-Dr. Fakhrul Islam Babu
Beijing, 9 July 2024 — In a landmark event aimed at strengthening economic ties and fostering investment, Bangladeshi and Chinese companies have inked 16 Memoranda of Understanding (MoUs), with Bangladesh set to receive $490 million under four agreements. The summit, organized by the Embassy of Bangladesh in Beijing, the Bangladesh Investment Development Authority (BIDA), the Bangladesh Securities and Exchange Commission (BSEC), and the China Council for the Promotion of International Trade (CCPIT), took place at the China World Summit Wing, Shangri-La Circle, Beijing.
As the chief guest, Prime Minister Sheikh Hasina lauded Bangladesh as “the most favorable investment destination in the world” and assured potential investors of profitable business ventures in her nation. She emphasized the shared vision between Bangladesh and China for economic growth, technological advancement, and sustainable development as the cornerstone of their bilateral relations.
PM Hasina highlighted that China is Bangladesh’s largest trading partner, with annual trade volumes increasing. However, she noted the immense potential to expand these trade ties further. Bangladesh intends to export more products to China, including textiles, garments, leather goods, jute products, and agricultural produce. The Prime Minister invited Chinese investments in export-oriented industries to help diversify Bangladesh’s export basket and reduce trade deficits.
PM encouraged Chinese companies to form joint ventures with Bangladeshi firms to enhance business cooperation. This collaboration, she noted, would facilitate technology transfer, skill development, and market access for both parties. She also invited Chinese companies to establish Research and Development (R&D) centers in Bangladesh, leveraging the country’s skilled workforce and academic ingenuity.
Highlighting critical sectors for investment, Hasina pointed to infrastructure, energy, and logistics as areas with significant potential for Chinese investment. She particularly emphasized opportunities in the renewable energy sector and climate-resilient smart farming, which opens avenues for collaboration in agro-processing industries. Additionally, she invited Chinese investments in the real estate and hospitality sectors within three planned special tourism zones.
Prime Minister Hasina also urged Chinese investors to explore portfolio investments in Bangladesh, noting that the BSEC is actively working to develop the country’s capital markets. Significant progress has been made in developing a robust bond market, and introducing derivative products is on the horizon.
As Bangladesh embraces the digital age, the government is promoting the growth of the ICT sector by offering incentives for startups, investing in tech parks, and fostering an ecosystem that encourages innovation and entrepreneurship. “Our young entrepreneurs are making their mark on the global stage, and we invite you to be a part of this exciting journey,” Hasina stated.
Sustainability is at the heart of Bangladesh’s development agenda, with numerous opportunities in renewable energy, waste management, and green technologies. Hasina assured potential investors that Bangladesh is committed to ensuring profitable business operations while being environmentally responsible and sustainable.
She also highlighted Bangladesh’s steady economic growth, averaging 6.7% over the past one and a half decades, with the economy expanding from $102 billion in 2009 to over $460 billion in 2023. The Prime Minister emphasized that Bangladesh offers one of the most liberal investment regimes globally, with BIDA providing comprehensive services to foreign investors under one roof.
In line with its commitment to economic development, Bangladesh is establishing 100 Special Economic Zones (SEZs), each equipped with state-of-the-art facilities. The government is also developing five country-specific economic zones to foster closer ties with key partner nations. Significant measures have been undertaken to enhance the ease of doing business, including legislative reforms, simplified procedures, and improved infrastructure.
Author:
Dr. Fakhrul Islam Babu
General Secretary
China Bangladesh Friendship Center -CBFC
and
Founding President, Asian Club Limited