Reforms needed to attract more US investment: Peter Haas

US Ambassador to Bangladesh Peter Haas yesterday stressed stabilising the local macro-economic situation and going for policy reforms to create a comfortable, competitive and business-friendly environment for attracting US investment.

"Bangladesh's success story attracts investment, but the country needs regulatory improvements to create a truly competitive business environment," he said.

Haas made this comment while addressing the opening session of the three-day "29th US Trade Show", organised by the American Chamber of Commerce in Bangladesh (AmCham) at the InterContinental Dhaka yesterday.

Haas added that positive developments in Bangladesh were already underway.

US companies that are already working in Bangladesh recognise the potential of bilateral trade and providing high-quality products to the local consumers, he added.

According to Haas, the success of American energy companies in Bangladesh demonstrates the positive impact of US investment.

He also said the government's push to streamline business operations through the Bangladesh Investment Development Authority (BIDA) is a welcome step.

Citing how US investors have no shortage of investment destinations, Haas suggested that Bangladesh foster a business-friendly environment to grab their attention. In fact, the environment must be so welcoming that American investors can wake up in the morning and immediately decide where to invest, he said.

Haas informed that the US government and private sector are interested in working together to develop an investment-friendly atmosphere in Bangladesh.

Salman F Rahman, the Prime Minister's adviser on private industry and investment, acknowledged that there are areas that need to be worked on, including regulations, interest rates, and taxes.

Rahman believes digitalisation could be a potential solution for increasing tax collection and the tax-GDP ratio.

However, during the past two decades, Bangladesh has seen visible development of not only its economy, but also in its social index. So now the government is trying hard to create a competitive environment to draw investment, he said.

While expressing concerns about the ease of doing business, Rahman said BIDA is working on addressing the issue by providing all 130 investment services through its digital system.

He also pointed out that the central bank's decision regarding the crawling peg and market-based bank interest rate would help overcome the ongoing challenges.

Rahman said that if the local currencies of countries from which Bangladesh imports products can be used for bilateral trade, then the pressure on the country's US dollar reserves will decrease.

"Increasing the price of the dollar will have a great impact on imports, but remittance income and export-oriented industries will also benefit," he added.

Zunaid Ahmed Palak, the state minister for post, telecommunications and information technology, said the local information technology (IT) companies have built up amazing capacity over the last 15 years.

He said IT entrepreneurs can now proudly present their achievements, having created around 2 million jobs over the last 10 years.

According to him, just during the last decade, around $2 billion was invested in this sector.

"Now is the perfect time to invest in this sector as skilled manpower is available in Bangladesh," he said, adding that around 700 freelancers are contributing to American companies.

Palak claimed that US companies source around 60 percent of their outsourced workforce from Bangladesh.

AmCham President Syed Ershad Ahmed said the US is one of Bangladesh's most significant and flourishing business partners, with growing opportunities in various sectors.

According to statistics, the US is the largest single-country investor in Bangladesh.

According to Ahmed, since the inception of the US Trade Show in 1992, when bilateral trade was worth just a few million USD, the event has played a pivotal role in fostering trade, which now exceeds $10 billion.

"We are confident that this show will serve as a gateway for American businesses to tap into the fast-growing Bangladesh market across diverse sectors, including energy and power, agriculture, heavy industries, consumer goods, healthcare and medical equipment, and various services," Ahmed said.

At the event, a total of 44 exhibitors are showcasing more than 100 top-tier US products and services across 79 booths. The trade show will remain open from 10:00am to 8:00pm every day.

The entry fee is Tk 30 per visitor, but invitees and students can enter for free.