Call to revise forex, customs policy to draw Japanese investment

Modernising foreign exchange policy and customs operation is the key to integrating with the global supply chain in a big way and drawing more foreign investment, especially from Japan, according to experts.

The observation came at a virtual event titled “Showcase Bangladesh 2021: Bangladesh-Japan Investment Summit” jointly organised by Standard Chartered and Bangladesh Investment Development Authority (BIDA) on Thursday.

Speaking on the impediments to the flow of trade between Japan and Bangladesh, Country Representative of Japan External Trade Organisation (JETRO) Yuji Ando said: “The issues of connectivity with other economic regions must be tackled by Bangladesh to successfully join the global supply chain and manufacturing network. Bangladesh must address shortcomings in lead time and come up with standard foreign exchange policy.”

“Tedious customs operation is a major bottleneck for Bangladesh’s international trade. Transparency in customs operations should also be improved to become more integrated within the global supply chain network. Rules and regulations must be reviewed while Letter of Credits should be replaced by telegraphic transfer.”

According to Japan Ambassador to Bangladesh ITO Naoki, within five years, Bangladesh will show rapid development of infrastructure which will no longer be bottleneck for Japanese investors.

“The investment climate and availability of human resources has expanded greatly, and the country’s strategic geographical location is great to its merit. The previous difficulties of doing business in Bangladesh have, however, reduced,” the envoy made the remark.

The virtual forum showcased the partnership potential between the two friendly countries.

It highlighted the strategic opportunities for Japanese investments, high-potential investment sectors in Bangladesh, and the latter’s initiatives to foster foreign investments. 

Focusing on sustainability and climate change, Japan International Cooperation Agency (JICA) Chief Representative Yuho Hayakawa maintained that, “In terms of energy, a stable supply of power must be ensured while fully taking into account environmental concerns. Before integrating new technology into the industry, economic and financial feasibility must be considered carefully as well.”

Addressing the event, Bangladesh Foreign Minister AK Abdul Momen said, “Our goal is to create a knowledge-based economy. One of the main avenues we want to improve in is the ICT sector proliferating in every sphere of commerce and society and is a key component for further progress.”