Dhaka, Tuesday

16 July 2024

Business Insider Bangladesh

Discussions held in city to boost Korean business in Bangladesh

BI Desk || BusinessInsider

Published: 18:38, 16 June 2024  
Discussions held in city to boost Korean business in Bangladesh

Photo: Collected

Standard Chartered, the Embassy of the Republic of Korea to Bangladesh, Bangladesh Investment Development Authority (BIDA), Bangladesh Bank, and Korea-Bangladesh Chamber of Commerce & Industries (KBCCI) recently organised a dialogue on the topic “Thrive in Bangladesh: Actionable insights and solutions for Korean businesses.”

The event brought senior stakeholders from the private sector, chambers of commerce, think tanks, and government together to discuss actions that can be taken to promote and drive Korean business activity in Bangladesh.

The event focused on driving collaboration and facilitating the development of infrastructure, trade, investment flows, and sustainable finance, said a press release today.

As one of the largest foreign investors in Bangladesh, Standard Chartered plays a leading role in attracting foreign trade and investment.

Through meaningful discussions in the presence of subject matter experts, the dialogue addressed the concerns that Korean investors have – with the goal of improving the business climate in Bangladesh.

The insights and recommendations compiled from this dialogue will be shared with relevant policymaking and regulatory bodies to help Korean business prosper in Bangladesh.

Speaking at the event, Naser Ezaz Bijoy, Chief Executive Officer, Standard Chartered Bangladesh, expressed his heartfelt gratitude to the Republic of Korea for its unwavering support in fostering the prosperity of Bangladesh.

He said, “As the fourth largest source of Foreign Direct Investment (FDI) for Bangladesh, South Korea makes significant contributions, particularly in trade, investment, landmark infrastructure projects, and manufacturing. Standard Chartered has been a vital stakeholder in the flourishing partnership between our two nations.”

Park Young-sik, Ambassador of the Republic of Korea to Bangladesh, stated, “Korea aims to establish long-term, strategic relations with Bangladesh, focusing on sustainable gains and realistic commitments. Current discussions involve projects supported by the Economic Development Cooperation Fund, soft loans from the Korean government, and public-private partnerships,

While Bangladesh offers competitive labour costs, technology is increasingly important, he said, adding Bangladesh must improve its business climate to attract foreign investors.

Mohsina Yasmin, Executive Member (Investment Promotion) of Bangladesh Investment Development Authority (BIDA) said, “BIDA and Standard Chartered aim to position Bangladesh as a premier investment destination by combining Standard Chartered Bank's networking with BIDA's investment facilitation efforts. The goal is to attract global investors and drive sustainable development across various sectors.”

In her reassuring speech, Mohsina insisted the investors use BIDA's online one-stop service portal with 124 services from 41 agencies.

Samsoo Kim, Director General, Korea Trade-Investment Promotion Agency (KOTRA), said, “While Korean companies have invested in Bangladesh's textile industry for over 40 years, investment in other manufacturing sectors is still low.”

Abu Saleh Mohammad Shahab Uddin, Director, Foreign Exchange Investment Department, Bangladesh Bank, said, “Korea ranks as Bangladesh's fourth largest investment source country in terms of FDI stocks, with many Korean firms eager for increased involvement in major infrastructure projects.”

The Central Bank's June 2023 circular permits all investors, regardless of location, to retain equity funds in foreign currency to mitigate exchange losses.

Investors can transfer their dividend into Foreign Currency Account with AD banks in Bangladesh and the balances lying in this account can be remitted abroad or reinvested further.

Investors are free to engage with any buyer to sell their shares and remit the sales proceeds by demonstrating fair valuation.

Moreover, investors can now remotely open temporary accounts through BIDA’s OSS platform, eliminating the need for physical presence or local assistance.

In his closing address, Enamul Huque, Managing Director and Head of Corporate Coverage, Corporate and Investment Banking (CIB), Standard Chartered Bangladesh, said, “This partnership aims to build a knowledge-based economy through BIDA’s one-stop platform, the various reform agendas from the World Bank policy framework, and support for existing clients.”