Fight against graft to boost investment: Swedish envoy

Fight against corruption will contribute to an investment-friendly atmosphere, Swedish Ambassador in Dhaka Borje Mattsson said yesterday.

"When Bangladesh is being listed as most corrupt country by a reputed NGO, there is all probability of repercussions on invest here irrespective of the fact whether the accusation is factually correct or not," he added.

Building image is an important factor for Bangladesh. The perception of the people who intend to do business outside their home country is what matters, the Swedish ambassador said while speaking as guest of honour at the monthly luncheon meeting of Foreign Investors' Chamber of Commerce & Industry (FICCI) at Sonargaon Hotel in Dhaka.

"People abroad are fed more news about floods and deteriorating law and order than news on positive developments in Bangladesh," the ambassador said.

He said Bangladesh has not been able to attract foreign direct investment (FDI) on any significant scale. The government must make sure that the business-environment is conducive to investments and production, he felt.

"There is a room for more pro-investment activities from responsible authorities. To stay in the race for FDIs, Bangladesh have to develop competitiveness for its products further."

Simple, transparent rules and regulations, an efficient bureaucracy, developed infrastructure, and a good law and order situation are the factors that matter a lot, he said.

Mattsson said Bangladesh garment manufacturers have established themselves firmly as reliable suppliers to the Swedish market. "So I am personally not so worried about the post 2005 scenario even though Bangladesh will have to face stiffer competition from other countries."

Trade volume increased by more than 700 per cent during nineties. Trade relations in the future should be broader based and not dependent on just one sector, he said.

In 2002, exports from Bangladesh to Sweden amounted to about US$125 to US$150 million while exports from Sweden amounted to about $40 million. Almost all exports from Bangladesh to Sweden consist of readymade garments, he added.

There are a number of state-of-the-art industries in Bangladesh that are virtually unknown to Swedish businessmen, he said, adding that ceramic and pharmaceutical sectors made a deep impression on him. There are also other sectors like leather and IT and software that carry promises for the future, the envoy mentioned.

In his speech, FICCI President Wali Bhuiyan said the emerging external atmosphere is bound to have impact on the weaker economies.

In view of globalisation and steep decline in the flow of official development assistance (ODA), countries like Bangladesh need enhanced FDI for achieving their development objectives, he added.