Businessmen and entrepreneurs of Chittagong are optimistic about the speech given by Prime Minister Tarique Rahman on industrialization, investment and employment during his visit to Chittagong. They especially see the plan to establish industries from Mirsarai to Matarbari, Chinese investment in Chittagong and increase economic activities by utilizing marine resources as positive. At the same time, industrialists of Chittagong also expressed their concerns. They expressed concerns about the ongoing electricity and gas crisis in Chittagong, container congestion at the port, time and cost of unloading goods, development of communication system and investment-friendly environment.
Speaking at a rehabilitation program for flood victims in Banshkhali, Chittagong on Sunday, the Prime Minister said the government has plans to create employment and business opportunities by setting up various industries from Mirsarai to Matarbari. She also announced plans to bring in Chinese investment to develop Chittagong as an economic hub during her recent visit to China.
Business leaders are seeing the Prime Minister’s statement as a positive message for the economy of Chittagong. According to them, if the potential for industrialization being talked about in the country’s main port city is implemented, it will have a positive impact not only on Chittagong but also on the economy of the entire country.
Chittagong Chamber of Commerce President Amirul Haque said that Chittagong has always played an important role in the prosperity of the country’s economy. The businessmen are optimistic about the outline that Tarique Rahman has given around this important city. There is a sea all over Chittagong. The Prime Minister’s plan regarding the vast waters and resources of the sea can open new possibilities in the economy of Chittagong and the entire country. As a result, besides attracting new investments, the country’s trade will expand further. Businessmen hope that the government will take initiatives to implement these plans soon.
Demand for energy security before industrialization
One of the main expectations of businessmen is uninterrupted gas and electricity supply. There are complaints that production is disrupted in many industries and factories in Chittagong due to reduced gas pressure, fluctuations in electricity supply and energy shortage. Entrepreneurs believe that ensuring uninterrupted energy supply is essential to establish new industries and also to keep the production of existing industries normal.
According to industrialists, to attract large investments, they must first ensure that their factories can continue production regularly and without interruption. If there is uncertainty in energy supply, not only large investments but also small and medium entrepreneurs will suffer.
On July 8, the Chittagong Chamber of Commerce and Industry (CCCI) sent two separate letters to the government’s Minister for Power, Energy and Mineral Resources Iqbal Hassan Mahmud and Minister for Finance and Planning Amir Khasru Mahmud Chowdhury. In them, the businessmen demanded special concessions for industrialists on gas and electricity issues.
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Chittagong Chamber President Amirul Haque mentioned in the letter that due to the long-standing power and gas supply problems in the country, the production of small, medium and large industries including ready-made garments, textiles, plastics has been severely affected. Due to lack of sufficient fuel, many factories have already closed or have been forced to announce unwritten ‘lay-offs’.
Amirul Haque said, “The government is working on the issue of our letter. We hope it will be resolved soon.” The Prime Minister also announced plans to ensure electricity and gas supply according to the needs of the country’s industry, trade and people.
Participation of local entrepreneurs is essential
The Prime Minister has announced plans to set up hundreds of mills and factories with Chinese investment in Chittagong. Entrepreneurs believe that if this initiative is implemented, it could increase employment and export earnings, as well as create new opportunities for local businessmen. However, they demand that investment opportunities should be provided to local entrepreneurs as well as foreign investors. If partnerships are created between local industrial establishments and foreign companies in the supply, raw material, transportation and service sectors, the benefits will be broader.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Director Rakibul Alam Chowdhury said, the participation of foreign entrepreneurs is good for the country’s business; but it should not be at the expense of local businessmen. If foreign and local small and medium entrepreneurs can work together, the country’s economy will move forward quickly. If local businessmen are lost, foreign investment will not do much good for the country’s economy. I hope the new government will work together with small and medium entrepreneurs.
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Emphasis on ensuring a business-friendly environment
In her speech, the Prime Minister emphasized the importance of maintaining peace and order in the country for investment and industrialization. Businessmen also believe that for investment, it is important to reduce administrative complexity and ensure a business-friendly environment, along with political and social stability.
According to business leaders, it takes 8 to 10 days for customs to complete the assessment; but customs starts charging demurrage charges after four days. As a result, traders have to pay fines from the fifth day onwards. Due to delayed clearance, importers’ capital is stuck, the supply of raw materials and essential goods is disrupted, and valuable goods are destroyed in the port yard.
According to the BGMEA director, the National Board of Revenue (NBR), Bangladesh Investment Development Authority (BIDA), Bangladesh Export Processing Zones Authority (BEPZA) and Bangladesh Economic Zones Authority (BEZA) need to work in a coordinated manner. These are the main government institutions for increasing investment and industrialization in the country. If time is wasted in file movement here, the entire business sector faces losses. According to entrepreneurs, policy consistency, speedy approvals, land and utility facilities and assurance of law and order situation are important to increase investor confidence.
Businessmen said that increasing industrialization and investment will increase the pressure on Chittagong Port. Therefore, they called for emphasis on increasing the port’s capacity, reducing the time for unloading goods, eliminating customs complications, and improving road and rail connectivity.
Meanwhile, if new industries are established in Mirsarai and Matarbari, a large part of the raw material imports and manufactured goods exports of these industries will use Chittagong Port. Therefore, they demand that the work of increasing the port’s capacity be taken forward along with new investments.
According to businessmen, if the time and cost of unloading goods at the port can be reduced, it is possible to develop Chittagong as a competitive trade hub in South Asia.
