Function of the Wing
The Commercial Wing primarily extends cooperation to the prospective importers and investors in following manner:
♦ Matters relating to trade including export promotion, trade creation, trade expansion and facilitation of imports from Bangladesh to Japan
♦ Helps in resolution of trade disputes
♦ Matters relating to imports from Japan
♦ Provides information and assists Bangladeshi companies to participation in trade fairs, bazzars, etc.
♦ Support sales promotion activities in various departmental stores and elsewhere
♦ All investment matters
♦ Transmission of information to the customs and other concerned authorities in Bangladesh
♦ Replies of trade enquires
♦ Acknowledging Bangladesh/Japan Governments rules and regulations those realties to trade and invest.
Bangladesh- Japan Trade & Investment Scenario
Bangladesh and Japan share historical bondage of partnership & collaboration. Bilateral relation between the two friendly countries is at the peak of engagements in recent times with the visit of honourable Prime Minister Sheikh Hasina in 2016 and visits of two honourable Prime Ministers in 2014. These successive visits indeed ushered in a new horizon with the initiation of a Comprehensive Partnership. This new era of cooperation is leading the countries to the next stage of partnership with increased investment in quality infrastructures and helping Bangladesh being incorporated into global value chain system. It is high time for the two countries to strengthen the existing relationship for further exploring all possible business opportunities.
Bilateral Trade Relations between Bangladesh and Japan
Japan is a major trading partner and important source of foreign direct investment for Bangladesh. Although the volume of bilateral trade and investment is yet to reach its full potentials, joint and new efforts may substantially raise the level for mutual gains. Bangladesh is pursuing liberal investment policies through investment support services. It offers lucrative incentives, large market, competitive &inexpensive workforce and quality export products for Japan. The huge emerging middle class with the enviable demographic dividend along with a new arrangement of regional connectivity in South Asia will surely add to its future prosperity.
Export to Japan has surpassed 1 billion dollar mark in 2015 for the first time. Japan was Bangladesh’s 11th-largest export market in 2014-15 with 2.93% of exports; the amount of two-way trade crossed the $2 billion mark in 2014. During the period of July-March of 2015-16 fiscal year Japan has been augmented to the 7th-largest export destination. Export to Japan has increased by 7.5 times in between 2004-2005 and 2014-15.
Export from Bangladesh to Japan in fiscal year 2010 expanded by 60% compared to the previous fiscal year. In response to requests from Bangladesh, Japan relaxed rules of origin of Generalized System of Preferences (GSP) in April 2011. As a result, an increase in export from Bangladesh to Japan was observed. Apparel Export to Japan has increased by approx. 20 times in the past 5 years. Rules of origin were relaxed from two stages to single stage on 01 April 2015 making it even easier for the export of the knit Apparel.
Exports from Bangladesh to Japan have been increasing steadily. However our export to
Japan has not yet achieved cherished goal compared to our import from Japan.
At a glance Trade balance of Bangladesh and Japan are as follows:
Export basket to Japan
Common exports from Bangladesh to Japan include leather goods, ready-made garments, and shrimp.
Share to Japanese Import & Share to Total Export
Expanding to Japan: Looking East
Bangladeshi business houses are actively exploring Japan as a potential niche market and engaging seriously to establish their foot prints in the land of the rising sun. Bangladesh is actively participating in Trade fairs, Tourism Expo, IT Week and also organizing Investment Seminars, Business Seminars, B2B Meetings, Promotional Programs, etc. to strengthen their business ties with Japanese counterparts.
Besides traditional forte of woven & knit apparels, Footwear & leather products are having an impact in the quality conscious Japanese consumer world. IT services having similar business model of RMG has all the promises to be the next big sector in Japan.
Japanese Investment Trend
While the global inward FDI was $1.4 trillion, in South Asia was $35.3 billion and even Myanmar received $2.6 billion in FDI, Bangladesh could attract only $1.6 billion in 2013.
The number of Japanese companies that have invested in Bangladesh has risen to about 230 as of 2015. The number increased from 183 in 2014 (JETRO). In China there are 30000 Japanese companies. Bangladesh is an untapped market for Japanese investors. Mere $95.71 million was invested in 2014 by Japanese investors. Since independence the total Japanese investment in Bangladesh till 2014 is 1348 million dollars.
On the contrary the latest JETRO survey reports that Bangladesh is an attractive destination for Japanese companies to do business due to its lower production cost and labour wage compared to others. Business confidence of the Japanese CEOs ranks the highest for Bangladesh.
It is high time for Japanese investors to explore and capitalize on the strategic location, advantageous connectivity and demographic dividend of this emerging economy of promise & potentials. A quick establishment of Special Economic Zone for the Japanese investors can play an important role in this regard.