Proper infrastructure development needed to attract FDI: Speakers

Simplification of tax administration, remittance guideline, proper infrastructure development and skilled manpower are the key features that would help to attract more foreign direct investment (FDI) in the country.

Speakers at a roundtable made the views on Sunday (June 12). The Institute of Chartered Accountants of Bangladesh (ICAB) and the Japan Bangladesh Chamber of Commerce & Industry (JBCCI) jointly organized the discussion on Foreign Direct Investment prospects in keeping view of National Budget 2022-2023 held at Hotel Sheraton Dhaka in the city.

Ito Naoki, ambassador of Japan to Bangladesh graced the occasion as the Chief Guest. ICAB President Md. Shahadat Hossain FCA and JBCCI President Asif A Chowdhury delivered address of welcome.

Dr. Muhammad Abdul Mazid, ex-chairman, NBR, ICAB Vice President N K A Mobin FCA, Past Presidents and Council Members Nasir Uddin Ahmed FCA, Adeeb Hossain Khan FCA, Council Members Md. Abdul Kader Joaddar FCA, Maria Howlader FCA, Chief Executive Officer Shubhashish Bose, JBCCI Secretary General Jajalur Hai, JETRO Dhaka Office Chief Country Representative Yuji Ando, and Marubeni Corporation, Dhaka Office General Manager Hikari Kawai, spoke on the occasion. ICAB Past President and Council Member Md. Humayun Kabir FCA moderated the session.

Ambassador of Japan to Bangladesh Ito Naoki expects that ICAB and JBCCI will collaborate in future to create congenial business environment in Bangladesh where foreign investors could enjoy more facilities while investing in Bangladesh. ICAB and JBCCI will come together with specific proposals to the policy makers and very strategic efforts are needed for this purpose, he added.

He said, Bangladesh has set very a unique example in terms of economic recovery from the pandemic time, he said adding, Bangladesh showed remarkable resilience to the recovery process and the recovery economy of Bangladesh has a wonder foundation.

Now, the Russia -Ukraine war has changed the world’s economic situation. We all should follow the international laws and rules. 

He said in Bangladesh Foreign Companies need to renewal work permit after one very year or, two year or three which is not realistic. It should be made for onetime, he demanded.

Bangladesh Special Economic Zone which is being prepared for Japanese companies, will be a unique example in the country to attract FDI, he further said.

ICAB President Md. Shahadat Hossain FCA said, Japan has been continuously supporting Bangladesh for the successfully graduation from LDC. Currently, approximately 320 Japanese companies are doing business in Bangladesh and the number is expected to rise in recent years, he said. 

Foreign Direct Investment is considered as a significant vehicle to build up physical capital through transfer of technology and managerial skills and knowledge between the countries, he said, adding Bangladesh aims to bring FDI USD 2 billion in 2022 and USD 2.5 Billion in 2023. ICAB believe Japanese entrepreneurs will contribute a lot to achieve this target.

Highlighting the role of Chartered Accountants in economic development, ICAB President said, Chartered Accountants have been directly and indirectly involve in ease of doing business environment in the country through tax planning, proper compliance and implementation of tax laws. 

JBCCI President Asif A Chowdhury said, appropriate reform measures are needed in the country's administration; to reduce the bureaucratic tangle and interference in business and investment to attract more investment in the country.

Emphasizing on improving the efficiency of port services, he said, the custom clearance procedures must be simplified along with the improvement in physical facilities and reforms in the labor management system to ensure the ease doing business. 

He also placed a number of recommendations regarding privatization, modernization of business law, policies for macroeconomic stability, etc.

Highlighting the key features of the National Budget, ICAB Vice President NKA Mobin FCA echoed the same views and demanded for simplification of country’s tax revenue administration and proper infrastructure develop to attract more FDI in the country. 

JETRO Dhaka Office Chief Country Representative Yuji Ando said, VAT registration has been made mandatory for liaison and branch offices of foreign companies from the next fiscal year, which will take more time and the entrepreneurs will face difficulty in the process of VAT registration. He demanded for exclusion of the provision in the proposed budget so that foreign investors can feel free to invest more in the country, he added.

Another provision regarding all transactions must be made through banking channels, he said it will create obstacle to the new investment in the country. He also demanded relaxation on the work permit for the foreign national in Bangladesh. Currently, foreign nationals can avail six years work permit at a time to work in Bangladesh, he added.

 Marubeni Corporation, Dhaka Office General Manager Hikari Kawai termed the National Budget is very positive and balanced one. The size of the National Budget indicates the good economy and it shows the foreign investors a good indicate to think about more investment in the country.

He demanded that government may give more concentration on the public private partnership like IPP to attract more investments. Japan will invest more in infrastructure development mega project in future.