Japanese companies in Bangladesh continue to face business challenges due to procedural complexities in tax, customs, and financial regulations, as well as inconsistent policies, despite recent government changes. A recent survey by the Japanese Commerce and Industry Association in Dhaka (JCIAD) revealed that issues like taxation, customs clearance, and visa processes remain the most challenging for Japanese firms, along with financial and administrative hurdles. Complicated conditions for expatriate work, delays in opening Letters of Credit, and restrictions on remittances also contribute to business difficulties.
Due to these obstacles, the percentage of Japanese companies considering business expansion in Bangladesh dropped from 71.6% in 2022 to 61.2% in 2023, according to the Japan External Trade Organization (JETRO). Moreover, some companies report corruption issues, including demands for speed money, further complicating approval and licensing procedures.
While Japanese companies are hopeful for reforms, they express concerns about the timeline for implementing these changes. Japan Bangladesh Chamber of Commerce and Industry (JBCCI) President Sugawara Manabu noted that Japanese businesses have a mix of expectations and concerns, hoping for improvement but uncertain about when substantial changes will take effect.
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