Japan eager to invest in country's energy sector
Wednesday, 28 November 2012
Shafiqul Islam Jibon
The Japanese investors now in Dhaka have shown great interest to invest in the energy sector of Bangladesh.
A nine-member Japanese business delegation, mainly representatives from various oil and gas companies in Japan, held a meeting with the top officials of the Board of Investment (BOI) with Nabhash Chandra Mandal, Executive Member of BOI, in the chair on Monday.
However, the BOI could not offer the Japanese investors to invest in the energy sector, as the sector is categorized in the Bangladesh government's seventeen controlled sectors for the private investors, a senior official of the BOI told the FE on the day.
"If any investor wants to invest in such controlled sector, they need to take permission from the concerned ministry of Bangladesh, the ministry of power, energy and mineral resources in this case," he said.
So the Japanese delegation is expected to meet shortly with the concerned ministry to talk about their interest to invest in energy sector of the country.
Earlier, several investor groups of Japan also showed interest to invest in special economic zones, apparel, manufacturing, food processing, infrastructure, electronics and many others.
Along with the other investors, a fresh Japanese business delegation has just arrived in the city Monday to look for the opportunity in the potential sectors, especially in energy, the BOI official further noted.
The Japanese team included Seiji Ueno of the Japanese Idemitsu Kosan Ltd, Kentaro Fujioka of the Chiyoda Corporation, Koji Gyoten of JX Nippon Oil and Energy Group, Kentaro Ogawa of JGC Corporation, Hiroki Yoshida of Fuel policy and planning office of the Japanese ministry of economy, trade and industry, Masanori Ozaki of the Tonen General Group, Yuzuru Ojima of the Cosmo Oil Co Ltd and Youshikaju Kobayashi of the Oil and Gas unit of the Institute of Energy Economics of Japan.
In recent years, Japan has made an enormous volume of investment in Southeast Asia. But with the rise in labour costs in that region, Bangladesh has opened up greater opportunities for foreign investors.
Despite inadequacy in infrastructure and lack of energy, Bangladesh lies in an attractive geopolitical location that could enhance links between South and Southeast Asia.
The Japanese business delegation during talks wanted to know about the opportunity and the latest business environment in Bangladesh. They also asked some questions about the local business and investment policy, security, facilities for the foreign investors, etc.
"We have explained all as they (Japanese group) wanted to know and they were satisfied with our answers," the Executive Member of the BOI, Nabhash Chandra Mandal told the FE.
Mr. Mandal also noted that the "Bangladesh's investment climate is better one in sub continent and we are continually improving it to attract foreign investors in Bangladesh."
The BOI is always ready to provide all kinds of supports and facilities to the foreign investors for the country's greater economic benefits, he said.
Earlier, the Japanese entrepreneurs had assessed the environment for investment in Bangladesh as congenial, following Prime Minister Sheikh Hasina's visit to Tokyo in November 2010.
Prime Minister, who is the chairman of the BOI herself, invited the Japanese investors to locate their investment sites in Bangladesh, focusing on its various attractive investment incentives. She also made assurances about extending all possible cooperation to the investors from Japan.
A number of large and medium Japanese enterprises showed interest in Bangladesh after Japan had considered Bangladesh as one of its important investment destinations, in accordance with the 'China plus one' policy, in the wake of high cost of investment in China, BOI sources said.
The Japanese investors now in Dhaka have shown great interest to invest in the energy sector of Bangladesh.
A nine-member Japanese business delegation, mainly representatives from various oil and gas companies in Japan, held a meeting with the top officials of the Board of Investment (BOI) with Nabhash Chandra Mandal, Executive Member of BOI, in the chair on Monday.
However, the BOI could not offer the Japanese investors to invest in the energy sector, as the sector is categorized in the Bangladesh government's seventeen controlled sectors for the private investors, a senior official of the BOI told the FE on the day.
"If any investor wants to invest in such controlled sector, they need to take permission from the concerned ministry of Bangladesh, the ministry of power, energy and mineral resources in this case," he said.
So the Japanese delegation is expected to meet shortly with the concerned ministry to talk about their interest to invest in energy sector of the country.
Earlier, several investor groups of Japan also showed interest to invest in special economic zones, apparel, manufacturing, food processing, infrastructure, electronics and many others.
Along with the other investors, a fresh Japanese business delegation has just arrived in the city Monday to look for the opportunity in the potential sectors, especially in energy, the BOI official further noted.
The Japanese team included Seiji Ueno of the Japanese Idemitsu Kosan Ltd, Kentaro Fujioka of the Chiyoda Corporation, Koji Gyoten of JX Nippon Oil and Energy Group, Kentaro Ogawa of JGC Corporation, Hiroki Yoshida of Fuel policy and planning office of the Japanese ministry of economy, trade and industry, Masanori Ozaki of the Tonen General Group, Yuzuru Ojima of the Cosmo Oil Co Ltd and Youshikaju Kobayashi of the Oil and Gas unit of the Institute of Energy Economics of Japan.
In recent years, Japan has made an enormous volume of investment in Southeast Asia. But with the rise in labour costs in that region, Bangladesh has opened up greater opportunities for foreign investors.
Despite inadequacy in infrastructure and lack of energy, Bangladesh lies in an attractive geopolitical location that could enhance links between South and Southeast Asia.
The Japanese business delegation during talks wanted to know about the opportunity and the latest business environment in Bangladesh. They also asked some questions about the local business and investment policy, security, facilities for the foreign investors, etc.
"We have explained all as they (Japanese group) wanted to know and they were satisfied with our answers," the Executive Member of the BOI, Nabhash Chandra Mandal told the FE.
Mr. Mandal also noted that the "Bangladesh's investment climate is better one in sub continent and we are continually improving it to attract foreign investors in Bangladesh."
The BOI is always ready to provide all kinds of supports and facilities to the foreign investors for the country's greater economic benefits, he said.
Earlier, the Japanese entrepreneurs had assessed the environment for investment in Bangladesh as congenial, following Prime Minister Sheikh Hasina's visit to Tokyo in November 2010.
Prime Minister, who is the chairman of the BOI herself, invited the Japanese investors to locate their investment sites in Bangladesh, focusing on its various attractive investment incentives. She also made assurances about extending all possible cooperation to the investors from Japan.
A number of large and medium Japanese enterprises showed interest in Bangladesh after Japan had considered Bangladesh as one of its important investment destinations, in accordance with the 'China plus one' policy, in the wake of high cost of investment in China, BOI sources said.