Japanese Ambassador in Dhaka Ito Naoki has said that improvement in business environment, containing corruption, and removing discriminatory tax systems are important to attract Japanese investment in Bangladesh.
“For example, some of our EPZ companies are willing to expand export of good products from Bangladesh to Japan, but those companies are not eligible for the cash incentive measures that other local capital companies are benefiting from. Tax system is also another challenge that our Japanese companies often talk about,” he mentioned.
He made the remarks while speaking as the special guest at the signing ceremony between Bangladesh Economic Zones Authority (BEZA) and the Bangladesh Special Economic Zone (BSEZ) Limited on the development work of the zone.
This agreement marks a milestone for the 50th anniversary of the bilateral relations between Japan and Bangladesh.
The Executive Committee of the National Economic Council (ECNEC) had approved the Tk2,582 crore project back in March 2019, of which Tk454.35 crore will come from government funds and Tk2,127.82 crore from JICA as a loan.
The deadline for the project is June 30 next year.
Ambassador Naoki said Bangladesh needs to address some challenges to improve the business climate that include delays in customs clearance, various taxation systems, restriction on telegraphic transfer of import payments, discrimination of export incentives between domestic and foreign companies and improvement in the environment in EPZ and SEZs.
“On the other hand, we have to remember that taking care of the existing investors is no less important,” he added.
He also said the BSEZ is the first special economic zone in Bangladesh that has been designed and developed by Japanese companies.
“I hope that it will play a pivotal role in boosting FDIs and become a symbol of Japan-Bangladesh business partnership. As the SEZ meets the international standard in the form of facilities and infrastructure, it will attract investment not only from Japanese companies, but also from other international and multinational companies,” the ambassador noted.
Prime Minister’s Principal Secretary Dr Ahmad Kaikaus, while speaking at the chief guest, said the constructive criticism will help point out the weakness and strength of the governance.
He added that the government attaches special importance to Japan, the largest donor country to Bangladesh after the World Bank and the Asian Development Bank (ADB).
Kaikaus also said since independence, Japan has been the most reliable and trusted development partner of Bangladesh.
Chief Representative of the Bangladesh office of Japan International Cooperation Agency (JICA) Yuho Hayakawa and General Manager of Sumitomo Corporation Eisuke Nakanishi were present as special guests.
BEZA Executive Chairman Shaikh Yusuf Harun presided over the function.
