Offer incentives to global cos relocating from China, businesses urge govt

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Experts and business leaders on Sunday said that the unprecedented global coronavirus pandemic created an opportunity for Bangladesh to attract foreign direct investment from the global companies which were likely to relocate their business from China.

At a webinar on Bangladesh’s COVID-19 stimulus, economic sustainability, recovery, domestic investment, FDI and OFDI, organised by the Federation of Bangladesh Chambers of Commerce and Industry, they emphasised regulatory measures and good incentive for Bangladesh to be an attractive destination for japan and US companies which announced to relocate from the world’s second major economy.

FBCCI president Sheikh Fazle Fahim moderated the webinar.

‘Many of the united states and Japanese companies will leave China and seven % of relocation may head to Vietnam. If BIDA and BEZA can ensure accommodation and other facilities for the global companies, Bangladesh can grab some of the relocation,’ said AK Azad, a former president of the FBCCI.

He also urged the federal government to increase the capacity of the country’s ports both air and sea to attract FDI.

‘Many investors are thinking of relocating from China. That is an opportunity for Bangladesh and we should consider it,’ Centre for Policy Dialogue executive director Fahmida Khatun said.

She said that regulatory measures were vital that you decide on what forms of incentive would be announced for foreign direct investment.

Fahmida also emphasised uninterrupted connectivity and quality infrastructure for attracting investors.

Agriculture minister Mohammad Abdur Razzque said, ‘BIDA is doing good, investors know an excellent environment exists in Bangladesh nonetheless it is important how exactly we are translating our regulatory measures and incentives for establishing an industry.’

He said that in establishing industry in Bangladesh investors faced enormous constraints and obstacles.

For example, the minister said, former FBCCI president Abdul Matlub Ahmad was planning to create a building in Jashore and last twelve months the contractor was looking to get a clearance to get started on work.

‘Still he hasn't got the clearance.. so that’s the story of simple conducting business,’ Razzque said.

Foreign minister AK Abdul Momen said that the coronavirus pandemic created an opportunity for Bangladesh to export personal protective equipment to the global market.

‘It is encouraging that Beximco Group exported a lot more than 6 million pieces of PPE. Yesterday evening I received a call from Niger. The united states really wants to import PPE and medicines from Bangladesh,’ he said.

Momen said that his ministry would create a fund to support the migrant employees who were losing jobs and returning home.

Policy Exchange chairman Masrur Reaz said that the federal government would need to take broader fiscal and monitoring policies to fight with the fallout of the pandemic.

Investment and export diversification are important for the united states and the government would have to develop an investment promotion strategy, he said.

He urged the government to choose ‘out of the box approach’.

Asian Development Bank country director Manmohan Parkash emphasised medical and agriculture sectors and develop the administrative centre market to ease the shocks of the pandemic.

He also urged the government to widen the social back-up.

‘The unprecedented pandemic has proved that the domestic industry is very much indeed important and now the federal government will need to extend more support to the domestic industry,’ former FBCCI president Abdul Matlub Ahmad said.

Export also important for the united states but product diversification is crucial, he said.

Commerce minister Tipu Munshi said that a committee have been formed to oversee the ability of relocation and the committee would provide its tips to the government.

He said that Bangladesh was doing well in infrastructure development and things will be better in the coming days.

Tipu Munshi hoped that the problem of the globe would improve and the readymade garment export would rebound.

Former Bangladesh Bank governor Saleh Uddin Ahmed suggested strengthening the capital market, saying that banks could not provide long-term finances as the sector was struggling.

UN resident coordinator Mia Seppo said that the federal government would need to rebrand Bangladesh to attract FDI.

She urged the government to make sure labour and women rights in the united states amid the pandemic.
Source: https://www.newagebd.net

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