Coronavirus won’t disrupt Japanese investment: envoy
The coronavirus outbreak will leave no scar on the flow of Japanese investment into Bangladesh and trade between the two countries will remain unscathed in the mid- and long-term, said Japanese Ambassador Naoki Ito yesterday.
However, trade activities between the nations may bear the brunt to some extent in the short-term, the envoy said at a networking event of Japan-Bangladesh Chamber of Commerce and Industry at the Lakeshore Hotel in Dhaka.
Japanese investment in Bangladesh will grow further after the completion of a dedicated special economic zone for the country in Araihazar of Narayanganj, he said.
Apart from bilateral trade and investment, both the countries will put the Rohingya issue on their agenda during the visit, Ito said, adding that mid- and long-term solutions to the crisis could be found.
On the possibility of a free trade agreement (FTA) between Bangladesh and Japan, Ito said he was not aware of any development in this regard. Bangladesh and Japan have not even started any consultation meeting for signing the FTA, he added.
Bangladesh and Japan are currently working on the Bay of Bengal Industrial Growth-Belt (BIG-B) Initiative under which Japan International Cooperation Agency is developing the Matarbari power plant.
Once the project is completed within the next five years, it will give a boost to the economy of Bangladesh, Ito said, adding that the country will soon witness 9 per cent or double-digit growth.
"This is why Japanese investors are showing increasing interest in Bangladesh."
The number of Japanese companies operating in Bangladesh is now 310 and is growing at 3.5 per cent in the last 10 years. "The number will rise further once all the basic infrastructure is developed."
Japanese investment in Bangladesh soared 160 per cent year-on-year to $72.9 million in 2019.
A recent survey by the Japan External Trade Organisation (Jetro) found that 70 per cent of the existing Japanese companies in Bangladesh are keen on expanding their operations.
Bangladesh is diversifying products in sectors such as IT, pharmaceuticals and light engineering and Japan wants to invest in these areas, the envoy said, urging the government to enhance the country's position in the ease of doing business index.
Regarding the spread of coronavirus in Japan, Ito said some 156 cases were detected in Japan until February 25, and the number reached 284 on March 4.
The number is increasing but at a slower pace, which indicates that Japan is being able to contain the outbreak.
Yuji Ando, president of the chamber, said some Japanese companies plan to shift production from China to other countries, including Bangladesh.
"We can understand that transportation and logistics are the key factors for increasing international business," Ando said, adding that Bangladesh face huge challenges in logistics, especially customs and port operations.
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