Japan-Bangladesh economic dialogue

Bangladesh and Japan have launched an economic dialogue, creating a new window of “interactions and actions”.

The dialogue, which started in Dhaka on Friday, came within three months of embarking on a “new era of relationship” during Prime Minister Sheikh Hasina’s Tokyo visit in May.

Hasina and her counterpart Shinzo Abe launched a “comprehensive partnership” that paved the way for the economic dialogue bringing both public and private sectors together.

Senior Secretary of the Prime Minister’s Office Abul Kalam Azad who led Bangladesh’s 32-member delegation said the dialogue boosted bilateral relations.

Bangladesh’s apex business body FBCCI President Kazi Akram Uddin Ahmed who led the private sector said it would be “a milestone” of Dhaka-Tokyo ties.

“We fully support and endorse the issues which will be discussed in the dialogue,” he said before the talks started.

The visiting Japanese vice-minister for international affairs of the Ministry of Economy Norihiko Ishiguro led his country's 38-member delegation.

A joint statement after the meeting said both sides exchanged views on wide-ranging areas of mutual economic interest, including prevailing investment climate and regime, development of infrastructure and industrial base including development of Special Economic Zones.

They also discussed improvement of regulatory and administrative arrangements further to facilitate movement of investment, and issues related to increasing bilateral trade.

Japanese side stressed on the importance of developing the Special Economic Zones and related infrastructures in Bangladesh to attract greater investments from Japan.

They also urged Bangladesh to address “some of operational issues" flagged by the Japanese investors, including simplification of procedures related to certification, licensing approval, issuance of visa, work permit and related issues.

Japan, which established diplomatic ties with Bangladesh in February 1972, is the largest bilateral development partner of the country.

Its assistance comes regularly as grant, aid, technical assistance and soft loan. The total grants and aid touched $11 billion last year.

During Hasina’s visit, it promised $6 billion additional credit for different development projects.

In the last seven years the number of Japanese companies operating in Bangladesh has nearly tripled -- from 61 in 2007 to 176 in 2013.

As business becomes difficult in China due to rising costs and anti-Japanese hostility, Japanese businesses are looking alternatives in Asia and Bangladesh, India and other countries in South-east Asia are emerging as preferred investment destinations.

Bangladesh has much potential to attract investments from his country, Japanese envoy in Dhaka Shiro Shadoshima earlier said.

Japan also believes Bangladesh occupies a very strategic position along with Myanmar between the Pacific Ocean and Indian Ocean.

The economic dialogue held in “an atmosphere of cordiality, friendship and cooperation” at the Prime Minister’s office came just before the Japanese Prime Minister Abe’s visit on Sept 6 and 7.

Both sides stressed on deepening economic and commercial cooperation while discussing their overall economic situation, according to the statement.

They noted a number of ways and identified areas for “mutually beneficial opportunities” for private investments in Bangladesh.

They recognised areas like textiles, leather, pharmaceuticals, IT and ITES, tourism and hospitality and healthcare as possible sectors where both countries can enter into “cooperative undertakings” in the future.

Both sides also discussed about various incentives with a view to improving overall investment climate and to enhance trade relations.

They expressed optimism that the dialogue could provide “a window for interaction and actions” between the governmental actors and private sector of both countries “on many areas that are not yet explored”.

Both sides maintained that the dialogue could contribute to “charting avenues for robust engagement”.

They concluded that “engagements should be based and advanced on the basis of mutual trust, respect and interest and equitable sharing of benefits” as they hoped to meet again next year in Japan.