Japanese investors and importers are choosing Bangladesh as one of their major destinations. Trade negotiations, agreements and visits by investors have marked a significant rise in recent times.
According to a Japanese trade diplomat in Dhaka, Japanese investors are showing more interest in investing Bangladesh.
Top-level officials of Shimamura, Japan’s second largest clothing retailer, and Okamoto, Japanese socks and hosiery market leader, visited Dhaka early this month.
In 2007, Bangladesh apparel shipment to Japan was worth less than $30 million exposing the country’s inability to extract from Japan’s $25 billion plus market of imported apparels.
But, the opening of the Dhaka sourcing office in Mid-2008 by Japan’s number one clothing brand Uniqlo drew attention of other Japanese, who mainly source from China with some procurement from Vietnam, Thailand, and Indonesia.
In nine months to September 2009, Bangladesh apparel shipment to Japan crossed $80 million, which is more than double of the 2008 shipment.
Kinomoto finds highly significant the partnership between Bangladeshi ISP BracNet and Japanese telecom and internet service giant KDDI Corporation.
KDDI, which is partly owned by Toyota and Kyocera and has business with Google, announced last week that it had bought 50 per cent stakes in BracNet.
Kinomoto declined to name more companies that are close to make investment deals or doing feasibility studies in Bangladesh.
Sources in the Japan Bangladesh Chamber of Commerce and Industry said at least half a dozen Japanese textile and garment companies were in process of registration as investors.
The JBCCI president, Abdul Haque, said Kenco Logistics and Konoike-Euro Logistics opened their offices in Dhaka while QTECH, an inspection company, announced opening of its office in February next year.
For years, business seminars in Dhaka discussed the potential of Japanese investment in Bangladesh or possibility of relocations of Japanese manufacturing industries in the country.
But in reality Japan’s investments in Bangladesh remain insignificant comparing with Korea, China, Taiwan or even the UK or USA.
Kinomoto of JETRO said due to the ‘China Plus One’ policy of the Japanese government, the Japanese manufacturers had started considering Bangladesh as an important investment and import souring destination.
‘The global recession has pushed the Japanese business to search lower cost manufacturing base and sourcing destinations,’ he added.
Power and gas supply would have to be improved, Kinomoto said adding that road condition would have to be improved and land has to be developed for setting up factories. |
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