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