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Japanese companies are interested to invest and expanding their business in Bangladesh, however taxation and foreign exchange policies, customs clearance delays, and transfer payment procedures are bottele necks to achvie the full potential from the country.
In this context, Japan External Trade Organisation (JETRO) has urged the Bangladesh government to asses the busnesss environment and learn from the neighbouring countries, how to improve the environment.
Speakers made the observations at a seminar, titled “Bangladesh-Japan Relationship: Trade and Investment”, jointly organised by Embassy of Japan in Bangladesh and the Centre for Policy Dialogue (CPD) on 16 May, said a press release.
In the seminar Yuji Ando, country representative of JETRO in Bangladesh, mentioned several important factors for Bangladesh to achieve cost competitiveness and increase exports, particularly to Japan.
He urged the Bangladesh government to assess the business environment and learn from ASEAN countries to promote greater investment and export activities.
Yuji Ando highlighted the importance of a free trade agreement (FTA) or economic partnership agreement (EPA) to compensate for the loss of GSP+ facilities. He also suggested developing platform industries and procuring raw materials domestically to reduce costs.
The introductory remarks at the seminar were delivered by Iwama Kiminori, the Ambassador Extraordinary and Plenipotentiary of the Embassy of Japan in Bangladesh.
He said Bangladesh has to improve the business environment to attract more Japanese foreign direct investment (FDI) and explore the potential of an Economic Partnership Agreement (EPA) between the two countries.
Tareq Rafi Bhuiyan, managing director of New Vision Solutions, discussed the findings of a JETRO survey in 2022, which revealed that Japanese companies are interested in expanding their business in Bangladesh. However, 67 per cent of respondents cited a lack of skilled labour as a major issue.
“To address this issue, Bangladesh should follow the example of India, which established the Japan Institute of Management (JMI) to train 30,000 engineers over the next decade,” he said.
He also highlighted the importance of ensuring the satisfaction of existing investors in Bangladesh, by addressing taxation policies, foreign exchange policies, customs clearance delays, and transfer payment procedures.
Fahmida Khatun, executive director of CPD, delivered a lecture on the potential of strengthening the bilateral relationship between Bangladesh and Japan, especially regarding trade and investment, and shared a summary of her experiences during her visit to Japan in February 2023.
She emphasised the importance of skills development and addressing climate change in Bangladesh. She mentioned that Japan has targets for clean energy investment, and the private sector can collaborate with Japanese companies to explore nature-based solutions, according to the press release.
Masrur Reaz, chairman and founder of Policy Exchange Bangladesh, mentioned that Japan’s engagement with Bangladesh was primarily driven by the pull factor from the Japanese side. Japan has a strong interest in Bangladesh due to its long-term growth prospects, demographic dividend, and cost competitiveness.
He highlighted the example of the BIG-B project, which can create an economic corridor catering to regional markets and attract more investment from Japanese companies.
The panel discussion was followed by an intriguing open-floor discussion. High-level policymakers, diplomats, foreign delegates, researchers, development practitioners, academics, business leaders, civil society representatives, international development partners, and journalists participated in the seminar, said the CPD press release.
