"Bangladesh's main problem is its image outside. If there is an allegation about corruption, it should be investigated," he told a press briefing at the National Press Club.

The ambassador observed that enforcement of laws, rules and regulations is crucial for attracting new investment from Germany, as there are problems with regard to implementation of decisions.

German businesses are keen on investing in Bangladesh but shy away from some places due to poor image, he said but maintained that Bangladesh is a worthwhile place for foreign investment.

Bangladesh-German Chamber of Commerce and Industry (BGCCI) organised the briefing to explain the outcome of the visit of a business delegation to Germany from June 6 to June 11.

The ambassador said frequent visits by businesspeople can help improve the image abroad, adding a high-powered business delegation from Germany would also visit Bangladesh soon.

Explaining the business situation after the quota-phaseout from January this year, he said buyers do not give up when they find that trade partners are reliable and trustworthy.

He said Bangladesh's lacks the capability to diversify its export items and added that 90 percent of its total export is readymade garment. But there are so many items that can be added to the export basket.

Bangladesh's export to Germany is five times its imports, Andreas said and added that German buyers are thinking to replace plastic products as these are not environment-friendly and so natural fibre jute has a huge potential. Agro-processing is another area with great potential.

He recommended that Bangladeshi companies participate in the Germany trade fair to establish direct contact with the buyers.

Ruhul Amin, president, and Nasir A Choudhury, vice-president, of the BGCCI also spoke at the briefing.

Syed Feroze Ahmed, director of Siemens Bangladesh Ltd, Shah Syed Kamal, managing director of Anupam Infotek Ltd, Waqar A Choudhury, director of Nascom Pvt Ltd, Giasuddin Ahmed, chairman of Thai Poly Shawn (Bd) Ltd and Arif Chowdhury, general manager of Pan Aviation Ltd, among others, were the members of Bangladesh business delegation to Germany.

The BGCCI president said the purpose of the visit was to establish direct contact with German businesses and improve the image of Bangladesh in Germany, as it is the second largest trading partner of Bangladesh after the US.

Congestion on Dhaka-Chittagong highway as well as at the Chittagong port and poor infrastructure, particularly in the telecommunications sector, are hindering business between the two countries, he added.

The BGCCI president informed journalists that Bangladesh is organising "Bangladesh Business Day" on September 28 in the middle of the Asia Pacific Week 2005 scheduled from September 21 to October 2 at Berlin mayor's office.

Nasir Choudhury said the business delegation faced criticism in Germany because Bangladeshi businessmen do not visit there frequently.

Germany imported goods worth around 1 billion euro from Bangladesh in the 2003-04 financial year.