THE government has set up a committee to simplify foreign direct investment (FDI) policy and corporate tax policy to lure foreign investment in the country mainly the Japanese investors who are working to shift their business from China to other regional destinations. As per disclosure the government has set up a committee to make the necessary recommendations for simplifying the FDI policy and corporate tax to lure investors. But it seems we are quite late and about to miss the train. .
Representative of Japan External Trade Organization (JETRO) openly expressed his country’s reservation recently at a function in the city on Bangladesh government policy shortcoming in mater related to DFI and corporate tax policies. He said over 50 Japanese investors would come to Bangladesh on an average annually but they look for friendlier tax policies and better investment climate.
He said Japanese investors are now giving priority in relocating industries to other ASEAN countries for their better tax policies and infrastructure. In his opinion Bangladesh can become a good destination as well provided the country removes the shortcomings. He said Japanese government has already allocated US$ 2 billion to help his country’s companies in their relocation efforts.
We would say the JETRO representative has rightly raised the very crucial issue but what makes us wonder is why the Bangladesh government is so late to plan reforms to ally Japanese investors’ reservations. Our government is only talking so far of big prospect of benefiting from such relocation of industries but has practically done nothing to lure the investors. We can’t expect anything good from this government which is highly corrupt, inapt and incapable to work out reforms and reach prospective investors.
In fact the relocation issue is being looked after here by a lone government agency such as Bangladesh Investment Development Authority (BIDA) headed by a bureaucrat. Its officials take up regular trip abroad but evidently lack the real touch at crucial decision making places. What we need has been reminded by the JETRO representative in the city. Other countries aspiring to benefit from such relocation have assigned senior ministers and special envoys to set up contracts with investors to know of their need and meet their demands. It is sad Bangladesh may be missing the train.
