FBCCI, HSBC to work together to diversify export products

The Hongkong and Shanghai Banking Corporation
Limited (HSBC) in partnership with the Federation of Bangladesh Chambers of
Commerce and Industry (FBCCI) has commissioned a study on the UK-Bangladesh
market to be conducted by the Ernst & Young and Quay Asia.

The study aims to improve bilateral trade and investment between Bangladesh
and the United Kingdom (UK). The study will explore the ambitious growth
agenda that showcases areas of cooperation between the two countries and was
launched in an event titled ‘Bangladesh-UK Business Corridor: Legacy and the
Future’.

The event not only celebrated the longstanding relationship between the UK
and Bangladesh but also highlighted the important ways in which both
countries can unlock potential market opportunities, said a press release.

Senior government officials, chamber and trade association representatives,
business leaders, dignitaries and members of the media were present at the
event.

Commerce Minister Tipu Munshi, FBCCI president Md Jashim Uddin, Chief of
staff, HSBC Asia Pacific, Philip Fellowes and CEO HSBC Bangladesh Md Mahbub
Ur Rahman shared their valuable insights on the occasion. Saida Muna Tasneem,
Bangladesh High Commissioner to the United Kingdom also attended the event
and spoke over Zoom.

As a part of the event, a panel discussion titled ‘Unlocking new
opportunities for Bangladesh and UK’ was moderated by Mamun Rashid, country
clients and market lead, PwC Bangladesh, and participated by Phillip
Choudhury, director, Quay Asia, Shahul Sally, associate director, Next
Sourcing Limited and Ifty Islam, chairman, Asian Tiger Capital.

Speaking on the occasion as the chief guest, Tipu Munshi said, “We were able
to grow trade with the United Kingdom with our contemporary export policies
and bilateral relations; this relation will only grow in the coming days with
the agreements in place with the UK. I thank HSBC and FBCCI for supporting
this market study which will undoubtedly open opportunities for further trade
and investment growth.”

FBCCI president Jashim said, “The UK and Bangladesh share an excellent bond
with a strong people-to-people connection. While Bangladesh considers the UK
as an important export destination, the trade relationship is currently
concentrated on a few specific items,”

He said policymakers and business leaders from both countries should
collaborate in a focused manner to improve and diversify this trade
relationship. “This study will serve as a stepping stone towards further
developing trade, investment, and economic relations,”

The FBCCI President said that the two-way trade stands at $ 5.46 billion
while the export in the fiscal year 2021-22 was $4.83 billion against the
import of $ 0.63 billion. “Our export to the UK is concentrated on a few
items like knitwear, woven garments, frozen fish, clothing, and textile. We
need to diversify our export items,”

Jashim said that Bangladesh’s economy has witnessed remarkable progress in
recent years, driven by key sectors including garments and textiles,
pharmaceuticals, IT and software services, agriculture, etc. “By leveraging
our demographic dividend, technological advancements, and policy reforms, we
have created an enabling environment for businesses to thrive.”

Md Mahbub Ur Rahman highlighted the historic importance of UK-Bangladesh
business ties and HSBC’s capability to support trade between both countries
which has reached into new levels.

He said the United Kingdom is the second largest foreign investor and third
largest export destination for Bangladesh. “This study shall enable us to
scope out the avenues of opportunities in our respective trade and investment
ecosystem. Through this collective endeavor we can leverage those
opportunities across both our countries, forging a path towards a prosperous
future.”

The UK solidified its position as the leading investor in Bangladesh in 2022,
attracting the highest inflow of Foreign Direct Investment (FDI) and ranking
second in terms of FDI stock.

Notably, investments were concentrated in key sectors such as textiles &
weaving, power, banking, and food supply. With over 240 UK companies already
invested in Bangladesh, there is a growing interest among UK businesses to
tap into the country’s vibrant domestic demand.

This dynamic relationship creates a symbiotic synergy, where Bangladesh can
benefit from the UK’s expertise in service-based industries. As the
partnership between the UK and Bangladesh strengthens, both nations stand to
unlock new opportunities for growth, capitalizing on their respective
strengths and fostering success. (BSS)