Switzerland and Bangladesh established diplomatic relations in 1972. Since then, bilateral relations have evolved from purely humanitarian assistance to international cooperation and now to diplomatic and economic cooperation.
Switzerland Ambassador to Bangladesh Reto Renggli shared very important aspects between the two countries in a conversation with Textile Focus.
Swiss investments in Bangladesh are mainly concentrated in the following sectors: chemicals, pharmaceuticals, construction, technical services and fast moving consumer goods. Almost all major Swiss multinational companies are present in Bangladesh.
Read the full conversation-
Textile Focus How do you see the economic growth of Bangladesh especially in the textile sector?
Reto Renggli: Bangladesh has had sustained economic growth over the last decades and the contribution of the ready-made garment industry, including the textile sector, to the economy is remarkable. The RMG sector is not only a strong pillar of the local economy, creating millions of jobs, but it has also made the country a leading global hub for garment production.
Recently, I visited a Bangladeshi garment factory on the outskirts of Dhaka, which produces high quality outerwear for many leading Swiss brands and has commendable sustainability goals. My personal impression is that the garment sector still has room to grow in terms of both volume and value. What I would like to emphasize is that the success of the garment and textile industries demonstrates the capability of the economy in acquiring and scaling up manufacturing capacity and the potential for replicating this model in other industrial sectors with the right policies and technological support.
Textile Focus: How Swiss technology and solution helps our country specially in the Textile Sector?
Reto Renggli Thank you for this question. As you may know, the private sector and manufacturing industry in Switzerland are driven by research and development, innovation and advanced technology. As a result, Swiss companies have a lot to offer in the Bangladeshi manufacturing sector and, here, the textile industry is a great example. Swiss textile machinery manufacturers are already among the leading technology providers in Bangladesh in the textile segment. Switzerland’s main exports to Bangladesh include machinery and industrial raw materials. Swiss commodity companies have an important role in the RMG industry in Bangladesh.
As the country’s economy and the apparel industry in particular endeavour to diversify their portfolios, adopt high-tech solutions for increased efficiency and productivity and address sustainability issues, there is strong potential for even closer cooperation between the private sectors of the two countries.
Textile Focus: According to a study, Bangladesh has an additional export potential of $22.5 bn for non RMG export to the EU market, how can Switzerland help to boost non apparel export?
Reto Renggli: Since my arrival in this country two years ago, I have consistently spoken about the economic potential I see in this country. However, having potential is one thing, but realizing it is another challenge. For Bangladesh to move further up the production value chain in sectors where it already has a strong foothold, such as the garments sector, and to explore new industries, it will need innovative solutions, technical know-how and technology partners. In this regard, the Swiss private sector, with its forte in innovation and technological excellence, is well positioned to partner with Bangladesh.
Another point I would like to highlight is that Bangladesh is currently on the verge of graduating from the LDC category, and going forward, the country will need to transform its economy to seize opportunities and address new challenges. In my opinion, the LDC graduation presents Bangladesh with a unique opportunity to effectively position itself for the next level of economic development. More FDI and the introduction of new technology can fast-track this transformation and enable Bangladesh to tap into emerging opportunities such as expanding exports beyond the ready-made garment sector that you have just mentioned. It will be important to ensure improved economic framework conditions, good economic governance and a level playing field for all economic actors to attract FDI.
Textile Focus: What are the challenges in bi-lateral trade?
Reto Renggli: Promoting bilateral trade and investment cooperation is a priority for me and my team at the embassy. Switzerland has robust economic ties with Bangladesh. Almost all key Swiss multinational companies have substantial footprints in Bangladesh. They offer best-in-class, quality and advanced products, innovative technologies and essential services to the Bangladeshi market.
That said, for Swiss Small and Medium Enterprises, which are considered the backbone of the Swiss economy, Bangladesh is still a largely untapped and sometimes challenging destination. This is partly due to matters related to framework conditions.
When it comes to trade, Bangladesh is Switzerland’s second-largest trading partner in South Asia, considering two-way trade. But as I said earlier, I see significant potential for Swiss companies to emerge as major technology providers in key industrial sectors here, which will be mutually beneficial.
I am encouraged by the various initiatives undertaken by the government in recent months to attract FDI. However, economic and governance reforms will be key in driving these initiatives home. It will also be important to ensure a favourable investment landscape, supported by legal security, regulatory predictability, conducive policies and a level playing field.
