Japanese firms in China yet to propose factory relocation to Bangladesh
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard

Monday
August 15, 2022

Sign In
Subscribe
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
MONDAY, AUGUST 15, 2022
Japanese firms in China yet to propose factory relocation to Bangladesh

Economy

Abul Kashem
26 November, 2020, 01:15 pm
Last modified: 26 November, 2020, 01:34 pm

Related News

  • Japan's GDP expands in Q2 after Covid curbs lifted
  • Morning Bid: Asia's economic spotlight shines on giants China, Japan
  • US lawmakers arrive in Taiwan as China tensions simmer
  • Japan plans fresh package to cushion blow from rising living costs
  • Asia shares mixed as China cuts rates, data disappoints

Japanese firms in China yet to propose factory relocation to Bangladesh

The Bangladesh Investment Development Authority has no idea whether Japanese investment will come

Abul Kashem
26 November, 2020, 01:15 pm
Last modified: 26 November, 2020, 01:34 pm
Japanese factory. Photo :Pinterest
Japanese factory. Photo :Pinterest

Several committees of different levels of the government have been working for more than six months, but Bangladesh has not yet received a proposal from any Japanese company to move its factory from China to Bangladesh.

Although the government has been assured of factory relocation in several meetings with Japanese investors, the assurance has not been implemented yet. 

Bangladesh Investment Development Authority (Bida) has no idea whether Japanese investment will come or not. 

In March-April, China implemented several measures, including lockdowns, as novel coronavirus infections soared. Its supply chain with trading partners collapsed as factory production came to a halt.

As a result, Japan, the United States and several countries of the European Union took initiative to move their factories from China to reduce their sole reliance on the East Asian country for their supply chains. 

Japan took the greatest initiative as it announced funds of $2.2 billion in early April for factory relocation. Of the amount, $2 billion was set aside for companies interested in relocating factories from China to Japan. The remaining $200 million was for companies eager to move factories to other countries.

At the time, Indonesia, Vietnam, India, the Philippines, and other countries announced various facilities to attract investment from Japanese companies interested in moving out of China. Bangladesh also took measures to this end. 

In May, the commerce ministry formed a taskforce chaired by Minister Tipu Munshi and comprising: the foreign minister, the industries minister, the private industry and investment adviser to the prime minister, and business representatives. 

A high-level committee headed by Principal Secretary to the prime minister Dr Ahmad Kaikaus was also formed to finalise the type of incentives that could be offered to Japanese investors. 

However, no incentive has been announced so far. 

Meanwhile, the Japanese government announced a list of companies that will benefit from the first round of its subsidies, with 57 firms receiving a total of $535 million to open factories in Japan and 30 others to be  paid to expand production in other Southeast Asian countries.

Of the 30 companies that announced they would relocate their factories from China to Southeast Asian countries: 15 are moving to Vietnam, six to Indonesia, four to Malaysia, three to the Philippines, and two to India.

But no Japanese company gave any specific proposal about relocating its factory to Bangladesh, said Bida Executive Chairman Md Sirazul Islam. 

"No company contacted us for registration either," he said. 

Japanese investors invested in China after doing cost analysis, said Sirazul. 

"No matter what is said, the opportunities that China offers investors are available in very few countries. Companies will not hurriedly move to other countries to get one-time payments from the Japanese government's incentives," he explained.  

The Bida official added, "Companies may get enough workers when it comes to relocating factories to Bangladesh. But they will not make the move unless they are sure that Bangladesh has the kind of skilled labour they need."

Shafiul Islam Mohiuddin, a member of the task force formed by the commerce ministry and former president of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI), thinks it is highly unlikely that any Japanese company will set up a factory in Bangladesh after withdrawing investment from China. 

He does not think many companies will move out of China despite incentives offered by the Japanese government. 

Sirazul said it is unfortunate that Bangladesh does not receive that much Japanese investment.  

Japan's total foreign direct investment in Bangladesh, since independence, amounts to a mere $3 billion, he added. 

However, the Bida executive chairman believes Bangladesh will receive Japanese investment in the future. He thinks Japanese investment will come once the economic zone in Araihazar of Narayanganj is built.  

Asked when incentives to attract Japanese investment from China may be announced, he said the Prime Minister's Office was working on it, and the matter needs to be analysed in depth.

Top News

Japan / china / factory / relocation / Bangladesh

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Illustration: TBS
    His presence felt everywhere
  • Photo: PID
    PM pays homage to Bangabandhu on his martyrdom anniversary
  • 15 August 1975: A journey down memory lane
    15 August 1975: A journey down memory lane

MOST VIEWED

  • Anwar Group looks beyond slowdown – invests Tk5,000cr
    Anwar Group looks beyond slowdown – invests Tk5,000cr
  • TBS file photo
    Now 99% Bangladesh products come under China’s duty-free offer
  • Photo: Noor-A-Alam
    Dollar climbs to record Tk119 in kerb market
  • Dollar price drops by Tk8 in kerb market
    Dollar price drops by Tk8 in kerb market
  • Photo: TBS
    Govt fixes area-wise staggered holidays for factories
  • Representational image. Picture: Collected
    Gold prices soar by Tk1,954 per bhori

Related News

  • Japan's GDP expands in Q2 after Covid curbs lifted
  • Morning Bid: Asia's economic spotlight shines on giants China, Japan
  • US lawmakers arrive in Taiwan as China tensions simmer
  • Japan plans fresh package to cushion blow from rising living costs
  • Asia shares mixed as China cuts rates, data disappoints

Features

15 August 1975: A journey down memory lane

15 August 1975: A journey down memory lane

11m | Supplement
Perhaps it was the respite while in jail that helped Bangabandhu think about wildlife conservation. Photo: Archive

The day Bangabandhu surprised Guy Mountfort

1h | Panorama
Illustration: TBS

His presence felt everywhere

1h | Supplement
Photos: M Aminur Rahman

Mallik Ghat flower market: the biggest hub for flowers in Asia

19h | In Focus

More Videos from TBS

"We got caught in the cyclone while shooting Hawa"

"We got caught in the cyclone while shooting Hawa"

12h | Videos
Get your child's Covid vaccine registration done in few easy steps

Get your child's Covid vaccine registration done in few easy steps

12h | Videos
UN expresses concern over Ukraine's Zaporizhia nuke plant

UN expresses concern over Ukraine's Zaporizhia nuke plant

13h | Videos
ADB's $9.46B coming to cover development costs

ADB's $9.46B coming to cover development costs

15h | Videos

Most Read

1
Dollar crisis: BB orders removal of 6 banks’ treasury chiefs 
Banking

Dollar crisis: BB orders removal of 6 banks’ treasury chiefs 

2
From left Afzal Karim, Murshedul Kabir and Mohammad Jahangir
Banking

Sonali, Agrani and Rupali banks get new MDs

3
Photo: Collected
Transport

Will Tokyo’s traffic model solve Dhaka’s gridlocks?

4
Representational Image. Photo: Collected
Bangladesh

Air passengers should plan extra commute time to airport: DMP

5
Arrest warrant against Habib Group chairman, 4 others 
Crime

Arrest warrant against Habib Group chairman, 4 others 

6
Ambassador of Switzerland to Bangladesh Nathalie Chuard. Photo: Courtesy
Bangladesh

Bangladesh never asked for particular info from Swiss bank: Ambassador

EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2022
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net