Bangladesh must improve investment climate to get more FDIs from Japan: Envoy

The country's first regional One Stop Service (OSS) centre launched at the Japanese Economic Zone in Narayanganj's Araihazar will help Bangladesh get foreign investments, said Ambassador Iwama Kiminori on Tuesday (28 November).

He said to bring in more foreign investments it is important not only to construct quality infrastructures but also to improve the investment climate, including quality services.

The Japanese ambassador made the remarks while addressing the inauguration of the regional OSS centre. Bangladesh Economic Zones Authority (Beza) has developed its first regional OSS centre at the Bangladesh Special Economic Zone (BSEZ), also known as the Japanese Economic Zone, in Araihazar under the "Project for Capacity Building of Beza on EZ Management and Investment Promotion", supported by the Japan International Cooperation Agency (Jica).

Iwama Kiminori said he would like to emphasise the importance of the OSS centre and service quality to get more investments from Japan.

"We are all pleased with the achievement made by 'team Japan' for the realisation of quality infrastructure projects in recent years and in the coming days, but investment climate also matters," he said.

Citing a recent Japan External Trade Organization (Jetro) survey, Iwama Kiminori said 72% of Japanese companies are willing to expand their business operations in the coming one or two years in Bangladesh. On the contrary, about 70% of the Japanese companies in Bangladesh are "dissatisfied" or "slightly dissatisfied" with the general business environment, he said. In particular, efficiency in administrative procedures such as permits and licences is considered as one of the biggest challenges, the envoy said.

"That's why, I do expect that the regional OSS centre in the BSEZ to improve investment-related licensing procedures would definitely lead to the promotion of more private investment from Japan as well as all over the world. Furthermore, these positive efforts made by BEZA and other relevant agencies would be the showcase and thus promote more foreign investment to Bangladesh as a whole, if the further OSSC would be developed for investors from abroad in other places," he said.  

BEZA Executive Chairman Shaikh Yusuf Harun said the regional OSS centre will fulfil all the needs of the investors. "They will also get necessary guidelines and advice regarding licences, permits and other compliance issues of different government entities. This is an important milestone of reducing time and cost and ease of business as the investors do not need to go to Beza head office for such assistance," he said.

Ichiguchi Tomohide, chief representative of Jica Bangladesh office, said the central OSS centre was set up in Beza in 2019 followed by the regional one at BSEZ. This centre will serve as a single – window supporter of more than 100 licences and approvals in collaboration with BEZA and 29 departments of various ministries and agencies, and facilitate a seamless and expeditious process for businesses operating in BSEZ, he said. 

Aro Kawachi, managing director, Bangladesh SEZ Limited, and Md Masumur Rahman, general manager (admin), Beza and project director, BEZIP, Beza spoke on the occasion.

The BSEZ, jointly developed by the governments of Bangladesh and Japan on 1,000 acres of land in Araihazar, is accelerating its construction efforts to start production early next year.