Relations between Bangladesh and the UK are a study in friendship formed by a shared history and nurtured by emotional needs. It is therefore natural that Britain is concerned when democracy in Bangladesh is threatened and that for its development Bangladesh continues to receive substantial aid from the UK.

The Executive Times (ET): How would you describe the present investment     climate in Bangladesh? Duncan Norman (DC): It's pretty good.

ET: And what about UK's investments?

DC: UK is still one of the largest investors in Bangladesh with approximately £1.5 billion+investment projects to date. A lot of British companies are already doing business in Bangladesh and new businesses are coming from British Bangladesh community. Colleagues working in the UK trade & investment section within the high commission are seeing a renewed interest of UK companies in doing business in Bangladesh. In 2009, UK companies invested in the telecommunications sector, manufacturing, property development as well as tourism and leisure.

ET: Nevertheless, we are not being able to attract enough foreign investment. Why?

DC: Attracting any foreign investment is very competitive business and Bangladesh is having to compete with other markets in the region such as India, Malaysia, Vietnam, Thailand, China, Indonesia and the Philippines.

One of Bangladesh's strengths is its hard working entrepreneurial spirited workforce. The private sector has continued and will continue to be the main economic driver. That said, the right infrastructure is essential and many observers have commented that power is an important element in attracting FDI. We are hopeful because the Bangladesh government is trying to overcome the problem and the recent investment power road show in London was a success. There were over ninety delegates with leading UK companies in the  power sector present. Dr. Samad's appointment and vision at the board of  investment also encouraged us a lot. The BOI has a critical role in promoting Bangladesh as an FDI destination not only from its Headquarters in Dhaka but also via Bangladesh's Embassies and High Commissions around the world.

Bureaucracy is another problem which exists not only in Bangladesh but all over the world.  If it can be properly managed then a lot more investments can take place because Bangladesh has huge potential and with its young dynamic workforce Bangladesh enjoys a preference in the competition market as well.

Traffic is another drawback for the development. It hampered the economy and overall development in the structural activities. To overcome this problem the Bangladesh government has to think of new ways and improve the conditions of roads, highways and railways including the traffic management system. The recent activities of the government especially regarding dealing with the traffic situation are a step in the right direction.

ET: Turning to specifics, which sectors do you think can attract more foreign investment?

DC: There are many sectors and we are working with a number of UK companies across the board. Areas where there is potential                       include: energy/power, telecommunications ("Digital Bangladesh"), infrastructure (roads/bridges/railways), ports/logistics, manufacturing, development plus tourism and leisure.

The UK signed a promotion and protection of investments agreement with Bangladesh in August 1980, which is valid to this day.

ET: We are seeing UK's active involvement in helping boost investment in Bangladesh.

DC: The trade and investment relationship between Bangladesh and Britain is deep rooted and has grown steadily over the years. The latest export figures we have (Jan-Aug 2009) are very encouraging despite the global economic downtown. UK exports to Bangladesh were up 13% and Bangladesh exports to the UK reached £711.2 million, up 35%.

We have an active UK trade & investment section within the high commission. As mentioned earlier on we are seeing renewed interest in the market and in 2010 we are looking forward to welcoming a number of trade missions to Bangladesh plus we have extended an invitation to the minister of commerce [government of Bangladesh] to visit the UK and are delighted that he has accepted the invitation. Such initiatives, I believe will enhance our trade and investment relationship with Bangladesh.

In addition, DFID through their private sector development programme is assisting Bangladesh. UK aid, in this sector, focuses on

a)  Improving the general conditions for doing business.
b) Providing access to finance to a broader group of people, and
c) Improving the competitiveness of micro, small and medium enterprises.
And over the next five years, UK aid of £80 million will
l Create  600,000  jobs  directly, and many more indirectly
l   Help Bangladesh improve as a place for businesses to thrive by continuing to address regulatory and policy environment.
l  Help  strengthen the  micro-finance sector with regulation for deposit taking NGOs, product innovation and research and analysis.

l Help Bangladesh Bank automate some of its systems reducing the time it takes for organisations to apply for loans from 10 days to 1; reduce cheque processing time to less than 3 days countrywide and allow electronic fund transfer payments for banks and account holders.

DFID are also supporting an NRB programme with a view to expanding inward investment from the Diaspora.

ET: Nevertheless shortage of power and energy remains a deterrent to investment.

DC: Bangladesh is facing problems in the energy sector as it is developing rapidly. To solve this it should utilize its own natural resources whilst keeping the environment factors in consideration.

ET: Turning to a different issue, what do you think Bangladesh needs to do to cope with the climate change?

DC:  Climate change is a global issue and thus needs to be addressed globally.  Day by day the world temperature is increasing which will result in the increase in the sea level and countries like Bangladesh will be in danger. To help Bangladesh face the challenge of climate change we are now focusing on Adaptation by initiating activities like growing rice and shrimp in salty water and making houses above the water level.

ET: Your final words on our bilateral relations?

DC: The UK relationship with Bangladesh is both broad and deep; it has always been friendly. Trade & investment is an important aspect of our relationship and I see huge potential in 2010. The UK has a great deal of expertise and by working in partnership I am confident that our trade and investment relationship will grow still stronger.