Bangladesh is the right destination for Chinese investment, says Professor Shibli Rubayat Ul Islam, Chairman of the Bangladesh Securities and Exchange Commission (BSEC). He emphasized that the initiatives to attract Chinese investment will yield positive results and significantly contribute to the country’s economic development.
The summit, titled “The Rise of Bengal Tiger: Summit on Trade, Business and Investment Opportunities Between Bangladesh & China,” showcased Bangladesh’s potential to Chinese businesses. Professor Shibli Rubayat Ul Islam highlighted that Chinese businesses are well aware of the opportunities in Bangladesh, noting the presence of 7,000 Chinese companies operating in the country, creating 550,000 jobs, with 25% of investors in Export Processing Zones (EPZ) coming from China.
He further underscored Bangladesh’s impressive GDP growth since 1971, emphasizing that China would benefit from both the local and export markets in Bangladesh. Bangladesh’s Generalized System of Preferences (GSP) facilities in Europe, Canada, and other countries make it an attractive export hub for China, providing access to these markets through Bangladesh.
Incentives for Investment
The chairman detailed the numerous incentives for investment in Bangladesh, including exemptions on import duties, 100% foreign ownership, double taxation treaties with 40 countries, bonded warehouse facilities, and full repatriation of capital and profit. He also mentioned that both China and Bangladesh have signed Memorandums of Understanding (MoUs) for projects worth over $25 billion, inviting Chinese investors to seize the significant opportunities in Bangladesh.
Growing Sectors
The agro-processing industry in Bangladesh is booming, with agricultural exports growing at a compound annual growth rate (CAGR) of 18% over the last five years, particularly in processed snacks. The global demand for agricultural products is expected to grow by 15% between 2019 and 2028, offering substantial opportunities for Bangladesh’s processed food industry to expand its exports.
Other promising sectors include the jute industry, light engineering, electrical and equipment manufacturing, the automobile industry, and the ready-made garment (RMG) sector, which remains the backbone of Bangladesh’s economy.
Advantages of Doing Business with Bangladesh
Bangladesh is the 8th most populous country in the world with a growing purchasing power and rapid economic growth. The country benefits from various trade agreements, a stable political climate, strategic geographical location, and lower production costs due to reasonable wages. These factors make Bangladesh an attractive destination for trade and business.
Benefits from Investment
Investing in Bangladesh promises fast economic growth, resilience against global volatility, favorable monetary and fiscal policies, and an investment-friendly government. The country also offers no pre-approval requirements for repatriating investments with profit, alongside a resourceful blue economy and a green environment conducive to sustainable development.
In summary, Bangladesh is positioning itself as a prime destination for Chinese investment, offering a range of opportunities across various sectors and a supportive investment climate.
The event was attended by Salman Fazlur Rahman, the Prime Minister’s Private Industry and Investment Advisor; Abul Hasan Mahmud, the Finance Minister; Md. Atiqul Islam, the Mayor of Dhaka North City Corporation; Nasrul Hamid, the State Minister for Power, Energy, and Mineral Resources; Zunaid Ahmed Palak, the State Minister for Post, Telecommunications, and Information Technology; Ahasanul Islam Titu, the State Minister for Commerce; Mohammad Tofazzal Hossain Miah, the Principal Secretary to the Prime Minister; ambassadors, various institutional and individual investors, and stakeholders.
Other notable speakers at the event included Lokman Hossain Miah, the Executive Chairman of BIDA; Yao Wen, the Chinese Ambassador to Bangladesh; and investors, industrialists, and businesspeople from China and Bangladesh.
