Bangladesh is seeking to transform its longstanding development cooperation with Japan into a stronger economic partnership focused on trade, investment and industrialisation. During Prime Minister Tarique Rahman’s visit to Japan, the two countries have focused on expanding existing cooperation, attracting new investment, diversifying exports, facilitating technology transfer, developing a skilled workforce and improving infrastructure.
To this end, the prime minister has held a series of meetings with leading Japanese businesses and investment organisations. The government has also pledged to introduce reforms and simplify administrative procedures to create a more business-friendly environment for Japanese investors.
According to state-run news agency BSS, Tarique Rahman held separate meetings with the Japan Bank for International Cooperation (JBIC), the Japan External Trade Organization (JETRO), Fast Retailing, the parent company of global clothing retailer Uniqlo, and Japanese Minister of Economy, Trade and Industry Ryosei Akazawa.
The discussions covered investment opportunities in energy, information and communication technology (ICT), infrastructure, readymade garments, automobile manufacturing, renewable energy and agro-processing.
Earlier, during a summit with Japanese Prime Minister Sanae Takaichi on Tuesday, Tarique Rahman agreed to advance economic and strategic cooperation between the two countries. Japan expressed expectations that its private sector would invest around one trillion yen in Bangladesh over the next five years, potentially creating approximately 200,000 jobs.
The two sides also agreed to expand industrial and economic cooperation centred on the Bay of Bengal to elevate bilateral relations.
Investment sought in five priority sectors
Addressing the Bangladesh-Japan Economic Forum dialogue in Tokyo on Wednesday, the prime minister called on Japanese companies to invest in five priority sectors: automobile manufacturing; energy; technology and space cooperation; railways and logistics; and agro-processing and manufacturing.
Tarique Rahman said the two countries had a longstanding foundation of friendship and development cooperation, and that the time had come to strengthen ties through expanded trade and investment.
Around 350 Japanese companies are currently operating in Bangladesh, he said, while Japan’s foreign direct investment in the country remains below $500 million. In the latest fiscal year, Bangladesh earned $1.36 billion from exports to Japan, while imports from the country totalled $2.16 billion.
He said Bangladesh’s market of more than 180 million people, young workforce and expanding middle class offered significant opportunities to expand manufacturing and exports.
Highlighting the potential for Japanese investment in automobile manufacturing, the prime minister said Toyota had announced earlier this month that it planned to begin work on establishing a vehicle manufacturing plant in Bangladesh, with full-scale production targeted for 2029. He assured the company of the government’s support for the initiative.
In the energy sector, he invited Japanese investors to explore opportunities in liquefied natural gas (LNG) infrastructure, efficient gas-fired power generation and renewable energy.
He also outlined plans to establish a Bangladesh-Japan Technology Park, inviting Japanese companies, universities and investors to participate in artificial intelligence, cloud computing, robotics and electronics manufacturing.
To improve rail connectivity and logistics, Tarique Rahman spoke of plans to develop a nationwide elevated high-speed rail network connecting major cities, including Dhaka, Chittagong, Sylhet, Rajshahi, Khulna and Barisal.
He sought technical and investment support from Japanese companies to prepare a master plan, conduct feasibility studies, assess passenger and freight demand, and determine suitable routes.
Highlighting opportunities in agro-processing and manufacturing, the prime minister said Bangladesh produced a wide variety of crops, fruits and vegetables that Japanese companies could process for domestic consumption and export-oriented industries.
He also invited Japanese investors to explore opportunities at the Bangladesh Special Economic Zone in Araihazar.
Talks with Uniqlo and JETRO
Expanding investment in Bangladesh’s readymade garment industry featured prominently during the visit.
At a meeting with a delegation led by Tadashi Yanai, chairman, president and chief executive officer of Fast Retailing Co Ltd, yesterday morning, Tarique Rahman called for increased investment in Bangladesh.
He particularly emphasised investment in man-made fibres, technical textiles and sustainable clothing production. The discussions also covered technology transfer, skills development, product innovation, advanced manufacturing systems and environmentally friendly production processes.
The prime minister said the government was ready to support the expansion of Uniqlo’s operations in Bangladesh, including through land allocation, investment approvals and simplified administrative procedures.
Later, at a meeting with JETRO President Susumu Kataoka, Tarique Rahman sought Japan’s cooperation in diversifying Bangladesh’s export basket.
He highlighted investment opportunities in advanced manufacturing, ICT, automobile production, renewable energy and agro-processing in the country’s special economic zones.
The prime minister also called for cooperation in skills development programmes and the establishment of Japanese-language training centres. He said a workforce proficient in Japanese and equipped with technical skills would help increase Bangladeshi workers’ participation in Japan’s labour market and strengthen long-term economic ties.
Kataoka said Bangladesh offered considerable investment potential because of its economic growth and geographical location. He added that various government initiatives had generated interest among Japanese companies in doing business and investing in the country.
Proposal to open a JBIC office in Bangladesh
The prime minister also held talks with JBIC to strengthen investment and economic cooperation in energy, ICT and infrastructure.
At a meeting with JBIC Governor Kazuhiko Amakawa on Wednesday morning, Tarique Rahman proposed opening an office of the institution in Bangladesh.
Amakawa said the proposal would be considered seriously.
During the meeting, the prime minister appreciated JBIC’s contribution to Bangladesh’s economic development, noting that the institution’s priority projects aligned with the current government’s development priorities.
Tarique Rahman said the government was committed to introducing investment-friendly policies and improving the business environment. Reforms were under way to simplify regulations and attract both domestic and foreign investment.
The prime minister also met Japanese Minister of Economy, Trade and Industry Ryosei Akazawa on Wednesday.
Akazawa expressed interest in increasing Japanese investment in Bangladesh. Both sides agreed to explore further investment opportunities by capitalising on the interest of Japanese businesses and strengthening bilateral relations.
Economic Partnership Agreement opens new opportunities
Both countries see the Economic Partnership Agreement (EPA) as an important instrument for expanding bilateral economic relations. Signed earlier this year, the agreement is Bangladesh’s first of its kind with another country.
The prime minister said 7,379 Bangladeshi products would receive duty-free access to the Japanese market under the agreement. In return, Japanese products, including steel, automobile parts and electronic components, would receive preferential market access in Bangladesh.
Both countries have emphasised the need to implement the EPA and expand trade and investment.
Addressing concerns raised by Japanese investors, Tarique Rahman said the government was prioritising reliable energy supplies, efficient infrastructure and greater predictability in customs and taxation.
He said businesses needed certainty and investor confidence, adding that the government’s responsibility was to create an environment that ensured both.
Developing a skilled workforce alongside investment
Expanding employment opportunities for Bangladeshi workers in Japan and promoting skills exchange between the two countries also featured prominently in discussions during the visit.
The prime minister emphasised the need to develop a skilled workforce through Japanese-language education and technical training.
Speaking at an exchange with expatriate Bangladeshis at the New Otani Hotel in Tokyo on Wednesday evening, Tarique Rahman said the government planned to give students opportunities to learn foreign languages, including Japanese, German and French, alongside English.
He expressed hope that the programme would begin in schools next year.
Responding to a question from expatriates, the prime minister said Bangladeshi workers needed proper training, proficiency in Japanese and an understanding of Japanese culture to strengthen their position in Japan’s labour market.
He said these preparations would help sustain the acceptance of Bangladeshi workers in the long term.
Outlining plans to improve healthcare services, Tarique Rahman said the government planned to increase the number of beds in upazila-level hospitals from 50 to 150 over the next five years.
The plans also include introducing dialysis facilities at the upazila level and expanding specialised healthcare services for women and children.
He further announced plans to recruit 100,000 health workers to raise health awareness in villages, with at least 80% of the proposed recruits being women.
At another exchange with expatriate Bangladeshis, the prime minister outlined his goal of making Dhaka and the rest of the country cleaner, less polluted and healthier.
Expressing his ambition to make Dhaka as clean as Tokyo, he said initiatives were being taken to reduce air pollution, improve the environment and plant trees in different areas.
Tarique Rahman said the government’s priority was to ensure that the benefits of reforms reached marginalised communities and working people. He added that initiatives in education, healthcare and environmental protection should directly benefit the wider population, seeking cooperation from expatriates and people across the country to implement the plans.
Bangladesh and Japan have maintained development cooperation ties for more than five decades. Japanese assistance has played an important role in Bangladesh’s development in several sectors, including infrastructure, connectivity, electricity, human resource development and capacity building.
During Tarique Rahman’s latest visit, the focus has been on building on that legacy by expanding private investment, technology transfer, industrialisation and employment opportunities.
However, the tangible benefits of these initiatives will depend on the implementation of investment proposals, improvements in the business environment and effective follow-through on the agreements and understandings reached between the two countries.
