Bangladesh has made remarkable strides in economic growth, becoming one of the region's fastest expanding economies. Despite this growth, Foreign Direct Investment (FDI) remains low compared to regional peers, amounting to only 0.75% of GDP (UNCTAD, 2023). FDI can be a strong asset, stimulating economic expansion, generating employment opportunities, and promoting technological progress.
The path to attracting additional FDI need to extend beyond economic incentives. It requires fostering an investment environment that promotes decent working conditions for all.
First, good governance and robust labour laws are crucial. Alignment with international labour standards (ILS), safeguarding fundamental principles and rights at work, and promoting improved dispute resolution and effective labour inspections and inclusive social dialogue is required. Improved social protection coverage, will reduce risks, and provide stability for investors.
Second, improving the quality and availability of human capital is essential. A skilled labour force empowered through predictable wage setting system boosts productivity and forms a sizeable consumer base, further supporting economic growth.
Third, investors with ESG mandates seek commitments to environmental protection and social responsibility, with labour rights at the core. By fostering an enabling environment for responsible business conduct through national policies on Human Rights Due Diligence (HRDD) and establishing a focal point system for the ILO's Multinational Enterprises (MNE) Declaration-Bangladesh can meet international investor expectations and enhance its reputation as a trustworthy investment destination.
As a bridge between foreign investors and Bangladesh, FICCI is uniquely positioned to advocate for responsible investment practices that prioritize decent work and social justice. I look forward to exploring collaboration between the ILO and FICCI to advance these objectives.
