Production cost in Bangladesh almost half compared to Japan
Dhaka, Sept 1: There is some dissatisfaction with the business environment among Japanese companies doing business in Bangladesh. Still they are interested in expanding business in Bangladesh. About 72 percent of Japanese companies feel that the business environment in Bangladesh is somewhat uncomfortable. But the cost of doing business here is very low. About 26.2 percent of Japanese companies are completely dissatisfied with the business environment in Bangladesh. About 45 percent of companies are somewhat dissatisfied.
About 51.7 percent of Japanese companies ranked Bangladesh as the top business environment for 'cheap labour'. They think that the cost of producing the product in Japan is 100 percent, the cost of producing the same product in Bangladesh is less than 60 percent. That is, compared to Japan, the cost of production in Bangladesh is almost half. On the other hand, in terms of cheap labour, Myanmar and the Philippines are in the second position in the list of Japanese interest after Bangladesh.
The Japan External Trade Organization (JETRO) presented the results of the survey in an event at the Metropolitan Chamber of Commerce and Industry (MCCI) auditorium in Gulshan in the capital on Wednesday. The survey report was prepared based on the opinions of Japanese companies operating in various countries in Asia and the Pacific region. 214 Japanese companies doing business in Bangladesh gave their opinions in this survey conducted in August-September last year.
Bangladesh Investment Development Authority (BIDA) Executive Chairman Lokman Hossain Miya was the chief guest of the event, Japanese Ambassador Iwama Kiminori was the special guest. Abdus Samad Al Azad, Joint Secretary of the Ministry of Commerce, Saiful Islam, President of Metro Chamber, Nihad Kabir, former President of Metro Metropolitan Chamber, Manabu Sugawara, Vice President of Japan-Bangladesh Chamber of Commerce and Industry (JBCCI), Uji Ando, JETRO's local representative, were also present. Tetsuro Kano, president of the Japan Chamber of Commerce and Industry in Dhaka.
4,392 Japanese companies from Asia and the Pacific participated in the survey. They were asked which country would be their first choice for business expansion. 72.5 percent of the total participating companies named India as their first choice. Bangladesh is in the next position. In addition, the list of Japanese interest in business expansion includes Vietnam, Singapore, Australia, New Zealand, South Korea. The future potential of the Bangladeshi market to grow is playing a major role in creating the investment interest of the Japanese.