Bangladesh cannot attract an adequate level of foreign direct investment (FDI) owing to the current global economic turbulence caused by Covid-19 and subsequently the Russia-Ukraine crisis, experts said.
They were responding to questions at the pre-event press conference on "FICCI 60 Years Celebration and Investment Expo 2023," which was held on Saturday in the capital by the Foreign Investors Chamber of Commerce and Investment (FICCI).
The two-day long mega event is going to kick off on November 8 at Radisson Blu Dhaka Water Garden to commemorate the six-decade anniversary of the chamber and Prime Minister Sheikh Hasina is expected to inaugurate the event as the chief guest.
FICCI President, Naser Ezaz Bijoy, said that although international investors have an interest in Bangladesh, the conversion rate is low.
“Investors talk about Bangladesh's economic development and recognize its efforts, but the state of the world today is not to our liking. The overall global investment declined as uncertainty permeates the world,” he added.
BIDA Acting Executive Chairman Mohsina Yasmin said that the organization had only been around for a short time when it encountered the challenging circumstances of Covid-19 after its journey in 2016.
“However, BIDA received investment proposals worth $1.16 billion in 2022, but due to the Russia-Ukraine war and the consequent economic turmoil, they didn't receive the desired level of investment this year,” she added.
She also said that the government and concerned authorities are working sincerely to attract more investments in Bangladesh.
"It is true that not all of our efforts are always fruitful, but we keep trying. They will get their desired investment if the situation returns to normal," she said.
In response to another inquiry, she stated that they have received investment bids totalling $700 million for 2023.
She also stated that the country has made significant progress in terms of ease of doing business, albeit there are still being constraints that are being addressed.
"Currently, we are providing 90 services of 30 government organizations through BIDA OSS and since 2019, we have provided more than one lakh services and 95% of them were in due time."
In response to another question regarding the completion of the country's own ease of doing business system, she said that they are working on it and hope to announce some developments in June 2024.
Bijoy said although there are still certain limits in BIDA's OSS, their achievements have been outstanding, and they are working on additional improvement.
Regarding the upcoming event, he said the key objective of this event is to highlight FICCI’s contribution towards the development of the country’s economy.
"30% of revenue is being collected from FICCI members and they are responsible for 90% of the FDI and five million employment generation," he went on to say.
They plan to highlight the success stories of their member companies.
The prime minister will also release the findings of a FICCI study project titled: "Catalyzing Greater FDI for Vision 2041: Priorities for Building a Conducive Tax System in Bangladesh" as well as an ESG book titled "ESG Excellence: A Chronicle of FICCI Members."
According to Mahbub ur Rahman, FICCI board of directors and event convenor, the investment exhibition would feature over 40 stalls showcasing the country's economic resiliency, competitiveness, and investment opportunities.
“We will hold two plenary sessions on “Green Value Chain” and the “IInvestment Climate: Current Landscape and Mission 2041,” he said.
The Bangladesh Investment Development Authority (BIDA) is the event's key partner.
According to BIDA Acting Executive Chairman Mohsina Yasmin, the government always welcomes foreign investment because it is the lifeline of the economy and the event will both promote existing international investors and attract new ones.
FICCI Vice-President Shwapna Bhowmick and TIM Nurul Kabir, executive director, also addressed the event.