Japanese investors say delays in letter of credit (L/C) settlement at Bangladesh's banks is the main barrier to trade and investment expansion between the two countries.

Both countries have resolved to find ways to improve L/C services as they look to ways to strengthen business relations.

L/C failures

Bangladesh learnt that L/Cs were a significant barrier to bilateral relations when the Japanese Embassy in Dhaka announced that 2,100 L/C transactions were delayed during 2011.

The embassy said it had gleaned this information after the Japanese Commerce and Industry Association in Dhaka reported a survey of Japanese investors doing business with Bangladesh.

Continued delays

In a letter to several Bangladeshi officials, including advisors to the prime minister, the Japanese Ambassador Shiro Sadoshima said delays were continuing in 2012, and delays of up to six months had been experienced.

Japanese investors are also seeking changes to customs arrangements at Bangladesh's airports and seaports where they also want to see actions to reduce theft.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.