The government should include competitive benefits for foreign investors in the upcoming budget to transform Bangladesh into a regional hub for electronic manufacturing, said a leader of Bangladesh-China Chamber of Commerce and Industry (BCCCI).
“We have a good geographic location close to two major economies (India and China). If the foreign investors get policy support, Bangladesh can become the South Asian hub for electronic manufacturing leveraging the land and marine connectivity,” Al Mamun Mridha, joint secretary general of BCCCI, told the Daily Sun in an interview.
“Bangladesh went through massive infrastructural development in the last decade. The infrastructures will support the economic activities to generate new jobs. Our best resource is the human resource that can be utilised in economic activities,” said the BCCCI leader.
The trade volume between Bangladesh and China reached $ 12.9 billion in FY 2019-20 which increased to $13.6 billion in FY 2020-21, according to Export Promotion Bureau (EPB) data.
Mamun thinks Bangladesh should provide more tax support for tech firms as China gets the benefits of its long-term strategy to become the factory of the world.
China has been providing tax-free entry of 8,256 products from Bangladesh under duty-free quota-free (DFQF) market access since 2020.
“We depend on 6 to 8 items for export to China. Of which garment and textile represent 85 percent of earnings from the exports. The country took steps 20 years back and getting the results now. Bangladesh can follow the model,” he said.
“China has announced duty waivers for many Bangladeshi products. We should bring diversity to our product to take the facility. We should formulate policy for foreign investment. If any Chinese entrepreneur conducts manufacturing in Bangladesh, the profit increases up to 30 percent,” Mamun, managing director of Mridha Business Limited, added.
Regarding regional connectivity, the BCCI leader said the Belt and Road Initiative (BRI) is very important for Bangladesh to grow the economy by fostering international trade across the continents.
“We need to create a comfort zone for investors with attractive policy support as they can set up industries without any hassle. All products can be exported to any country very easily using the benefits of the BRI alliance,” he said.
China`s President Xi Jinping unveiled the initiative in 2013 as a transcontinental long-term policy and investment programme to accelerate the economic integration of countries along the route of the historic Silk Road.