Japanese companies in Bangladesh continue to face significant challenges due to procedural complexities, despite a recent government change. A survey by the Japanese Commerce and Industry Association in Dhaka (JCIAD) in September highlights major issues in tax systems, customs clearance, financial regulations, and inconsistent policies, creating obstacles for businesses. Key concerns include complicated tax and customs processes, delays in work permits, financial regulations, and bureaucratic approvals, particularly from the Office of Registrar of Joint Stock Companies (RJSC). Corruption and demands for speed money were also reported.
The Japan External Trade Organisation (JETRO) noted that the percentage of Japanese firms considering expansion in Bangladesh dropped from 71.6% in 2022 to 61.2% in 2023. JETRO and other Japanese trade bodies have proposed reforms in taxation, customs, transparency, and administrative efficiency. They suggested the “3Cs” for reforms: consistency in policies, a corruption-free environment, and competitiveness with other countries, to improve the ease of doing business and attract more foreign direct investment.
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