Economic Correspondent //

Khandaker Abdul Muqtadir, Minister of Commerce, Industries, and Textiles & Jute, has emphasized the need to make Bangladesh’s economy competitive and comparable to international standards to attract global investment. He also stressed the importance of ensuring policy stability, reducing supply chain costs, automating customs systems, and simplifying the process of starting a business to improve the investment climate.

He made these remarks on Thursday while speaking at a seminar titled “Trade Expansion and Investment Potential in Bangladesh,” organized by the Consulate General of Bangladesh in Hong Kong.

The Commerce Minister noted that, thanks to information technology, investors can now easily assess the business and investment environments of any country in the world. Consequently, to advance in the race to attract investment, Bangladesh must align its business environment, policies, and capabilities with international standards.

He mentioned that trade agreements are being pursued with various nations to retain trade benefits after Bangladesh graduates from the Least Developed Country (LDC) status in 2029. Economic Partnership Agreements have already been signed with Japan and South Korea. Duty-free access to the South Korean market has been secured for approximately 97 percent of Bangladeshi products, and negotiations for Free Trade Agreements (FTAs) are underway with about 13 other countries.

Noting that discussions regarding an FTA with the European Union are set to begin soon, the Minister stated that Bangladesh hopes to reach an agreement before its LDC graduation. Even if that proves impossible, efforts will be made to maintain current market access through Preferential Trade Agreements.

Highlighting high supply chain costs as a major challenge for the investment climate, Khandaker Abdul Muqtadir noted that supply chain costs in the country account for approximately 16 percent of the Gross Domestic Product (GDP), whereas the global average is around 10 percent. He emphasized the need to narrow this gap by reducing costs associated with transportation, production, and import-export activities.

He also highlighted initiatives to involve international operators in enhancing the capacity of Chittagong Port and the construction of the Matarbari Deep-Sea Port. The Minister expressed optimism that these infrastructure developments would reduce costs related to cargo transportation and port management.

Regarding the simplification of business startup procedures, he pointed out that it currently takes hundreds of days for a business entity to reach the stage of opening a Letter of Credit (LC). The entire process is being digitized. As a result, a new enterprise will be able to reach the stage of opening a Letter of Credit (LC) within a maximum of 14 days in the future.

Noting that initiatives are underway to digitize various business processes—including trade licensing and share transfers—the Minister stated that this would significantly reduce the need for entrepreneurs to make in-person visits to government offices.

Regarding customs reforms, he mentioned that automation would reduce the time and cost involved in clearing imported goods for importers. Plans are in place to implement a risk-based customs management system that minimizes unnecessary physical inspections for established and reliable companies. He also assured that unnecessary customs restrictions and procedures would be significantly relaxed within the next six to twelve months.

Emphasizing the importance of policy consistency in building investor confidence, the Commerce Minister noted that investment is a long-term decision. Consequently, changing a policy shortly after its formulation creates uncertainty for investors. He suggested that if policy changes are necessary, they should apply to new investments so that investors have a clear understanding of the situation when making their decisions.

During the seminar, he also highlighted the ship-recycling industry as a promising sector for new investment in Bangladesh. Pointing out that Bangladesh and India account for approximately 90 percent of global ship recycling, the Minister stated that there are opportunities for further investment in this sector within coastal regions.

He remarked that making Bangladesh more competitive for investment by overcoming weaknesses in the business environment is a top priority for the government. To this end, continuous reforms are being implemented across infrastructure, policy, customs, and business processes.

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