Bilateral trade between Japan and Bangladesh would reach $20 billion by 2030 from the current $3 billion figure as readymade garment (RMG) shipments to the former were rising fast, according to Ito Naoki, Japan's ambassador to Bangladesh.
Garment exports from Bangladesh to Japan totalled $1.10 billion in the last fiscal year and it is expected that shipments would go up 10-fold to reach $10 billion by 2030, the ambassador also said.
Naoki was speaking at the 17th annual general meeting of the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) at Lakeshore Hotel in Dhaka on Monday.
Most companies conducting bilateral trade between Bangladesh and Japan want the two nations to sign a free trade agreement (FTA) to retain duty privileges even after the former graduates from a least developed country in 2026.
However, Bangladesh needs to improve the business climate for signing an FTA, preferential trade agreement or economic partnership agreement with Japan, he said.
Meanwhile, over 68% of Japanese companies operating in Bangladesh want to expand their business in the country, according to the Japan External Trade Organization (Jetro.)
Country Representative of Jetro Yuji Ando revealed the information at a knowledge sharing session on “Welcoming Investment from Japan, Lessons for Bangladesh, From the experience in India” at the Bangladesh Investment Development Authority (Bida) headquarters in the city, according to a press release.
Bida Executive Chairman Lokman Hossain Miah and Beza Executive Chairman Shaikh Yusuf Harun attended the session as special guests while executive vice president of Jetro Kazuya Nakajo was the guest of honour.
Chief director general of Jetro Takashi Suzuki delivered the keynote speech.
While presenting the activities of Jetro, Ando said that the amount of Japanese investment is steadily increasing every year.
Currently, 338 Japanese companies are running business in Bangladesh through Jetro, he added.
Kazuya Nakajo said Japan is one of the biggest development partners of Bangladesh and will continue to be so.
At the same time, he suggested taking initiative to increase the credit rating of Bangladesh to make investors more interested.
Lokman Hossain Miah said the investment of Japanese companies is increasing day by day due to the favourable investment environment in the country.
