We welcome the plans announced by the new FBCCI president to encourage new entrepreneurs to help the economy.
The government should support these moves by paying more attention to Bangladesh’s under-performance in attracting overseas investment.
FDI in Bangladesh grew to $1.6bn last year, whereas Vietnam which is benefiting from a similar demographic dividend to Bangladesh, attracted $24bn, a billion more than India, making it the second biggest recipient in Asia.
Bangladesh also compares poorly with Myanmar, which with less than a third of our population attracted over three times as much overseas investment in 2014.
With the continuing shift of the global economy towards Asia exemplified by the creation of the AIIB, and the strong trend of more companies, particularly from China, looking to outsource manufacturing jobs, it is more urgent than ever for Bangladesh to reform the barriers which deter investors.
The IFC’s most recent Doing Business Report marks Bangladesh’s global ranking for ease of doing business at only 173rd out of 189 nations. This is woeful under-performance given the ranking of our economy, which falls within the world top 60.
Bangladesh’s youthful population and growing market located at the crossroads of South Asia and South-East Asia, gives it huge potential to attract investment and create jobs. The government needs to emulate the strategic approach which Vietnam has undertaken to make its economy more conducive to business.
This includes tackling corruption, reforming red tape, and investing heavily in developing a more productive workforce and improving infrastructure, particularly in relation to energy and transport.
We cannot afford not to give more priority to addressing these challenges. The government must work harder at creating a more business-friendly environment if Bangladesh’s economy is to live up to its potential.
