Economy
Benefits from Investment in Bangladesh
On the Investment Summit event which is held in Japan to showcase the economic potential of Bangladesh and strengthen the economic ties between the both countries, as they mark the 50th anniversary of their relationship.
Bangladesh urged Japan to make investments for that they will be benefited from in the future soon.
The Bangladesh Securities & Exchange Commission chairman Professor Shibli Rubayat-Ul-Islam explains from a graph presentation about the benefits from investments in Bangladesh.
Faster Economic Growth
Shock Absorbing Capability against Global Volatility
Favorable Monetary & Fiscal Policy and Investment Friendly Government
No Pre-Approval to repatriate investment with profit
A resourceful Blue Economy, Green for Investment
From another chart BSEC Chairman shows Bangladesh’s consumer market will be bigger than the UK in 2030 according to HSBC Global Research, which defines. Bangladesh is expected to see the fastest growth in its consumer market – that is, the population earning more than $20 per day in constant PPP terms – in the current decade.
Also added, Bangladesh is expected to overtake the UK and Germany and thus become the World’s ninth largest consumer market globally by 2030.
Women Empowerment in Bangladesh
In Bangladesh female literacy rate is 71.18% according to UNESCO, reserve quota has been created in judiciary, administrative and govt. Jobs, women entreprenuers in the finacial sector grew from 21,400 to 56,732 in six month from March to September in 2021. Government is arranging many training programs to empower women.
Top Japanese Investments in Bangladesh
JTI – acquired local conglomerate Akij Group’s tobacco business for approximately USD 1.5 billion in 2018 making it the single largest FDI in the Bangladesh private sector till date.
Honda – invented more than USD 27 million on buildings, equipment, facilities and a land area of 25 acres setting up a motor cycle manufacturing plant since 2018.
In June 2020, Japan East West Medical College Hospital was inaugurated, which is a 300-bed joint venture project between Ship Healthcare Holdings of Japan and Aichi Medical Group of Bangladesh.
Bangladesh: A perfect destination for Japanese firms
The latest survey of JETRO says that Bangladesh is the top choice for Japanese companies seeking to expand business in Asia.
Yuji Ando, Country Representative of the Japan External Trade Organization, expects the number of Japanese firms to double within the next 5 years.
The export ratio of Japanese companies operating Bangladesh is on top among Asia and Oceania countries as the ratio of exports to total sales by Japanese companies currently stands at 65.4%.
Number of Japanese companies in Bangladesh tripled over the last 10 years to hit 338 in 2022.
Garment export to Japan was US $ 1.1 bllion in 2021-2022 & expected to rise 10 fold to reach US $ 10 billion by 2030
At the same time BD’s imports from Japan will increase 5 fold to reach US $10 billion and as such bilateral trade will cross US $20 billion by 2030
During the eleventh month of the current fiscal year, the country’s foreign currency reserves have fallen below $19 billion for the first time. After paying off some import bills, the reserves have now stood at $18.26 billion on Sunday.
According to the International Monetary Fund (IMF), as of May 8, the total foreign currency reserves of the country were $19.82 billion.
Mohammad Mezbauul Haque, the spokesperson of Bangladesh Bank, informed that through the Asian Clearing Union (ACU), the central bank has paid off import bills totaling $1.63 billion over the past two months.
However, Bangladesh Bank maintains that after paying off the import bills, the foreign currency reserves now stand at $23.71 billion.
According to the Central Bank’s accounts, the reserves were $25.27 billion on May 8.
The Dhaka Stock Exchange (DSE) and the DSE Brokers Association (DBA) have expressed gratitude towards Prime Minister Sheikh Hasina for her directive to list government companies in the capital market, a move hailed as timely and positive.
The directive was issued during the recent meeting of the Executive Committee of the National Economic Council (Ecnec) last Thursday.
Dr. Hafiz Muhammad Hasan Babu, Chairman of DSE, described the directive as a significant step towards enhancing the dynamics of the capital market. He emphasized that besides invigorating the capital market, this move would also attract foreign investment and promote sustainable development.
Despite previous efforts, government institutions had not been listed in the stock exchange, according to a notification issued by the DSE. The Prime Minister’s directive is seen as a pivotal step towards revitalizing and expanding the economy.
Dr. Babu further remarked, “The listing of reputable companies in the capital market, as directed by the Prime Minister, will greatly benefit the country’s economy. It will also enhance investor confidence.”
Similarly, the DBA released a notification applauding the Prime Minister’s directive, terming it as positive and timely for the capital market.
Saiful Islam, President of DBA, expressed optimism about the directive’s potential to accelerate the country’s capital market and overall economy. He pledged support to relevant government departments and regulatory bodies in implementing the directive, ensuring its positive impact on the economy, including the capital market.
India has expressed interest in financing Bangladesh’s Teesta project, announced Foreign Minister Hasan Mahmud. Speaking to reporters after a meeting with Indian Foreign Secretary Vinay Mohan Kwatra, Mahmud stressed the importance of aligning the project with Bangladesh’s needs. He confirmed discussions on the Teesta issue during the meeting. Mahmud also affirmed Prime Minister Sheikh Hasina’s upcoming visit to New Delhi, indicating that the finalization of the date would depend on the formation of the new Indian government following ongoing elections.
Meanwhile, the IMF has approved a $1.15 billion staff-level loan for Bangladesh in its third tranche. Mahmud noted the ongoing elections in India and the subsequent formation of the new government as factors influencing the scheduling of PM Hasina’s visit.
When asked about the sequence of visits to India and China, Mahmud suggested Delhi’s geographical proximity to Bangladesh. Diplomatic sources suggest PM Hasina’s visit to India is planned for early July, following India’s elections.
Pre-election surveys indicate strong prospects for Indian Prime Minister Narendra Modi’s re-election. Modi previously congratulated PM Hasina on her electoral victory in January, expressing optimism about strengthening ties between the two nations.
The last bilateral engagement between the prime ministers occurred during the G-20 Leaders Summit in September 2023. Modi is expected to invite South Asian and BIMSTEC leaders to his swearing-in ceremony, fostering regional cooperation.
Addressing border killings, Mahmud emphasized the government’s commitment to ending such incidents and promoting the use of non-lethal weapons by border forces. Discussions also covered enhancing physical and people-to-people connectivity, including cooperation with India to import hydropower from Nepal and Bhutan through India. Mahmud highlighted the need to further ease visa restrictions to strengthen people-to-people relations.
