DHAKA, Aug 2, 2019 (BSS) – Australia Bangladesh Chamber of Commerce and Industry (ABCCI) has emphasised on sustainable policy supports to attract more foreign direct investment (FDI) in the country.
“Due to the high labour cost in China, Bangladesh is gradually becoming an attractive destination for investment. The government should formulate policies incorporating such policies in Malaysia, China and Vietnam so that the country can attract the investors,” ABCCI President Obaidur Rahman told BSS.
According to the Bangladesh Investment Development Authority (BIDA), inflow of FDI in Bangladesh rose by 68 per cent to US$3.6 billion in 2018 which was $2.6 billion in the previous calendar year.
He said the government is formulating different policies to create an investment-friendly environment in the country, but the frequent changes of the policies can create difficulties for the investors.
“The government is setting up Special Economic Zones (SEZs) and Export Processing Zones (EPZs) to attract investors. Now, the government should provide sustainable policy supports to the investors,” he added.
Responding to a question on bilateral trade between Bangladesh and Australia, Obaidur Rahman said the volume of bilateral trade between the two friendly nations is gradually increasing.
“The relation between Australia and Bangladesh is growing continuously. Australia-Bangladesh two-way trade now stands at over $2 billion, reflecting Bangladesh’s significant economic growth and Australia’s highly complementary commercial strengths,” he added.
He said Bangladesh export to Australia mainly consists of readymade garments, woven fabrics, knitwear, textile manufactures, home textile, leather goods and footwear, processed food, fish and jute goods.
“We are trying to diversify our export products. Different Bangladeshi products, including leather, pharmaceuticals and light engineering, can enter into the Australian market. We want to enrich our export basket,” he added.
He informed that Australia imports most of the products from China, but due to high labour cost in China, Bangladesh can easily grab the market by giving the products at chipper prices.
“In this case, the government can give different facilities, including the cash incentive, to the exporters,” he added.
He underscored the need for providing supports to the small and medium enterprises (SMEs) as the sector is playing a vital role to develop the economy.
“SMEs are playing an important role in the economy of all developed countries, including Japan. Bangladesh should focus on SMEs,” he added.
The ABCCI president called upon the authorities concerned to take necessary initiatives for creating more skilled manpower so that they can provide proper supports to the investors.