Govt offers SEZ to Japanese investors
The government has offered a special economic zone to Japanese investors after they showed interests in shifting their production bases to Bangladesh, Commerce Minister Tofail Ahmed said yesterday.
Japanese investors can choose either of the two SEZs that are currently being developed in Gazipur and Narayanganj, Ahmed told reporters after a meeting with Yoshihiro Seki, vice minister of Japan's Ministry of Economy, Trade and Industry at the secretariat in Dhaka.
The Gazipur zone is spread across 500 acres of land and the one in Narayanganj on 1,500 acres.
Bangladesh looks to export $2 billion of products to Japan in the next three years. Last fiscal year, the country managed $915.22 million.
Ahmed said it would be possible to hit the target if the Japanese investors set up factories in the SEZ and ship the products back to their country.
Besides, demand for Bangladeshi products, especially garment and leather, is higher in Japan, he said.
In April, Japan relaxed its rules of origin (RoO) for products originating from least-developed countries. The RoO are a set of conditions that determine the source of a product and are important in determination of duties.
As a result, all Bangladeshi exports to Japan, save for hand gloves and arms, enjoy duty-free benefits.
In fiscal 2014-15, garment exports to Japan rose 14.02 percent year-on-year to $652.55 million.
Japan's annual garment sales are about $40 billion, most of which are from China.
In 2008, Japan introduced a 'China Plus One' policy to reduce its dependence on China and encourage its retailers to look to Bangladesh, Vietnam and Cambodia for sourcing.
Seki said the Japanese investors' emphasis is on improved infrastructure.
Later, the visiting Japanese delegates met Bangladesh Bank Governor Atiur Rahman at his office and discussed bilateral issues.
Rahman urged the Japanese entrepreneurs to invest more in Bangladesh.
“Our policy stance on foreign direct investment and foreign portfolio investment inflow are among the most liberal in South Asia,” Rahman said.
The central bank chief also assured the Japanese investors that they would fully facilitate their businesses in Bangladesh.
The central bank is continuously engaging with local foreign investor communities in Bangladesh to facilitate all kinds of business related external transactions, including inflow of equity and debt, and outflow of royalty/technical fee, profits/dividends and disinvestment proceeds including capital gains, he said.
Major recent new facilitations include enhancement of the family remittance ceiling for expatriates to 75 percent of salaries, and repatriation of sale proceeds of foreign equity in unlisted companies at fair value based on assets, income and earnings.
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