Dhaka: Most of the Japanese companies operating in Bangladesh want to expand their business here considering the prevailing investment-friendly environment, according to a survey of the Japan External Trade Organization (JETRO). 'Bangladesh has demonstrated very high business even after political changes. Considering the trend of business development in the next 1-2 years, 57.7 percent of Japanese companies have signaled that they are intended to expand in Bangladesh,' said Country Representative of JETRO Yuji Ando while talking to BSS during an interview at JETRO office in the city. Ando said a total of 315 Japanese firms are currently running their business in Bangladesh.
According to Bangladesh Sangbad Sangstha, during the last nine months, around 900 companies visited JETRO's office for taking investment-related information, with most of them being Japanese companies. Out of them, one-third were new companies looking to invest in Bangladesh, and some have already started their operations here. Ando stated that Japanese companies seek business opportunities both for export-oriented business and domestic-market-oriented sectors.
He highlighted that fast-moving consumer goods (FMCG), automotive and parts, renewable energy, food processing, medical, education, and services are potential sectors for Japanese investors to set up companies targeting the domestic market. Man-made fiber, textile chemicals, food processing, IT, and ITES are also seen as potential sectors for export-oriented industries in Bangladesh. Ando emphasized that Bangladesh is a major destination for Japanese entrepreneurs, who are investing in fields such as ready-made garments (RMG), textile, IT, and infrastructure, leveraging the competitive human resource and large domestic market.
The JETRO country representative underscored the importance of smooth procedures with transparency, policy consistency, and international standards in the business environment for expanding business. He mentioned that Japanese infrastructure development companies are operating in Bangladesh under Japanese Official Development Assistance (ODA) projects, including the Matarbari Deep Sea Port. Recently, Chattogram Port Authority signed an agreement with two Japanese firms to develop the Matarbari Deep Sea Port, the country's only deep sea port in the Bay of Bengal.
However, Ando also pointed out challenges existing for Japanese and other foreign companies in Bangladesh, such as infrastructure and taxation. He urged authorities to review the complex tax system and ensure simplification, quick, and transparent administrative procedures, especially in customs clearance and registration. He stressed that Japan has been significantly contributing to Bangladesh's socio-economic development since its independence, with the business relationship growing stronger and more productive each day.
To attract more Japanese investments, Ando noted the need to simplify the criteria and procedures for visa and work permits for expatriates. He also emphasized policy consistency to boost the confidence of foreign investors. Japan and Bangladesh have maintained friendly relations since February 10th, 1972, through economic and technical cooperation, cultural exchanges, and mutual visits. Japan is a major development partner of Bangladesh, supporting its economic and social development efforts.