Japan will invest one trillion yen, or $6.35 billion, in Bangladesh’s private sector over the next five years. The amount is equivalent to Tk 774.7 billion, calculated at an exchange rate of Tk 122 to the dollar.
Japan’s Nikkei Asia reported the development on Thursday. Reuters also published a report citing the Nikkei Asia article.
According to the report, the Japanese government has agreed to arrange the funds for investment in Bangladesh’s private sector. The investment is expected to be announced in a joint statement following a summit meeting between Japanese Prime Minister Sanae Takaichi and Bangladesh Prime Minister Tarique Rahman.
Nikkei Asia reported that the announcement primarily aims to strengthen economic cooperation with Bangladesh and reduce China’s influence in Asia. Another objective is to establish Bangladesh as an investment hub.
The Japanese investment will be used in the automobile industry, other manufacturing sectors, and infrastructure development in the power and energy sectors. Japanese companies will also invest in the Bangladesh Special Economic Zone, developed through initiatives involving Japanese trading house Sumitomo Corporation and other partners.
Japan signed an economic partnership agreement with Bangladesh in February.
Prime Minister Tarique Rahman will visit Japan on 26 October for a four-day trip. On the second day of the visit, 27 October, he will hold bilateral talks with Japanese Prime Minister Sanae Takaichi at her office. He will also attend a dinner hosted in his honour by the Japanese prime minister.
Foreign Secretary Asad Alam Siam said the visit would include discussions on expanding access for Bangladeshi products to the Japanese market, increasing Japanese investment and strengthening business ties.
At a press briefing at the Ministry of Foreign Affairs on Tuesday, he said discussions were under way on around eight memorandums of understanding with Japan covering cooperation in agriculture, fisheries, human resource development and skills training, civil aviation and other sectors. Officials hope to sign three or four of the memorandums, he added.
The foreign secretary also expressed hope that the visit would create opportunities to expand cooperation in emerging areas, including renewable energy, the environment, science, technology, digital innovation, research and human resource development.
Japan is one of Bangladesh’s major development partners. It has supported the construction and implementation of several important infrastructure and connectivity projects, including the metro rail system, the third terminal at Hazrat Shahjalal International Airport and the Matarbari deep-sea port.