Investment News

BIDA holds high-level talks to invite Japanese investments

May 05, 2020

A high-level dialogue with His Excellency Ambassador of Japan Ito Naoki and his team was organized by BIDA to enhance the government’s readiness to secure Japanese FDI.

The dialogue followed Japan’s declaration of incentives for relocating Japanese production facilities from China to other countries.

Hirata Hitoshi, then JICA Chief Representative in Bangladesh, Japan Embassy Economic Counsellor Yasuharu Shinto, JETRO Country Representative Yuji Ando, who is also the president of the Japan Bangladesh Chamber of Commerce and Industry participated in the meeting.

The dialogue discussed persisting challenges, successful models of investor outreach and potential sectors and activities.     

“We have more than 300 Japanese companies operating in Bangladesh. There are opportunities for Japanese companies in Bangladeshi special economic zones, especially the one being exclusively developed for Japan,” said BIDA Executive Chairman Md. Sirazul Islam, as he chaired the dialogue. 

Japanese companies thinking to relocate are also invited to set up outside the economic zones, he said. “As our movements are restricted due to the pandemic, we would like to engage with potential Japanese investors through virtual webinars.”

Japanese cooperation for Bangladesh will be further heightened once the pandemic passes, said H.E. Ambassador Ito Naoki. “The companies that had to leave due to COVID-19 are keen to return and even expand.”

He thanked the BIDA chief for accelerating Japan’s request with the Bangladesh Bank, which issued a circular on May 3 to allow foreign-owned companies in Bangladesh to working capital loans from their parent companies irrespective of sectors. “We are happy to organize the next round of talks, involving Japan Chamber of Commerce,” said H.E. Ambassador Ito.

To get ahead of the competition, Bangladesh should continue its reform agenda for an improved business climate, said Mr. Hirata.  

Among other matters, resuming direct flights from Japan’s Narita to Dhaka was recommended by JETRO chief Yuji Ando. “These 5-hour flights between Dhaka and Narita will help promote investment.”  

BIDA has prepared guidelines concerning remittance and project offices that will soon be issued, said BIDA Executive Member (International Investment Promotion) Nabhash Chandra Mandal.

“Bangladesh has many facilities available for Japanese investors. There is a taskforce for expediting resolution of Japanese investor concerns. In BIDA, there are two desks dedicated to Japan. We also have a new Visa policy-2019.”

During the dialogue, the sectors for automobile, auto parts, motorbikes along with textile and light manufacturing were discussed in view of high domestic consumption.

Bangladesh is recognized as the land of highest corporate profitability, where the intention to expand business is felt strongly among investors, according to JETRO’s 2018 Survey on Business Conditions of Japanese Companies in Asia and Oceania.

As per FDI stock from 2019, sectors with Japanese investments include Telecommunication, Construction, Textile & Wearing, Gas & Petroleum and Power.