Bangladesh should focus on regional trade blocs: Experts

Bangladesh, which has a huge opportunity to grow economically, thanks to its strategic location, should focus on regional trade blocks to attract trade and investment, participants of a dialogue said on Friday.

They came up with the opinions at a virtual dialogue titled ‘Asia and Pacific and Bangladesh: Harnessing Economic Potentials’ on the fourth day of Bangladesh Trade and Investment Summit 2021. 

They also emphasised policy reforms, product diversification, market diversification, business process simplification, competitive tax and tariff regime, infrastructure development to utilise the economic potentials of Bangladesh.

“Asia Pacific market will surpass the other markets in future with 50 per cent of the global GDP from the region by 2040. The regional peers including China, India, Thailand, Philippines, Malaysia, and Vietnam are growing tremendously,” said Masrur Reaz, chairman of Policy Exchange of Bangladesh. 

Bangladesh can rise to the level of its peers if it manages to reap the benefits of Asia’s economic advancement using a strategic plan on trade and investment, he added. 

DCCI President Rizwan Rahman in his presentation said that the bilateral trade of Bangladesh and Asia and Pacific region hovers around $36 billion. Asia and Pacific is the third largest export destination of Bangladesh but Bangladesh does not have any PTA and FTA with its member countries. 

He suggested relaxing the rules of origin by Asia and Pacific Trade Agreement (APTA) for export growth from LDCs. 

More bilateral and multilateral agreements are needed to tap into the untapped markets of the Asian countries. He added that Bangladesh is always in favour of regional integration and action to go for more PTAs and FTAs to address the possible export growth after graduation. 

“Bangladesh has a big population which means a big local market in the Asian region,” said Rajan Sudesh Ratna, Deputy Head and Senior Economic Affairs Officer, UNESCAP. He called for process simplification to start a new business, improving ease of doing business and easy certification process to boost the economy.   

Japanese Ambassador to Bangladesh Ito Naoki said Bangladesh’s per capita income would reach $3,000 in the next five years but a lack of infrastructure is a bottleneck for investment. It will be resolved soon. 

Japan Economic Zone in Araihazar will soon be open for investment and will accommodate 100 companies. Japan will be with Bangladesh in its development journey, he said. 

Economic Relations Division Secretary Fatima Yasmin said Bangladesh is going in the right direction and the government is taking a holistic approach, especially in the mega infrastructure sector, investing almost $40 billion alone in this sector. 

“Policy reforms are a continuous process to facilitate businesses. Bangladesh offers a liberal investment regime in South Asia for attracting FDI. Bangladesh is in discussion with 10 more countries for signing PTA or FTA and two will be signed soon,” she said.

Prime Minister’s Office Secretary Md Tofazzel Hossain Miah said Asia is the new economic frontier and Bangladesh is part of it. 

“Bangladesh is poised to transform in many areas with some commendable achievements and LDC graduation is a sign of Bangladesh’s proven macroeconomic strength and resilience as well as our readiness,” he said.

The domestic market of Bangladesh is a lucrative and attractive investment destination. “We are trying to uplift the living standards of the vulnerable class of people,” he added. 

Abdul Matlub Ahmad, Chairman, Nitol Niloy Group and former FBCCI president, MCCI President Nihad Kabir, Syed Nasim Manzur, Managing Director, Apex Footwear Ltd and DCCI President Rizwan took part in the meeting among others.