International Business Forum of Bangladesh (IBFB) organized a discussion session on “ Trade and Investment with Japan” held on 22nd July 2007 at Best Western La Vinci Hotel, Kawran Bazar, Dhaka.
Chaired by the IBFB President Mahmudul Islam Chowdhury, the keynote paper on Trade and Investment with Japan was presented by the honb’le ambassador of Japan. Amongst the others the presentation were made by Mr. Abu Reza Khan, Executive Member -Board of Investment, Head of JETRO Mr. Tomohiro KINOMOTO and Managing Director of SAIF Powertec Ltd. Mr. T. Md. R. Amin.
In his address, the ambassador highlighted the investment contribution by Japan in recent years for the economic growth in Bangladesh. Japan investment was the second highest in Export Processing Zone Authority (EPZ) contributing USD127 million through 24 companies. To expedite export to Japan and to attract more investment to Bangladesh, he emphasized the quality of products, human resource development, mechanism for handling disputes, reducing complicated and time consuming licensing procedures, access to one stop service and compliance with international business practice. He suggested that the Jute and Information Technology sector could be developed with more Japanese investment.
Mr. Kinomoto, the head of JETRO, recommended that the Government look into the hidden cost of doing business, which is one of the barriers to the investors in Bangladesh. He showed competition of other countries and mentioned the example of Vietnam which is becoming the investors’ choice and a strong competitor to Bangladesh. Non-transparent custom, absence of competitive one stop service, sudden changes of Government polices and unethical Globalize System of Preference (GSP) facility create the negative image of business climate in Bangladesh, he added.
Mr. Amin, the managing director of the only private company operating the Chittagong port urges Japan to provide more long-term loans for power sector development. He recommended that Japan invest in the thrust sector like: IT, agro product, light engineering, power, mining and gas and so on although he identified some barriers to investment like corruption, absence of good governance, mal practices, delay in making decisions and lack of transparency.
The board of investment is actively working to develop a special economic zone for investors, preparing its organogram to improve its efficiency, making one stop service effective by setting up strong linkage with the Govt. utility service providers. The BOI representative Mr. Abu Reza Khan also informed. He stressed more on human resource development as he sees the productivity is more important than cheap labor to become completive and the choice of the investors. He also emphasized the follow up mechanisms, which the Government is lacking historically.
The discussion was ended by a lively open floor discussion participated by the representative of different banks, renowned corporate houses, development partners and diplomatic missions.
The recommendations and concern received from the discussion session will be forwarded to the relevant Govt. ministries for further persuasion.
Picture Order From Left to Right: Hafizur Rahman Khan – Director IBFB & Chairman of Runner Group, Abu Reza Khan – Exucutive Member, BOI, Mahmudul Islam Choudhury – President IBFB & Former Mayor of Chittagong City, H.E. Masayuki INOUE – Japanese Ambassador, T. Md. R. Amin – Member IBFB & MD of Saif PowerTec Ltd., Tomohiro KINOMOTO – Representative JETRO
