Bangladesh-Korea Economic Ties Solid as a Rock
Bangladesh-Korea Economic Ties Solid as a Rock
  • By Choe Nam-suk (info@koreaittimes.com)
  • 승인 2016.04.08 14:11
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H.E. Md. Zulfiqur Rahman, Ambassador of Bangladesh Embassy

On the occasion of 45th anniversary of the Independence and National Day of the People’s Republic of Bangladesh, Choe Nam-suk, Executive Vice President of Korea IT Times, interviewed H.E. Md. Zulfiqur Rahman at his Embassy on the current status of economic cooperation between the two countries and possibility of expansion of bilateral trade and promoting more Korean companies’ investment in Bangladesh in various industrial sectors in the years to come.

First of all, please explain the significance of your Independence Day, March 26th.

The 26th March is a glorious day in our national life. The Father of the Nation Bangabandhu Sheikh Mujibur Rahman proclaimed independence of Bangladesh in the early hours of 26th March 1971, after the Pakistani occupation forces launched sudden attack on the innocent and unarmed Bangalees on the previous night. This day thus marks the beginning of the nine-month-long Liberation War; three million people were martyred and at least 200,000 girls and women were raped in Pakistani military camps—using rape as a weapon of war. After such unprecedented sacrifices, made by the people of all scores of life, the Nation achieved its victory on 16 December in the same year. The Day of 26th March, therefore, remains as the symbol of unity and resilience of the Bangalee Nation and its firm stance against repression. Every year, on this day, we renew our pledges to leave behind any social and political division, and to build a happy and prosperous Bangladesh.

Would you please brief the history of diplomatic ties between Bangladesh and Korea.

Korea recognized Bangladesh in May 1972, within six months of our victory in the War of Independence. Formal diplomatic relations between Korea and Bangladesh were established a year later, in December 1973. Our two countries enjoyed excellent bilateral relations ever since. We share common democratic values. Our bilateral relations are shaped up primarily by political goodwill, economic and commercial interests, and people-to-people contact. In international plane, we share common views on many issues, including on climate change, peace and stability, nuclear non-proliferation, and cooperate closely in various multilateral fora.

The visit of the Hon’ble Prime Minister of Bangladesh Her Excellency Sheikh Hasina to Korea in 2010 at the invitation of the Korean President demonstrated the warmth of our relationship. We enjoy strong cooperation in areas of trade and investment, development cooperation, technology transfer, employment, human resource development, education and cultural exchange. Trade volume has been growing steadily and is now nearing US$ 2 billion.

In the recent years, Korea has also emerged as an important development partner of Bangladesh. Korea supports our development initiatives in fields like telecommunications, energy, transportation, education, human resources development etc. People-to-people contacts have been on continuous rise.

Bangladesh, as you may know, is a partner country of Korea’s Employment Permit System. A good number of Bangladeshi workers are now working in Korean SMEs. More than 700 Bangladeshi students and researchers are also studying in various Korean universities and research centers.

Please introduce major industries of Bangladesh and tell us of your viewpoint on what industrial sectors would be most attractive for Korean companies to invest in Bangladesh.

The present Bangladesh Government, under Prime Minister Sheikh Hasina’s leadership, stays committed to deliver on inclusive and sustainable development in an enabling environment of democracy, good governance, human rights and rule of law. The development strategy of the government is predicated on empowering people. The country has been posting 6% plus GDP growth for more than two decades. Healthy current account balance has led to accumulation of US$ 28 billion of forex reserve—enough for paying for more than seven months of import. Such economic emancipation has been led by the industrial sector of Bangladesh that constitutes 30% of GDP at present.

Industrial expansion in Bangladesh has been led by readymade garments, knitting and textile sector. Bangladesh is second only to China globally to export readymade garments. Light engineering, fish processing, constructions, shipbuilding, ship-breaking, car assembling, white goods manufacturing, metallurgical industry, and chemical industry are showing mentionable progress to keep the momentum of the GDP growth even in the face of global economic downturns.

Scope for profitable investment in Bangladesh is enormous, and the list of potential sectors for Korean investment can be quite long. I mention a few of the sectors that the Korean investors should keep their eyes on for tapping the opportunity: High-end Readymade garments Sector; Textile and Home Textile; Active Pharmaceuticals Ingredient (API) Industry & Radio Pharmaceuticals Industry; ICT Products & ICT Based Service; Ship Building; Environment-friendly Ship Breaking Industry; Agro-based industry/foods processing industry; Frozen Fish Industry; Jute Based Industry; Leather Industry; PPP-based large infrastructure (roads, bridges, airports, township, ICT infrastructure etc) projects; Renewable Energy Sector (Solar power, Wind Mill); Tourism and hospitality Sector; Polymer Making Industry; Hospital & Clinic; Auto-mobile; Electrical Home Appliances; Light Engineering Industry; etc.

Korea has become a household name in Bangladesh from the long presence and good work of its construction companies in many key infrastructure projects inside the country. Several hundred Korean companies that are operating in Bangladesh are also bridging the peoples of the two countries. Korea can boast as the proud partner of Bangladesh’s enviable success in garments industry. As it marches forward to become a middle-income country in near future, Bangladesh is looking towards Korea for its greater role in economic emancipation in Bangladesh—primarily through Korean investments and economic cooperation.

Choe Nam-suk, Executive Vice President, Korea IT Times (left) and H.E. Md. Zulfiqur Rahman (right)

Please explain investment environments and special favors, if any, for foreign investors in Bangladesh.

Bangladesh’s economic growth has so far been driven mostly by the domestic investments mobilized by the local entrepreneurs. While such growth trajectory has given the economy the robustness to absorb external shocks of past global recessions, an even faster growth and poverty reduction would be possible if the foreign investors could take the full advantage of strategic upper hand offered by Bangladesh as an investment destination.

Sound health of Bangladesh economy earned it stable sovereign ratings from Moody’s (Ba3) and S&Ps (BB-) for six consecutive years. Goldman Sachs termed Bangladesh as one of the next 11 emerging economies. JP Morgan included Bangladesh in its list of ‘Frontier 5’ countries that will turn into dominant economic force in the current century. McKensey termed Bangladesh as the next global hotspot for apparels.

Geographically, Bangladesh is strategically located for global trade with easy access to international sea and air routes—just in between the SAARC and the ASEAN regions, two biggest markets in the world, as well as China. All these make Bangladesh an attractive investment option targeting a market of about three billion people in the region and many more globally. Bangladesh is also endowed with abundant supply of the key factors of production like hardworking and easily trainable workforce, natural gas, sweet water, fertile land, favorable climate, and social homogeneity and political stability. As far as investment policy of Bangladesh is concerned, all major parties have developed a consensus assuring foreign investors the critical element of continuity and certainty.

Bangladesh offers a large domestic market of about 160 million people with a growing middle class. Apart from this big domestic market, most of the products produced in Bangladesh territory enjoy duty-free-quota-free access to the European Union, Canada, Australia, New Zealand, Japan, Norway and other developed/ developing countries like China and enjoy preferred access to SAARC (South Asian Association for Regional Cooperation) countries such as India.

A comparative study conducted in 2015 by the Japan External Trade Organization (JETRO) on 20 Asian and Oceanian countries found Bangladesh to be the most lucrative investment destination for Japanese investors. In terms of Cost of Doing Business among the competing locations, Bangladesh is one of the most competitive locations—in many indicators, among the ASEAN, Far Eastern and South Asian countries. There are lucrative incentives for foreign investors like 100% ownership, full repatriation of profit, tax and duty exemptions, etc.

Eight Export Processing Zones (EPZ) as well as the newly introduced 100 Special Economic Zones (SEZ) are taking the facilities for foreign investors to newer heights. The FDI-friendly index in the World Bank’s report ‘Investing Across Borders (IAB) 2010’ covering 87 countries lists Bangladesh as one of the most convenient destinations for FDI for its investment-friendly facilities and regulations. Bangladesh has unique combination of its competitive business-friendly environment and cost structure that can give an investor best returns.

Would you introduce outstanding and successful Korean company’s activities in Bangladesh in order to give insights and conviction for potential Korean investors in the near future

More than 80 Korean companies have set up their operation units in Export Processing Zones (EPZs) in Bangladesh. Hundreds of other joint ventures or full ownership Korean firms are operating outside EPZs area as well. These companies are operating in sectors like readymade garments, textiles, glass and ceramic, leather garments and footwear, RMG accessories, chemical products, electronics, IT, construction materials etc. creating employment for our people.

The biggest of the Korean Investors in Bangladesh is Youngone Corporation. It is operating in Chittagong EPZ in the fields of RMG, RMG accessories, Footwear and leather goods etc. and is employing almost 50,000 people. Apart from that, Youngone is trusted with developing a private Export processing Zone, first of its kind, in Chittagong, Bangladesh. Dada Ltd, Pacific Zipper, HHH accessories Industries etc. are few of many others to mention. Samsung has established a research center in Bangladesh where some six hundred Bangladeshi engineers and researchers are working.

Presence of Korean companies in the construction and infrastructure sector is also noticeable. Hyundai Engineering and Construction Co. Ltd. constructed the 4.8 km-long Bangabandhu Bridge on river Jamuna, which is the largest bridge in Bangladesh. Halla Corporation has started construction of the remodeled airport at Cox’s Bazaar—the tourist capital of Bangladesh. Korean companies are actively participating in power generation and power transmission projects as well.

Please introduce popular tourists’ attractions in Bangladesh for Korean tourists abroad.

Bangladesh has a host of tourist treasures to offer to international tourists—beaches, lakes, rivers, hills, forests, wildlife, way of life, tribal life, archaeological remains, including historical monuments, folklore, religious and cultural heritage, handicrafts and much more. Bangladesh is also proud to have few rare Buddhist relics as well. All these are enormous tourist products for international tourists and, if properly exploited, can fetch the country its due share of the ever-expanding world's tourist trade.

Cox's Bazar is the tourist capital of Bangladesh where miles of golden sands, towering cliffs, surfing waves, colorful pagodas, and delightful seafood allure tourists round the years. Located in the south-eastern part of Bangladesh by the Bay of Bengal, this is the world's longest unbroken beach stretching up to 120 km.

The largest mangrove forest on earth and the home of the majestic Royal Bengal Tiger - the Sundarbans – is a major eco-tourism attraction of Bangladesh. About 6,000 sq. km. of deltaic swamps along the coastal belt of Khulna, the Sundarbans is also the natural habitat of spotted deer, crocodiles, monkeys, cheetahs, pythons, wild boars, hyenas and different species of colorful birds.

Archeological sites are no dearth in supply in Bangladesh. There are ruins of Buddhist monasteries dating back to 3rd century B.C. at sites like Mahasthangar, Paharpur and Mainamatai which are of enormous interest to archaeologists, historical enthusiasts and cultural & educational tourists alike. Dhaka has a number of buildings from the Mughal and British periods. Similarly some old mosque like the Satgambuj mosque of Bagerhat and some old Hindu temples like the Kantaji’s Mandir deserve mention.


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