Japanese watch Bangladesh situation before investment

Potential Japanese investors are watching carefully the situation in Bangladesh as they always think of a long-term perspective on their investment, Japanese Ambassador Masayuki Inoue said, as the country is now at a crossroads.
"Direct investment from Japan to Bangladesh is very important. Japanese businessmen are watching very carefully what is going on in Bangladesh. I encourage them to come to Bangladesh, but the businessmen always think of long-term perspective," he said in an interview with the news agency yesterday.
Asked whether the Japanese investors will wait until the installation of an elected government, Inoue said steps announced by the Chief Adviser of the present caretaker government for elections are very important. "I sincerely hope a free and fair election would be conducted after good preparations according to the announced roadmap."
The ambassador said what is important is stability and prosperity, and “an important agenda of our foreign policy is creating an Arc of freedom and prosperity”.
Japanese investment in Bangladesh amounted to US$ 127 million, as of June 2006, particularly in EPZs wherein 24 companies are currently operating.
Inoue stressed the need for quick repayment of L/C complying with international business practices and setting up comprehensive "One Stop Service" to attract investment from Japan, an economic powerhouse of Asia.
Asked about a new loan package of US $ 312 million for Bangladesh, he said that the latest package of Yen loan is threefold, and all the three components are utmost important for future development of this country.
One is a $154 million dollar credit for New Haripur Power Plant Development Project, another is $112 million Dhaka-Chittagong Railway Project and the third is $46 million Water Resources Development Project conceived to increase agriculture and fishery production.
About development of Haripur power station, the envoy said, "We know electricity is a kind of rice for economic development." Despite developments here for last 5-10 years, he said, electricity demand-and-supply balance is not good in the country.
He said work on the Dhaka-Chittagong railway project would start in close cooperation with two major development partners--ADB and the World Bank--and in consultation with the Ministry of Communications.
"We think, for development of Bangladesh many things need to be done--one is infrastructure and another is technical assistance and human resource development,” he said, adding, “we like to cooperate for future development in Bangladesh."
Asked about a yawning trade gap against Bangladesh, the ambassador acknowledged the fact and said recently a Jetro (Japan External Trade Organisation) delegation came to Dhaka with main objective to increase exports from here to Japan.
Asked about relocation of sunset industries from Japan to Bangladesh, Inoue said small and medium industries of Japan should be relocated for their own survival because of lack of workforce and increased pay.
He suggested more dialogue and exchange of information between entrepreneurs of the two countries, which is important for every business.