New Japanese Ambassador to Bangladesh Naoki Ito has suggested that Bangladesh should work on free trade agreements (FTAs) with its major trading partners, including Japan, to face the challenges in post-LDC graduation phase.
Bangladesh should develop new trade arrangements with major trading partners in the ASEAN and join the Regional Comprehensive Economic Partnership, as it will lose existing preferential arrangement after the graduation, he said.
The envoy also urged the government to improve business and investment climate for the Japanese companies operating in the country.
The Japanese ambassador spoke at a welcome luncheon organised by the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) in honour of him and Hiroyuki Yamaya, new minister of the embassy, on the sidelines of its extraordinary general meeting at a city hotel on Wednesday.
Ambassador Naoki Ito said as many as 305 Japanese companies are now operating in Bangladesh and many companies see the country as a new frontier for its growth which is expected to be double-digit.
Pointing to the disparities between the export-oriented companies operating inside and outside the Export Processing Zones (EPZs), which he came to know about during his recent visit to Chattogram EPZ, the new envoy stressed the need for improvement of the business climate to attract more Japanese companies in the future.
He said some Japanese companies are operating in the EPZ for more than 29 years and some for 14 years.
But there are huge disparities between the companies operating inside and outside the EPZs at the policy level in terms of wage, tax and cash incentives, he added.
Giving an example, the ambassador said the Japanese garment-exporting companies inside the EPZs are not getting cash incentives while outside companies receive four per cent cash incentives for their exports to new markets.
Even the Japanese companies do not get the incentives for their exports to Japan, he pointed out.
The envoy urged the government to address the issues and improve the business and investment climate for the Japanese companies.
He also expressed the hope that the Japanese investment in Bangladesh will grow during his tenure in the country.
He also said the relationship and partnership between Bangladesh and Japan will strengthen further, marking the country's 50th anniversary of independence and the 50th anniversary of bilateral relationship with Japan.
Speaking on the occasion, JBCCI President Yuji Ando said some 70.3 per cent of Japanese companies operating in Bangladesh are willing to expand their business activities in the next two to three years.
This percentage is the highest in Asia-Oceania region, he added.
JBCCI Secretary General Tareq Rafi Bhuiyan also spoke at the event moderated by JBCCI Honorary Executive Director Dr AKM Moazzem Hussain.
Deputy Secretary of BEZA Hasan Arif and President of CanCham Masud Rahman were also present.
The luncheon was also attended by JBCCI board of directors, the adviser and the past presidents.
