Japanese corporations courted to relocate units

FE Report | Published: September 07, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

Bangladesh-Japan Business Forum was held in the city on Saturday with a call to relocate Japanese manufacturing facilities to Bangladesh to exploit the country's cheaper labour and fast growing domestic market.
Minister for Industries Amir Hossain Amu, Minister for Commerce Tofail Ahmed, State Minister for Foreign Affairs Shahriar Alam, Bangladesh Bank Governor Dr Atiur Rahman, Chairman and CEO of Japan External Trade Organization (FETRO) Hiroyuki Ishige and President of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Kazi Akram Uddin spoke in the occasion.
The Forum was held in connection with the Japanese Prime Minister Shinzo Abe's visit to Dhaka.
Over 150 representatives of Japan's big corporate houses, which are taking interest in relocating businesses to Bangladesh, accompanied the Prime Minister's entourage and attended the forum.
Prime Minister Abe also appeared in the event for a while and addressed the business audience.
Japan is now working out a Regional Comprehensive Economic Partnership (RCEP) programme to spread investments in some South and South East Asian countries with a view to reducing concentration in China. As part of it, Tokyo is also refocusing interest on Bangladesh.
Industries Minister Amir Hossain Amu said Japan has made a "right choice to make Bangladesh their new investment destination." He said Japan is a friend from the time of its independence based on "common values for democracy, development international peace and security."
It helped both countries to come closer and now making decision to enter into strategic partnership for development. He said Bangladesh aims at becoming a middle income nation by 2021 and more private sector Japanese investment will help attain this goal.
The Industries Minister said Bangladesh is "globally recognised for its innovativeness, adaptability and resilience supported by highly positive regulatory and fiscal incentives regimes.
Tofail Ahmed said "Bangladesh is a beautiful destination of FDI (Foreign Direct Investment) and especially from Japan now …we will give all kinds of assistance, that is our decision, our determination. We would give land and special economic zone to set up industries. I would request the investors to come and invest," he said.
Referring to existing business between the two countries, he said it was around US$ 2.0 billion last year including $ 862 million export and $1.2 billion import. Bangladesh's export is closer to one billion; he said pointing out that annual export to Japan was only $162 million a decade ago.
The commerce minister praised Japan's granting of duty free market access to Bangladesh, covering 884 products and it contributed to accelerating the country's export, especially the RMG products to Japan.
He said Japanese investors can set up plants in this country, produce garments and 'rebrand' them as made in Bangladesh for export to Japan.
State Minister Shahrial Alam said Bangladesh economy is growing over 6.0 per cent annually and more than 100 companies have invested in the country over the last three years. He said Bangladesh's duty free market access to major global markets and a growing middle class having more purchasing power are among some other factors that make the country an "ideal" place for Japanese investment.
Bangladesh Bank Governor Dr Atiur Rahman said Bangladesh has a very stable macro-financial environment with single digit inflation, fiscal deficit at low and the value of Taka is stable.
Global rating agencies like S&P Moody's and the Fitch's showed country's financial stability remained solid even in the face of major external shocks in recent years.
He said Japanese investors can use the country's low cost and efficient manufacturing base for producing items like automobile parts, electrical and electronic goods apparels and other consumer items.
They can also set up energy and infrastructure projects, develop tourism and health care, he said.