Bangladesh Bank (BB) Governor Dr Atiur Rahman assured Japanese investors of enhanced facilities for investing in Bangladesh.
The governor, addressing the Japan-Bangladesh Business Forum in the city, said the central bank had already brought some changes to the related rules and regulations to ensure the highest benefit and return from both the Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI).
The Board of Investment (BoI) in association with Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and Japan External Trade Organisation (JETRO) organized the Forum.
Executives from top 50 Japanese companies covering the fields of trading, construction, energy, power generation, infrastructure development, IT, textile, RMG, pharmaceuticals and automobiles participated in the event besides local policymakers, economists and leading businessmen. The Forum was organized as the major sideline event during the visit of Japanese Prime Minister Shinzo Abe. Abe also addressed the Forum.
Dr Atiur said foreign owned businesses can now have access to local and external financing on the same basis as for locally owned businesses, and their interest free short term borrowings from their parent businesses at home require no prior approval.
“We at the central bank are continually engaging with local foreign investor communities in Bangladesh for facilitation of all kinds of business related external transactions including inflows of equity and debt, and outflows of royalty and technical fee, profits and dividends and disinvestment proceeds including capital gains,” he said.
The governor also cited some recent steps of BB to encourage more FDI and FPI. The steps include enhancement of family remittance ceiling for expatriates to 75 percent of salaries and allowing repatriation of sale proceeds of foreign equity in unlisted companies at fair value based on assets, income and earnings trends instead of solely at net asset value.
Suggesting Japanese investors to take the advantage of the facilities, he said Japanese automakers and machine builders can take advantage of with orders for parts and spares. Manufacture of solar PV panels, energy efficient LED lamps, TVs, computer monitors and other electrical and electronic appliances are also likely to be cost efficient.
“Japanese businesses would also find Bangladesh attractive as an outsourcing destination for software development and other IT enabled back office services. Relocation of export manufacturing units in Bangladesh will give Japanese businesses the advantage of favored access to many advanced economy markets, besides cost efficiency,” the governor said.
Besides, he said manufacturing for Bangladesh’s own large domestic market with a large and growing middle to higher income population segments would also be attractive for Japanese entrepreneurs. Both wholly foreign ownership and joint venture options with the private and public sector are open for Japanese and other foreign investors.
