Govt to help pvt sector explore Japanese market: Faruk

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FE Report
Commerce Minister M Faruk Khan Sunday said exports to Japan will reach $2 billion in the coming years from the current projection of $233 million, as vast potentials of the Tokyo market still remains untapped.
"The prospect of ready-made garment (RMG) export to Japan is very bright, as the local manu
facturers have attained international standards," he said at a dialogue on 'In search of new market, new product: Bangladesh's apparel in Japan.
Organised by Centre for Policy Dialogue (CPD) in the city, the event was moderated by M Syeduzzaman, former finance minister and CPD senior research fellow Khondaker Golam Moazzem made a presentation at the programme.
The government will support the private sector to explore the Japanese market and to face the challenges to increasing exports to that country, the minister said.
"Japan is a trusted development partner and both the governments will act jointly to remove the export barriers," he added.
About the labour unrest at Tongi on Saturday, he said there are about 5,000 RMG factories in the country employing around 3.5 to 4 million workers and such incidents may happen.
"The government is investigating the incident and stern action will be taken against the culprits," he warned.
The government is getting two versions of the incident from the factory owners and the workers. The investigators will find out who was telling the truth, he said.
Former commerce minister Amir Khasru Mahmud Chowdhury said the Japanese government can provide aid-for-trade facility to Bangladesh.
"This will probably be the most important project Tokyo has ever taken for Dhaka," he said.
If Dhaka gets the facility it will increase productivity of the workers and improve quality of the products, he added.
The former minister said the government can open Japan Desk at the Export Promotion Bureau with a professional in the helm.
Japanese Ambassador Tamotsu Shinotsuka said hurdles to export to Tokyo could be overcome by promoting mutual understanding between the businessmen of both the countries.
About media, he said, "It is very natural that media makes negative comments but it is very unfortunate.'
"As an envoy, I will always send positive reports to my government so that the export will increase in future," he said.
The two governments had a very constructive discussion on rules of origin (ROO) issue two weeks back and the Japanese embassy sent a strong recommendation to the government to relax the ROO criteria, he added.
Bangladesh Knitwear Manufacturers and Exporters Association president Fazlul Haq said trade rules are stringent in Japan.
He urged Japan to be sympathetic to the Bangladeshi exporters so that they can explore the vast market, he added.
"Our RMG export to Japan is about $23 to $25 million but it will increase to $1 billion very soon," he hoped.
Former Dhaka Chamber president Saiful Islam said both the governments and the local trade bodies should identify the competitive edge of Bangladesh to increase export to Japan.
"Dhaka and Tokyo can set up an institution to increase productivity and improve quality," he said adding, "The trade bodies can play a vital role in this regard."
CPD executive director Mustafizur Rahman said Japan is providing duty-free-quota-free market access for RMG products but it is yet to be availed.
"Japan imports RMG products worth $24 billion and if Bangladesh can acquire only 10 per cent share it will mean $2 billion in foreign exchange earnings," he pointed out.
Mr Mustafiz hoped that the commerce minister would uphold national interest in the upcoming WTO ministerial in Geneva.
Mr Moazzem in his presentation pointed out that lack of close contact between businessmen of the two countries, inadequate market information, uncompromising product quality control in Japan and language barrier are the main hurdles to increasing trade between Bangladesh and Japan.