It is encouraging to learn that a huge foreign investment prospect is waiting for Bangladesh as relations between US and China has deteriorated further over the ongoing Covid-19 crisis.
Reportedly a number of countries, including Japan, Germany and the United States, are planning to withdraw their investments from China. Considering the situation, the government needs to gear up its effort to devise necessary initiatives to seize this opportunity.
In this regard, the government should immediately start G2G (government-to-government) discussions with different countries to woo invest in Bangladesh. Also the business community should start move to convince the companies, which are thinking of relocating business from China, to invest in Bangladesh.
Foreign direct investment (FDI), the bedrock of Bangladesh’s economic growth, is considered an important motivator of economic development and a principal avenue for the development finance. Over the last 10 years, FDI has been playing an essential role in maintaining the tempo of the current economic development of Bangladesh.
The government needs to gear up its effort
to devise necessary initiatives to seize the
foreign investment opportunity
Also it has immensely contributed to reinforcing foreign reserves, creating new job opportunities and increasing labour skills in recent times. There is no denying that all these are the consequences of the government’s earnest endeavours and various time-befitting policies to attract investors and to create a congenial atmosphere for fuelling the FDI inflow.
Though the FDI has been increasing over the years, experts say that yet there is room for further investment in the coming days, especially in the post-corona era. In this regard, special attention should be given to ensure better business facilities alongside market diversification to attract more foreign investors. Also business-friendly environment, taxation reform and long-term policy are needed to attract them.
The government is providing continuous support for increasing FDI inflow and has already completed standard operation measures for providing smooth services to attract more foreign investors. The Bangladesh government pursues the most liberal investment policy in South Asia which incorporates protection of FDI by law and duty-free import of raw materials.
The country currently has no electricity and gas problems. Following the other Asian countries which have been able to attract massive FDI, Bangladesh should take immediate steps to develop more infrastructures, build more skilled labourers, improve connectivity and encourage high-tech for a sustainable economic growth.