Spl package for Japanese investors
Tokyo move for relocating manufacturing units from China to BD09 September 2014 Kazi Zahidul Hasan
The government is going to offer a 'special package' enclosing various incentives and fast tract service delivery to facilitate Japanese investment to Bangladesh, official sources said.
A high-level committee comprising senior government officials and representatives from leading trade bodies has already started working to prepare the package following instruction from the Prime Minister's Office (PMO).
"The government has decided to offer a special package for the Japanese investors who are eager to relocate their manufacturing units from China to Bangladesh," a high official of Board of Investment (BoI) told The New Nation yesterday on condition of anonymity.
Under the package, the government will develop special economic zones (SEZs) exclusively for Japanese investors for setting up manufacturing units. They will be provided with fast track service in business, company and investment registration in Bangladesh, he added.
He further said, apart from the tax incentive, necessary administrative and regulatory reforms would be made to lure Japanese investment.
When asked, the official declined to disclose what kinds of incentives to be offered for the Japanese investors.
Earlier, the PMO has asked Bangladesh Economic Zones Authority (BEZA) to identify at least two sites to be developed as Japanese special economic zones.
"The sites will be built by the BEZA and Japanese investors will be offered to develop the required infrastructure to be used as the economic zones," the BoI official said.
He said, the regulatory bodies would be provided with prompt service and the authorities would be made serious efforts to ensure stable supply of energy and power to the industries to be set up by the Japanese investors.
Speaking at a Bangladesh-Japan Business Forum event, the Japanese Prime Minister Shinzo Abe during his 22-hour tour to Dhaka, said, Japanese entrepreneurs want to invest transport, infrastructure, power and garment sectors to boost trade and investment with Bangladesh.
He said, his government would promote trade and investment in Bangladesh as this South Asian country was very important for them for its geographic location.
Abe also urged the Bangladesh government to create better environment for investment with improvement of transportation and infrastructure and stable power supply for attracting for investment from Japan.
"The government is serious about exploiting investment opportunities from Japan and it will address all the issues relating impediments on the way to investment from Japanese investors," he said.
The official also mentioned that Prime Minister Sheikh Hasina has already directed relevant authorities to address these issues as soon as possible.
"We will make serious effort to facilitate Japanese investments," he said, adding, "As Japanese entrepreneurs are looking towards Bangladesh as their new investment destination, the Bangladesh authorities will provide all out support to promote their investment in the country.
He further said apart from the government initiative, Bangladeshi business leaders have also asked to work with Japanese businessmen together to bring about a major upturn in bilateral trade and investment relationships.
Sources in the BoI said, the government has already promised a sizable new special economic zone in Chittagong, specifically for Japanese investors. It is also considering a generous set of incentives for investors in SEZs, including time-bound full and partial waivers on tax.
Earlier, the Japanese Prime Minister promised to provide economic assistance worth US$ 5.9 billion to Bangladesh over the next four to five years during the Bangladesh Prime Minister Sheikh Hasina's visit to Tokyo.
Of the promised aid, Tokyo signed five loan agreements for around $1.20 billion with Dhaka to finance the country's five large projects with Japanese low-cost fund.