UK firms keen to utilise large consumer base of Bangladesh

A number of big British companies are interested to invest in Bangladesh to benefit from the country’s large consumer base, said British High Commissioner Robert Chatterton Dickson.

“Since British companies are seriously looking to invest here, we are trying to help them,” Dickson told The Daily Star during a recent interview at his residence in Baridhara, Dhaka.

Some of the best British companies, such as Standard Chartered, Unilever, HSBC and British American Tobacco, have been operating in Bangladesh for years, mainly because of the vast consumer base.

Bangladesh’s current population stands at nearly 170 million with a per capita income of about $2,000, making it a market with good business potential for British companies.

“British companies could see the rapid economic growth, the population growth, and the consumer base. The middle-income class is coming up here,” he said.

The firms are interested to invest in finance, education, healthcare and other high-end services such as fintech, energy and catering.

Some British universities have expressed their interest to set up campuses in Bangladesh as they assume the country’s people can now afford quality education, he said.

The UK is a vital market for Bangladesh as it is the country’s second largest export destination in Europe after Germany, and the third largest overall after the US and Germany.

Bangladesh mainly ships $4 billion worth of textile, garments and vegetables a year to the UK and mostly imports machinery.

“I am very keen to start fresh negotiations with Bangladesh to make the country a better trading partner for the UK. Business between the two countries can only grow despite the Brexit,” said the British envoy.

Apart from business ties, the UK and Bangladesh have a historical relationship.

During the first-ever trade dialogue between the two countries on February 16, the UK reaffirmed its commitment to continue the Generalised System of Preferences (GSP) for Bangladesh after its graduation from the group of least-developed countries in 2026.

The UK, like the EU, will continue to provide the GSP for Bangladesh under the Everything But Arms (EBA) scheme.

The EU previously said that it would provide Bangladesh with the GSP facility up to 2027 to help the country address any post-graduation challenges.

Bangladesh has appealed to the World Trade Organisation and the United Nations for an extension of its GSP tenure with developed and developing countries beyond 2027.

Dickson said the issue could be discussed in future as the British government is currently working to extend its GSP facilities until 2027 following the UK’s departure from the European Union.

The envoy also highlighted some of the challenges Bangladesh faces in attracting foreign direct investment (FDI).

First, Bangladesh needs to improve its rank on the global Ease of Doing Business Index by removing the various barriers to trade and investment.

The perception about corruption also needs to be removed to attract more British FDI, he said.

In some cases, tax offices take arbitrary decisions about foreign companies. Many foreign investors and diplomats are also calling for further improvement in the law and order situation to attract more FDI, he added.

Both countries witnessed historic events that took place this year as Brexit took effect while Bangladesh made progress to secure its graduation from the club of LDCs.

So, changes in the trade regime took place on both ends. The UK is now independent in taking trade decisions, including those related to tariffs, as it severed its ties with the EU.

At the same time, Bangladesh is set to lose its preferential access to the UK market due to graduation in 2026.

But despite the changes to the business landscape in both countries, bilateral trade between the two will continue to grow, said Dickson, who has been serving as the British high commissioner in Dhaka since March 2019.

The diplomat lauded the Accord, an inspection and monitoring platform formed by major European retailers and brands to ensure compliance in the apparel industry, for its wonderful job in bringing safety to the sector following the collapse of the Rana Plaza building.

“However, Bangladesh still needs to do more in terms of workers’ rights and safety,” he said.

Apart from apparel, Bangladesh can export a wider range of goods to the UK such as bicycles, frozen food, and pharmaceuticals.

He also praised the improvement in security at the Hazrat Shahjalal International Airport in Dhaka compared to a few years ago as the government has addressed several issues, particularly in the cargo village areas.