Japanese businesses willing to go for further expansion in BD: JETRO

Most of the Japanese companies operating in Bangladesh want to expand their business, considering the prevailing investment-friendly environment, according to a survey of the Japan External Trade Organisation (JETRO), reports BSS.
"Bangladesh has demonstrated very good business even after political changes. Considering the trend of business development in the next 1-2 years, 57.7 per cent of Japanese companies have signalled that they are intended to expand in Bangladesh," said Country Representative of JETRO Yuji Ando.
A total of 315 Japanese firms are currently running their business in Bangladesh.
"During the last nine months, around 900 companies visited our office for taking investment-related information. Most of them were Japanese companies. Of them, one-third companies were new, which want to invest in Bangladesh. Some of them have already invested here."
Ando stated that the Japanese companies seek business opportunities - both for export-oriented and domestic-market-oriented businesses.
He said fast-moving consumer goods (FMCG), automotive and parts, renewable energy, food processing, medical, education, and services are the potential sectors for the Japanese investors to set up domestic market-oriented companies.
Man-made fiber, textile chemicals and food processing, IT and ITES are also potential sectors for setting up export-oriented industries.
The JETRO country representative said the Japanese entrepreneur are investing in different fields, including ready-made garments (RMG), textile, IT and infrastructure.
They are showing interest to invest in the country's manufacturing, FMCG, infrastructure development, and tech-based and digital start-up companies.
Ando said the important factors for expanding business are smooth procedures with transparency, policy consistency, and international standard in business environment.
"Bringing success to the existing Japanese companies will bring success to Bangladesh in FDI promotion. Continuous efforts and dialogues in businesses are significant."
He said many Japanese infrastructure development companies are running their business in the Japanese Official Development Assistance (ODA) projects, including Matarbari Deep Sea Port.
Recently, the Chattogram Port Authority (CPA) signed an agreement with two Japanese firms to develop the country's only deep sea port in the Bay of Bengal.
The JETRO country representative, however, mentioned that there are many challenges, which still exist for the Japanese and other foreign companies in Bangladesh, citing examples of infrastructure and taxation.
He urged the authorities concerned to review the complex tax system and to ensure simple, quick and transparent administrative procedures, especially the customs clearance and registration.
To attract more Japanese investments, he said, it is crucial to simplify the criteria and procedures for visa and work permit for expatriates here.
The country representative laid emphasis on policy consistency to increase the confidence of foreign investors.