"[F]rom the results of the present survey, I would like to say that Bangladesh is not the cheapest country in Asia as far as the investment-related cost is concerned," observes Sotaro Nishikawa, representative in Dhaka of Japan External Trade Organisation (Jetro) that carried out the study.

The Jetro survey on 'Investment-Related Cost Comparison' finds the corporate tax for general enterprise in Bangladesh (37.5 percent) to be in the 'very high range' in Asia compared to 33 percent in China, 30 percent in Thailand and 25 percent in Vietnam.

The cost of water in Dhaka (US$0.32/cubic metre) is higher

than in Shenzen ($0.23), in Shanghai ($0.15) and in Hanoi ($0.22). The monthly basic charge for mobile phones, price of gasoline and cost of a passenger car in Bangladesh are also higher than the average cost of those in Asia, the survey discovers.

The Jetro, which has 76 overseas offices including the one in Dhaka, is an organisation of the Japanese government established for promoting trade and investment. It is the 14th survey of Jetro on 'Investment-Related Cost Comparison' covering 26 cities of 16 major Asian countries.

According to the survey findings, Bangladesh is in an advantageous position in respect of cost of gas and office rent. The wage of workers in Dhaka is also the second cheapest, after Yangon. But, the pay-scale of mid-level managers is higher than that not only of Yangon but also of Shenyang and Chongqing of central China. And the cost of electricity in Dhaka is almost same to that in Beijing, Seoul and Hanoi.

Analysing the survey data, Nishikawa says, "The wage of workers in Bangladesh is the second cheapest in Asia. But, a foreign investors considers not only the wage of workers but also the cost of electricity, water, transport, telecommunication, taxation, etc for an overall evaluation before he can make the decision."

Underscoring that foreign investment is essential for economic development of Bangladesh, Nishikawa prescribes, "For attracting foreign investors to Bangladesh instead of China, Vietnam or the Asean countries, it is essential to make the investment climate [in Bangladesh] much more attractive than that prevailing in those countries."

"To make the investment climate attractive," the Jetro representative prescribes the following four measures to Bangladesh.

Firstly, he suggests to lower those costs found in the survey as comparatively higher than other countries, as "an enterprise will always invest in a country where the return of investment is high."

The second suggestion is for continuity of policy matters. "An investment is always made on long-term considerations and, therefore, it is never desirable that a policy is changed thoughtlessly or a project in progress is suddenly cancelled due to policy change, especially due to the change of power from one political party to another."

The third one is improvement of infrastructural facilities. For example, ensuring a steady supply of electricity at a reduced cost.

The fourth recommendation is for instituting fairness and speed in approvals given by different government departments.

Nishikawa concludes by saying, "We should also remember that attracting foreign investment will involve competition with other Asian countries. The competitors are always earnestly trying among themselves to secure a bigger chunk of the foreign investment by providing special incentives to the potential investors. Therefore, the government of Bangladesh should, of course, study about the investment-related costs and the incentives prevailing in other Asian countries and then create a very attractive investment climate in this country."