Economists and private sector entrepreneurs want that Japanese investors should be provided with land as soon as possible to help them start relocating industries in Bangladesh.
They have laid emphasis on taking concrete steps to show the Japanese investors that something is coming out of their initiative. Bangladesh is working seriously to secure massive Japanese investment in the country.
They have also suggested remodeling of some investment regulatory bodies and making their rules of business easier for people looking for opening business in Bangladesh.
"They must be more efficient and quickly responsive to the needs of investors and especially of the Japanese investors now," Dr Salehuddin Ahmed, a former governor of the central bank said.
He told the FE on Tuesday that Japan has thrown a big challenge by offering to bring in large investment in Bangladesh and it is now the responsibility of the government and the private sector to work accordingly. "It has really opened up a new scope for Bangladesh to go on a higher plain," he said.
Dr. Ahmed said developing exclusive economic zones would require time and Japanese investors should not be left out to wait longer, they must get the message that Bangladesh is preparing to receive Japanese investments.
Mr Abdul Haque, Special Adviser to Japanese Commerce and Industry Association in Bangladesh said their immediate need is an industrial park or a special economic zone. But it must be around Dhaka and closer to the city. He said many Japanese investors are skeptical about the capacity of Bangladesh Economic Zone Authority (BEZA) in quickly developing such industrial parks for lack of experience.
He said Japanese businesses are operating production facilities in special industrial zones in many other countries. They have commercially developed the onsite facilities employing specialised Japanese firms. Their off-site facilities were built on soft loan of Japan government. Bangladesh may work out such a deal to quickly build industrial parks.
Mr Haque said India is also a candidate for Japan's private investment. The 'Gujrat Model' on which Prime Minister Narendra Modi won a landslide victory in last election was largely a Japanese-assisted success.
Salauddin Kasem Khan, a noted business leader and Vice President of Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) told the FE that initially there must be some quick mobilisation to win the confidence of Japanese private sector.
He said private sector Japanese investors may be invited first by offering land and other facilities without looking for government to develop exclusive economic zones.
He said Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Economic Zone Authority (BEZA) and such other semi-government and private organisations may initially offer land to Japanese businesses.
Mr Khan said Bangladesh Export Processing Zone Authority (BEPZA) has already offered plots to Japanese investors and these must be made available as soon as possible. But many of them are located in the Western zones while Japanese investors want sites closer to Dhaka city with access to highways, ports and recreational facilities. "We must consider their concerns," he said.
Dr Salehuddin Ahmed said the very fact that the government would give land and develop exclusive economic zone gives rise to fear of delay and such other hassles. The Korean EPZ at Chittagong is an example of how a good project may turn into bad one.
He said the existing investment regulatory bodies are inefficient and lack dynamism. Mere merger of Board of Investment (BOI) and Privatisation Board (PB) can't give guarantee that the new organisation will function properly, he observed.
They should be manned by highly efficient people and left out of government control, they must have inter-ministerial coordination to be productive, he said.
Dr Zayed Bakth of Bangladesh Institute of Development Studies (BIDS) said in targeted development issues like promoting Japanese investment, the government should bypass inefficient organisations. He said the High Powered Committee working at the Prime Minister's office may be able to effectively handle the matter.
