The government of Bangladesh is taking initiatives to enter the Latin American countries to boost exports as well as attract foreign direct investment (FDI).
A Bangladesh trade delegation will visit Brazil and Argentina early March this year aimed at opening a new business window there and exploring $10 billion export potential by next five years.
A 70-member business delegation, led by Prime Minister’s private industry and investment adviser Salman F Rahman, will visit Brazil and Argentina in the first week of March.
They are expected to hold business networking meetings with top business leaders and government’s high officials of Brazil and Argentina for trade facilitation. They will also invite the business leaders of Peru, Uruguay, Paraguay, Chile, and Panama to the meetings to enhance economic ties between Bangladesh and Latin American countries.
To strengthen trade ties between Bangladesh and the countries of Latin America, promote Bangladeshi products in those countries and bring in more foreign direct investment (FDI), Latin America-Bangladesh Chamber of Commerce and Industry (LA-BCCI) and Bangladesh Investment Development Authority (BIDA) will jointly arrange the business summit there.
To make it successful, the LA-BCCI will immediately sign memorandums of understanding (MoUs) with BIDA, Bangladesh Economic Zones Authority and Hi-Tech Park Authority.
After the visit, LA-BCCI will arrange a three-day exhibition in all the countries of Latin America to showcase Bangladeshi products as Bangladeshi businesses aim to harness huge trade potential there.
“Some 26 countries are in Latin America but there is no embassy of those countries in Bangladesh except Brazil. So, we have to face a lot of challenges particularly of getting visa to do business. If we can strengthen our connectivity, and facilitate trade among those countries, $10 billion would be added to our trade volume by two to five years,” LA-BCCI president Md Anwar Shawkat Afser told The Business Post.
Bangladesh lags behind in business in Latin America. Many products are imported into Bangladesh via different countries. As a result, products’ prices go up here, he added.
“So, we need to establish direct communications with Latin American countries to get our required products at reasonable prices. However, we hope that our upcoming networking summits will help expand our business and increase export volume as well.”
Afser also expressed the hope that they can resolve existing bottlenecks, including visa process, strengthen relationship, and make a way for direct transportation system between Bangladesh and Latin America.
He also explained that Bangladesh’s dependency on crude oil will come down if the country can import directly from Latin America, particularly from Venezuela instead of Middle East
countries.
“Bangladesh has to import poultry and fish feeds, edible oil, wheat, and construction materials like scraps from the Latin American countries. But we have to go to Latin America via India, Dubai or EU which creates hassle for us,” he pointed out.
“Now, a ship needs 20 days to reach Chattogram port from Latin America after landing two /three ports of Dubai, Singapore or EU. So, it puts an impact on carrying costs of products. Besides, air transportation system is also the same. If we can communicate directly among the countries, it will boost our business definitely.”
The LA-BCCI president also claimed that Bangladeshi businessmen have to face a lot of hassles while getting visa from India. Even, many don’t get visa too.
“So, we will request several countries to open embassies in Bangladesh to ease business. If we can set up embassies of different countries of Latin America, a new window will be opened for our migrant workers too. It will boost our tourism sector as well,” he added.
Afser said Bangladesh is establishing 100 economic zones. “We will inform Latin American investors about our facilities provided in the zones and invite them to invest here. We will arrange a good number of B2B meetings with the businessmen and investors of Brazil, Argentina and its neighbouring countries during our visit between March 4 and March 8,” he pointed out.
Talking to The Business Post, BIDA Executive Member Md. Matiur Rahman said Bangladesh’s current FDI is nearly $3 billion. Despite having a huge scope to boost FDI, they can’t increase it due to a lack of proper campaign.
“So, we have taken plans that we will invite some target-based investors for making investments in Bangladesh. We hope that we can boost the flow of inward investment sharply through proper campaign. Keeping this in mind, we are going to hold B2B meetings in EU and Latin America,” he also said.
He added that they have already sent a proposal to PMO for approval to make the visit successful in EU and Latin America.
LA-BCCI to open office in Latin America
“We are going to set up an office in a country of Latin America to assess export potential in all the countries in the region which will help us open a new business and economic door for Bangladesh,” Afser also said.
“Now we must look for new market, and open new business doors to address the impact of LDC gradation after 2026. LA-BCCI wants to bring all businesses and investors under an umbrella for the sake of economic development.”
“We will take a master plan to explore business opportunities in Latin America. We also think to hold mega exhibition there soon,” the LA-BCCI president also said.
He added that Bangladesh has a chance to export huge RMG products, pharmaceuticals, leather products, jute and jute goods items, and other foods to different counties in Latin America.
The BIDA Executive Member also said they had aimed to bring in FDI through the visit as Bangladesh is an investment-friendly country. And, the Commerce Ministry will work to expand trade market and the Foreign Ministry will take initiative to open the embassy.
“There are a huge number of football fans of Brazil and Argentina in Bangladesh. I think it is high time to strengthen our relations and expand business in both countries,” he said.
Investment summit in Europe from Feb 25
At first, the delegation will visit three countries-Netherlands, Luxemburg and Belgium. A summit titled “Bangladesh investment road show in the BENELUX-2023” will be jointly organized by Bangladesh Investment Development Authority (BIDA) and Dutch-Bangla Chamber of Commerce and Industry (DBCCI) from 25 February to 3 March 2023.
Led by Salman F Rahman, the representatives from the Ministry of Foreign Affairs, Commerce, Water, Power & Energy, Shipping, BIDA, PPPA, BEZA, BEPZA, Hi-Tech Park Authority, Securities & Exchange Commission, JDPC, Bangladesh Tanners Association, BFLLFEA and Bangladeshi and European businessmen will participate in the mega event.
Talking to The Business Post, Md Anwar Shawkat Afser, also president of the DBCCI said, “After the summit in the three countries in EU, the delegation will visit Latin America from March 4-8. Basically, we will arrange B2B (Business-to-business) meeting, and visit different factories in the three countries to gather experience, and enhance trade facilitation as well as attract foreign investment.”
He added that they have already signed a MoU with BIDA to make the programme in EU successful. “The objective of the event is to attract foreign direct investment (FDI), which may be a great opportunity for European businesspeople to invest in the sectors having potential in Bangladesh,” he said.
Afser expressed the hope that the show would help explore and promote Bangladeshi products and services in the Benelux region and promote business from the region to the emerging Bangladesh market.
“B2B and networking seminar in EU will be held on the sectors like, agriculture and agro food processing, finance and banking, finance & banking, blue economy and water resources, light and heavy engineering, export, ICT, equipment/plant for car, medical, petroleum, textile, jute, leather and leather goods,” he added.
