Local cos see no immediate risk from Japan crisis

---

Local companies, involved in trade, business and investment with Japan, see no immediate risk from Japan crisis, but are concerned about the potential negative impact on the country's economy, reports BSS. "We do not see any chance of immediate risk, but are concerned about the potential consequences of the worst-ever crisis in the Asian major economy," former president of Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) Abdul Haque said Saturday. Haque, a current JBCCI director, said his organisation held a meeting immediately after the March 11 catastrophe, followed by the nuclear disaster, to discuss the impact of the disaster on their trade and businesses, and listed some areas, exposed to potential risks. Haque said the areas, including flow of ODA (official development assistance) and investment from Japan, need to be monitored closely. "The Japanese government will be pumping billions of dollars to face the crisis, which will create a huge pressure on its fiscal management, prompting cut in ODA allocation," he said. He said a number of Japanese companies were planning relocation of their units from China to Bangladesh to reduce production cost. The relocation might be delayed, as some of the companies were also affected by the earthquake and tsunami. He said import from Japan would have a mixed effect, as vehicle import is expected to remain unhindered, while shipments of steel and capital machinery would be delayed and costly, as many major shipping lines have already decided to skip some Japanese ports to avoid radiation. "Bangladesh does not import motor vehicles from the areas devastated by the earthquake and tsunami, because vehicles in these winter dominant areas often do not have good air conditioning system," Haque, also a former president of Bangladesh Reconditioned Vehicles Importers and Dealers Association, pointed out. He said export to Japan would not be harmed as well, because Bangladesh mainly exports garments and textiles there. Haque said Bangladeshi export to Japan was US$330 million in 2010, up from $200 million in 2009. "The amount of export would increase further this year, as many Japanese companies have opened their Dhaka offices for more business," he said. He, however, said Bangladesh's annual import from Japan is still around $1.0 billion, as the country buys high valued steel, capital machinery and motor vehicles from there. Haque ruled out risk of radiation from Japanese imports against the backdrop of the nuclear disaster, saying that the crisis-hit areas of Japan produce manly agriculture products. Bangladesh does not import food, agriculture and consumer products from Japan. He admitted that some motor parts' producers are situated in the crisis areas, and said import from those areas remained stalled after the disaster.