Governance reform vital for investment

Bangladesh must strengthen its institutions, oversight mechanisms and governance to attract both foreign and domestic investment, create meaningful jobs for its young population and sustain economic growth, European Union (EU) Ambassador to Bangladesh Michael Miller has said.

“If this country is to attract investment, both foreign and domestic, and to create meaningful jobs for its youth, it will require strong institutions and oversight mechanisms,” Miller said.

Speaking at the Bay of Bengal Conversation in Dhaka on Sunday, he said predictable and inclusive decision-making, independent oversight and political consensus would be crucial for Bangladesh as it navigates economic and political transition and prepares to graduate from the least developed country (LDC) category.

“It will need to carry through the important work launched, but not yet concluded on constitutional reform, which in turn requires effort to promote greater consensus in politics,” he said.

Miller also stressed the need to protect critical infrastructure and ensure transparent data management, describing both as fundamental to Bangladesh’s long-term national interests.

“These issues are central. They are not peripheral,” he said.
The EU ambassador described Bangladesh as “one of the world’s most dynamic economies”, saying it had the potential to become one of the world’s top 30 economies by 2030.

He said the country was of growing strategic importance to the EU because of its economic potential, geographical position and role in South Asia, the Bay of Bengal and the wider Indo-Pacific.

“Against this background, we are looking at Bangladesh as a partner of growing strategic importance,” he said.

Miller said the EU was ready to deepen economic engagement with Bangladesh, moving beyond the traditional donor-recipient relationship towards a broader partnership based on trade, investment, technology and shared interests.

The EU is working with Bangladesh to support a smooth LDC graduation while exploring the possibility of a future free trade agreement (FTA), he said.

“The offer on the table is a first of its kind for the European Union with a country that has yet to graduate,” Miller said.

“The key message is, we are ready to match the level of speed and ambition demonstrated by Bangladesh,” he added.

He stressed that any future agreement would need to be balanced, reciprocal and mutually beneficial, with a level playing field for businesses on both sides.

“Think level playing field, please. For our businesses,” he said, citing the EU’s FTAs with India and Vietnam as reference points.

Miller said accountable institutions, the rule of law, respect for labour and human rights, environmental protection and good governance would be essential to the success of such an agreement.

He said these should be viewed not simply as conditions for economic cooperation but as necessary elements of Bangladesh’s own development.

The EU’s Everything But Arms (EBA) scheme, which provides Bangladesh with duty-free and quota-free access to the European market for most products, had “helped underpin Bangladesh’s remarkable development progress and pulled women out of poverty”, Miller said.

With LDC graduation approaching, the EU is seeking “a different level of ambition” in its relationship with Bangladesh.

Miller said European support could extend beyond trade and investment to public administration reform, drawing on Europe’s experience of political and economic transition.

He cited the Laldia Container Terminal in Chattogram and green bonds as examples of areas where European investment and expertise could support Bangladesh’s economic modernisation.

He also highlighted the need for a skilled workforce, green growth, export diversification and reliable infrastructure to improve competitiveness.

“We bring this offer to the table, to help this country, to help Bangladesh navigate competition, modernise, and remain open, soft, resilient, and connected,” he said.

Miller said the EU’s approach was to combine investment with technology, standards, long-term capital and innovation while ensuring transparency and sustainability.

He also highlighted the Global Gateway initiative, which supports smart, clean and secure connectivity through infrastructure and development partnerships.

Turning to the global environment, Miller said geopolitical rivalry, economic fragmentation, climate change and technological disruption had made international relations increasingly difficult.

“The international environment has become exponentially more difficult, competitive, and uncertain,” he said, pointing to pressure on multilateral institutions and declining trust in the international rules-based system.

He said the EU was strengthening its strategic autonomy through investment in defence, industrial capacity, energy security, digital systems and resilient supply chains.
Strategic autonomy, however, did not mean isolation.

“On the contrary, the European Union’s response is to remain open, but not naive, engaged, but not dependent, cooperative and pragmatic,” he said.

Miller reaffirmed the EU’s commitment to international law, the UN Charter, fair and rules-based trade, human rights, democratic accountability and multilateralism.

“We seek partnerships anchored in mutual interest, respect, fairness, and a level playing field,” he said.

He said the EU’s offer to Bangladesh included rules-based trade, sustainable investment, institutional development, climate cooperation, digital transformation and human development.

“We offer investment linked to standards, rights, transparency, and sustainability. We offer expertise that helps build accountable institutions and strengthens resilience,” Miller said.