Bangladesh
needs to improve its political situation to grab more investment from
abroad, said Johannes Matyassy, assistant state secretary of the Federal
Department of Foreign Affairs of Switzerland.
Political
stability is one of the main factors to attracting Swiss companies to
invest in the country, Matyassy told The Daily Star in an interview.
For
instance, Bangladesh passed a politically stable 2014 when trade
between the two countries grew more than 10 percent. “This shows the
importance of having a stable political situation,” he said.
It
is not the responsibility of Switzerland or any other country to give
advice on finding a solution to the crisis; Bangladesh will have to do
so, he said.
“What we can do is to show the advantages of
political stability, but to find a solution is the responsibility of the
country's political parties and society as well,” Matyassy said.
“Our experience shows that dialogue between all the political parties is probably a good way.”
The
country has strong potential in export and most companies here are
adopting high-end machinery and technologies, which is a good sign, he
said.
The
country has cheap labour, which is a big advantage, he said.
“Bangladesh has strong potential in solar energy. Some Swiss firms are
giving priority to Bangladesh.”
A total of nine big Swiss
companies have already invested in Bangladesh and around 100 companies
are doing business through their representatives. The Swiss companies
have investments in pharmaceuticals, chemicals, agro-food and
construction, he said.
Swiss small and medium enterprises are also gradually becoming interested in Bangladesh, he added.
Bangladesh
should address issues such as governance, energy supply, infrastructure
and legal protection to create a greater business friendly environment,
he said.
The country's main advantages are a huge market and
young workforce; it has a very important geographical location as well,
he said.
“We are interested in some issues, like regional
integration.” The country is part of South Asian Association for
Regional Cooperation, Bay of Bengal Initiative for Multi-Sectoral
Technical and Economic Cooperation, and Bangladesh–China–India–Myanmar
Forum for Regional Cooperation, he said.
“We also think it is important for Switzerland to connect to Bangladesh to make use of its regional integration.”
The
country has made good progress in ensuring factory safety after the
Rana Plaza building collapse and Tazreen Fashions fire, he said.
Trade
ties between the two countries are growing fast. “The bilateral trade
volume registered a significant year-on-year growth of 10.5 percent in
2014 to reach $481.43 million.”
Bangladesh has long been a priority for Switzerland in development cooperation, the official said.
The
Swiss Cooperation Strategy for Bangladesh for the period between 2013
and 2017 identifies some areas -- skills development, market development
and local governance -- where Switzerland will continue to support
Bangladesh, he said.
The annual Swiss grant contributions for
Bangladesh currently stand at around $35 million. Of all items imported
from Bangladesh last year, 95 percent were textiles and apparel
products.
Switzerland can become an important market for
Bangladesh's other emerging sectors, namely IT, leather, high-end
garments and ceramic products, he said. Switzerland primarily exports
chemicals, pharmaceutical products and industrial machinery to
Bangladesh.
However, Switzerland can also provide Bangladesh with
attractive hi-tech and clean-tech solutions, where Switzerland has
particular expertise, Matyassy said.
