Business issues and underlying constraints impede foreign investment inflow, according to industry experts.
In a roundtable discussion organised by the Bangladesh Research Analysis and Information Network on August 23, 2022, experts gathered to discuss the impact of the post-Trump tariff era on global trade and its implications for Bangladesh. The event, titled "Global Trade in the Post-Trump Tariff Era and Bangladesh," was held in Dhaka.
The speakers at the discussion cited several persistent barriers to foreign direct investment (FDI) inflows in Bangladesh. These included gas and electricity shortages, rising production costs, bureaucratic delays, and the lack of skilled workers.
Zia Hasan, one of the participants, suggested lowering tax rates in Bangladesh, as India is moving towards a 5% levy on most goods. However, Hasan also stated that even with zero tariffs, uncertainty in Bangladesh would drive investors away.
Political instability in Bangladesh was identified as a major deterrent for FDI by Hasan. He emphasized the need for stability, improved business climate, and lower costs to attract FDI.
Shafiqul Alam, another participant, acknowledged concerns about port inefficiency and the need to upgrade Chattogram Port to match Singapore's standards. The government's efforts in addressing US tariff challenges, upgrading labour laws, and strengthening the Bangladesh Investment Development Authority (Bida) were also mentioned by Alam.
Mohammed Mia emphasized the importance of equity investment partnerships between local and foreign firms. He cautioned that Bangladesh could lose export markets if it relies solely on tariff concessions without addressing its own structural weaknesses.
Shamarukh Mohiuddin, participating online, argued that the Trump administration's tariff and tax policies led to inflation in the United States instead of addressing its $1.9 trillion budget deficit. He also urged a shift towards an investment-based economy rather than relying solely on low-cost labor.
Rashed Al Titumir stressed the need for employment generation, industrial progress, export diversification, and enhanced productivity. Israfil Fashru similarly urged a shift towards an investment-based economy.
The roundtable discussion was also attended by Jyoti Rahman, Rashed Al Titumir, Shamarukh Mohiuddin, Zia Hasan, Israfil Fashru, and Mohammed Mia, among others. The event was organised by the Bangladesh Research Analysis and Information Network, with the Friedrich Ebert Foundation providing support.
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