Japanese cos eye business expansion, want removal of bottlenecks

Nearly 44% of the 338 Japanese companies doing business in Bangladesh through Japan External Trade Organization (Jetro) want to increase investment and expand their operations here, stakeholders said on Monday.

The companies have called for the removal of various bottlenecks, including lack of skilled manpower and long delays in goods unloading in ports, to that end.

Stakeholders made the remarks during a knowledge sharing session titled, “Welcoming Investment from Japan, Lessons for Bangladesh, From the experience in India” on Monday.  The event was jointly organised by the Bangladesh Economic Zones Authority (Beza), Bangladesh Investment Development Authority (Bida), and Japan External Trade Organization (Jetro).

Speaking at the event, Jetro’s representative in Bangladesh Yuji Ando said Jetro has been bringing Japanese investment to Bangladesh since 1973 and the amount of investment is increasing every year.

Currently, investments by Japanese companies in Bangladesh have grown by 68% to pre-Covid pandemic levels, he said, adding that they want to increase their business here in the future.

Citing a recent survey, Ando described several major challenges for business operations of Japanese companies in Bangladesh.

He said 67.4% Japanese companies in Bangladesh are facing shortage of skilled workers, 46.7% faced difficulties in administrative procedures and regulations, complicated customs clearance procedures, and restrictions on foreign remittance.

Besides, 61.9% companies saw a rise in procurement cost in manufacturing sectors and faced difficulties in local procurement of raw materials and parts.

Ando added that 60.9% of Japanese companies have increased wages in all industries of Bangladesh.  

Also speaking at the event, Bida Chairman Lokman Hossain Miah said Bangladesh’s huge domestic market and low production costs are attracting Japanese investors. However, he said there are still some bottlenecks hindering investment in the country, which need to be resolved quickly.

In addition, Lokman added that investment facilities such as increasing the workers’ skills that need to be improved to attract more Japanese investment.

Jetro Vice President Kazuya Nakajo recommended increasing Bangladesh’s credit rating to lure more investors.

Beza Executive Chairman Shaikh Yusuf Harun said the country’s 100 economic zones are ready for foreign investment with all relevant facilities.

Beza, Jetro to share information to bolster cooperation

Meanwhile, Beza on the day signed an agreement with Jetro to bolster cooperation by sharing investment related information with each other. 

Beza Executive Chairman Shaikh Yusuf Harun and Jetro’s representative in Bangladesh Yuji Ando signed a memorandum of cooperation in this regard on behalf of their respective organisations at the Beza office in the capital. 

Under the agreement, the organisations will exchange information related to investment opportunities in Beza, trade information on manufacturing and logistics, information on requirements, facilities and incentives for investing in Beza, etc. 

Also speaking at the event, Japanese ambassador to Bangladesh Naoki Ito said Beza is working to create an investment-friendly environment in Bangladesh and this information sharing will help attract foreign investment from different countries of the world.