Austrian Firms Eye Investment Opportunities in Bangladesh

At a seminar on November 26, 2024, experts highlighted major concerns of Japanese businesses investing in Bangladesh, with over 70% citing risks like underdeveloped legal systems, time-consuming tax procedures, political instability, and unclear government policies. According to the Japan External Trade Organisation (Jetro), 77.1% of businesses identified legal inefficiencies, while 74.7% highlighted administrative challenges.

The Executive Chairman of the Bangladesh Investment Development Authority (BIDA) has extended an open invitation to China-based manufacturers to invest in Bangladesh, highlighting the country's readiness to become a key destination for relocating or diversifying manufacturing operations.

Chinese businesses are considering relocating to Bangladesh to avoid US tariffs, according to Calvin Nyan, president of the Overseas Chinese Association. However, challenges like complex export-import procedures and political instability are hindering investment.

The equity market in Bangladesh has seen a surge in foreign investment since the political transition in August 2024. Foreign portfolio transactions on the Dhaka Stock Exchange rose to Tk 13.91 billion in July-September 2024, doubling the figure from the same period last year. Net portfolio investment by foreign investors also soared to $49 million in July-August FY25, compared to $3 million in the previous year.

Austrian companies are showing interest in investing in Bangladesh as part of efforts to enhance bilateral economic ties, according to Austria's non-resident ambassador, who visited Dhaka on November 18, 2024. During a meeting with the Chief Adviser, the envoy highlighted Austria's willingness to support Bangladesh's interim government in implementing sweeping reforms.