Business environment in Bangladesh is strong but good governance and legal framework are needed to attract foreign investment, a German state secretary observed yesterday.
Foreign businesspersons are careful with money but not shy to invest, Martin Biesel, state secretary of the Federal Foreign Office of Germany, told a gathering at The Westin, Dhaka.
“In a world where foreign direct investment is under competition, a reliable legal framework is necessary,” he said in his speech on Perspectives of Bilateral Relations.
Bangladesh German Chamber of Commerce and Industry (BGCCI) hosted the event, attended by an eight-member German business delegation and local businesspersons. German Ambassador Holger Michael and BGCCI President Md Saiful Islam also spoke.
The remarks of Biesel came at a time when German business interest as a trade and investment partner with Bangladesh is growing.
Germany is the second biggest export destination of Bangladesh thanks to duty-free access of major exportable items.
Bilateral trade between the two countries rose by 15 percent to 2.3 billion euros in 2009, with trade balance favouring Bangladesh. In 2010, it is expected to reach 2.4 billion euros, according to BGCCI President Md Saiful Islam.
Biesel, who is visiting Dhaka following a visit of Foreign Minister Dipu Moni in Germany early September, said, “People come here because there is prospect of good business.”
He said that trade and investment is a remedy against poverty and provides jobs. Biesel also added that the government should help the private sector grow and contribute to development.
The German state secretary referred to the predictions of economists about the growth potential of Bangladesh in the days ahead.
With a population of more than 160 million, Bangladesh’s economy has been growing at nearly 5 percent a year in the last two decades, buoyed by rise in exports, remittance inflows and domestic demand.
“We are interested to invest in energy sector and infrastructure,” said Biesel, accompanied by executives from energy, infrastructure development, telecommunication, shipbuilding and jute sectors.
“Overall business climate is in excellent situation and there are opportunities.”
Citing comparative advantage of Bangladesh in South Asia, BGCCI President called upon German business community for investment.
“Bangladesh is becoming competitive by the day in manufacturing,” he said. “We do not need aid. We want trade.”
