Online Desk: Drawing increased foreign direct investment (FDI) is essential for Bangladesh to cope with the existing and imminent challenges that might emerge from the country’s LDC graduation, speakers at a programme on Monday said.

They suggested further improving the investment climate through enhancing competitiveness, logistics and infrastructure development as well as reforming some policies and keeping them stable.

They made the observations at a luncheon meeting on a topic titled ‘Enhancing investment policy framework to catalyze private investment in Bangladesh’, organised by the Foreign Investors’ Chamber of Commerce and Industry (FICCI) at a city hotel on Monday.

Executive Chairman of Bangladesh Investment Development Authority (BIDA) Lokman Hossain Miah joined the meeting as the chief guest, while country director for Bangladesh at the Asian Development Bank Edimon Ginting was the keynote speaker.

Japan Bangladesh Chamber of Commerce and Industry (JBCCI) President Myung-Ho Lee and Chairman of Policy Exchange Bangladesh Dr. M. Masrur Reaz took part in a panel discussion, moderated by FICCI Director Mahabub ur Rahman.

FICCI President Zaved Akhtar, CEOs of member companies, representatives from different foreign embassies in Dhaka and other stakeholders attended the meeting.

Mr Lokman Hossain Miah said the BIDA has been providing all-out support to the investors home and abroad.

“We launched a virtual One Stop Service (OSS) to provide all support from one place,” he said.

Presenting the keynote paper, Mr Ginting said that there are four growth engines behind development such as population, investment, regime or tax-GDP ratio, and export diversification. Bangladesh lags in all areas except the population, he added.

He identified challenges related to upcoming LDC graduation such as loss of preferential market access in export destinations, loss of LDC-exemption under the WTO agreement, and limited access to development assistance financing.

“Despite the progress, Bangladesh still faces several challenges to do business which affect domestic and foreign investment,” he added.

There is a need for significant liberalisation of different verticals to attract investments while simplifying acquisition of lands, protection of Intellectual Property Rights and, simplifying and making tax regime competitive are crucial factors, he added.

In his speech, Mr Zaved Akhtar said foreign investors want credibility, policy stability and capability of a destination to facilitate investment.

“Investors might face difficult situations, but they don’t want surprises with policies,” he said.

To achieve the Vision 2041, private investment as well as revenue collection will need to be boosted for vital resource allocation in crucial sectors while the country simplify and transform tax and regulatory regime to build overall credibility and predictability of the country, he said

He also underscored the need for building human capital by leveraging digitisation and facilitating strong investor after care.

JBCCI President Myung-Ho Lee underscored the need for signing the Investment Protection and Double Taxation Avoidance Treaty and Economic Partnership Agreements (EPAs) to accelerate Japanese investment.

Mr Masrur Reaz said Bangladesh offers low cost labour and high protection of businesses, especially domestic one, yet the country remains a less competitive destination.

He underscored the need for forming a bankruptcy act and an invest policy to facilitate investment.

“There are some good policies but some need improvement and it is also essential to identify the gaps,” he said.