China's help sought for deep-sea port, road link

Prime Minister Sheikh Hasina and Chinese President Hu Jintao shake hands at the Great Hall in Beijing yesterday. Photo: AFPUnb, Beijing

Prime Minister Sheikh Hasina yesterday sought Chinese cooperation to construct a deep-sea port in Chittagong and establish road link between Chittagong and Kunming.

“China can be benefited by using the deep seaport while all neighbouring countries also can use it,” Hasina said as a key speaker at the Bangladesh-China Business Forum and Luncheon Reception at State Guest House Diaouthai.

The PM invited Chinese investors to put money in Bangladesh's promising sectors like textiles, small machineries, fertilisers, footwear and ceramics.

She also encouraged investment in IT outsourcing, tourism, healthcare, education, power, telecommunications, infrastructure development, gas and energy, agro-based industries and pharmaceuticals.

“I would urge you to invest in Bangladesh which would be lucrative as well as strengthen further our two countries' relation,” Hasina said.

She expected bilateral trade between Dhaka and Beijing would increase to $5 billion in 2010 from $4.58 billion in 2009.

The China Council for Promotion of International Trade and Bangladesh Embassy in Beijing jointly arranged the reception.

The PM stressed on “energetic” efforts from both Bangladesh and China for increasing exports from Dhaka to Chinese markets in a bid to reduce the huge trade gap.

Hasina said though Bangladesh is now China's third biggest trading partner in South Asia, currently, the trade balance is hugely in favour of China.

“I, therefore, invite you to Bangladesh with the assurance of all possible assistance in your investment ventures,” she said.

“I hope my call to you would receive your favourable response and thus bring greater prosperity to our neighbourly countries and friendly peoples,” she added.

The Bangladesh premier said scope also exists for joint ventures with buy back arrangements for exports to Europe, and for equity participation in private sector.

To facilitate bilateral trade and commerce, she said Bangladesh is agreeable to open multi-designations and multi-destinations arrangement for the two airlines.

Replying to a question, Hasina informed the Chinese business leaders that her government is promoting public-private partnership for maximum flourishing of economy, trade and commerce.

“Bangladesh will be happy if Chinese entrepreneurs come forward and utilise the scopes of public-private partnership by making investment in Bangladesh,” she said.

Hasina informed the Chinese entrepreneurs about the facilities and incentives being offered by Bangladesh for attracting foreign investments.

She said Bangladesh offers immense investment potentials with high return for investors. The investment climate has been made attractive with liberal and fiscal financial policies.

She mentioned about tax holiday, concessionary duty on imported machinery, avoidance of double taxation, remittance of royalty, technical know how, technical assistance fee, allowing 100% foreign equity, unrestricted exit policy and full repatriation facilities of dividend and capital on exit.

Moreover, the PM said added attractions for foreign investment are the market of $150 million, labour at competitive cost, presence of home grown entrepreneurs class, existence of a strong legal regime and GSP facilities in Europe and North America.

In reply to power crisis in Bangladesh, Hasina assured the Chinese investors of uninterrupted power supply for production.

She said already investors have been urged to invest in power sector and her government is taking measures for gas exploration.

The government is also considering to increase power generation through setting up coal-based power plant, she added.

Hasina told the Chinese entrepreneurs that measures are being taken to generate power through hydroelectricity, wind power plant and solar energy panel.

She said to facilitate Chinese investment in Bangladesh, China has already signed Agreement on Investment Promotion and Protection and Agreement for Avoidance of Double Taxation.

As on January 2010, 186 Chinese investment proposals worth $320 million have been registered with the Board of Investment.

The Bangladesh premier said at present, 55 Chinese enterprises with proposed investment of $292 million has been invested creating job for over 45,000 Bangladeshis.

Hasina described China as an economic power to be reckoned with saying that it has solidly weathered the recent worldwide recession, and also helped the world pull out of the crisis.

To encourage imports from Bangladesh, on July 2006, China declared zero tariff access for 84 Bangladeshi items, and preferential access under Asia-Pacific Trade Agreement, Hasina noted.

At the function, the prime minister was presented with books and portrait of Bangabandhu Sheikh Mujibur Rahman.

Director of the Chinese Council for International Trade Zhang Wei also spoke at the meeting.

Foreign Minister Dipu Moni, Industries Minister Dilip Barua and Communication Minister Syed Abul Hossain, among others were present.