Padma Bridge to woo foreign investors

Foreign investors will be increasingly interested in considering Bangladesh as a better place for investment, with the Padma Bridge expanding connectivity both within the country and beyond and improving supply chains, said the Nordic Chamber of Commerce and Industry (NCCI) in Bangladesh. 

Padma Bridge is a transformative initiative implemented by the government with its own fund. Therefore, the government will not have to make any foreign currency payments or as debt service, said NCCI President Tahrin Aman.

"This is of immense importance, especially now, with the pressure of devaluing taka and of inflationary impact globally," he said in an email interview with The Daily Star.

The 6.51-kilometre bridge, which cost $3.6 billion, over the Padma river connects the southwestern region to the capital and the Asian Highway Network and Trans Asia Railway Network.

Foreign investors consider several factors such as ease of doing business, a level playing field, regulatory support and predictable policy climate

"This will drastically reduce lead time for transportation of goods, both ways, resulting in increased access to market (especially perishable and agricultural products)," said Aman.

Additionally, he said, access to the Mongla port would be a game changer in reduction of lead time for both import and export of goods once the port became fully functional in its operations and was operating at the optimal capacity.

"Keeping all these factors in mind, we can confidently argue that there will be an increased interest from the foreign investors to consider Bangladesh for their investment," Aman said.

More than 50 companies of the Nordic countries, mainly Denmark, Norway, Sweden and Finland, operate in Bangladesh.

Some of the major ones are Arla Foods, Dan Foods, Grameenphone, Nokia, Ericsson, Novo Nordisk, Maersk, DSV, Volvo, Scania and H&M.

The trade volume between Bangladesh and Nordic countries is close to $2 billion.

Nordic companies put special emphasis on green solutions. Given climate change is a reality, Bangladesh seeks more investment from these countries.

The NCCI said the Padma Bridge would have multi-layered benefits that would draw investors from home and abroad.

Foreign investors will consider several additional factors, including but not limited to the ease of doing business, a level playing field, regulatory support and predictable policy climate, Aman said.

He said it was pertinent that the Bangladesh government continues to strengthen its institutions and support business, while it was responsive to foreign investors and creates a congenial environment for regular discussions with all stakeholders that benefit overall trade and commerce.

"The government will now need to promote the south and southeastern region and incentivise investors to consider this region. In an economy like Bangladesh, trade and commerce will play a central part to reduce inequality and improve quality of life," he said.

"Much investment is desired to uplift the people and infrastructure of this region," he added.

The Nordic countries are at the forefront of climate action and sustainability. Solutions from the Nordic region will be instrumental in the development journey of Bangladesh that will be making the graduation from least developed country status to a middle-income country, he added.

Nordic companies will continue to grow in Bangladesh as they find Bangladesh to be a growing market. So, these companies can certainly have positive contributions in the development of the region, Aman said.

"However, regular dialogues are necessary to align policies to encourage and facilitate trade between the government and Nordic companies. The Nordic chamber is committed to provide such a platform, as it has done in the past years," he said.