Chinese companies coming in droves

Chinese investors are coming in thick and fast with at least 20 companies contacting the power sector alone every week, said Nasrul Hamid, state minister for power, energy and mineral resources, yesterday.

Over the past five to six years China gathered vast experience on cheap, clean and renewable energy, something Bangladesh has been transitioning into, for which their companies are exploring investment opportunities here, he said.

Chinese investors are relocating their industrial and manufacturing units here mainly to address high production costs and shortages of skilled manpower, he told a seminar on China-Bangladesh Investment Facilitation at The Westin Dhaka.

PricewaterhouseCoopers (PwC) organised the seminar moderated by Mamun Rashid, managing partner of PwC Bangladesh, and attended by businesspeople, investors, bankers, trade analysts and government high-ups of both countries.

Of the investment from China, over 80 percent has been made in Bangladesh’s power sector, said Hamid. William Yuan, partner, Global China Business Network, PwC China, echoed this.

The US-China trade war has also helped, turning Bangladesh into an investment destination for Chinese firms, Yuan said.

Moreover, improved infrastructure, a wide consumer base and establishment of economic zones have created interest among Chinese investors, Yuan added.

Naser Ezaz Bijoy, CEO of Standard Chartered Bangladesh, said Bangladesh would require $3 trillion to become a developed country by 2041. It is possible to become such a big economy within the stipulated timeframe if the country can attract more foreign direct investment, he said.

Bijoy said Bangladesh needed to invest more in infrastructure and improve the stock market as its current contribution to the economy was 18 percent. He also advised issuance of sovereign bonds.

Abul Kalam Azad, chief coordinator for Sustainable Development Goals at the Prime Minister’s Office, urged Chinese investors avail incentives provided by the government.

Planning Minister MA Mannan unveiled a report of the PwC titled “Destination Bangladesh” with others at the seminar.

Francois de Maricourt, CEO of HSBC Bangladesh; Sushmita Basu, partner, tax and regulatory of PwC India; Sanjeev Krishan, deals leader of PwC India and PwC Bangladesh; Franklin (Liming) Zhai of PwC China; and Mahbub Uz Zaman, Bangladesh’s ambassador to China, also spoke.