Japan International Trade Organization (JETRO), Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) and Chittagong Chamber of Commerce and Industries (CCCI) will sign tripartite Memorandum of Understanding (MOU) on November 22 to increase bilateral trade between these countries.
Steps are being taken to identify the potentials and challenges in the private sector to increase investment and trade between the two countries in the next ten years. The three organizations will hold talks with the government to seize the opportunity and solve the identified trade and business problems. This information has been obtained from the relevant sources of government agencies.
A tripartite Memorandum Of Understanding (MOU) will be signed in the presence of Commerce Minister Tipu Munshi, Prime Minister's Private Industry and Investment Adviser Salman Fazlur Rahman (Salman F Rahman), President of Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) Sheikh Fazle Fahim, Principal Secretary to the Prime Minister Ahmed Kaikaus, Commerce Secretary Dr. Zafar Uddin, Ambassador of Japan in Bangladesh, Ito Naoki, Executive Chairman of the Bangladesh Investment Development Authority (BIDA) Sirajul Islam, Executive Chairman of Bangladesh Economic Zone Authority (BEZA) Pawan Chowdhury and other senior government officials.
Asked about this, General Secretary of JBCCI Tareq Rafi Bhuiyan said, "In this case, a tripartite MOU will be signed." Under the MOU, a comprehensive research will be carried out firstly to determine the opportunities and challenges in investment and trade between Japan and Bangladesh. Moreover, he said that several workshops will be organized in which public-private representatives will be present. So that we can create a strategic road map for the next 10 years, he added.
JBCCI president said that a report will be prepared on what kind of regulatory support is needed for the next ten years to boost trade. Based on that report, we would like to form a Business Dialogue Forum between Japan and Bangladesh. Initiatives for regulatory support reform will be taken to address the challenges identified through this dialogue forum.
Asked if there are any specific targets for increasing investment and trade in the next 10 years, he said, "It is still at the MoU stage. However, after the MOU, we will set specific targets in the first few meetings. In addition to celebrating the 50th anniversary of the country's independence, we will do these things for the next 10 years.”
Meanwhile, country representative of JETRO and JBCCI President UG Ando wrote a letter to the Commerce Secretary on Monday. In the letter, he said Bangladesh's economic development has been remarkable in the last decade. Bangladesh has set a target of becoming a developing country by 2041. But the public and private sectors have to work together to achieve this goal.
The letter reads, "The government has taken various steps including infrastructural development to strengthen the economy.” The letter further reads that 100 economic zones, which will speed up the country's economy, are being developed. Economy of Chittagong will prosper centering the economic zone of Mirersarai in Bangabandhu Sheikh Mujib Industrial City.
It is said in the letter that the country needs to improve the overall business environment by attracting trade and foreign investment in addition to infrastructural development. Because the private sector will play an important role in achieving the government's targets. If Bangladesh improves the business environment, then Japanese investors are interested in investing in Bangladesh. Japan has been a major trading partner since the independence of Bangladesh. Japan wants to increase trade relations between the two countries in the future as well.
In this context Executive Chairman of BIDA Sirajul Islam said that there is a lot of official Japanese investment in Bangladesh at present. But private investment is very much minimum.
“So we want Japanese private entrepreneurs to invest in Bangladesh and several initiatives have been taken to this end,” he said.
“It would be great if researches could be done through this MOU to determine where the Japanese investors can invest in Bangladesh”, he said.
Accordingly, the government will also take initiative to remove the obstacles, he added.
In this regard, the President of CCCI Mahbubul Alam said, "Ten to 12 years ago, the Chittagong Chamber of Commerce set up an office in Japan to woo Japanese investors to Bangladesh." That's why we want Japanese investment to come and for this the three parties have to work together."
He further said, "The Japanese Ambassador met with us last Monday. He told us that they would invest another one billion dollars in the special economic zone of Araihazar in Narayanganj.”
Meanwhile, the investment of Japanese companies in Bangladesh has started to increase. Besides, the Japanese government has also increased its development assistance to Bangladesh. At the same time, the export of Bangladeshi products to the Japanese market is increasing. In this way, Japan is becoming a big trade and investment partner of Bangladesh.
According to JETRO, the number of Japanese companies operating in Bangladesh in 2008 was 70. A decade later the number increased to 278 in 2017.
Recently, Japanese motorcycle brand Honda has set up a factory in Bangladesh. In addition, ACI has set up a Yamaha motorcycle factory with the assistance from Japan's Yamaha Motor Corporation.
Japan Tobacco, a company that manufactures and markets tobacco products, recently bought the tobacco business of the country's Akij Group. The Japanese company is investing 146 crore 70 million US dollar which is about 12 thousand 396 crore in Bangladeshi currency. Nippon Steel & Sumitomo Metal, the world's third-largest steel producer, is setting up a steel plant in the Mirersarai Economic Zone in a joint venture with domestic company McDonald's Steel Building Products. They have entered into an agreement with BEZA for the allotment of 100 acres of land.
Sojitz Corporation of Japan wants to set up an industrial park in Mirsarai Economic Zone. Sumitomo Corporation of Japan signed an agreement with BEZA on last Sunday to develop the Japan Economic Zone. Japanese clothing brands Uniclo and lifestyle brand Miniso are opening their new outlets in Dhaka.
According to the investment report of the Ministry of Finance of Japan, in 2017, Japanese companies have invested 1.56 billion yen in Bangladesh. The exchange rate of each yen is 8 paisa in Bangladeshi currency which is about Taka 1,212 crore taka. Japan's investment in the country has increased by 39 percent over the previous years.
According to the Ministry of Commerce, imports and exports to Bangladesh have also increased along with Japan. During the first 10 months of the current financial year, i.e. in July-April, Bangladeshi goods worth 117 crore dollars were exported to Japan which is about 23 percent more than the same period of last year. In the 2019-20 fiscal year, goods worth 120 crore dollar were exported. At the same time, the import of products from Japan is also increasing. In the 2016-17 financial year, the country imported of Japanese products worth 187 crore dollars which was about 4 percent more than the previous time.
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