Ease rules for investors: Korean envoy
Setting up of special economic zones and reforms of investment regimes are not enough to attract foreign investment to Bangladesh, said Lee Yun-young, outgoing Korean ambassador.
The Korean diplomat said an investor always compares the facilities provided in other destinations and they consider the attitude of the government, utility facilities, social conditions and infrastructures.
Of course, SEZs and reforms are necessary; but they are not enough to attract foreign direct investments, the news agency quoted the envoy as saying in an interview on Sunday.
For example, he said, Vietnam provides suitable lands with good connectivity free of cost and 10 years' tax free treatment.
"A package something like that should be here in Bangladesh. Bangladesh should consider it seriously."
The diplomat who is leaving Dhaka next week said Samsung Electronics of Korea may make a big investment in Bangladesh if it finds a suitable environment to invest which will benefit Bangladesh economically through employment generation.
"I'm sure they're looking for future investment. I guess Bangladesh is also among the prospective destinations," he said, adding that Samsung as a big investor thinks 5-10 years ahead of making investment decisions.
To know about the investment scenario in Bangladesh, Samsung is now in touch with successful Korean investors in Bangladesh and Kihak Sung, chairman of Youngone Corporation, he said.
Only one factory of Samsung Electronics in Vietnam exported $30 billion in 2014, the Korean Ambassador said apparently indicating that Bangladesh missed an opportunity to get investment from Samsung in the past.
"Unfinished business is, of course, KEPZ issue. I expect early settlement of the issue as it has become an international issue,” Lee said when asked about his unfinished tasks in his three years' tenure.
He said Bangladesh needs to improve its images with some success stories, and KEPZ could be the best case that can promote the image of Bangladesh and attract FDI.
The government plans to take back 2,000 acres of the 2,500 acres of land it had allocated for the KEPZ in 1999 on the ground of Youngone's failure to fully use the industrial land in the zone. Youngone, on the other hand, has complained of delays in executing the deed transfer of the land.
The discord bears the potential of sending a bad signal to the country's foreign investment climate, economists said.
"Please study Korean model and use it as a reference book to know how Korea has made achievements. That's my sincere message to Bangladeshi friends before my departure," the ambassador said.
He also mentioned that Bangladesh is the centre of South Asia having the geographical advantage. "You have to get a lesson on how to manage big and powerful neighbours and how to utilise the geographical advantage."
The Korean envoy said Bangladesh is not yet integrating into Asian value chain, and the Korean model can help Bangladesh move forward to be benefited economically by implementing the Vision 2021.
On Official Development Assistance (ODA), he said it has tripled during his tenure. "We're now in discussion with the Economic Relations Division on $300 million ODA for 2015-2017 period."
Since 2008, the duty- and quota-free facility for Bangladeshi products has extended, which has now reached 95 percent of all items, the Korean ambassador said.
With the facility, export from Bangladesh to Korea has grown almost three times over the last five years and garment exports have particularly grown by 69 percent a year.
But, the market share of Bangladesh's export is only 0.6 percent of the total Korean import of $520 billion, he said.
Bangladesh exported goods worth approximately $400 million while imported from Korea goods worth $1.3 billion in fiscal 2014-15.