Extra than 70% of Jap firms preserve in tips underdeveloped honest techniques, time-drinking tax and administrative procedures, social and political instability and unclear policy administration by the authorities as major risks to investing in Bangladesh.
Furthermore, while most Jap firms peek the industry environments in Australia, Singapore, Thailand, Vietnam and Malaysia as very particular, 70.8% of them are either “disappointed” or “slightly of disappointed” with the industry atmosphere in Bangladesh.
“Roughly 77.1% of Jap firms cite underdeveloped honest techniques and unclear honest machine operations as necessary risks to investing in Bangladesh,” mentioned Yuji Ando, nation consultant of the Japan Exterior Alternate Organisation (Jetro) Bangladesh, for the length of his keynote presentation at an match today (26 Novemeber).
“74.7% of firms name time-drinking tax and administrative procedures as major challenges.”
The programme, “Japan-Bangladesh Collaboration: Bettering FDI and Economic Partnership,” changed into held at a metropolis resort and featured several keynote presentations.
The Foreign Merchants’ Chamber of Commerce and Enterprise (Ficci) organised the programme in collaboration with Jetro, Jap Commerce and Enterprise Affiliation in Dhaka (JCIAD), HSBC, Japan International Cooperation Company (Jica), Japan-Bangladesh Chamber of Commerce and Enterprise (JBCCI), and Embassy of Japan.
Yuji Ando additional mentioned 69.9% of Jap firms identified unclear authorities policies as a major possibility, while 66.3% pointed to political or social instability.
Despite these concerns, Bangladesh remains the head industry destination for 61.2% of Jap firms. At repeat, 350 Jap enterprises characteristic within the nation.
The presentations included a series of recommendations to boost the industry atmosphere in Bangladesh and entice more Jap international train investment (FDI).
These recommendations included reviewing and simplifying the complex tax machine, streamlining and rising transparency in administrative procedures, particularly customs clearance and industry registration.
Simplifying the visa and work allow criteria and processes for expatriates, relaxing monetary and international swap regulations, making sure policy consistency, placing off corruption and restructuring authorities agencies to provide a boost to efficiency and performance are the other recommendations.
Yuji Ando’s keynote presentation, “Enterprise Opportunities and Challenges of Doing Enterprise in Bangladesh,” highlighted the growing hobby of Jap SMEs in expanding their operations in Bangladesh.
He mentioned forty five.5% of firms within the location realizing to expand for the length of the next 1-2 years, with Bangladesh emerging as a top destination for 61.2% of them.
Lutfey Siddique, the manager adviser’s special envoy on world affairs, emphasised that Bangladesh would now not aspire to be merely a nation of cheap labour or one with tough investment prerequisites.
He additionally assured stakeholders that the authorities is dedicated to simplifying regulations for the length of the framework of the law to entice more investments.
The Jap Ambassador to Bangladesh, Iwama Kiminori, acknowledged that public expectations from the period in-between authorities are high, irrespective of its runt timeframe. Bangladesh is anticipated to graduate from LDC location in 2026, and the nation must take care of the total problems mentioned at today’s match, he mentioned.
The ambassador additionally smartly-known the so much of enchancment within the industry environments of ASEAN international locations, warning that if Bangladesh lags within the assist of, investments would possibly per chance presumably perhaps even shift in diverse places. “Bangladesh must prioritise improving its industry ecosystem. We share a stable relationship with Bangladesh and are entertaining to lend a hand the nation in improving its industry atmosphere if wished,” he added.
Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority (Bida), mentioned initiatives occupy been taken to rob away import taxes on capital equipment for investments in economic zones.
“Now we occupy additionally initiated increased conversation with the NBR (Nationwide Board of Income) and the Bangladesh Bank. Gradually, we design to place away with all obstacles to international investment,” he mentioned.
“Bida is the major point of have faith for investors to resolve any crises. I abet everyone to design Bida abruptly, other than through a third salvage together, for investment-connected problems.”
Tareq Rafi Bhuiyan, president of the JBCCI, highlighted the indisputable truth that Jap non-public sector investment in Bangladesh is at the moment lower than $2 billion, when put next with spherical $42 billion in competing international locations admire Vietnam. “Right here is basically attributable to the Economic Partnership Settlement (EPA) between Japan and Vietnam, while Bangladesh has but to place a similar agreements with Japan,” he added.
Ficci President Zaved Akhtar described the seminar as a landmark match, underscoring the stable economic ties and doable between the two international locations. “I’d admire to thank Jetro, JCIAD, and HSBC Bangladesh for their collaboration with Ficci, apart from the Embassy of Japan, Jica, and JBCCI for their beef up,” he mentioned. “This partnership is wanted for promoting increased international train investment and economic enhance. By working together, we’ll originate a sturdy and ahead-taking a take a look at economic cooperation mannequin that advantages both Japan and Bangladesh.”
Atsushi Hirakuru, president of JCIAD, emphasised that the collaborative efforts judge a shared commitment to sustainable economic enhance. “I’m confident that the insights and discussions from this seminar will pave the design for increased international train investment and a mutually helpful economic partnership,” he added.
The seminar offered an wanted platform for fostering dialogue among key stakeholders, at the side of the private sector, authorities officers and world organisations, in strengthening economic cooperation between Japan and Bangladesh.
