China’s loss may become Bangladesh’s gain: Dhaka to simplify FDI policy to lure global manufacturers

The coronavirus outbreak is a global crisis. It is a major health challenge for Bangladesh too but, it is also an opportunity. A chance for Bangladesh to wean businesses away from China and bring them home. In fact, foreign businesses based in China want to move out. They are looking at India and Bangladesh as their new home. 

In an attempt to lure companies seeking to move their manufacturing base from China, Bangladesh is looking at simplifying its foreign direct investment (FDI) policy as well as the corporate taxation system.

According to reports, the Bangladesh government has already formed a committee to make the necessary recommendations for a simplified FDI policy and taxation system.

The coronavirus outbreak has exposed how lopsided the global supply chains really are. Companies want to reduce their dependence on China now and India and Bangladesh are emerging as a viable option.

Despite the negative impact of deadly coronavirus all over the world, Bangladesh is maintaining a positive economic growth rate when compared to other economies.

Bangladesh’s GDP will increase by 3.8% in 2020-21, according to projections from the International Monetary Fund.

Bangladesh has been doing remarkably steadily and quite well in terms of macroeconomic performance. It did not have any balance of payment shocks in the last 20-30 years.

(With inputs from agencies)