High land prices deter Chinese investors: envoy

High land prices, unavailability of adequate land and ransom by locals are the major factors driving away keen Chinese investors from Bangladesh, said Ma Mingqiang, ambassador of China, yesterday.

“We see huge opportunities for investment in Bangladesh but many difficulties as well,” he said at the monthly meeting of the Foreign Investors' Chamber of Commerce and Industry, held at the Westin hotel in Dhaka.

The country should improve the investment climate and remove the barriers confronting foreign investors, he said, adding that China is mainly interested in Bangladesh's infrastructure and export-oriented manufacturing sectors.

Regardless, China set to become the top foreign investor in Bangladesh after its purchased of American oil company Chevron's shares, he said.

Bangladesh's low labour cost is the main attraction for foreign investors. “But in Africa, the labour cost is much lower. So, it is time to make the country competitive by improving the investment environment. Otherwise, investors will shift to other markets.”

The country is growing very fast but inadequate infrastructure and shortage of power are holding it back, said Mingqiang, who has been in the country since 2015.

Many foreign investors are running their businesses using captive power because of frequent power cuts, which pushes up their cost of doing business, according to the Chinese ambassador.

The high import duty on raw materials is another obstacle.

The diplomat also touched upon the wide trade gap between the two countries.

Subsequently, he called upon the Bangladeshi businesspeople to bump up their exports to China such that the trade gap is narrowed and the business growth between the two countries becomes sustainable.

In fiscal 2015-16, China's exports to Bangladesh stood at $10 billion and its imports from the country $808 million.

He recommended the Bangladeshi exporters to consider food and fruit shipments to China.

FICCI President Rupali Chowdhury said there is no significant private investment from China to Bangladesh at present.

She called upon the Chinese investors to exploit the investment opportunities in Bangladesh and come forward with large sums.

She went on to assure Mingqiang that the local business community would pursue the government to remove the barriers the foreign investors are facing.