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South Asian Update
South Asian Update

Opinion

Could investment summit-25 lure expected foreign investors?

 Published: 11:25, 9 April 2025

Could investment summit-25 lure expected foreign investors?

Investment summit is crucial not only for exhibiting a country's trade potential, development projects but also for communicating the nation's desire for inbound foreign capital, especially foreign direct investment (FDI). To boost Bangladesh's economic vitality in South Asian investment potential, hundreds of international business executives have gathered for the four-day 'Bangladesh Investment Summit 2025' from April 7-10. More than 2,300 participants from 50 nations have attended the summit, including more than 550 international investors.

World's largest investors such as China, the US, the UK, India, Singapore, and Japan are the main participating nations. This kind of conference draws the attention of international investors at this crucial moment, which may be its high point. The summit is so important at this crossroads that the investment summit can help Bangladesh manage the external economic shocks to some degree, since the globe, including Bangladesh, is reeling from US President Donald Trump's so-called reciprocal tariffs. At the Bangladesh Investment Summit 2025, Bangladesh is already showcasing to develop a lower tariff structure to draw in foreign investors in reaction to the US levying a 37% tariff on Bangladeshi exports.

However, apart from presenting the nation's developing investment prospects in textiles, information technology, pharmaceuticals, leather goods, renewable energy, digital economy, agriculture, healthcare, and economic reforms, the summit also depicts Bangladesh's investment potential, emphasizes the significance of ongoing improvements to the country's skilled and inexpensive labor force, and establishes long-term investment pipelines for sustainable economic growth. Particularly in the areas of new energy, green energy, eco-tourism, agriculture, and IT, Bangladesh offers a vibrant investment environment. Authorities in Bangladesh are in a position to provide the best possible protection and security of investments, returns, and repatriation in addition to effective and efficient facilitation for the full business cycle.

Bangladesh provides plenty of room and opportunity for foreign investment, allowing them to take full benefit of their advantages, by hosting investment promotion events and meeting with executives of foreign-funded businesses. The private sector investment, including the inbound FDI, has been given top attention at the summit in accordance with Bangladesh's long-term investment plan of $5.5 billion in five special economic zones and investment policies and programs.

This business initiative is in line with Bangladesh's stepped-up efforts to guarantee the country's ongoing political stability, foster a top-notch economic climate, and open up to international investment. Bangladesh is generating significant opportunities for international businesses through the use of high-level exchanges of Chief Advisor Mohammed Yunus with the international business community, the adoption of a comprehensive economic investment plan to draw in foreign investment, the promotion of Bangladesh's dynamic economic diplomacy to the world, and the facilitation of frequent interactions between officials and representatives of foreign companies. The investment significance of CA Muhammad Yunus's trips to the UAE for the World Governments Summit (WGS) in Dubai from February 12-14, China for the Boao Forum for Asia from March 26-29, and Thailand for the 6th BIMTEC summit should not be overlooked.

The trade and investment ties between Bangladesh and the firms and investors in these nations have been revived by Yunus' continuous foreign visits, and additional high-quality inbound investment and foreign direct investment may be brought to Bangladesh to support the economic goals of South Asia's second-largest economy. Given Bangladesh's ongoing battles with the decline in foreign investment, the FDI commitments made at this crucial juncture may be crucial to resolving the nation's investment and economic problems. It is hoped that this strong diplomatic approach would have observable results, drawing much needed investment to Bangladesh and setting the country's economy on a path to recovery.

In an effort to draw in foreign direct investment, the interim administration is showcasing Bangladesh's commercial opportunities and benefits to the international investor community. A number of businesses have committed to investing in Bangladesh as the nation promises to boost government productivity and support technological advancement. These industries have been recognized as having substantial room for expansion and investment prospects. With the timely the summit, this examines how investment may help Bangladesh's economy and its place in the world economy.

The summit serves as a high-level forum for contacts between business groups from various nations with the goals of addressing shared economic concerns collectively, fostering new avenues for international economic cooperation, and reinvigorating and also reintegrating Bangladesh with global investment governance and foreign trade supply chain stability. Bangladesh has achieved remarkable progress in recent years in becoming one of South Asia's expanding economic centers. Bangladesh boasts a youthful workforce, excellent infrastructure, a strategic location between South Asia, Southeast Asia, BIMSTEC, SARRC and ASEAN, one-stop services for investment operations, the possibility for new emerging firms, and expanding access to technology. Bangladesh is adopting a new strategy to draw in both domestic and foreign investors by giving priority to the construction of government-funded and government-to-government (G2G) economic zones, and as a result, officials have scheduled $5.5 billion in investment in five economic zones by 2026.

Bangladesh must strategize its long-term economic diplomacy with global trade actors. Identifying the most effective and focused strategy to draw in the international business community ought to be Bangladesh's national goal. Obstacles such as the nation's regulatory barriers, lack of financial access, and bureaucratic red tape are constantly being removed. If Bangladesh can improve the investment climate, expedite the visa issuance and renewal processes, expedite customs clearance procedures, improve services provided by the Bangladesh Investment Development Authority (BIDA), and reduce logistics costs, it may further benefit from the shifting investment from China, EU, ASEAN and India, given the ongoing global trade war and geopolitical rivalry. Moreover, Investment summit 2025 should make Bangladesh an ideal destination of FDI and Bangladesh must take this business opportunity to a new height. -Source: Daily Observer

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