Bangladesh as New Source of Cheap Labor for Foreign Investor

  BANGLADEH AS NEW SOURCE OF CHEAP LABOUR FOR FOREIGN INVESTOR  

Real Japanese organizations working in Bangladesh are wanting to go for extension of their organizations here throughout the following two years. Accessibility of shabby work and productivity are the key explanations behind such a move. As indicated by an ongoing review led by the Japan External Trade Organization (Jetro), most Bangladeshi business visionaries pay extremely low compensation and wages to the workers, engineers and managers. Naturally, this low pay factor is conceivably reassuring to push business development.

The discoveries of the review, which was directed among 5,073 Japanese firms in 20 Asia and Oceania nations, were disclosed for the current week by the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) in the city. Out of the 20 nations, Bangladesh stand the second spot as far as benefit for Japanese organizations. It was discovered that some 56.6 percent of the Japanese firms are wanting to build the quantity of neighborhood workers in the following one year in Bangladesh. The rate is the fifth biggest plan among the reviewed nations. Work cost is the least expensive in Bangladesh in the assembling segment. The solid nearness of Japanese organizations in Bangladesh shows that increasingly Japanese organizations are relied upon to arrive here. A year ago, the complete number of Japanese organizations in Bangladesh was 278, up from 260 of every 2017.

As of November a year ago, the measure of Japanese interest in Bangladesh by privately owned businesses was $326 million. Be that as it may, the sum would be a lot higher if speculations made by Japanese car goliath Honda and Japan Tobacco are incorporated. On the off chance that the measure of Japan-supported venture through Overseas Development Assistance (ODA) in various tasks is incorporated, the sum would be much greater. Up until this point, Japanese government has submitted $12 billion as ODA and has just discharged $7 billion. Numerous Japanese organizations, particularly the shopper and sustenance handling organizations, have been leading achievability contemplates in Bangladesh to snatch the nearby purchaser market of $170 million. For instance, Bangladesh is an exceptionally enormous market for diapers as the interest for the item is developing with urbanization. Albeit some nearby organizations are fabricating diapers, 60 percent of the interest is still met through imports.

It is valid, Bangladesh is seeing a powerful financial development regardless of normal catastrophes, absence of good administration, defilement and so on. Bangladesh needs to make an amicable domain to draw in outside financial specialists. Feasible activities ought to be taken up to raise productivity, guarantee great administration and fortify institutional ability to make a mammoth walk in worldwide monetary markers.

                                                                                                        Source: Thursday, April 4, 2019

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