Quest for FDI from East Asia

EXPERTS from Bangladesh Institute of Development Studies (BIDS) and Japan External Trade Organisation (JETRO) gathered on December 1 to discuss ways on how Bangladesh may attract foreign capital from South East Asia. With Asia emerging as the next global hub for development where four of the world's five largest economies are situated, Bangladesh needs to rethink policies to attract trade and foreign direct investments (FDI) from countries like China and Japan. While recent bilateral visits by heads of governments of Bangladesh, Japan and China have opened the doors for much-talked-about FDI, we will have to improve the state of our connectivity to bring such plans to fruition.

Improved connectivity in terms of road links internally, port facilities, uninterrupted power supply and fast-track development of special economic zones are all essential prerequisites for infrastructure development. These must be backed up by appropriate policies that allow for foreign companies to quickly establish their businesses with the least amount of hassle. Looking beyond connectivity issues, Bangladesh will need to develop skilled manpower that will allow the country to be integrated to the global value chain. Decisions on developing key infrastructure such as the deep sea port have been excruciatingly slow. What policymakers need to comprehend is that time is a luxury that we do not have. If we are serious about developing a 'Look East' policy, then the time for action is now. Any further foot dragging risks Bangladesh being left behind in the multiple connectivity initiatives launched by China and Japan.