Japan is interested in setting up economic zones in and around Dhaka and Chittagong cities to increase the number of Japanese enterprises to almost double but wants land free from dispute.
The Japan International Cooperation Agency (JICA) prefers land in five locations close to the two cities and plans to organise trips shortly for the Japanese and the local investors to explore the possibility of direct and joint venture investments.
JICA Senior Representative Hiroyukin Tomita said the Japanese government agency will come forward with its financial proposal to set up the zones after the selection of the sites.
"We have planned to set up the economic zone based on the meeting between the Bangladesh Prime Minister and the Japanese Prime Minister," he told the FE on the sidelines of a seminar on 'Economic zone development for Japanese investors' on Saturday.
He said selection of sites in economic zone in and around the two major cities also aims to materialise his country's vision of Bay of Bengal Industrial Growth Belt (BIG-B).
The JICA Bangladesh Office and Japan External Trade Organisation (JETRO) have already started working with the Bangladesh Economic Zones Authority (BEZA) for site selection before the possible visit by Japanese Prime Minister Shinzo Abe which may take place in September.
JICA and JETRO officials said they give importance to site location with good infrastructure facilities and services so that the investors can stay with their families having proper civic amenities including schooling of their kids.
The JICA senior representative also said the economic zone is being planned initially and there will be expansion plan depending on needs of the investors and policy of the government.
During the seminar organised by BEZA, JICA and JETRO, the JICA study team and the BEZA officials also mentioned some sites for the Japanese economic zone.
JICA adviser on private sector development Yasuhiko Yuge said the Japanese investors consider sites accessible within two hours by road having land of 60 to 100 hectares with the provision of expansion.
He also pointed out potential sites on Dhaka-Chittagong Highway, Dhaka-Sylhet Highway, Dhaka-Mymensingh Highway and Dhaka-Aricha Highway during the seminar.
Among the government's economic zone locations, BEZA proposes Ashuganj, Old Aricha and Moynamati but the JICA study team prefers Narsingdi and Maowa sites for their investors.
JICA Bangladesh Office and BEZA and local authority also suggested sites at Sreepur, Niz Maona, Dotala Gabinapur and Tircho of Chandina-Comilla and Gazaria of Narayanganj.
BEZA executive member Mizanur Rahman during the seminar shared about the status of the land proposed by BEZA and said BEZA Governing Board approved five sites in economic zone in Mongla, Sirajganj, Sherpur-Moulvibazar, Mirersarai-Chittagong and Gohira-Anwara of Chittagong.
Besides, he said there are 11 sites examined by the government and two non-government sites and nine sites proposed by the deputy commissioner of different districts where economic zones can be set up.
The seminar was addressed by Principal Secretary of the Prime Minister's Office Abdus Sobhan Sikder as chief guest and Executive Chairman of BEZA Fakhrul Islam as special guest. JICA Chief Representative Mikio and Country Representative of JETRO Kei Kawano also spoke on the occasion.
Representatives of Japanese Commerce and Industry Association in Dhaka (JCIAD) and Japan Bangladesh Chamber of Commerce and Industry also talked about the investment climate needed for doubling the Japanese enterprises from the existing 180 at the seminar.
JCIAD president Hiroyuki Watabe pointed out that the Japanese investors not only want good location but also hassle free land and sought the BEZA cooperation to provide the land at reasonable price.
"Due to high land price, many Japanese investors have already moved to Myanmar," he added.
In this regard the chief guest, however, requested the Japanese business leaders to consider Anwara and Mirersarai of Chittagong as lands there have already been acquired by the government.
He also invited the Japanese investor to consider the issues of cheap labour and large domestic market for their products for their investment in Bangladesh.
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