Bangladesh must be ready to welcome US investors: Envoy

The US Ambassador to Bangladesh Peter D Haas suggested that Bangladesh be ready to welcome American businesses.

The ambassador made the suggestion while addressing at the annual general meeting of the International Business Forum of Bangladesh (IBFB) as the chief guest on Tuesday.

“Many US and international businesses want to expand in the region. And we want to help Bangladesh create a business climate that is as welcoming as possible to foreign investment”, he said.

“But in order to take things to the next level, two things must happen. First, international companies and investors must become more aware of the opportunities Bangladesh presents.

“Second, Bangladesh must be ready to welcome American businesses.”

“As a testament to the importance we place on growing our trade and investment relationship, the U.S. Embassy will welcome our first ever full-time attaché from the U.S. Department of Commerce very soon.”

This step—frankly long overdue—will provide a direct liaison between U.S. and Bangladeshi businesses.

The U.S.-Bangladesh Business Council also brought a high-level delegation here to Dhaka in May to explore business opportunities. And we are looking forward to a US-Bangladesh Trade and Investment Cooperation Forum meeting later this year.

I doubt this will come as a shock to any of you, but most heads of U.S. companies do not wake up in the morning thinking, “Hmmm – maybe I should do business in Bangladesh.”

They usually have their hands full just keeping up with the US market.

And if they are operating globally, they are probably operating in well-understood markets.

As Bangladesh graduates to middle-income status, it will find it has many competitors also hungry for international business.

It’s one thing to build a special economic zone, but that alone is not enough to attract the best investors.

A smart company considering doing business overseas will certainly want to see certain things, including a developed transportation system, consistent access to power and water, and a well-trained workforce.

Bangladesh has made great strides in filling these needs. But a company also wants certainty. A company wants security. Political violence and electoral instability scare them.

A company wants a policy framework that is understood, and laws that are consistently enforced.

A company wants to know that if a dispute arises it has access to courts that can quickly and fairly settle it.

A company does not want to be taxed more rigorously or investigated more thoroughly than its local competitors.

And a company wants to know it can repatriate its profits easily and without delay. How does Bangladesh compare with their competitors when these are the questions asked?

Can Bangladesh assure investors that the cancerous effects of corruption are less prevalent here than in other markets?

Can Bangladesh say it fully understands the impacts of proposed regulations on business and that it actively seeks stakeholder input before putting them in place?

For example, does the Bangladesh Telecommunications Regulatory Commission understand how its proposed rules governing data privacy and online content will force digital businesses to reconsider investing in Bangladesh?

Can Bangladesh say it has an adequate legal framework within which businesses can operate when it takes years to schedule a hearing?

These are the questions that American and international companies will ask themselves before deciding to do business in Bangladesh. Luckily, Bangladesh has committed to addressing these issues. As you know, the Honorable Prime Minister addressed the U.S.-Bangladesh Business Council in New York last week.

In her speech, she noted that Bangladesh is continually working to improve its physical, legal, and financial structures in order to improve the investment climate here. The entire business community – both in Bangladesh and internationally – welcomes this commitment.