At a seminar on trade and investment opportunities in Bangladesh, organised by the Board of Investment, panellists said the geographic advantages and close relationship between the two countries offered an opportunity for Thai businesses.

Bangladesh's Ambassador to Thailand Shahed Akhtar said Thailand and Bangladesh could be strategic partners in many businesses in Bangladesh because of different strengths.

Thailand has business-management technology, while Bangladesh has plenty of natural resources, very low labour costs and plenty of available workers.

Bangladesh's gross domestic product grew 6.7 per cent last year. The total population is about 150 million people, of whom only 10 to 15 per cent are in the high-income group. Labour costs are only about Bt1,200 per month.

"We need huge amounts of everything, especially consumer goods and infrastructure development," he said.

The ambassador added that his government offered many privileges for foreign investors, including a 20-per-cent tariff rebate on the export value. The country also provides six industries with free zones and there are two export promotion zones for foreign investors to export to third countries.

Mingpant Chaya, president of the Thai-Bangladesh Business Council (TBBC), said the soon-to-be-finished highway connecting Bangladesh and Thailand would increase trade and investment opportunities for both sides.

The 1,200-kilometre highway -

from Bangladesh's main trading

city Chittagong, through Burma, to

Mae Sod district in Chiang Rai - is expected to be completed next year.

Bangladesh has natural gas to supply its domestic industries. Thai investors should take advantage and start businesses there, Mingpant suggested.

Businesses that will receive a good response in the market include fabrics and textiles, shoes and leather, ceramics, automobiles and parts, machinery and the manufacture of consumer goods, he added.

Rachan Sachdev, chief executive officer of Turn Key Project Interior Design, which has many projects in Bangladesh, said investors in the country could save half their investment capital because of lower labour costs.

"Bangladesh is a land of opportunity. Not only does the major population require a huge amount of basic consumer goods, its high-income people also demand high-quality services and products from Thailand," he said.

During more than 10 years doing business in Bangladesh, the company's growth has increased by 40 per cent per year.

Asked about challenges in the market, Rachan advised businessmen to carefully screen for good partnerships.

Piya Chongvatana, president of Patkol, another business in Bangladesh, said Thai restaurants, spa services and Halal food industries should have a bright future. Thailand should use Bangladesh as a manufacturing base for Halal foods because of the many export privileges, he said.

As a least developing country, Bangladesh gains many privileges from 54 developed countries under the World Trade Organisation. It also receives generalised system of preferences status from the European Union, the United States, Canada and Japan.

Wirapan Piankusol, vice president of the TBBC, said Bangladesh had many advantages compared to China and India.

The country has lower labour costs

and easy regulations to facilitate Thai investors, she said, adding that less

competition in the market is another advantage.

Petchanet Pratruangkrai

 The Nation