European firms seek changes in BB rules for investment in shipbuilding

http://www.thefinancialexpress-bd.com/2009/11/06/83561.html

European firms seek changes in BB rules for investment in shipbuilding

FE Report

Bangladesh Bank must fine-tune its foreign investment regulations to woo large-scale investment in the country’s fast-booming shipbuilding sector, a high level European trade delegation said in the city Thursday.

The European Bangladesh Federation (EBF) made the observation at a roundtable with local entrepreneurs while expressing their eagerness to invest hugely in the country’s shipbuilding sector.

“Shipbuilding in particular is a highly potential industry in Bangladesh and this is a segment which the investors from Netherlands are keen to explore,” President of European Bangladesh Federation of Commerce and Industry (EBF) Jan Frederik Oldenhuizing said.

“However, the major prerequisites in facilitating investment in the sector are

reforms in the central bank regulations and elevating the country’s overseas image”, Oldenhuizing, who is also is the President of Bangladesh-Dutch Chamber of Commerce, added.

The Bangladesh Enterprise Institute (BEI) and Asian Tiger Capital Partners (AT Capital) jointly organized the meeting.

The event was part of a project initiated by BEI and AT Capital on “Establishment of an Effective Bangladeshi Diaspora Network for Economic Transformation of Bangladesh”.

The European delegation in the meeting said vessel making industry could emerge as the next big sector in Bangladesh as the country is criss-crossed with scores of big rivers and has bounty of cheap labour.

But the country must get rid of the policy and investment bottlenecks standing on the way to increasing European investment in the sector, they said, urging quick steps in this regard.

At the same time, the delegation also called for effective efforts for improving Bangladesh’ s image abroad, as the country is very often portrayed as politically unstable.

Earlier speakers in the meeting, focused on the advantages as well as challenges of investing in Bangladesh.

Partner of AT Capital Minhaz Zia who made a presentation on the investment opportunities in Bangladesh, highlighted the country’s competitive advantages including strategic location, cheap labour and demographic dividends.

President of BEI Farooq Sobhan in his speech stressed the need for skill enhancement and human resource development through transfer of technical skills from Europe.

Addressing on the occasion, Mr. Salahuddin Kasem Khan, MD, AK Khan Group, President of Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI), identified scopes for investment into logistics of ready-made garment sector.

Delegates from EBF in various sectors such as construction, investments, shipbuilding, design and engineering, finance, project consultancy and business development took part in the discussion.

Posted in Economic and National Policy/Taxation, Shipbuilding/Maritime Sector