Denmark and other foreign investors may be reluctant to invest in Bangladesh because of its fragile political system, Danish Ambassador to Bangladesh Christian Brix Møller has said, urging the country to build an inclusive and stable parliamentary democracy to sustain economic growth.
The ambassador made the remarks at the launch of the Bangladesh Garment Manufacturers and Exporters Association's (BGMEA) environmental, social and governance (ESG) dashboard at its Uttara office in Dhaka today (19 October).
"As foreigners, we are more reluctant to invest in a country with not only low domestic investment, but also a fragile political system. I do not say a fragile government; I say a fragile political system," he said.
"To achieve a trillion-dollar economy, Bangladesh would need to reconcile, heal, and build a well-functioning, stable parliamentary democracy," the ambassador added.
He urged the government to use what he described as the current "constitutional moment" to build an inclusive democratic system.
"We are not prescriptive, and it is not our choice. It is Bangladesh's choice," he said, adding that the process of healing would understandably take time.
Møller also expressed hope for the successful implementation of the July Charter and that opposition parties would see themselves represented in the process.
"We have an energy crisis and lots of other imminent challenges, but don't forget the July Charter and the uprising in 2024," he said.
The ambassador said Bangladesh had overcome greater challenges in the past and expressed confidence that the country could address its existing challenges, whether internal or stemming from geopolitical crises.
He also stressed the need to prioritise securing trade access, ensuring reliable energy supplies, diversifying products and markets, and supporting the government's economic reform agenda.
Referring to a recent assessment by the International Monetary Fund (IMF), Møller said projected economic growth of around 3.5% in FY2026-27, with the possibility of falling below 3% over the medium term without decisive reforms, underscored the urgency of action.
Turning to the garment sector, the ambassador said the ESG dashboard could help strengthen international buyers' confidence, demonstrate progress on sustainability and improve the global competitiveness of Bangladesh's textile and apparel industry.
He said Bangladesh could no longer compete on cost alone, as sustainability, transparency and compliance with international standards had become essential to maintaining market access and long-term competitiveness.
BGMEA President Mahmud Hasan Khan Babu presided over the programme, while Rashed Al Mahmud Titumir, the prime minister's adviser for finance and planning, attended as the chief guest.