Japan seeks smooth gas, power supply, telecom deregulations
Sunday, 20 December 2009
FHM Humayan Kabir
The Japanese government has said Bangladesh needs to ensure supply of gas and power, improve banking and deregulate telecom sector if it wants to attract more foreign direct investment.
The world's second largest economy has made the suggestions recently, broadly touching key sectors such as taxation, infrastructure, financial system, regulations and security in an effort to improve business environment and facilitate FDI to Dhaka.
The Japanese envoy to Bangladesh Mr. Tamotsu Shinotsuka recently sent a letter to planning minister AK Khandokar requesting actions on the suggestions, which he said were based on the observations made by its officials and businessmen.
"Japan …. as an old friend of Bangladesh since its independence, strongly hopes that the government of Bangladesh will make utmost efforts to address the following items ( recommendations) as soon as possible in order to promote overseas investment in Bangladesh," the ambassador said:
Tokyo requested the government to allow third-generation (3G) telecom licenses with low license fees, reduce taxes on SIM card, telecom equipment and mobile phone sets and deregulate Internet Protocol (IP) telephony.
It urged Dhaka to introduce Uniform Customs and Practices for Documentary Credits (UCP) in local commercial banks in line with international financial rules and regulations.
"Deregulate opening of L/Cs (letter of credits) by commercial banks and speed up import settlement of accounts by the Bangladeshi importers," it said.
Japan is the largest bilateral donor of Bangladesh. It has age-old economic ties with Dhaka, with last year's two-way trade hitting nearly US$800 million.
FDI from Japan ranks fourth among the foreign countries after the USA, Britain and Malaysia.
So far 146 fully and partly-owned Japanese industrial projects worth $1.2 billion have been registered with Bangladesh's Board of Investment (BOI), its embassy said.
In the letter, the Japanese ambassador asked the government to ensure consistency and continuity of the government policies --- especially on energy and tax issues --- on a long-term vision to help foreigners invest in the key sectors.
He said the government should stop frequent changes of rules and regulations related to foreign investment "for the sake of ensuring transparency and establishing business-friendly environment".
Tokyo also suggested improving transport systems on highways across the country and curbing traffic jams in the capital city Dhaka.
The Japanese government has said Bangladesh needs to ensure supply of gas and power, improve banking and deregulate telecom sector if it wants to attract more foreign direct investment.
The world's second largest economy has made the suggestions recently, broadly touching key sectors such as taxation, infrastructure, financial system, regulations and security in an effort to improve business environment and facilitate FDI to Dhaka.
The Japanese envoy to Bangladesh Mr. Tamotsu Shinotsuka recently sent a letter to planning minister AK Khandokar requesting actions on the suggestions, which he said were based on the observations made by its officials and businessmen.
"Japan …. as an old friend of Bangladesh since its independence, strongly hopes that the government of Bangladesh will make utmost efforts to address the following items ( recommendations) as soon as possible in order to promote overseas investment in Bangladesh," the ambassador said:
Tokyo requested the government to allow third-generation (3G) telecom licenses with low license fees, reduce taxes on SIM card, telecom equipment and mobile phone sets and deregulate Internet Protocol (IP) telephony.
It urged Dhaka to introduce Uniform Customs and Practices for Documentary Credits (UCP) in local commercial banks in line with international financial rules and regulations.
"Deregulate opening of L/Cs (letter of credits) by commercial banks and speed up import settlement of accounts by the Bangladeshi importers," it said.
Japan is the largest bilateral donor of Bangladesh. It has age-old economic ties with Dhaka, with last year's two-way trade hitting nearly US$800 million.
FDI from Japan ranks fourth among the foreign countries after the USA, Britain and Malaysia.
So far 146 fully and partly-owned Japanese industrial projects worth $1.2 billion have been registered with Bangladesh's Board of Investment (BOI), its embassy said.
In the letter, the Japanese ambassador asked the government to ensure consistency and continuity of the government policies --- especially on energy and tax issues --- on a long-term vision to help foreigners invest in the key sectors.
He said the government should stop frequent changes of rules and regulations related to foreign investment "for the sake of ensuring transparency and establishing business-friendly environment".
Tokyo also suggested improving transport systems on highways across the country and curbing traffic jams in the capital city Dhaka.