Bangladesh must stabilize its macro-economic condition and reform the existing taxation system to attract more investment from Japanese firms, said Japanese Ambassador to Dhaka Iwama Kiminori on Sunday.
He also stated that the letter of credit (LC) settlements should be settled swiftly as the process's lengthening raised the cost of doing business in Bangladesh. The country's tax system also has to be made simpler and better.
Kiminori was speaking as the chief guest at the 12th networking program of the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI), organized in association with AB Bank Ltd in the capital.
“Bangladesh's macro-economic stability is going through a challenging period. The country's forex has dropped in recent times, which creates problems in opening of LC,” he also said.
Bangladesh's gross foreign exchange reserves dropped to $23.56 billion in July earlier this year, as per Bangladesh Bank's new reserve calculation based on the formula suggested by the International Monetary Fund.
He also said that after the visit of Prime Minister Sheikh Hasina to Japan, bilateral relations successfully elevated to a "strategic partnership" from the existing "comprehensive partnership".
Bangladesh needs to take two key steps to address the challenges it is likely to face after its LDC graduation in 2026.
Bangladesh must first improve its investment and business environment to attract more Japanese companies as they may not consider it an investment-friendly destination otherwise, the Japanese envoy remarked.
Lengthy approval procedures and bureaucratic delays, duties were primary obstacles to attracting Japanese investments.
“Most importantly, Bangladesh needs to sign the proposed Economic Partnership Agreement (EPA) before December 2026 to enjoy duty-free market access to Japan,” he added.
He suggested that Bangladesh make the necessary preparations to face post-LDC graduation challenges on time.
"I hope that trade and investment between Bangladesh and Japan will increase in the coming days, and our relationship will strengthen as well," he commented.
Regarding the export of manpower to Japan, Kiminori said: "We are trying to improve the relationship and communication between the two countries commercially."
However, there are several barriers as the Japanese government follows international standards especially in terms of importing manpower.'
The Japanese envoy mentioned that he would work with the government of Bangladesh to expand its employment opportunities in Japan.
Myungho Lee, president of the JBCCI, said that Bangladesh must sign the EPA before December 2026.
“In the business sector, we need three bilateral treaties - investment protection treaty, taxation treaty, and EPA. Only Vietnam has all these three treaties with Japan,” he also said.
JBCCI standing committees are working sincerely to enhance networking activities between Japanese firms and Bangladeshi counterparts, he added.
Khairul Alam Chowdhury, chairman of AB Bank Ltd, said that the bonding between Japan and Bangladesh will increase in future.
“Japan is assisting Bangladesh in many projects including Matarbari deep sea port, third terminal of the airport, metro rail,” he added.
AB Bank is determined to provide necessary assistance to the investors, he said, adding that they hoped business relations between two countries will go further in the coming days.
Chairman of Asian Tigers Capital Partners Ifty Islam presented the keynote paper at the seminar.
JBCCI Executive Director Md Emran marked the opening speech and JBCCI Secretary General Anwar Shahid marked the closing remarks.
