Some Japanese companies are thinking of entering the e-commerce business in Bangladesh, said ITO Naoki, Japanese ambassador to Bangladesh, yesterday.

"I learned of several Japanese companies which are thinking of entering e-commerce business or selling their products through e-commerce here in Bangladesh," he said.

In future, some Japanese companies will be visible through e-commerce platforms in Bangladesh, he added.

He was addressing a session on "Ecommerce & Digital Business - Flourishing Sector to Lead the Future" at a four-day World Congress on Information Technology (WCIT) Bangladesh 2021 at Bangabandhu International Conference Center.

"I talked to some Japanese business people in Bangladesh and asked what the potential challenges were.

They said logistics as timely delivery is very crucial for the success of e-commerce and facilitation of e-logistics is very important," said the ambassador.

Another challenge is shoddy or counterfeit goods and these goods should be excluded from the market as these do not give confidence to the system, he said.

Other challenges are a secure online payment system, regulatory framework and coordinated efforts, said Naoki.

"I really hope that Bangladesh will see a better future for the e-commerce sector in the near future," he said.

"One of the important developments of Softbank's decision to buy some shares of bKash, a mobile payment service company, is very successful," he said.

"The fact that Softbank decide to put money to bKash, its mean company like Softbank recognised overall running system by bKash," he added.

"I think that is a very important message for outside investors to Bangladesh. If bKash goes more successful as a result of Softbank investment, following it prospective investors will come to the e-commerce area in Bangladesh," said the ambassador.

"I think that will provide a tremendous opportunity for Bangladesh to make the e-commerce sector more mature," he said, adding that Softbank's decision has a symbolic meaning for the future development of the sector.

Formulating a special law and introducing a regulatory authority are crucial for warding off future e-commerce frauds, said Hafizur Rahman, an additional secretary to the commerce ministry.

"We should require an agency that would work promptly and immediately to address the irregularities in the e-commerce sector. I believe the government is working to take initiative to regulate the e-commerce in future," he said.

"One issue is framing a special law and another issue is introducing one authority. Though we know that many laws may disrupt, may create problems for e-commerce," said Rahman.

"Stringent laws will not help flourish the e-commerce smoothly. Our target is keep the system simple and easy, so that every entities and entrepreneurs can join e-commerce," he said.

But law and authority should be operational so that scams and fraudulent activity cannot go ahead, he added.

There are some laws -- the consumers' right protection act, digital security act and penal code -- which are highly applicable to e-commerce, he said.

"I believe those laws that apply to our brick-and-mortar are not inadequate for e-commerce. Those can be applicable to e-commerce entities," said Rahman.

But the e-commerce business has some specialty as it works on an online system, he said.

He went on to say that this was a good time, if not the best, for e-commerce in Bangladesh.

"Few days ago, we couldn't say this, but now time is going well with the e-commerce. For those who like to do business fairly and using the innovative ideas, this is a good situation," said the additional secretary.

"We had problems a few days ago, different kinds of online scams, fraudulent activities had taken place in the e-commerce. With regulatory changes and active intervention of some government agencies, we are in a situation that has controlled all kinds of fraudulent activities," he added.

Customers and merchants who engaged in business with fraudulent e-commerce entities are facing some problems getting their payments or products back, said Rahman.

The government is working with those issues and finding ways over how customers or merchants will be paid back their money, he said.

"Though there is some uncertainty in some areas, because some money has already gone out of the country or not traceable, that would be difficult to bring back to customers," he said.

"But money that is in government custody, in the payment gateway system—as we know a considerable amount of money is stuck in the payment gateway system— the government is working on how that money can be given back to the customers," he added.

"The government has been working on some issues to regulate the e-commerce sector. I personally have been working with one issue that is unique business identification number for e-commerce sites to track all the activity," said Rahman.

"In one or two months we will be able to introduce the system," he added.

Now the industry is running a manual escrow system for payment. The government is trying to make it digital so that as soon as the delivery message is sent to the payment gateway, the money can be immediately sent to the e-commerce entities, he said.