Making BD an attractive investment destination

At a critical stage of the national economy when the inflow of Foreign Direct Investment (FDI) has tapered off   to a six-year low, the Chief Adviser (CA) of the interim government has invited the country's global partners to a four-day event, namely, 'Bangladesh Investment Summit 2025'. Evidently, the aim of the summit would be to highlight the transformative changes the economy has underwent recently driven by progressive investment policies introduced under his government and how those policies have created an investment-friendly atmosphere in the country. Notably, in his call to international investors, the CA did not fail to point out that on this special occasion, the prospective investors would also have the opportunity to have a data-driven insight into the most promising sectors of the economy for investment.

As expected, the four-day summit kicked off on April 7 (Monday) at a local hotel in the city by way of  organizing an exposition highlighting the country's Startup ecosystem, titled, "Bangladesh Startup Connect 2025'  where some 1,500 delegates attended different sessions of the event. At the event, discussions were reportedly held on the opportunities   this evolving field of investment offers as well as the challenges facing it. At the opening session of the event, the Executive Chairman of Bangladesh Investment Development Board Authority (BIDA), focused on how the government is trying to create an ecosystem to make business operation in Bangladesh much easier. As an investment promotion agency, as expected, its role would be to create a bridge between the assets the country possesses and the potential liquidity available in the global market. The areas of comparative advantage Bangladesh can offer to attract potential investors include cheaper utility services and trainable but cheap labour. Such inputs are cheaper compared to Vietnam, Cambodia, Thailand and Indonesia, its competitors. There is, however, no reason to believe that just showcasing the areas of comparative benefits can convince a potential investor. In that case, confidence building between the overseas investors and the country is important.

After years of not-so-gratifying experience, the investment promotion agency of the government should have learnt some valuable tips to win investors' confidence. The good news is that three cases of startup investments were reported on the very first day of the aforementioned Startup exposition, as informed by the special assistant to the CA for the ICT Division. Undoubtedly, this augurs well. Now the need is to make the process sustainable so that the general ambience turns favourable for investment.  

On the first day of the Summit, it could be further learnt that, a 60-member business delegation representing 25 countries was shown the Korean Export Processing Zone (KEPZ) and the National Special Economic Zone (NSEZ) to showcase the country's manufacturing facilities. It is worthwhile to note that the KEPZ is based in Chattogram and is the first-ever private, country-specific export processing zone established in October 1999 and owned by the Korean industrial conglomerate Youngone Corporation. In fact, Youngone is  one of the pioneers in setting up garment factories in Bangladesh for overseas export. At a presentation during the said delegation's visit, the chairman of the Youngone Corporation, Kihak Sung did reportedly highlight the simple and efficient system of its management that is not encumbered by many layers of bureaucracy as is the case with many government agencies in Bangladesh. Indeed, the experience of dedicated pioneers in foreign investors like Yoingone Corporation, can show the way for others to consider Bangladesh as a desirable destination for investment.