The recent proposal of Dongfang Knitting (BD) Ltd, a Chinese company, to invest $27.8 million to set up a sock manufacturing factory at the Bepza Economic Zone in a Chittagong is welcome news, and the sort of news we should be expecting on a regular basis for a nation that must continue to ramp up its pursuit of investments, especially from those outside of Bangladesh.
While Bangladesh has attempted to improve its business environment and attract foreign direct investment (FDI) in recent years, there is no questioning the fact that there is still much room for improvement to fully realize the country's economic potential.
Investments such as the one made by Dongfang Knitting (BD) Ltd not only bring in new capital, which can be used to finance infrastructure projects and expand manufacturing facilities, they also play a significant role in job creation; the factory to be set up at Bepza Economic Zone is already proposed to employ over 5,000 Bangladeshis.
It is thus crucial for Bangladesh to continue to leave no stone unturned in its pursuit of a more favourable investment climate. One crucial step is to streamline regulatory processes and reduce bureaucratic hurdles; simplifying procedures for starting a business and obtaining permits will go a long way for both domestic and foreign investors to operate in Bangladesh.
Equally important is the need to improve transparency and accountability in regulatory bodies to build trust among investors, an area that the nation has consistently struggled in and has left many potential investors disinterested in choosing Bangladesh as a viable destination for investment.
To this end, Bangladesh must continue its efforts to enhance the ease of doing business, including facilitating easier access to credit and strengthening investor protection.
Overall, by creating a more business-friendly environment and improving the country’s investment climate lie at the heart of Bangladesh’s ability to attract more FDI.
