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Bangladesh is an emerging investment hub for European investors as it offers a congenial climate with a duty-free market access in addition to providing an export opportunity.
Highlighting the success of their respective companies, top officials of foreign firms and conglomerates doing business here as well as local trade leaders made the comment at a virtual seminar on “Economic ties between Bangladesh and Europe: New regulatory regime” held on Wednesday.
The seminar is a part of a seven-day Bangladesh Trade and Investment Summit 2021 which started on Tuesday.
In his address, Unilever Bangladesh Ltd CEO and Managing Director Zaved Akhtar said Bangladesh is an emerging market with a huge population, and it has been a phenomenal journey for Unilever in the country.
“Demographic dividend is high here. Per capita first moving consumer goods consumption in Bangladesh is still only $23 dollar whereas it is $44 dollar in India and $100 dollar in Philippines,” he observed.
“Really this is a growing market offering big opportunity for EU investors.”
Twenty-five years into its business, Grameenphone is a success story being a win-win all around both for Bangladesh and European investors, noted Yasir Azman, CEO, of the leading telecom company.
The chief executive officer maintained that the youth of Bangladesh in association with technology and digitisation will lead the country to transform into a developed one in 2041 since it gives an ample opportunity to foreign investors.
Taking the floor of discussion, Standard Chartered Bangladesh CEO Naser Ejaj Bijoy said there is a congenial market here in terms of financial sector. There are challenges here but beneath them lies profit.
DCCI president Rizwan Rahman informed the seminar.
DCCI president Rizwan Rahman informed the seminar that Bangladesh is one of the main trading partners of Europe accounting for around 35 per cent of the country’s total trade in 2020.
He invited European investors to Bangladesh’s pharmaceuticals and API sector as well as in the high-tech parks and special economic zones.
“Scope of European technology transfer will contribute to our farming compliance and export-oriented agro-processed food industries,” Rizwan said, suggesting that a comprehensive economic partnership agreement may be dealt between Bangladesh and Europe for preferential market access to EU.
In his speech, Mominudowlah, chairman and managing director, EON Group of Industries, said being a very fertile land, Bangladesh ranks third in terms of vegetable, rice and Telapia fish production. European investors can keep an eye on these untapped potentials for food processing industry.
“We have an agro-friendly policy, however, we still need a few policy reforms,” the businessman pointed out.
Meanwhile, the discussants called for steps to avail trade benefits following LDC graduation.
They maintained that Europe is the main export market for Bangladeshi exporters but there are some difficulties which need to overcome.
“After graduating from LDC the country will lose the EU market benefit. A new GSP+ will be required for entry to the EU market. Now is the time to brace for that,” hinted the experts.
During her address, former BGMEA president Rubana Huq noted that LDC graduation will open up new opportunities, and in terms of compliant factories, Bangladesh’s position is commendable.
“The buyers should also look into a sustainable pricing system. But for that we have to go for product diversification and adding value to them,” according to Rubana.
Commerce Minister Tipu Munshi was present at the programme as the chief guest.
He urged both public and private sectors to be cautious to become compliant in all capacities before applying for new GSP+ facility in the EU market.
“It is true that after we graduate from LDC, we will lose the duty free, quota free market access. The European Union has proposed to remove the import-share criterion from the GSP+ eligibility while Bangladesh will be the direct beneficiary of this change,” said Tipu.
