Experts for coordination with ministries to boost FDI inflow

Necessary steps should be taken to coordinate with various ministries in a bid to boost up the country's inflow of foreign direct investment (FDI), experts have said.

The government's efforts to improve the country's business environment in recent years showed promise but implementation in some sectors has yet to materialise. Slow adoption of alternative dispute resolution mechanisms and the corruption are hindering the foreign investment, they observed.

"FDI is considered a potent weapon for developing an economy like Bangladesh and can play an important role in achieving the country's socio-economic objectives. It can act as a significant vehicle to build up physical capital, create employment opportunities, develop productive capacity, and enhance the skills of local labour through the transfer of technology," said Md Moniruzzaman FCA, president of the Institute of Chartered Accountants of Bangladesh (ICAB).

He was addressing a webinar on "Foreign Direct Investment (FDI) in Bangladesh: Current Status and Prospects" organised by the ICAB on 5 September.

The event was moderated by Council Member and former president of ICAB, Md Humayun Kabir FCA, with Nahid Rashid, secretary of the fisheries and livestock ministry, present as the chief guest, and Avijit Chowdhury, executive member (additional secretary), Strategic Investment, Bangladesh Investment Development Authority (BIDA), as the special guest.

ICAB President Moniruzzaman mentioned that a decade of economic and political stability has made Bangladesh one of the fastest-growing economies in the world.

Presenting the keynote paper, Md Ariful Hoque, director of the BIDA, said, "In Bangladesh, local and foreign investments are given equal treatment. 100% foreign equity is allowed here along with unrestricted exit, with almost all industrial sectors remaining open for foreign investors."

Mentioning about the bilateral investment treaties (BITs) signed with 32 countries, and the double taxation treaties with 28 countries, including Sri Lanka, he said that Bangladesh is a signatory to ICSID, UNCITRAL, OPIC, MIGA, WAIPA, WIPO and WTO.

All laws and regulations here are conducive to investment, Ariful further said.

He also cited some government policies and provisions for incentives and protection of the investment in the country, and also discussed about sector-wise investment by the foreign companies here.

Khondaker Golam Moazzem, research director, Centre for Policy Dialogue (CPD), and M Abdul Haque, former president, Japan-Bangladesh Chamber of Commerce and Industry (JBCCI), were the panel speakers.