South Korea’s Ambassador to Bangladesh, Park Young-sik, has rightly spotlighted the pressing need for reform in customs procedures and the visa regime to attract greater foreign direct investment (FDI).
His remarks at the recent seminar on Korea-Bangladesh Economic Cooperation, hosted by the Foreign Investors’ Chamber of Commerce and Industry (FICCI), ring particularly true as Bangladesh prepares to graduate from its status as a Least Developed Country (LDC) in 2026.
Despite notable progress — tripling its per capita income in a decade and expanding its industrial base — Bangladesh remains a laggard in attracting foreign direct investment (FDI).
With an FDI-to-GDP ratio of just 0.75 per cent, compared to Vietnam’s 4.7 per cent and India’s 1.7 per cent, it is clear that the country is punching below its potential. The reasons are not hard to find: a cumbersome and inconsistent customs clearance process, burdensome visa renewal requirements, and high tariff barriers that dissuade foreign investors from making long-term commitments.
Ambassador Park’s call for Bangladesh to transition from a protected, tariff-heavy economic structure to one that is more open and competitive must be taken seriously.
Protectionism has long shielded inefficient industries and inflated production costs, discouraging foreign firms that might otherwise contribute technology, skills, and innovation, critical drivers for post-LDC growth.
The fact that foreign investors must renew visas every three months is both impractical and unwelcoming. It sends the wrong message to those willing to invest capital and expertise in the country’s future. Equally concerning is the bureaucratic inertia at customs, where inconsistent processes and delays result in higher costs and loss of business confidence.
With negotiations for a Korea-Bangladesh Economic Partnership Agreement (EPA) underway, Bangladesh has a valuable opportunity to not only deepen its ties with South Korea but also set a precedent for broader economic reform. The proposed EPA could become a “motor engine” for bilateral growth if accompanied by tangible improvements in the ease of doing business.
To unlock the full potential of FDI, the government must prioritise policy clarity, streamline customs and visa procedures, and foster an investment climate that rewards efficiency, not red tape. Without such reforms, the promise of economic transformation may remain unfulfilled.
Bangladesh must now rise to the occasion — not just to attract capital, but to earn the confidence of the global business community.
