Representatives from trade and industry-related government institutions at a workshop titled "Supporting Industrial Development in the LDCs: What Can We Learn from Assistance to ASEAN (Association of South East Asian Nations) and Recent Donor Approaches?

" also urged Japanese entrepreneurs to increase their investment in Bangladesh.

Japan International Cooperation Agency (JICA) organised the workshop at Sonargaon Hotel.

Speaking at the meeting, a visiting four-member JICA consultant team sought some comprehensive approach for industrial development in Bangladesh.

Recently, the team has conducted a study on supporting industrial development in least developed countries (LDCs) and would submit its report before the government soon, sources said.

The study highly focuses on development of small and medium enterprises (SMEs) for economic development in Bangladesh, sources added.

"Despite availability of cheap labour in the country, regulatory and transportation costs in Bangladesh are higher than any other ASEAN country," Teshima Naoyuki, leader of the consultant team, told the meeting.

Higher business costs, poor governance, downslide in law and order and lack of infrastructure are impeding flow of FDI in Bangladesh, the consultants observed.

However, officials of the Board of Investment present there did not subscribe to the observation.

Speakers also demanded coordination among the government's programmes for a better investment climate and advocated for long-term financing programmes.

The Japanese government initiated the dialogue as part of its decision to change its strategy for providing assistance to private sector development in the LDCs, mainly in the SMEs, sources said.

The process started in January and would to be completed by May, they added.

Teshima later told the news agency that positive sides of investment climate in the country far outweigh negative sides adding that world business community, however, felt investment scenario in Bangladesh was not congenial.

Pointing out that business community always looks for best comparative advantages, Teshima said, "If your country lags behind other countries even a little bit, they would not come here."

Referring to a Japanese company, which came in Bangladesh for the incentives offered by the government, he said it was now frustrated due to excessive regulatory costs.

Among others, Mitsuyoshi Kawasaki, additional resident representative of the JICA, Hans Farnhammer, second secretary of European Commission in Dhaka, and representatives from Asian Development Bank, United Nations Development Programme, Bangladesh Export Promotion Zones Authority and various donor agencies attended the workshop.