Investors raise flags over business environment

Starting from difficulties in securing visa and work permits to opening and settling of letters of credit (LCs) and an unavailability of tax-related materials and booklets in English language, there are numerous hindrances that Chinese investors face in Bangladesh.

Such issues were brought up by Chinese investors to officials of the tax authority, the central bank, the Bangladesh Investment Development Authority (Bida) and other state agencies at a seminar at the Bangabandhu Bangladesh-China Friendship Exhibition Centre in Purbachal as they sought improved services alongside remedies to the numerous hurdles they confront.

Yally Jiang, an official of a Chinese company that operates in Bangladesh, said it was quite complicated and time-consuming to get a one-year visa and work permit in Bangladesh. She asked how Bida could simplify the visa policies and the approval and renewal process.

In response, Shah Mohammad Mahboob, director general at Bida, advised to her to read Bida's guidelines on work permits, adding that they send it manually to the Ministry of Home Affairs for security clearance. It is sent manually from there to the special branch of police.

Bilateral trade between Bangladesh and China was $1.4 billion in 2003. Today it is worth almost $25 billion. Investment has also increased significantly over the past 10 years, from $26 million in 2013 to over $465 million in 2022.

"So, it takes more time. But we have taken the initiative to send files digitally, which will take less time," he assured.

Another entrepreneur said that LC facilities were now being rejected by banks in other countries, including some in China, and asked if Bangladesh would introduce financial instruments to address this challenge.

In response, Abdullah Al Mamun, a joint director of the Foreign Exchange Investment Department of the Bangladesh Bank, said they were aware of the issue. "We will discuss the matter with banks. Hopefully, it will be resolved soon," he said.

A local entrepreneur also expressed his grievance during the seminar, titled "Chinese investors: challenges, expectations and prospects", organised by the Chinese embassy in Bangladesh and the Bangladesh China Chamber of Commerce and Industry (BCCCI).

Sheikh Amin Uddin, a director of Akij Group, said they had applied to Titas Gas Transmission and Distribution Company for gas connection after setting up a CNG plant in Tangail 13 years ago. During this time, Akij Group has extended the bank guarantee twice and revised the security money four times.

But, Akij Group still did not get the connection despite querying the offices of various officials, including the managing director of Titas.

He complained that they had invested $1 million in the CNG plant and the machinery was imported and set up, but production could not start due to the non-availability of gas.

In reply, Swagatam Kumar Saha, a deputy general manager at Titas, said that although they recognised the need to get a gas connection, they were contending with a supply shortage.

He assured that gas connection activities would resume soon as Petrobangla is trying to import more liquefied natural gas (LNG) to overcome the crisis.

Mahboob also advised the director of Akij Group to come to the Bida office on Sunday, adding: "Come to Bida tomorrow and we will work on the matter."

BCCCI President Gazi Golam Murtoza said entrepreneurs had to wait for a long time to get work permit extensions, breeding frustration.

He said many questions and inquiries were constantly coming from investors. "There is a lot of frustration among them. Chinese investment in Bangladesh will increase if their problems are solved swiftly."

Avijit Chowdhury, executive member of the Bida, said: "We know that entrepreneurs face many problems in terms of taxes and customs, while buying land and getting gas and electricity connections after registering investment proposals. To solve those problems, we have introduced an aftercare service. We have already solved many problems of various companies."

He said a huge amount of Chinese investment was required to meet the challenges of Bangladesh that the country may face after graduating from the group of least-developed countries.

"Foreign investors now can come to Bangladesh with full security and safety."

BCCCI Secretary General Al Mamun Mridha said that China was the single largest investor in Bangladesh till 2019. Due to Covid and China's zero-Covid policy, Chinese investment has been low for several years.

He added that a lot of investment was coming now and that by increasing Chinese investment, it would be easier to deal with the existing foreign reserve crisis.

Mentioning that Chinese companies deserve praise for human resource development and technology transfer in Bangladesh, he said bilateral trade between Bangladesh and China was $1.4 billion in 2003.

Today it is worth almost $25 billion.

Investment has also increased significantly over the past 10 years, from $26 million in 2013 to over $465 million in 2022.

"In 2016, over $40 billion was promised to Bangladesh as part of the Belt and Road Initiative. Around $5 billion has already been disbursed and many projects have been implemented," Mridha said.

He said some milestone projects are about to be inaugurated and work on some projects is proceeding at a rapid pace.

"BCCCI has acted as the strongest catalyst for this huge growth of these trade and investments."