Japan competes w/ China in Bangladesh

[eastwatch]

Japan competes with China in Bangladesh -
bdnews24.com

Japan competes with China in Bangladesh
Senior Correspondent, bdnews24.com

Published: 2014-08-26 22:46:42.0 BdST Updated: 2014-08-26 23:48:30.0 BdST

Japan is aiming to deepen its relationship with Bangladesh ahead of China, a Tokyo-based Asian business review has reported.

It published the report ahead of Prime Minister Shinzo Abe’s first visit to Dhaka.

Nikkei Asian Review, an English language business journal of one of the largest Japanese media corporations Nikkei Inc, said Japan would help Bangladesh build an industrial base that includes scores of infrastructure projects.

It said Prime Minister Abe would discuss those plans with his counterpart Sheikh Hasina during his Dhaka visit.

File photo from Prime Minister Sheikh Hasina's visit to Japan in May 2014

The foreign ministry officials in Dhaka earlier told bdnews24.com that Abe would come on Sep 6 on a 24-hour visit.

His sojourn would follow Hasina’s May visit when he pledged 600 billion Yen --$5.7 billion – in official development assistance over the next four to five years.

Hasina also visited China, a week after her return from Japan, where the leadership also offered huge assistance for building a number of infrastructures.

The Asian Review gave details of the upcoming Japanese projects, most of which had already been discussed.

It said Japan would support the creation of an industrial area in Bangladesh near the Bay of Bengal.

It will focus on the region linking the capital Dhaka with Matarbari near the major port city of Chittagong, featuring a series of infrastructure projects and a special economic zone for Japanese companies.

Plans to set up the special economic zone in the Dhaka area will be solidified as early as this fiscal year, it said.

The Japanese government is expected to provide some 40 billion yen in support.

“A 15 billion yen fund will be set up by next fiscal year, and a special-purpose company will be established to build an industrial park."

“Tokyo will help with infrastructure construction and corporate financing as well,” it said.

According to the report, Japan will also offer loans for building railways and expressways between cities and assist in constructing urban infrastructure in Dhaka and Chittagong.

The area around a coal-fired power plant in Matarbari will be given priority for development as well, it said.

The report gave a picture of Bangladesh’s economy and said Bangladesh had worked “to strengthen ties with its neighbours, including Myanmar, where foreign companies have grown more active, and India with its massive population of 1.2 billion."

“Japan sees it as a relatively easy location to concentrate industry with an eye toward nearby markets."

“Tokyo also aims to deepen its relationship with Bangladesh ahead of China, whose investment there has been limited,” according to the report.

“If Japan's official development assistance to Bangladesh is ramped up, it could become a major aid recipient in line with Vietnam, which has received more than 100 billion yen a year, and Myanmar, which is expected to get around 100 billion yen."

The number of Japanese companies operating in Bangladesh has doubled over the past five years to around 180 in April.

But its main industries are agriculture and textiles, and power shortages and an inadequate transportation network remain issues, the Asian Review wrote.

 

[faisal6309]

China simply don't care. They didn't care when were working with Japan and US. They don't care because it is not in their national interest. There are some problems between China and Japan but China knows that business is business.

 

[TopCat]

China simply don't care. They didn't care when were working with Japan and US. They don't care because it is not in their national interest. There are some problems between China and Japan but China knows that business is business.

China do care........ They just dont make noises.

 

[eastwatch]

Seems to me Japan has finally found Bangladesh as the most suitable country for its industries to build factories and sell goods in the markets around. BD is located at a cross-road whereby any land trade among the three economic blocks, ASEAN, China & India, has to involve BD.

Even the sea routes that lead to the ME and African ports are about half the distance from BD than they are from Japan proper. All these factors have made Japan positively think about BD to be a destination of investment by its industries.

 

[sahaliyan]

China simply don't care. They didn't care when were working with Japan and US. They don't care because it is not in their national interest. There are some problems between China and Japan but China knows that business is business.

Well said,for Bangladesh,the investment came from Japan or China is not important,as far as the investment can improve the Bangladeshi economy,then Bangladesh should welcome it,not only China and Japan,the other countries like US,Europe,Malaysia and Turkey,all their investments should be welcome,after all,business is business
Even today,American investment in China is large and we welcome it,because the American investments benefit us

 

[dray]

China simply don't care. They didn't care when were working with Japan and US. They don't care because it is not in their national interest. There are some problems between China and Japan but China knows that business is business.

From your comment it seems that at least Pakistan do care, maybe more than China!!!

 

[sahaliyan]

Seems to me Japan has finally found Bangladesh as the most suitable country for its industries to build factories and sell goods in the markets around. BD is located at a cross-road whereby any land trade among the three economic blocks has to involve BD.

Even the sea routes that lead to the ME and African ports are so short distance from any BD port comparing to the distance from Japan proper. These export destinations are about half the distance from BD than they are from Japan. All these factors have made Japan positively think about BD to be a destination of investment by its industries.

Bangladesh has a large population,it's population is young and cheaper,so the best way for Bangladesh development should be invited more labor-intensive industry,as Chinese population became aging and expensive,those labor-intensive industries will move out of China,it's a chance for Bangladesh

 

[extra terrestrial]

I hope Abe also brings a large group of Japanese business delegation along with him!

 

[idune]

Japan should and could benefit from Bangladesh with greater strategic tie up. To avoid all conflicting interest deep sea port project should be awarded to Japan if they desire.

 

[kalu_miah]

Japan should and could benefit from Bangladesh with greater strategic tie up. To avoid all conflicting interest deep sea port project should be awarded to Japan if they desire.

I second that motion. @Nihonjin1051

 

[sahaliyan]

Not too long ago,I talk to one Chinese official,he talked about the sonadia port,in his opinion,for security problem,a port in Burma and a port in Bangladesh surely better than Sonadia,because the Chinese interests are link the ports to China,if can't,then why should China build the port in first place?Bangladesh for it's location,any land route link to China should through India and Burma,so why not the whole land route in Burma,even China will lose Burma,but the land route through Bangladesh to China should still cross Burma,so no differance.
But if we look at economical problem,then we can see the reason China's interests in sonadia,I do think China want to invest in northeast India,if the route link between China,Burma,India and Bangladesh can really work,then the northeast part of India can be developed from this project,then China's Yunnan province will benefit from this development,because Yunnan is far away to the coast of China,but near upper Burma and northeast India,if those places developed,then the products of Yunnan can sell in those places and the merchants of Yunnan can invest in those places

 

[Aepsilons]

I hope Abe also brings a large group of Japanese business delegation along with him!

You're absolutely correct. To quote the Daily Star:

There is a positive indication that Japan wants to relocate its industries to Bangladesh and make fresh investments here instead of other countries,” a diplomat in Dhaka told The Daily Star yesterday.

Reference:
Japanese PM arrives on Sept 6

 

[Kaniska]

Seems to me Japan has finally found Bangladesh as the most suitable country for its industries to build factories and sell goods in the markets around. BD is located at a cross-road whereby any land trade among the three economic blocks, ASEAN, China & India, has to involve BD.

Even the sea routes that lead to the ME and African ports are about half the distance from BD than they are from Japan proper. All these factors have made Japan positively think about BD to be a destination of investment by its industries.

I see following advantage of BD for a good investment destination.

1- Logistically it is easy to cater to India, China ,Srilanka, Nepal and BD market itself
2- India and BD has good relationship so it can easily use Indias land routes to export its product to Middle east either with help of Indian ports in Western India or BD port.

 

[Aepsilons]

Seems to me Japan has finally found Bangladesh as the most suitable country for its industries to build factories and sell goods in the markets around. BD is located at a cross-road whereby any land trade among the three economic blocks, ASEAN, China & India, has to involve BD.

Even the sea routes that lead to the ME and African ports are about half the distance from BD than they are from Japan proper. All these factors have made Japan positively think about BD to be a destination of investment by its industries.

Good Evening my Tomodachi @eastwatch ,

I agree with you, Bangladesh is blessed with a huge man power, natural resources, and its strategically location at being at the Heart of the Bay of Bengal, its proximity to ASEAN, to India. Bangladesh is practically devoid of any major insurgencies. The Government by Madam S. Hashina indicates to a lot of us that Bangladesh is aggressively improving not only its infrastructure (recently, Bangladesh and Japan had conducted a feasibility test on fire proof coating for set of buildings in Bangladesh; with plans to apply this to all major new buildings built), and the plan to modernize the energy sector. Once this is realized, Bangladeshi citizens will enjoy the fruits of this labor with higher and greater availability of electricity, but most importantly, this will Attract Foreign Direct Investments. Bangladesh is now becoming a major area to enjoy Japanese offshore manufacturing. It is apparent that Japanese businesses operating in China are now considering moving many of our 4300+ companies to ASEAN and South Asia.

The next 5-10 years will see a rapid development of Bangladeshi industry. And as soon as Sonadia Deep Sea Port is built, and linked to China, India, ASEAN, Japan, then Bangladesh will benefit ten fold. It is true that Bangladesh has the potential to become one of the next Asian Tigers.


Arigadou Gozaimasu,
@Nihonjin1051

 

[C130]

that textile building collapse was in Bangladesh right? sad tragedy. they got a long ways to go. hopefully Japan can put them on the path to success and safety