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Bureaucratic complexities are no longer an issue when it comes to foreign investment in Bangladesh, said Nahian Rahman, head of business development at the Bangladesh Investment Development Authority (BIDA).
Referring to the top five challenges raised by the foreign investors, Nahian said the main key issues in the National Board of Revenue (NBR) have been identified, and the government is actively working to address and overcome these challenges, he said.
The BIDA official made the remarks while responding to a question during a press briefing held on the fourth day of the investment summit at Hotel InterContinental in Dhaka on Thursday, reports UNB.
When asked about concerns raised during the summit regarding harassment by the NBR, Nahian said, “When we at BIDA spoke to more than two hundred investors, one of the major issues they pointed out was the amount of time it takes or the difficulties faced in getting things cleared through various government agencies, particularly the NBR.”
“This has now become one of our top priorities—how to make this process smoother,” he added.
“We’ve introduced the green channel and the authorised economic operator system. Our Single Window platform is already operational. So now, the focus is on how the NBR can push these initiatives forward,” said Nahian.
Speaking at the RMG and Textile session, Kihak Sung, chairman of Youngone Corporation and a pioneer in Bangladesh’s ready made garments (RMG) and textile sectors, noted that despite labor costs in Vietnam being 30% higher than in Bangladesh, profit margins were greater there due to higher worker productivity.
When asked about this issue, Nahian acknowledged the concern.
“We believe Kihak Sung’s observation is valid,” he said adding, “However, the products being made in Vietnam are more value-added and synthetic garments. So even with higher costs, they’re able to maintain profitability.”
He added that Youngone had previously faced legacy challenges with their operations in Bangladesh, which may have prevented them from investing in synthetic or high-value garments earlier.
“But now they’ve opened a new synthetic production line in the Korean EPZ, where they are producing high-value garments. That is expected to be profitable, said Nahian.
Rahman also highlighted that a new agreement was signed with Chinese company Handa just a day earlier, involving a major investment in synthetic garments. “If we can attract one or two more high-value anchor investments like this, it will pave the way for more value-added garment investment,” he said.
Responding to a question on whether bureaucratic hurdles continue to deter investors, he said, “This time investors have seen that significant improvements have been made. Previously, with around 70 ministers and state ministers, securing approvals was a challenge. Now, with only about 25 to 26 key advisors, decisions are more centralised and streamlined. Investors themselves have acknowledged this progress. Still, we have a long way to go.”
Asked about investment outcomes from the summit, Nahian said, “Several high-value agreements, including a $150 million deal with Handa were signed and we learned that local startup ShopUp secured a Tk 110 crore investment. None of this happens overnight—it’s the result of sustained effort.”
Talking about the participation of foreigners, he said, “We saw around 400 to 450 foreign delegates across different segments of the summit. Some companies sent more than one representative.”
He also noted that this year’s summit also focused on mobilising the private sector.
“The International Labour Organisation (ILO) was also very active. The goal wasn’t just to depend on one organisation, but to work collaboratively and push the investment pipeline forward,” he added.
BIDA executive member Shah Mohammad Mahbub and Deputy Press Secretary to the Chief Adviser, Abul Kalam Azad Majumdar were also present at the briefing.