Investment Summit: Event generates interest among foreign investors
The four-day Bangladesh Investment Summit concluded yesterday, creating interest among foreign investors, but they raised concerns over access to resources, policy continuity and corruption.
Around 400 to 450 foreign investors and their representatives joined the summit and expressed their interest in Bangladesh.
For all latest news, follow The Daily Star's Google News channel. The summit also witnessed the signing of an initial agreement on investment by two foreign firms, including Handa Industries, a renowned China-based apparel manufacturing company specialising in high-quality knitted textiles, dyeing processes and garments on a global scale, with the Bangladesh Investment Development Authority (BIDA).
The company will invest $150 million in Bangladesh.
ShopUp merged with Sary in a $110 million funding deal in another noticeable achievement of the event.
However, BIDA, the key investment agency, said the target of the summit was not to secure immediate investment but to generate a pipeline of potential investments that will be followed up at specific intervals to encourage the investors.
"We will address their problems so that they can get the real information and do not face any issues in launching their investment here," said Nahian Rahman Rochi, head of business development at BIDA, at a closing press briefing held at InterContinental Dhaka yesterday.
The summit began on April 7 with visits by a team of investors to the Korean Export Processing Zone, the National Special Economic Zone in Mirsarai and the Bangladesh Special Economic Zone in Narayanganj to explore investment opportunities and see the facilities for themselves.
There were opportunities for business-to-business and business-to-government meetings at the summit.
In response to a question regarding the types of problems investors identified, Rochi said the issues have remained the same for years.
Investors blamed the complex certificate and approval processes for obtaining resources. The government's "priority agenda" is to simplify all approval procedures.
Policy continuity is also necessary for doing business in a planned way, as frequent policy changes hamper progress, he said.
Corruption was also identified as a longstanding problem by the investors.
The government will try to address all these issues so that investors feel encouraged to invest, Rochi said.
However, the success of the summit should not be measured solely by immediate investments as its main goal was to showcase the potential of various sectors and facilitate matchmaking with local investors, he said.
Bangladesh needs high-value addition-based manufacturing companies in the garment sector, and the investment by Handa will contribute positively.
Many foreign investors are also showing interest in the pharmaceutical sector, particularly in setting up active pharmaceutical ingredients production facilities.
"We will make a roadmap to track all the interested investors so they can be monitored and encouraged to invest in the country," he added.
At the summit, there were special events on apparel and textiles, digital economy, pharmaceuticals, agriculture and agro-processing, renewable energy and youth entrepreneurship.
Kihak Sung, chairman of Youngone Corporation and a pioneer in Bangladesh's garment and textile sectors, was awarded honorary citizenship of Bangladesh yesterday for his outstanding contributions to the industry and the country's economy.
Chowdhury Ashik Mahmud Bin Harun, executive chairman of BIDA, addressed investors and presented the potential and prospects of investment in Bangladesh.
There were several side events, such as the World Bank's release of the Bangladesh Country Private Sector Diagnostic, which identified four sectors -- green garments, housing for the middle class, paint and dyes, and digital financial services -- as having strong potential to attract investment and generate millions of jobs.
A policy dialogue was held on Bangladesh's trade and investment strategies in the post-LDC era. Another event focused on responsible business conduct for decent work.
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