Around 72 per cent of Japanese companies operating in Bangladesh are interested in expanding their business operation, according to a survey of the Japan External Trade Organization (JETRO).
Moreover, 70.8 per cent of the companies said they are not satisfied with the business environment in the country.
Yuji Ando, country representative of the Japanese government-related organisation, unveiled the findings at a programme of the Metropolitan Chamber of Commerce and Industry (MCCI) in Dhaka on Wednesday.
The survey was conducted from August 22 to September 21, 2022. Some 214 Japanese companies that are present in Bangladesh took part in the survey, he said.
According to the survey, 26.2 per cent of the companies said they were ‘dissatisfied’ with the business environment in Bangladesh and 44.6 per cent were ‘somewhat dissatisfied.’
Ando added that Bangladesh is the first choice for Japanese companies in terms of business expansion within Southeast Asia, ASEAN and Northwest Asia regions.
He also said that Japanese companies in India widely appreciated the size and growth potential of the market. And, the companies in Indonesia, Bangladesh and Vietnam also had high growth expectations.
“Bangladesh’s market has a growth potential. However, evaluations of the general business environment were not good,” he mentioned.
Meanwhile, some 73 per cent of Japanese companies claimed complicated customs clearance procedures as the biggest challenge for business operations in Bangladesh.
Volatility in the exchange rate, difficulties in local procurement of raw materials and parts, and shortage of electricity are also challenges in the country, according to the survey.
Also, it said, 47 per cent of companies operating in Bangladesh said they will make an operating profit in 2022. And 60 per cent of companies expect this profit to increase further in 2023.
For this reason, Japanese companies are interested in expanding business in Bangladesh, the survey found.
Bangladesh Investment Development Authority Executive Chairman Lokman Hossain Miah and MCCI President Md Saiful Islam also spoke at the event.
Rafikul/Awenim/
