Improving business environment thru reforms will be the focus this year: Bida exec chairman

Undertaking genuine foundational reforms is a must to improve the business environment of the country, which is the top priority for this year, said Chowdhury Ashik Mahmud Bin Harun, executive chairman of both the Bangladesh Investment Development Authority (Bida) and the Bangladesh Economic Zones Authority (Beza).

He made the remarks today at the "National Workshop on Economic Zone Prioritization and Phasing, Offsite Infrastructure Planning and Development Mechanism" held at the Beza office in the capital.

Highlighting the current state of foreign direct investment (FDI) in Bangladesh, Chowdhury Ashik noted that annual FDI inflows remain below $1 billion. 

"It won't suddenly reach $10 billion overnight. This year's FDI may be similar to last year's, but we need reforms to attract more investment," he said.

"We are working to address the challenges. Efforts are underway to merge multiple investment promotion agencies into a single centralised Investment Promotion Agency (IPA) to streamline the process," he added.

Sharing his experience from a recent visit to Japan, where he engaged with 30 businessmen, he pointed out that traditional promotional efforts alone are not enough.

Ashik said, "In Japan, when we highlight Bangladesh's large consumer base, investors often compare it to India, which has an even larger market. 'Why should they invest in Bangladesh instead?' – this is the question we face."

"We must, therefore, focus on improving our business environment. If we can do that, attracting investment will become much easier," he added.

The Bida executive chairman further stated that work is underway to establish a single-entry point to accelerate the One-Stop Service (OSS) facility. "This will allow investors to access all services from various IPAs using a single ID."

At the event, Beza's designated consulting firm presented a report on the "Study of the National Master Plan for Bangladesh Economic Zones Authority", that outlines a roadmap for economic zone development. The firm has prioritised the development of eight economic zones by 2029-2030. 

The zones are – National Special Economic Zone, Bangladesh Special Economic Zone (BSEZ), Araihazar, Sabrang Tourism Park, Moheshkhali-3 (Dhalghata), Shreehatta Economic Zone, Anwara-2 (Chinese Economic and Industrial Zone), Jamalpur Economic Zone, and Mongla Economic Zone, developed under a Public-Private Partnership (PPP) model.

Apart from these eight, which are to be developed in the short term, five more zones are expected to be developed by 2034-2035, followed by another seven in the long term between 2045-2046, bringing the total to 20 economic zones.

Concerns and infrastructure needs

However, the plan did not include the development of private economic zones, prompting concerns from private sector representatives.

"Acquiring land for the development of private economic zones is challenging, and developers often face bureaucratic hurdles during the land registration process," said ASM Mainuddin Monem, managing director of Abdul Monem Economic Zone (AMEZL), emphasising that struggles of private economic zones must also be brought forth.

Local investors also expressed frustration over inadequate infrastructure and utility services, which are hindering investments.

Aparup Chowdhury, CEO of Bangladesh Economic Zones Investors Association (Bezia), stressed the need for improved connectivity and uninterrupted gas and electricity supply to economic zones.

A Mannan Khan, chairman of Bangladesh Auto Industries Ltd, highlighted issues in the National Special Economic Zone in Chattogram, where his company plans to manufacture electric vehicles.

He said, "I applied for a gas connection a year ago, but it has yet to be approved. Additionally, around 70-75 foreign employees will be working at our factory, but there is no housing facility nearby."

"We are now constructing housing for them, but what about the 2,000-3,000 local workers who will also need accommodation? Beza must take immediate action," he urged.

Responding to investors' concerns, Beza executive chairman Chowdhury Ashik acknowledged the lack of a dedicated reform commission and assured them of cooperation.

"We do not have a separate reform commission for the private sector. Whatever suggestions you (businesses) provide, we will work on them. That is part of the reform process. We are already working on this matter," he said.

He also noted that the government would focus on 5-10 economic zones over the next five years, rather than the previous administration's plan to establish 100 zones, which he criticised as unrealistic and unplanned.

"We are now prioritising economic zones based on capacity. We want to create a structured framework so that future governments have a clear guideline. If new economic zones are proposed, they must be logically justified," he added.

Regarding private economic zones, he emphasised that future approvals would be carefully reviewed to ensure feasibility.

"Some private economic zones have operated like 'landlords,' getting approvals without proper planning. If there are already 10 economic zones in an area, establishing an 11th zone must be justified," he added.