China has sought stable policies for longer term, including those on taxes and custom duties, to avoid uncertainty as investors from the world’s second-largest economy look to broaden their footprint in Bangladesh and relocate factories.
A Chinese delegation led by Han Yong, deputy director general of the Chinese commerce ministry, raised the issue at a programme in Dhaka earlier this month when the Bangladesh Economic Zones Authority (BEZA), the Bangladesh Investment Development Authority (BIDA), and the Public Private Partnership Authority Bangladesh made presentations on investment facilities for Chinese investors.
Officials of the BEZA and the BIDA said the members of the delegation are happy with the existing rules and regulations for businesses. However, the Chinese side requested to introduce long-term policies.
Chinese investors want to invest in Bangladesh and even relocate factories, so they need long-term policies. This will help investors prepare their business plan, the officials said.
The delegation talked about the frequent changes brought to rules and policies of the National Board Revenue, officials said.
Paban Chowdhury, executive chairman of the BEZA, said most of the investors raised the same issue which is really logical.
‘’We should introduce long-term policies so that investors can take initiatives about investment. This is also needed to attract foreign direct investment,’’ he said.
He said foreign investors do not raise questions about the existing policies in Bangladesh, but they want stable policies.
The delegation called for expanding cooperation for the rapid implementation of a special industrial park, where Chinese nationals will invest in various sectors.
On the Chinese Economic and Industrial Zone (CEIZ), Chowdhury said the project proposal has been sent to the cabinet for approval. From there, it will go to the embassy of China for evaluation.
The BEZA has requested the Economic Relations Division to expedite the signing of a loan agreement to implement the zone as per schedule.
The zone will be the first specialised government-to-government economic zone in the country located over an area of 781 acres. It has access to water network and is suitable for export-oriented industries thanks to its proximity to the Chattogram port, the largest sea port in Bangladesh.
Chowdhury said around 200,000 jobs will be created at the CEIZ when it becomes fully operational.
An official of the BIDA said the Chinese delegation also requested Bangladesh to cooperate with Chinese investors so that they can complete investment procedures speedily and called for up-to-date information when investors go to the investment agency.
