The government should implement an effective investment policy to bring in more foreign direct investment (FDI) in Bangladesh, said experts at an event on Sunday.
They also said it is imperative to address the challenges faced by complex procedures and bureaucratic delay.
Moreover, Bangladesh must consider signing Free Trade Agreements (FTAs) with strategic trade partners like South Korea to facilitate trade and investment growth.
They were speaking at the "Korea-Bangladesh Economic Cooperation" event organized jointly by the Korean Embassy and the Foreign Investors' Chamber of Commerce and Industry (FICCI) in Dhaka.
They also discussed building a forward-looking economic partnership between the two countries.
Industrial Advisor to the Interim Government, Adilur Rahman Khan, in his speech as the chief guest, emphasized Bangladesh's commitment to introducing positive changes in its investment atmosphere to adapt to evolving global conditions.
Highlighting the longstanding friendship between Bangladesh and South Korea, he urged Korean businesses to invest more in Bangladesh.
Ashik Chowdhury, executive chairman of BIDA and BEZA, said that domestic and foreign investors frequently provide valuable suggestions regarding policy and structural improvements.
He assured that these suggestions are being considered, with necessary initiatives underway.
“Despite current challenges, such as power supply issues, the government is actively working to resolve them,” he added.
South Korean Ambassador to Bangladesh, Park Young-sik, said that FTAs and Economic Partnership Agreements (EPAs) between Korea and Bangladesh are important.
“China, Vietnam, and Indonesia have substantial shares in Korea's apparel market, largely due to existing FTAs with these countries. Although the imports from Bangladesh are increasing every year, its share remains low,” he added.
He also said that implementing an FTA or EPA will boost Bangladesh’s market share and create a more favourable environment for South Korean investments.
However, he clarified that, even without an FTA, Korean investment in Bangladesh will continue.
He also emphasized that with Bangladesh’s anticipated graduation from Least Developed Country (LDC) status by 2026, the time is limited for signing bilateral trade agreements and other initiatives.
“However, the post-LDC graduation phase will require a lot of hard work by both the government and the private sector in order to overcome a lot of challenges including losing GSP facilities, exemption of Trips, and removal of subsidies,” he added.
He suggested that Bangladesh should ease its services and enact reforms to attract more foreign investments, recommending that Bangladesh consider developing its own apparel brands.
The South Korean ambassador also commented on Bangladesh's application to join the Regional Comprehensive Economic Partnership (RCEP) in the Indo-Pacific region.
He viewed this positively, saying that joining RCEP can significantly boost Bangladesh’s exports, foreign investments, and GDP.
“It is expected that effects from the entry into the RECP are Export($3.26), FDI($3.36), GDP (0.26%),” he added.
Samso Kim, director general of the Korea Trade-Investment Promotion Agency (KOTRA) outlined the promising opportunities for foreign investment in sectors like automobiles, shipbuilding, battery recycling, and electric vehicles in Bangladesh.
However, he noted that for these opportunities to be realized, the government must proactively enforce investment policies.
Kim also highlighted existing complexities and delays in investment processes within the Export Processing Zones (EPZs) and stressed the need for a fully implemented One-Stop Service (OSS) system.
The event also highlighted the experiences of Korean business leaders in Bangladesh.
Su Min Ko, managing director of Prime Cap (BD), a Korean garment company with a 35-year presence in Bangladesh, expressed concerns about complex investment processes, high costs, and low productivity.
He mentioned that the recent student movement from July to September had led to a loss of 119 working hours, premature shutdowns on eight days, and a 10% decrease in productivity.
He hoped for quick improvements in such situations.
The Korean businesses were also urged to resolve issues like customs, VAT, ports and other.
Shahab Uddin Khan, president of the Korea-Bangladesh Chamber of Commerce and Industry (KBCCI), said that there is a significant trade imbalance between Korea and Bangladesh.
Korean businesses have shown interest in purchasing more Bangladeshi goods, which could help reduce the trade deficit.
TIM Nurul Kabir, executive director of FICCI, moderated the event.
FICCI President Zaved Akhtar, in his welcome speech, remarked that the seminar aimed to improve the investment climate and restore investor confidence.
