Commerce minister khandaker abdul muktadir has stressed the need to make bangladesh's economy internationally competitive to attract global investment. speaking at a seminar titled "trade expansion and investment potential in bangladesh:p procedures to improve the investment climate.
According to United News of Bangladesh, the minister highlighted the advancements in information technology that allow investors to easily assess the business and investment environment of any country. To stay ahead in the competition for investment, he noted, Bangladesh must build a business environment, policy framework, and capacity comparable to other countries. He mentioned that Bangladesh is signing trade agreements with various countries to retain its trade benefits after graduating from the Least Developed Country (LDC) category in 2029. Economic partnership agreements have already been signed with Japan and South Korea, providing Bangladesh duty-free access for about 97 percent of its products to the South Korean market, and free trade agreement talks are underway with around 13 more countries.
Free trade negotiations with the European Union are also expected to begin soon, with hopes of reaching an understanding before the LDC graduation. If that is not possible, efforts will continue to retain existing market access through preferential trade arrangements. Highlighting high logistics costs as a major challenge to the investment climate, Muktadir pointed out that supply chain costs in Bangladesh stand at around 16 percent of GDP, compared to a global average of about 10 percent. He stressed the need to narrow this gap by cutting transport, production, and import-export costs.
The minister also discussed efforts to boost the capacity of Chattogram Port through international operators' involvement and the construction of the Matarbari deep-sea port, which are expected to reduce cargo transport and port management costs. On easing business start-up procedures, he stated that it currently takes several hundred days for a business to reach the letter-of-credit stage, but the entire process is being digitised to allow new enterprises to reach that stage within a maximum of 14 days in the future. Efforts are also underway to digitise trade licences, share transfers, and other business processes, significantly reducing the need for entrepreneurs to visit government offices in person.
Regarding customs reforms, the minister mentioned that automation will cut clearance time and costs for importers. A risk-based customs management system is being introduced to reduce unnecessary physical inspections for established, trusted businesses. Unnecessary customs restrictions and procedures are expected to ease considerably within the next six months to a year. Emphasising policy continuity to build investor confidence, Muktadir stated that investment is a long-term decision, and frequent policy changes shortly after their introduction create uncertainty among investors. Any necessary policy changes should apply prospectively to new investments so that investors have a clear picture of the situation when making decisions.
At the seminar, the minister also identified ship recycling as a promising sector for new investment in Bangladesh, noting that Bangladesh and India together account for about 90 percent of global ship recycling, with potential for further investment in the sector in the country's coastal regions. Muktadir concluded by stating that making Bangladesh more competitive for investment by addressing weaknesses in the business environment remains one of the government's top priorities, with continuous reforms being carried out in infrastructure, policy, customs, and business processes to achieve this goal.