According to the unb.com.bd portal, citing sources in the Internal Resources Department (a unit of the Bangladeshi Ministry of Finance), work on proposals to simplify the foreign direct investment mechanism (FDI) and the tax system of the People’s Republic of Bangladesh is at an advanced stage.
The main impulse for action were objections raised by companies with Japanese capital operating in the Bangladeshi market. It is estimated that the amount of FDI generated by about 310 Japanese companies operating in Bangladesh is about 3 billion US dollars. Representatives of the Bangladeshi Ministry of Finance admit that they attach importance to the creation of facilitations for Japanese investors due to the information about the faster and faster withdrawal of Japanese capital from China, which is mainly caused by the coronavirus SARS-CoV-2 pandemic. An additional impulse for the Bangladeshi government are the words of Yuji Ando – representative on Bangladesh of the Japanese External Trade Organization. Calling for improvement of investment conditions in the People’s Republic of Bangladesh he said: “There are still many obstacles for Japanese and other foreign companies operating in the Bangladeshi market, particularly in terms of infrastructure and the tax system”.
It should be noted that the Japanese government recently decided to allocate an additional US $2.2 billion to a special stimulus package to help domestic companies move production from China to other countries. Undoubtedly, Bangladesh is counting on getting as much of this cake as possible. At the same time, the planned simplification of the FDI mechanism and tax system is an opportunity for all entrepreneurs, including those from Poland.
Grzegorz Suchanicz
Source: unb.com.bd