Bangladesh should focus both on quantity, quality of GDP growth: Seoul

Highlighting Bangladesh's economic great potential, South Korean Ambassador to Bangladesh Park Young-sik on Sunday said the post-LDC graduation phase in Bangladesh will require considerable efforts from both the government and the private sector.

Due to LDC graduation, the country will face a lot of challenges in the coming years, he said.

"Graduation from LDC means that Bangladesh should focus not just on the quantity, but on the quality of its economic growth," he said, noting Bangladesh-Korea growing economic cooperation.

The quality of economic growth must be driven by innovation, knowledge and technology -- areas where foreign companies can make substantial contributions, said the ambassador while speaking at a seminar.

Looking to the future, he said, Bangladesh is marching towards graduation from the LDC status in 2026.

"This journey presents both immense opportunities and challenges," the envoy said, noting that Bangladesh has showed great potential, as evidenced by the tripling of Bangladesh’s per capita income over the last decade.

The seminar was organised by the Embassy of the Republic of Korea and the Foreign Investors’ Chamber of Commerce and Industry (FICCI).

Commerce Secretary Mahbubur Rahman spoke at the seminar titled "Strengthening Bilateral Trade And Investment Through The Korea-Bangladesh EPA."

FICCI leaders including Vice President Yasir Azman and Executive Director Nurul Kabir were present.

He emphasised that Korea has always been invested in Bangladesh and will continue to be so, even without FTA - Free Trade Agreement.

"Korea is not India, China or the US; we have no strategic interests beyond our economic cooperation," Young-sik said.

He said both countries are currently discussing the initiation of negotiations for the bilateral Economic Partnership Agreement (EPA).

"If concluded, this EPA will significantly enhance bilateral trade and investment in ways that benefit both nations. It is my sincere hope that bilateral EPA negotiations will be soon concluded in a mutually way," said the envoy.

Korean companies have been a long standing partner of Bangladesh, contributing significantly to the growth and success of the RMG industry.

"In recent years, we have witnessed remarkable developments in diversifying areas of cooperation beyond the RMG, particularly in manufacturing and infrastructure," said the ambassador.

Over the last fifty years, collaboration in the RMG sector has been a driving force behind the bilateral relations.

"It is my strong hope and I believe that the bilateral EPA could serve as the motor engine to elevate our partnership to new heights in the next fifty years," Young-sik said.

The ambassador said Bangladesh needs foreign direct investment.

However, FDI of Bangladesh is the lowest in terms of the GDP ratio. Bangladesh is 0.75%, while India is 1.7% and Vietnam is 4.7%.

"In this regard, I would like to reiterate the importance of why business environment of Bangladesh should be improved," said the Ambassador.

He said Bangladesh must recognise that its economic structure of protecting the domestic industry with high tariffs should be reformed in a way to open the market.

If domestic production costs remain higher than those of imported goods, foreign companies do not feel the real necessity of investing in Bangladesh, he said.

Secondly, Young-sik said Bangladesh government should improve the scheme of issuing visas to foreign investors.

"If they encounter stark reality of having to renew their visa every 3 month, they will ask themselves of whether they still want to stay in that country," he said.

Thirdly, the envoy said, most of foreign investors are pinpointing customs clearance as a biggest area for investing in Bangladesh.

The complex, delayed and often inconsistent customs processes in Bangladesh add unnecessary costs increase and delays in trade, he said.

Issues such as arbitrary procedural delays and lack of transparency in customs clearance can undermine investor confidence and impede the smooth flow of goods, said the Ambassador.