Bangladesh makes progress in JBIC Survey on Japanese Companies.
Bangladesh has leaped forward to 14th place from 21st as a ‘ Promising Country for Overseas Business over the Medium-term (next 3 years or so)’ according to Japanese manufacturing SMEs. This has been reported in the ’29th Annual Survey Report of the Japan Bank for International Cooperation (JBIC) on Overseas Business Operations by Japanese Manufacturing Companies’. The Survey report has recently been presented at a seminar in Tokyo jointly organized by JBIC and Japan Institute for Overseas Investment (JOI). JBIC conducts this survey annually among Japanese manufacturing companies having three or more overseas affiliates. This year it included responses from 602 Japanese companies.
In general, the findings of the survey is not altogether that promising. Overseas production and sales ratio of Japanese companies both fell from the previous year. The overseas production ratio in FY2016 decreased to 35.0% from 35.6% (FY2015) while the ratio of overseas sales fell to 38.5% from 39.6%. Besides, as for business prospects, the decreasing trend continued among the companies in terms of ‘Strengthen/Expand overseas operations’. on the contrary, the ‘strengthen/Expand’ trend regarding domestic operations rose to its highest level since 2008.
The progress of Bangladesh and the period of survey (July-September 2017) is however significant in the sense that this may be interpreted as a recovery sign in terms of business confidence of the Japanese companies operating in Bangladesh after the July 2016 incident. This should also encourage potential investors to establish their production bases in Bangladesh.