ICT sector fails to attract foreign investment

When many countries in the world are rapidly attracting foreign investment in ICT (Information and Communications Technology) sector, Bangladesh is failing miserably to attract foreign companies to invest in the sector.

Bangladesh is losing opportunities for foreign investment due to weak infrastructure, unclear policies, bureaucratic complexities, irregularities, corruption and inefficiency of the institutions concerned. Although 87 foreign companies withdrew investment from China and went to Thailand, Laos, Vietnam and Malaysia, not a single one came to Bangladesh.

Even after thousands of acres of land made available in high-tech parks, foreign investment is hard to come by. Only local companies are investing in them – even nominal local companies have been allotted acre after acre of land in these high-tech parks.

However, Junaid Ahmed Palak, the state minister for ICT, said his talks with a Chinese company called Oryx Biotech Limited have come a long way.

“They have responded positively to our investment at Bangabandhu Hi-Tech Park in Kaliakoir. We hope they will invest in the park thereafter Covid-19 pandemic situation comes in control,” he said.

Sources in ICT division said only the Chinese company Oryx Biotech Limited has shown interest in investing $300 million in Bangabandhu Hi-Tech Park.

A recent ICT division meeting minutes revealed that a total of 17 local firms so far have taken 93.33 acres of land in Bangabandhu Hi-Tech Park.

The Bangladesh High Tech Park Authority (BHTPA) said those 17 firms will help create 25,000 new jobs.

Major local firms that took land in the park are Data Soft, Manufacturing Inc, Aamara Holdings, SB Tel Enterprises, IT consultant Ltd, Millennium Solution Limited, Best Tycoon BD Enterprise, Walton Digit-tech Industries Ltd, Dev Net and Metro Net BD limited.

Additionally, Bangabandhu Hi-Tech Park in Sylhet and Sheikh Kamal IT Training & Incubation Centre in Chattogram are waiting for investment.

A total of 10 local firms have shown interested to invest these two parks. Among them are Automation service Limited, RTM International, Golden Harvest Infor Tech Limited, Shahajalal Science and Technology University, Arodex and Advance Software Technology and Gaming Development.

The government's revenue collection has collapsed due to the coronavirus epidemic. As a result, the government's project expenditure has been challenged. Considering the situation, the expenditure of projects in all other sectors except health and agriculture has been placed in the low-priority project list. It includes ICT sector projects.

Meanwhile, like the rest of the world, social distancing is being observed in the country to prevent the spread of coronavirus infection. It has made the world more dependent on ICT services. From corporate meetings to court sessions, all manners of activities are going virtual.

Therefore, ICT division has appealed to the government to consider its projects as a high priority and not to suspend funding ICT projects. A letter has been sent to the Finance Division in this regard.

However, finance division officials said necessary steps to attract foreign investment in the ICT sector is slow.

A businessman interested to invest in Hi-Tech Parks said, even getting essential services to set up business in the Hi-Tech parks is not hassle-free. Board of Investment’s one-stop service meant to assist investors to gain access to utilities is not providing popper services. Just to get a gas connection is a time-consuming process.

Former finance adviser of past caretaker government Dr AB Mirza Azizul Islam said, “Local and foreign investors have clearly highlighted the problems of investing in Bangladesh. The government has to listen to these issues and take steps to mitigate them. More facilities must be provided to potential investors than other countries to attract more foreign investment.”

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