'Bangladesh needs more Chinese market-oriented investment'

Bangladesh needs more Chinese market-oriented investment in the country to boost its exports to the Chinese markets.

Speakers came up with the observation at a business networking event titled "China-Bangladesh Enterprises Cooperation Forum 2022," at the Bangabandhu Bangladesh-China Friendship Exhibition Center (BBCFEC), Purbachal in Dhaka on Saturday.

They also underscored the bilateral financial and currency cooperation to help facilitate trade and economic activities.

The event was jointly organised by the Bangladesh China Chamber of Commerce and Industry (BCCCI) and the Chinese Enterprises Association in Bangladesh (CEAB).

Organisers said the event was held to bring together all stakeholders, including China’s state-owned and private companies, their potential local suppliers and service providers.

State Minister for Planning Shamsul Alam attended the programme as the chief guest.

Li Jiming, the Chinese ambassador to Bangladesh, and Mahbub Uz Zaman, the immediate past Bangladesh ambassador to China, were the special guests with BCCCI President Gazi Golam Murtoza in the chair.

In his speech, Li Jiming said, “The China-Bangladesh bilateral relationship is strong, complementary and growing. Our economic and political ties are vast and robust.”

It is learnt that he said, the Chinese direct investment in Bangladesh has increased by 300 per cent and China has promised to invest $40 billion more in joint ventures and infrastructure projects through the Belt and Road Initiative (BRI), which will highly facilitate the realisation of the main target of the Bangladeshi government with bringing dynamism in the economic activities, creating employment, increasing assets and easing the livelihood of the people through infrastructure development.

“We recommend Bangladesh's enterprises and exporters participate in China's International Import Expo (CIIE). Bangladesh needs more Chinese market-oriented investment and needs to produce what the Chinese market needs in order to boost exports.”

China's investment in Bangladesh in 2021 amounted to $1.26 billion and grew almost threefold, Li Jiming said.

With an accumulated investment of nearly $3 billion, China remains a prominent FDI (foreign direct investment) source for Bangladesh while the Chinese Economic and Industrial Zone, as the first industrial park, will soon be built in Chattogram, he said.

Besides, Bangladesh needs to make advance studies on the bilateral Free Trade Agreement (FTA), the Chinese ambassador added.

BCCCI President Golam Murtoza said, “Due to worldwide pandemic followed by Ukraine war, the exchange rate of US dollar has gone out of control while it keeps rising continuously.”

Bangladesh and China account for an average annual basket of trade worth $15 billion, he said, adding that under the circumstances, dependency on the only foreign currency of the US dollar leads to a heavy loss both for Bangladesh and China.

State Minister for Planning Shamsul Alam has sought an influx of more FDI from China and its technological support to expand Bangladesh’s economy.

Mentioning that China has been helping Bangladesh in various ways, particularly in building infrastructures and transforming the economy of the country, Shamsul urged China to enhance the relationship in other areas as well.

“There are rooms for accelerating relationships on renewable energy, technology, and educational scholarships.”

The state minister said Bangladesh is enjoying duty-free access to 99 per cent of products in China market. “However, we need a comprehensive economic partnership between the two countries.”

CEAB President Ke Changlian and BCCCI acting general secretary Al Mamun Mridha also spoke at the event.