Chinese investors interested in PPP projects: diplomat
Poor infrastructure and low efficiency of the government agencies of Bangladesh are putting off Chinese investors, said a top Chinese diplomat.
But Chinese investors are interested in exploring opportunities in projects on a 'Build, Operate, Transfer' basis and public-private partnership projects, said Li Guangjun, the economic and commercial counsellor at the Chinese embassy in Dhaka.
Li's comments came in an event styled 'Eastern Bank Limited conclave 2018: A new era in China-Bangladesh strategic partnership', organised by the private bank at the capital's Westin on Thursday.
In the first quarter this year, China's investment in Bangladesh soared 46.8 percent year-on-year, he said, adding that Chinese investors are exploring opportunities to invest in several big power plants in the country.
“I am convinced that China would be a major source of FDI in Bangladesh.”
At present, Bangladesh is the top project contract market for Chinese companies in Asia and third largest after Australia and Nigeria.
China will work with Bangladesh to promote trade and investment liberalisation and facilitation, he said.
In the first quarter of 2018, bilateral trade volume amounts to $4.3 billion, up 20.1 percent year-on-year. But the balance of trade is heavily tilted in China's favour.
“China does not seek trade surpluses as trading goal -- China is willing to import more competitive goods from Bangladesh.”
He went on to state that a quota-free treatment for 97 percent of the goods from Bangladesh is on the cards. In addition, both sides will soon start a joint feasibility study of a China-Bangladesh free trade area.
“I am sure that with our full commitments and concerted efforts, the ship of China-Bangladesh cooperation will brave winds and waves and sail toward a bright new era,” he added.
Mir Nasir Hossain, a former president of the Federation of Bangladesh Chambers of Commerce and Industry and a director of EBL, urged the Chinese investors to relocate their factories to Bangladesh to cut down on production costs.
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