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Mori’s visit to encourage investment from Japan |
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August 18, 2000
Dhaka (UNB) - Business leaders hope that the ensuing visit of Japanese Prime Minister Yoshiro Mori will encourage more investment from the Asian giant here. They rate the visit as having more economic significance than political for Bangladesh. Investment in the manufacturing sector and easy market access are among the areas, which the official talks should focus on apart from parleys for continued development assistance for infrastructure, they feel. Since the business community does not have any formal involvement with the Mori’s itinerary during his 26-hour stay here on August 19-20, they want the government to negotiate its best to reap maximum economic benefit out of the visit. They say apart from continued official development assistance, Bangladesh needs more investment from Japan, specially in the manufacturing sector where Japanese presence is still quite insignificant. Bangladesh may be a destination for Japanese small and medium investments, if not the big ones, they feel. Japanese actual investment would amount to about US$57 million against 25 units in Bangladesh while approved Japanese investment in Bangladesh would amount to nearly $900 million, officials said. The business leaders suggest that the government should also negotiate for facilitated market access of Bangladesh’s products in Japan. Bilateral trade is now heavily tilted towards Japan with Bangladesh importing more than five times of its exports to Japan. Bangladesh’s imports from Japan totalled US$493.98 million in fiscal 1998-99 while its exports were only $92.85 million. Shrimps, woven garments and leather are the major export items from Bangladesh to Japan while imports from Japan include vehicles, transport equipment, base metal, machinery and mechanical appliance, electronics, textiles and textile articles. Metropolitan Chamber president Latifur Rahman said Bangladesh, with its market size and infrastructure supports, can attract a number of small-scale Japanese investments of US$5-10 million each in the manufacturing sector. Except the troubled KAFCO, Japanese investment in manufacturing is at present almost zero. However, they have some trading companies operating in Bangladesh, he added. Small and medium scale investments can make their way to Bangladesh if state-level talks should focus on the matter, because the Japanese private sector values the relations with the governments, the Metropolitan chamber chief said. He said Japan has already got major partnership investments in automobiles and electronics in neighbouring India. Considering Bangladesh’s market size Japanese investors may choose Bangladesh as a better location for their small and medium scale investments, he felt. Former president of Dhaka Chamber MH Rahman said Bangladesh’s business community is looking forward to have more Japanese investment in manufacturing sector, technical assistance and market access. “We’ve reasons to become very happy to see the Prime Minister of a developed nation like Japan coming here,” he said. Japanese investment in manufacturing is nothing very special here, he noted and said Bangladesh, being an Asian nation, may expect more Japanese investment in manufacturing areas. Rahman suggested that Japan, taking into account the performance and cost-effectiveness of Bangladeshi workforce recruited in other countries, could consider setting up of a technical training centre here to develop skilled manpower for its job market. Vice president of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) MA Mumin pointed to the higher tariff that restricts the entry of Bangladesh products into Japan. As a least-developed country (LDC) Bangladesh can expect concessional market access to Japan like that to USA and EU, he argued. The issue has been discussed in private sector-level negotiations both in Dhaka and Tokyo, the FBCCI vice president informed and felt now it should come to formal official talks. |