Japan to arrange $6.35b in private investment

Reports Nikkei; money to flow over 5 years

Japan is expected to arrange 1 trillion yen ($6.35 billion) in private-sector investment in Bangladesh over the next five years, with the commitment set to be reflected in a joint statement during Prime Minister Tarique Rahman’s upcoming visit to Tokyo, Japanese newspaper Nikkei reported yesterday.

According to the foreign ministries of the two countries, Tarique is scheduled to visit Japan from October 26 to 29. During the visit, Bangladesh and Japan are expected to elevate their existing strategic partnership.

A meeting between Tarique and his Japanese counterpart Sanae Takaichi is slated for October 27.

The investments are expected to flow into the automobile and other manufacturing industries, as well as the construction of energy facilities, Nikkei reported.

The investment plan is also expected to involve companies operating in the Bangladesh Special Economic Zone, which is being developed with the involvement of Japanese trading house Sumitomo Corp, the report said.

According to Nikkei, Japan aims to expand economic cooperation with Bangladesh while reducing China’s influence in the country. China is Bangladesh’s largest source of imports, the report noted.

Since the July 2024 uprising, Bangladesh has been seeking investment and cooperation in infrastructure development and other sectors, it added.

The report also said a delegation of Japanese businesses would visit Bangladesh soon. A public-private dialogue on economic cooperation and investment is planned during the visit.

Bangladesh and Japan signed an Economic Partnership Agreement (EPA) in February. Bangladesh’s competitive labour costs and favourable manufacturing environment make it an attractive investment destination, Nikkei said.

With around 170 million people, the world’s eighth-largest population, Bangladesh also offers a large consumer market, the report said.

Japan has long supported Bangladesh through official development assistance and is now showing a willingness to expand its role through private-sector investment, Nikkei added.

The Daily Star could not independently verify the report.