They also told the Iranians that Bangladesh offers low-cost production base, congenial investment atmosphere and special incentive package.

"Bangladesh is a growing market of over 150 million people and its workforce is comparatively cheap," acting President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Kamaluddin Ahmed told an Iranian business delegation at the Federation building in Dhaka.

He also said the country's agro-based industry, food processing and preservation, poultry, dairy, fishery and livestock have huge potential for Iranian investment.

Leader of Iranian business team Mohammad Reza Behzadian, also the president of Tehran Chamber of Commerce and Industry (ICCI), said Bangladesh can receive oil exploration expertise from Iran.

He said Bangladesh can also get heavy vehicle and textile machinery manufacturing expertise from Iran.

Behzadian said a branch of Iranian bank can be set up in Bangladesh to boost bilateral trade.

Another Bangladeshi business leader said the trade volume between the two countries is currently ranging between US$ 40 million and $50 million, which can be increased to $ 500 million.

Now, the trade balance is in favour of Bangladesh. Bangladesh exported goods worth $ 25.11 million to Iran in the last eight months ending July 2005. On the other hand, the country imported products worth $8.38 million from Iran during the period.

Iranian Ambassador to Bangladesh Mohammad Behesti Monfarah assured local businesses that his country will do every thing possible to increase the bilateral trade.