COVER STORY
Japan – A potent partner for growth
President of JBCCI elaborates on prospects in Japanese market while also underlining Japan’ s role to help the RMG sector develop
The Japan-Bangladesh Chamber of
Commerce and Industry( JBCCI) is a private sector entity( recognised by the Japan embassy) working towards mutual growth and development of business, trade, education, infrastructure, human resources exchange, skill development, shipping, logistics and capacity building, etc., with strong participation of entrepreneurs and noted personalities from both the countries.
Working as a bridge to facilitate fruitful interaction among the entrepreneurs, investors, traders, industries and trade bodies in the two countries, is the major objective of JBCCI. It contributes to work, research and support in bilateral trade and( FDI) investment from Japan to Bangladesh. JBCCI is working with different trade associations and organizations of both the nations to facilitate Japanese investment in Bangladesh – which is key to Bangladesh’ s economic take-off.
Apparel Online caught up with the dynamic President of JBCCI, Salahuddin Kasem Khan( also the Managing Director of A. K. Khan & Co. Ltd. and Chairman of Coats Bangladesh) to understand his perspective on the current export scenario of RMG items to Japan and its future prospects as he sees it. Here are the excerpts …
AOB: JBCCI’ s role in enhancing mutual business and trade …
Salahuddin Kasem Khan( SKK): We recommend steps on policy matters to the Government and suggest measures on issues that are hindering Japanese investments in the country. We also arrange business delegations to Japan and vice versa besides other activities towards enhancing business between the two nations and help to build a stronger and mutually-beneficial relationship, as Japan has been a development partner for over 60 years.
AOB: Scope of Japanese investment...
SKK: As Japan increases its apparel sourcing from Bangladesh, I see a huge investment opportunity for Japan in the basic textile sector of the country. The Government’ s move to create 100 new Economic Zones in Bangladesh has opened up
Salahuddin Kasem Khan, President of Japan-Bangladesh Chamber of Commerce and Industry( JBCCI)
opportunities for Japanese entrepreneurs. Japan has been a big investor in the textile sector in ASEAN nations especially China, Indonesia, Malaysia, Vietnam, etc., from which it sources sizeable quantity of apparels to cater to the domestic demands. Bangladesh shares a very close relationship with Japan since long and Japanese investment( through joint ventures) in the textile sector of the country can be a win-win situation for all.
Bangladesh wants to substantially increase its garment exports to US $ 50 billion( from US $ 30 billion currently) in the next few years. However, the country is still dependent on other regional countries for up to 60 % of fabric requirement for woven garments. Bangladesh and Japan should thus have a strategic alliance towards developing the textile sector in Bangladesh which is essential for mutual growth and needs huge capital investment. Textile sector still remains the catalyst for rapid industrialization.
AOB: Opportunities for apparel exporters in Japan
SKK: Japan is the third largest economy in the world, and the internal market is really big and holds a lot of potential. China is a dominant player there apart from which Vietnam, Indonesia, Malaysia also export substantial quantity of apparel items. Bangladesh, being the second largest garment exporter globally, has a lot of scope to capitalise on the opportunities that Japan has to offer. So at a time when China is increasingly becoming expensive due to rising wages, many Japanese buyers are now looking at other sourcing destinations and there could be no better option than Bangladesh. Many Japanese brands and retailers have already started sourcing from Bangladesh including names like Uniqlo whose global ambition is to become number one. Keeping the same in mind, I would request my Japanese friends to relook at their sourcing strategy with Bangladesh in perspective( of China + 1 = Bangladesh).
AOB: Challenges for exporters
SSK: Japanese market has huge emphasis on quality and it would not be wrong to say that Japanese customers are the most quality-conscious people in the world. Japanese buyers want the best and they are also ready to pay for it. Having said that, Bangladesh is also changing; some of our green factories are world-class. Bangladesh today has the highest LEED certified green factories in the world. I think the Bangladesh RMG sector needs to focus more on Japan while also improving on all fronts including quality and fashion parameters to successfully cater to the Japanese market.
AOB: Four most vital aspects to be successful in Japan …
SSK: I would say Quality, Value addition, Commitment, and Skills development. Manpower development is crucial if our RMG factories are to make value-added and fashionable items that are very much in demand in Japan.
AOB: JBCCI’ s effort to promote garment exports
20 Apparel Online Bangladesh | APRIL 2018 | www. apparelresources. com