The New Nation - Internet Edition

BSS, Dhaka

Some 50 Japanese investors are now in the city, some of them on invitation of BKMEA or BGMEA which are holding annual international trade fair currently in the city, to explore new business and investment opportunities here.

This is the largest presence of the Japanese investors here at a time over at least two decades, a BOI official told BSS pointing to a growing prospect of Japanese investment in some major manufacturing sectors in Bangladesh.

BKMEA president Fazlul Haque at a press conference yesterday afternoon in the sideline of the BKMEA trade fair at a city hotel welcomed the Japanese presence on the occasion and asked them to buy more merchandise from here and also put associated investment in textile and knitwear sectors.

Executive chairman of Board of Investment Dr SA Samad yesterday held a meeting with a 22-member Japanese investment team which is here to explore new investment prospects in the growing Bangladesh economy.

BOI director for foreign Investment Jalal Hai said Japanese investment came in large volume to Bangladesh initially in the late 1980s and early 1990. But it slowed down later because of growing hartals and impacts of recurrent cyclonic storms.

Japanese investors then refocused investments in China, Vietnam and some other East Asian countries having low cost of production and higher profit margin. But as cost of production has significantly increased in these countries they are trying to find new investment destination in which Bangladesh appears attractive, he said.

The Japanese government is also encouraging investors to move to Bangladesh, he said indicating the opening of a new chapter in the relation of both the countries dominated by more trade and investment.

BGMEA and BKMEA sources said in the wake of the global economic recession they are also refocusing their export markets to new areas like Japan, Hong Kong, South Africa and some such other countries.

One of the BKMEA functionaries said they visited Japan and Hong Kong twice to make sure their presence during the annual international trade fair now in progress. Bangladesh is also trying to develop its production capacity and catch up with the design and fashion sensitive new markets like the Japanese market, he said.

The BOI functionary said the presence of Japanese supermarket chain operator Uniculo in Dhaka which is respected as a lead business house like the US super market chain Wal-Mart has brought new confidence to other Japanese investment houses.

Uniculo has already selected over a dozen garment factories here to produce quality garments for its chain in the Japanese market. The company is also helping capacity building here to produce goods keeping with Japanese taste and fashion.

With Uniculo, some other Japanese manufacturers of garments accessories have moved in here and their numbers are on rise, the BOI functionary said pointing to a time when more relocation of Japanese business and manufacturing will take place.

We are moving towards a new breakthrough, he said. Investors having interest in garments, textile, knitwear, leather goods, medicine, food items, heath care and health products are paying visit here this week, he said.