BD desperate to woo Japanese investment 

The government is in a desperate attempt to bring Japanese investment to Bangladesh from China amid Covid-19 pandemic in a bid to strengthen the economy of the country. But the Japanese investors are reluctant to come to Bangladesh due to various barriers including those of taxation, customs and procedural complexity on relocating foreign investment.  

The Japanese government is allowing 87 companies to shift production back home or into Southeast Asia after the coronavirus pandemic badly disrupted supply chains and exposed an over-reliance on Chinese manufacturing. 

Barriers to Japanese investment in Bangladesh were revealed in minutes of Bangladesh-Japan Public Private joint Economic Dialogue (PPED) at Prime Minister’s Office (PMO) zoom platform on August 24. The meeting was presided over by Principal Secretary to PMO Dr Ahmad Kaikaus. The Japanese Ambassador to Bangladesh Ito Naoki raised different issues of Japanese investors at the Bangladesh-Japan PPED.

In the meeting it was decided that a joint working group of Japan and Bangladesh businessmen will hold a meeting within two weeks at PMO on improving investment climate of Bangladesh for Japanese investors and on diversifying industrialization in Bangladesh.

The Japanese Ambassador to Bangladesh Ito Naoki welcomed the phone conversation between the Prime Ministers of Bangladesh and Japan. He said that the Prime Minister of Bangladesh Sheikh Hasina informed her Japanese counterpart that Bangladesh has created an economic zone for the Japanese investors with all kinds of facilities. The Japanese Prime Minister informed about the existing tariff and non-tariff barriers, the Ambassador said. 

He said the Japanese Prime Minister said there are still some problems in Bangladesh for Japanese companies in particular the issues of taxation and customs clearance and emphasized on solving these problems. He requested the government to take necessary steps in this regard.

The Japanese Ambassador to Bangladesh said if these problems are not solved, Japanese entrepreneurs will not be interested in investing in Bangladesh. The barriers include taxes, customs clearance and repatriation of the profits. Existing Japanese investors are still going through these problems. However, Bangladesh has promised to solve these problems. In the next two weeks, specific recommendations will be sent to the PMO to resolve these issues.

Several important decisions were taken at the Bangladesh-Japan PPED. Recommendations will be sent to the PMO within two weeks to resolve the existing problems on tax and foreign exchange issues and also on improving the investment environment. On behalf of Bangladesh, the Vice President in charge of the Working Group will take the initiative. An online meeting will be convened as soon as possible in consultation with the Co-Chairman of the Working Group.

Besides, the next meeting will be arranged by Bangladesh for review within next October where the progress of the decisions taken in the PPED will be highlighted. The review meeting to be held in October will be preceded by discussions with various executives particularly from Japan.

According to the working paper of the meeting the platform was formed by Abul Kalam Azad, former Chief Coordinator of SDG in the PMO. The meeting was attended by the current Chief Coordinator Juena Aziz. Earlier, the fourth dialogue of PPED was held on August 16. 

At the latest platform meeting in her introductory speech, Juena Aziz said such a meeting amid coronavirus pandemic would also contribute to the development of economic and trade relations between the two countries. She added that through series of meetings, it will be possible to create a framework for resolving investment issues between the two countries. In particular, PPED will help to build economic and trade bridges between private entrepreneurs of the two countries.

Juena Aziz also said that the Prime Minister of Japan had a telephone conversation with Prime Minister Sheikh Hasina on August 5. The two Prime Ministers emphasized on the importance of normalizing economic activities and co-operation in trade and commerce between the two countries.

Director-1 of the PMO presented the keynote paper at the meeting which highlighted the steps taken by Prime Minister Sheikh Hasina's government to improve relations and enhance investments between the two countries.

At the meeting, Ondera Osamu, Assistant Director of Trade Policy under Ministry of Commerce Japan, said Japanese investment in Bangladesh has doubled in last seven years. Covid-19 has not only affected the whole world but inflicted heavy damages to the economies of the two countries.

Japanese investors are committed to improving Bangladesh's trade environment, transparency and reliable business relations. He said Japan has raised a number of issues. The meeting to be held in October will highlight the progress as far as resolving those issues are concerned.

The meeting was attended by representatives from Ministry of Industry and Commerce, Department of Energy, National Board of Revenue, Bangladesh Investment Development Authority, Bangladesh Economic Zone Authority, President of Bangladesh Chamber of Commerce and Industries, President of Metropolitan Chamber of Commerce and Industries (MCCI). 

ask/wi