Bangladesh has been added to the list of countries which will qualify for subsidy for the Japanese companies which shift their production base out of China.
In order to diversify its supply chain, Japan has decided that Japanese manufacturers will now be eligible for subsidies if they shift production out of China to India or Bangladesh, reports the Nikkei Asian Review. The supplementary budget of Japan for the fiscal year 2020 has earmarked dollar 221 million for companies that move production to Southeast Asian countries.
In the first round of subsidies announced last month, 30 companies such as the Med-Tech and IT company Hoya decided to shift base to Vietnam and Laos. Another 57 companies are receiving financial support to shift base to Japan.
The program falls under the broader effort of Supply Chain Resilience Initiative (SCRI) initiated by Japan in the backdrop of the recent disruption in medical supplies and electrical components after the COVID 19 pandemic hit the world.
Meanwhile, Japanese Ambassador to Bangladesh Ito Naoki announced on Thursday that Japan would make investment in the Araihazar special economic zone, which will be the largest investment in Asia. He also announced that Japan was thinking of setting up an automobile factory in Bangladesh.