Japanese Prime Minister Shinzo Abe conveyed, during his visit to Dhaka on Saturday-Sunday last, the eagerness of Japanese businessmen to undertake comprehensive investment packages in Bangladesh. He urged businesspeople of both the countries to explore avenues of heightened economic and technical cooperation to mutual benefit.
The Japanese Prime Minister led a 150-member delegation which included executives from 40 companies. He asked Bangladesh government to further improve the investment environment to attract Japanese investment. The business leaders from Japan have great hope in doing business with Bangladesh. The Japanese showed interest for making investment in infrastructure, transport, power and energy and garment sectors.
Abe pointed out that his government has pledged to give $6.0 billion in official development assistance to Bangladesh over the next four to five years. This pledge is under the normal development programme and was also indicated during the recent visit of Prime Minister Sheikh Hasina to Japan.
Prime Minister Hasina urged the Japanese businessmen to make more investment in Bangladesh. She mentioned that an exclusive economic zone for Japanese investors would be established. She said that Bangladesh has investment potential in the sectors like textile, leather, shipbuilding, light engineering, electronics and telecommunication
Bangladesh has withdrawn its candidature for the non-permanent seat on the UN Security Council in favour of Japan. Bangladesh and Japan were two contenders for the non-permanent seat for 2016-2017 but one will be elected from the Asia-Pacific region. Abe thanked Hasina for the announcement of the withdrawal of Bangladesh candidature. It was a good gesture from Bangladesh
Bangladesh Bank governor assured Japanese investors of enhanced facilities for investing in Bangladesh. The central bank had already brought some changes to the related rules and regulations to ensure the highest benefit and return from foreign direct investment and foreign portfolio investment.
Foreign-owned businesses can now have access to local and external financing on the same basis as for locally-owned businesses and their interest-free short-term borrowing from their parent businesses at home require no prior approval. The central bank is continually engaging with foreign investor communities in Bangladesh for facilitation of all kinds of business-related external transactions including inflow of equity and debt and outflow of royalty and technical fee, profits and dividends and disinvestment proceeds including capital gains
Trade deficit with Japan is increasing. During last ten years trade deficit stood at $ 6.18 billion. During this period Bangladesh imported goods worth $994 billion and Our exported goods to Japan worth $376 billion. Bangladesh imports transport, machineries, glassware, chemicals, watches, rubber and many other items from Japan. Our exports to Japan include ready-made garments, jute products, leather, frozen food, carpet and fashion items. Our objective should be to increase our volume of exports.
Japanese businessmen have highlighted the need for simplifying investment procedures. They discussed about work permits of their workers in Bangladesh. So far no special facility has been given to the Japanese investors. They enjoy privileges like other countries. A package is under preparation for special economic zone.
Japan has proposed Bay of Bengal Industrial Growth (BIG-B) initiative. Matarbari power project has been included under this programme. Matarbari is the biggest power project in the country. Industrialisation of Dhaka-Chittagong-Cox'Bazar area is one of the pillars of BIG-B. Deep sea port is another pillar and it expected to become a hub of business activities in South Asia. Third pillar is the improvement of transportation system of Dhaka-Chittagong-Cox's Bazar route.
Japan is the largest development partner of Bangladesh. In 2013/14, release of foreign aid stood at $3.0 billion and Japanese contribution was $330 million. Japanese assistance is received in infrastructure and technical assistance. Soft loan and grant are also received from Japan.
The two-day visit of the Japanese Prime Minister has opened up new opportunities for cooperation between the two countries. Assurances have been given for investment. Japanese business executives have displayed their eagerness for choosing Bangladesh as an investment destination.
Japan has been on a drive to relocate its manufacturing plants in a number of South and East Asian countries. Bangladesh is a strong candidate for relocation. Bangladesh has expressed its readiness to do all it can in welcoming Japanese investments. Top government officials are already working on Japanese economic zone to facilitate economic collaboration.
At the end of the visit, a joint communique was issued which emphasised deepening bilateral relations on political, economic, cultural, peace and security issues.
The public-private dialogue, which has already started between the two countries, will help improve investment environment in Bangladesh. The Japanese spokesperson talked about the Japanese Prime Minister's meeting with opposition leaders including BNP Chairperson Begum Khaleda Zia. The Japanese Prime Minister expressed his hope that the domestic problems of Bangladesh would be resolved in a peaceful manner through dialogue among the political parties.
The writer is an economist
and columnist.
 jamaluddinsyed23@yahoo.com.au
Abe\\\'s visit: New opportunities for cooperation opened up
Syed Jamaluddin | Published: September 10, 2014 00:00:00 | Updated: November 30, 2024 06:01:00
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