports’ facilities.

“Moreover, we need more ports and we need to invest more in ports including having a Private Port Policy. Lastly, he said the change of mindset will change the investment scenario” he added.