The Hong Kong and Shanghai Banking Corporation Ltd (HSBC), in partnership with the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), has commissioned a study on the UK-Bangladesh market from Ernst & Young and Quay Asia.
This move aims to improve bilateral trade and investment between Bangladesh and the United Kingdom (UK), read a press release issued Monday.
The study will explore the ambitious growth agenda that showcases areas of cooperation between the two countries and was launched in an event titled “Bangladesh-UK Business Corridor: Legacy and the Future.”
The event not only celebrated the longstanding relationship between the UK and Bangladesh, but also highlighted the important ways in which both countries can unlock potential market opportunities.
Senior government officials, chamber and trade association representatives, business leaders, dignitaries and members of the media were present at the event.
Commerce Minister Tipu Munshi, FBCCI President Md Jashim Uddin, HSBC Chief of Staff Asia Pacific Philip Fellowes, and HSBC Bangladesh CEO Md Mahbub Ur Rahman shared their valuable insights during the occasion.
Bangladesh High Commissioner to the United Kingdom HE Saida Muna Tasneem also attended the event and spoke over Zoom.
As a part of the event, a panel discussion titled “Unlocking new opportunities for Bangladesh and UK” was moderated by Mamun Rashid, Country Clients and Market Lead, PwC Bangladesh, and participated by Phillip Choudhury, Director, Quay Asia, Shahul Sally, Associate Director, Next Sourcing Limited and Ifty Islam, Chairman, Asian Tiger Capital.
Speaking as the chief guest, Tipu Munshi said, “We were able to grow trade with the United Kingdom with our contemporary export policies and bilateral relations; this relation will only grow in the coming days with the agreements in place with the UK.
“I thank HSBC and FBCCI for supporting this market study which will undoubtedly open opportunities for further trade and investment growth.”
Md Jashim Uddin said, “The UK and Bangladesh share an excellent bond with a strong people-to-people connection. While Bangladesh considers the UK an important export destination, the trade relationship is currently concentrated on a few specific items.
“Policymakers and business leaders from both countries should collaborate in a focused manner to improve and diversify this trade relationship. This study will serve as a stepping stone towards further developing trade, investment, and economic relations.”
The FBCCI president added, “Our two-way trade stands at $5.46 billion. Export in FY22 was $4.83 billion and import was $0.63 billion. Our export to the UK is concentrated on a few items like knitwear, woven garments, frozen fish, clothing, and textile.
“We need to diversify our export items.”
He added, “And I believe this study will mark a significant milestone in the bilateral business and economic relations between the United Kingdom and Bangladesh, serve as a roadmap, guiding investors and entrepreneurs towards the most promising sectors and facilitating collaborations that drive economic growth.”
Md Jashim Uddin then pointed out, “Bangladesh’s economy has witnessed remarkable progress in recent years, driven by key sectors including garments and textiles, pharmaceuticals, IT and software services, agriculture.
“By leveraging our demographic dividend, technological advancements, and policy reforms, we have created an enabling environment for businesses to thrive.”
Md Mahbub Ur Rahman highlighted the historic importance of UK-Bangladesh business ties and HSBC’s capability to support trade between both countries has reached new levels.
He said, “The United Kingdom is the second largest foreign investor and third largest export destination for Bangladesh. This study shall enable us to scope out the avenues of opportunities in our respective trade and investment ecosystem.
“Through this collective endeavor we can leverage those opportunities across both our countries, forging a path towards a prosperous future.”
Rahman added, “The synergy between our nations is a true win-win scenario, benefitting not only our economies but also fostering long-term, sustainable relationships.
“I’d like to appreciate FBCCI for their collaboration in this initiative, as well as Ernst & Young and Quay Asia for their support in the study.”
The UK solidified its position as the leading investor in Bangladesh in 2022, attracting the highest inflow of Foreign Direct Investment (FDI) and ranking second in terms of FDI stock.
Notably, investments were concentrated in key sectors such as textiles & weaving, power, banking, and food supply. With over 240 UK companies already invested in Bangladesh, there is a growing interest among UK businesses to tap into the country's vibrant domestic demand.
This dynamic relationship creates a symbiotic synergy, where Bangladesh can benefit from the UK's expertise in service-based industries, read the press release.
As the partnership between the UK and Bangladesh strengthens, both nations stand to unlock new opportunities for growth, capitalising on their respective strengths and fostering success. By harnessing their individual strengths and seizing new opportunities, they pave the way for mutual success and advancement.
