Improve ease of doing business to attract more FDI

ICCB suggests

Bangladesh should make all-out efforts to improve its position in the Ease of Doing Business index of the World Bank in order to attract more FDI, a leading chamber said yesterday.

In order to plug the investment shortfall for its infrastructure needs, the country has to explore alternative sources of funding, the International Chamber of Commerce-Bangladesh (ICCB) shared the info in the editorial of the current News Bulletin (July-Sept 2018) released yesterday.

Desired investment is not flowing into the country because of the absence of an appropriate investment environment caused by insufficient infrastructure, port congestion and poor transportation facilities, according to experts.

FDI is only moving forward because of the reinvestment of current investments, the chamber said. Bangladesh is likely to be one of the biggest movers in the global gross domestic product (GDP) in 2030 as predicted by HSBC's global report titled “The World in 2030”, ICCB said.

The country is going to become the 26th largest economy in the world from the current 42nd position followed by the Philippines, Pakistan, Vietnam and Malaysia, according to the report.

The brand value of Bangladesh is also rising as the country has ranked 39th in the global brand value index 2018 reflecting its socioeconomic vivacity. Bangladesh has a brand value of $257 billion, up 24 percent from last year, according to the London-based Brand Finance's 'Nation Brands 2018' report.

Bangladesh economy has kept up an impressive annual average growth rate of more than 6 percent over the last 10 years and has been having increased GDP over the last couple of years.

It is believed that Bangladesh could have easily achieved 8 percent plus growth by controlling the project implementation time, which would automatically minimise the project cost, the ICCB said.

For about a decade, private investment to GDP ratio has been stuck at 21-23 percent. But according to the country's growth ambitions, the ratio has to be about 35 percent. 

A number of Asean countries have achieved higher GDP as their investment to GDP ratio has been in the range of 35-45 percent.

Early implementation of the “One-Stop Service” will hopefully help the country attract higher FDI, the chamber said.

A number of US companies are seriously considering relocating their operations from China in view of the current trade war between China and the US.

Bangladesh should be able to capitalise on this situation, the chamber said.

• Courtesy: The Daily Star/ Business/ Nov 15, 2018