US Ambassador to Bangladesh Peter D Haas said American companies see Bangladesh as a promising business destination. However, attracting these companies requires demonstrating a welcoming regulatory environment and efficient market operations.
"Bangladesh globally competes for business, and understanding what American companies seek is crucial for success. But there is a lot of work to do in the regulatory environment, investment climate, and free flow of capital," said Peter Haas.
The ambassador made the remarks during the inauguration ceremony of the 29th US Trade Show organised by the American Chamber of Commerce in Bangladesh (AmCham) and the US Embassy in Bangladesh at the InterContinental hotel in Dhaka on Thursday.
AmCham Executive Director Md Shahadat Hossen moderated the event.
Peter pointed out that collaboration on products and advice is essential with American companies and said, "The economic success of the past decades in Bangladesh is your biggest advertisement. And it really puts you on the radar for American businesses looking to do business in the region.
"American companies and businesses do not wake up in the morning and say, hey, I think I will go do business in Bangladesh. They invest there where they can get the best return for the lowest possible risk of their money," he explained.
"Investors are looking for signals about whether the government is truly welcoming of them and looking to expand business. So the job is to lure them and catch them. It is really important that you understand what American companies in the private sector are looking for as their key to success."
According to a statement published by the US Department of State, bilateral trade has increased from $1 billion to $10.5 billion annually since the first US trade show in 1992. As of 2023, US companies have invested a total of $4.1 billion in Bangladesh, accounting for 19 per cent of total foreign direct investment.
"As your largest investor and eminent commercial partner, I also know that the US companies in this room want to work with you to help Bangladesh succeed in the future. But by constructively working together, Bangladesh will be the next Asian tiger."
Prime Minister's Private Industry and Investment Adviser Salman F Rahman said, "Bangladesh has undergone significant economic and socio-politic transformation, making it an attractive investment destination.
"However, in a competitive global environment, efforts are underway to attract more investors. Improving the ease of doing business is a priority, with a focus on digitalisation to streamline services," he said.
"Taxation reform is critical to increase revenue, with a focus on widening the tax net and leveraging digitalisation. The USA is a very big market in terms of IT exports. We have to focus on that and create skilled manpower.
"American companies investing in Bangladesh bring valuable technology and expertise, as seen in projects like the LNG import terminals. Encouraging more American investment is a priority, and existing investors are urged to support these efforts."
While replying to the question about Wednesday's USD price hike, he said, "It is a timely decision which should have been made earlier."
State Minister for Posts, Telecommunications and Information Technology Zunaid Ahmed Palak said, "Bangladesh offers immense investment potential, especially in the telecom and ICT sectors. With robust infrastructure, a skilled workforce, and favourable business policies, the country is primed for growth.
"Factors like political stability, market scalability, and a burgeoning start up ecosystem make it an attractive destination. Key indicators such as internet penetration, digital transactions, and the presence of IT freelancers underscore Bangladesh's readiness for investment," he said.
Palak also opined, "The country's sizable market, with a population of some 170 million, coupled with a rising GDP, presents significant opportunities for global investors. Now is the opportune moment to invest in Bangladesh, looking towards its promising future as the next hub of economic growth.
"So this is the right time to invest in Bangladesh. You should focus on the decade, not present, because maybe we have seen the progress of Japan, Korea, but the next Japan, the next Korea is Bangladesh."
The event was attended by US Embassy Commercial Counsellor John Fay, AmCham President Syed Ershad Ahmed, Oracle Bangladesh Limited Country Managing Director Rubaba Dowla, and Bangladesh Becton Dickinson India Pvt Ltd Country Leader Mirza Shajib Raihan, among others.
