Commerce Minister Tipu Munshi on Wednesday said that numerous new US-based companies are expressing keen interest in investing in Bangladesh as they are enticed by the array of benefits offered, including a tax holiday of up to 15 years for foreign investors.
He made the comment after a roundtable meeting titled "Advancing US-Bangladesh Economic and Trade Relations," jointly organised by the American Chamber of Commerce in Bangladesh and the US-Bangladesh Business Council, where the minister engaged in discussions with the Executive Business Delegation of US Bangladesh Business Council at a city hotel.
Tipu Munshi emphasised that several US-based companies are intrigued by the idea of investing in Bangladesh. He addressed concerns regarding taxes and assured the delegation that the government has implemented a new tariff policy for 2023 to address these issues.
“We discussed different issues with the US business delegation. Many US-based companies are interested in investing in Bangladesh but they expressed concern over tax issues. I told them that our government has already prepared a new tariff policy in 2023,” he said.
He said the delegation discussed about positive and negative aspects of investing in Bangladesh and he told them that the government is establishing 100 economic zones across the country and offering a tax holiday of up to 15 years. This endeavour aims to promote economic growth and foreign investment, he added.
Describing price hikes of essential commodities and syndication of traders, Tipu said there are many businesses and of them, many can try to utilise the situation. But the government tries to keep the prices at a reasonable level. The government is committed to addressing these issues through dialogue rather than oppression, he said.
“If the businessmen are suddenly jailed, they might stop supplying everything which will trigger more suffering for the people. If the price of eggs increases, it will be imported to maintain the supply flow,” he added.
During the meeting, Tipu said, he emphasised the importance of both the public and private sectors working together to tackle ongoing economic challenges. He stressed the need for partnership with the US, particularly with the private sector, to support Bangladesh's continuous growth.
He said Bangladesh is on track to exit the Least Developed Country (LDC) status in 2026. This transition may affect access to duty-free markets in some developed countries, but the nation is preparing to face these challenges, he said expressing confidence in the support of the US government and private sector in this journey.
He also pointed out several sectors with potential for US investors, including pharmaceuticals, ceramics, information technology, bicycles, jute and jute goods, home textiles, frozen foods, tableware, toys, and motor parts.
Syed Ershad Ahmed, president of the American Chamber of Commerce in Bangladesh (AmCham), expressed enthusiasm for the strong presence of the US business delegation. He emphasised that AmCham and USBBC are committed to promoting economic cooperation and facilitating the success of American companies in Bangladesh.
He said the Bangladesh government must prioritise the creation of a level playing field with governance and traceable accountability in the financial payment industry, primarily since US companies have invested heavily over the past few decades. Establishing a reliable and efficient payment ecosystem for all stakeholders is imperative, he added.
He said some issues in the Data Protection Act have been addressed in its latest draft but there are still a few points which need immediate attention from the government. AmCham and USBBC will submit relevant recommendations soon, he said.
FBCCI president Mahbubul Alam said the US companies have scope to invest in Bangladesh in sectors like insurance, textile, ICT, renewable energy, gas exploration, Inland Container Depot, cold storage chain, automobile, aviation, health care, pharmaceuticals, and education sectors. “It is the right time to invest in Bangladesh.“
Mahbubul also said the signing of an FTA will help Bangladesh to tackle LDC graduation challenges.
The FBCCI hopes that economic relations between the two countries will be much stronger in future, he added.
