Saturday, May 04, 2024
South Korean Ambassador to Bangladesh Park Young-sik on Wednesday expressed hope that Bangladesh will be able to overcome the issues following its LDC graduation.
“Looking to the future, Bangladesh is marching towards graduation from the LDC status in 2026 and Smart Bangladesh as a developed nation by 2041. Both journeys offer great opportunities and challenges simultaneously,” Park Young-sik said.
He came up with the remarks at a seminar on “Investment Services by Using One Stop Service Portal” organised by Korea & Bangladesh Chamber of Commerce and Industry (KBCCI) at Sheraton Dhaka, according to a press release.
“Bangladesh has great potential to achieve both journeys. We have already witnessed a tripling of Bangladesh’s per capita income in the last decade,” he added.
“On the other hand, overcoming the problems after LDC graduation requires a lot of hard work by both the government and the private sector,” he further added.
At the beginning of his speech, the ambassador said, “First of all, I would like to express my deep gratitude to KBCCI President Shahab Uddin Khan for organising this wonderful event. My special thanks go to the Investment Promotion Development Authority (BIDA) for its valuable presence.”
“Let me start by mentioning bilateral relations between Korea and Bangladesh. As we all know, the year 2023 marked the 50th anniversary of establishing diplomatic relations between Korea and Bangladesh.
“Over the past five decades, the two countries have witnessed a remarkable journey of cooperation in various sectors, including trade, investment, development, etc.,” he said.
“Korean companies have been close partners of Bangladesh from the very beginning, helping Bangladesh’s RMG industry to grow and flourish. In recent years, there have been some noticeable and significant developments in 2 diversifying areas of cooperation beyond the RMG, including the manufacturing and infrastructure,” he added.
He further said, “Trade Ministries of both countries are currently discussing on the possibility of starting the negotiations of bilateral Economic Partnership Agreement (EPA).
“If concluded, bilateral trade & Investment will increase dramatically. Collaboration in the RMG sector has been a driving force in the development of bilateral relations over the past fifty years.”
“It is my strong hope that the Bilateral EPA could be a next motor engine to take bilateral relations to a step further in the next fifty years,” the ambassador said.
Park Young-sik also said, “Graduation from LDC means that Bangladesh should make not the quantity, but the quality of economic growth. The quality of growth should be made through innovation, knowledge and technology that foreign companies can provide. This is why Bangladesh needs foreign direct investment.
“However, FDI of Bangladesh is the lowest in terms of the GDP ratio. Bangladesh is 0.9 per cent, while India is 1.7 per cent and Vietnam is 4.7 per cent. During July-September of 2023, 36 per cent was decreased.”
He said, “How to increase FDI is today’s topic. In this respect, I would like to make a few points. Firstly, the exposure to global competition without thorough preparation could bring down existing manufacturing sector.
“Therefore, Bangladesh government must pay the attention to consolidate the foundation and increase the productivity of the manufacturing sector.”
“High tariff imposed on raw materials and intermediate capital should be reduced. Our embassy will send the list to the Ministry of Commerce.
“I hope high tariff of the items on the list will be reduced through the budget process. Full implementation of the National Equipment Identity Register (NEIR) without interruption and restricting the import of reconditioned cars will boost domestic production of smartphones and cars,” he said.
Park Young-sik continued, “Secondly, I welcome new policy initiatives that are being actively undertaken under the newly formed government.
“One of them is to improve the business environment for foreign investors. More important is the actual implementation on the ground.”
He said, “There are many Economic Processing Zones. But foreign companies located in EPZs face many problems. Especially, arbitrary enforcement of customs clearance standards by officials prevents foreign companies from running stable and reliable operations in bonded areas.”
He went on, “I also emphasise that improving the business climate, such as visa issues, customs clearance, rational tax & tariff policies, and repatriation of profits, is more important than offering investment.
“I am confident that the BIDA will play a crucial role in improving the business climate. Thirdly, I would like to take this opportunity to propose a mechanism for regular discussion of the business climate twice a year.”
The ambassador concluded saying, “Through today’s seminar, we have received a lot of useful information. The one-stop services will serve as a platform to facilitate the resolution of difficulties.
“Still, we can encounter difficulties and solve them through the mechanism. Fourthly, both countries can promote bilateral cooperation and collaboration in new areas. Footwear, ICT, pharmaceuticals, shipbuilding and shipbreaking, blue economy and deep-sea fishing, agriculture and agricultural machinery are potential areas.”
“Korean companies have new technologies, while Bangladeshi companies can start new businesses. One of them is brick making technology,” he added.
He said, “There is news report that severe air pollution causes the loss of 5-6 per cent of GDP and accounts for 20 per cent of premature deaths.
“The introduction of new technology in brick-making factories can greatly reduce air-pollution. I expect that new type of investment combined with technology and capital will flourish in Bangladesh.”
The ambassador ended his speech saying, “Finally, I emphasise that Korea has always been invested in Bangladesh and will do so even without FTA. Korea is not India, China or the US, and has no strategic interests.
“Therefore, I hope that both countries could further develop bilateral relations in a mutually beneficial way in the next fifty years. I wish to close my speech by expressing my gratitude for the active role that KBCCI is currently playing in enhancing bilateral economic relations.”
