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The Financial Express

China exit: Japanese firms keen on moving to BD

| Updated: May 27, 2020 18:10:23


Lankabangla and Fianancial Express Lankabangla and Fianancial Express
Bangladesh and Japan flags are seen cross-pinned in the image, symbolising friendship between the two nations. — Collected Photo Bangladesh and Japan flags are seen cross-pinned in the image, symbolising friendship between the two nations. — Collected Photo

At least 34 Japanese companies operating in China have shown interest to relocate their units to Bangladesh.

The embassy of Bangladesh in Beijing informed the development to the ministry of foreign affairs on Wednesday.

Dozens of Japanese firms have planned to leave China on the grounds of trade war between the USA and China and the supply chain disruptions.                        

Quoting JETRO officials in Beijing, the embassy said the 34 out of 690 Japanese firms registered in China have so far revealed the relocation plan following announcement of stimulus package by the Japanese government for the shift out of the mainland.

It also said the JETRO officials recognised Bangladesh’s attractiveness as an investor-friendly destination.                  

They, however, declined to name the Japanese firms willing to relocate from China.

Earlier, the ambassador accompanied by high officials of the embassy called on the Japanese ambassador in Beijing Yutaka Yokoi to urge the Japanese side to prefer Bangladesh as a destination for relocation by their firms.

Meanwhile, the Office of United States Trade Representative or USTR on May 13 last year released the list of 3,805 product categories that could be subject to tariffs of up to 25 per cent.

Impacted by the US tariffs on Chinese-made goods, Japanese companies have started to leave China as the trade war launched by the Trump administration gets intensified.

The Japanese firms that decide to relocate are mostly affected by the complete disruption to supply chain as well as the trade war that has hit hard the Japanese entities producing high-value products in China.

Auto parts makers of Mazda Motor has decided to go to Mexico from the Jiangsu Province of China.

Kasai Kogyo, supplier of Honda (interior door trim and roof part), is now planning to move from Wuhan to North America, Europe and Asia.

Masudur Rahman, an official at the Bangladesh embassy in Beijing wrote the letter to an additional secretary of the ministry of foreign affairs.

In the meantime, Sheikh F Fahim, president of the Federation of Bangladesh Chambers of Commerce and Industry or FBCCI, wrote a letter to the country representative of the Japan External Trade Organisation on May 12 calling for facilitating the relocation.

Japan has adopted a national strategy to be implemented during the post Covid-19 period to relocate its investment both at home and outside China.

The FBCCI also wrote to the Confederation of Asia Pacific Chambers of Commerce and Industry to encourage its member nations to relocate firms to Bangladesh.

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