Bangladesh will seek a ¥2.2 trillion ($14 billion) investment and cooperation package from Japan during Prime Minister Tarique Rahman’s four-day visit to Tokyo from 26 October, as Dhaka looks to address industrial weaknesses, infrastructure gaps and limited overseas employment opportunities through deeper economic ties.
The proposed 2026-31 package covers 12 priority sectors, combining concessional loans, private investment and public-private partnerships.
Transport connectivity, the Matarbari industrial and port hub, advanced manufacturing, energy security and human-resource development are expected to feature prominently.
State Minister for Foreign Affairs Humaiun Kobir outlined the priorities on 10 October, saying: “Our main priorities during the Japan visit will be to strengthen bilateral relations, deepen economic partnerships and increase investment.”
He said discussions would cover sector-specific cooperation and reciprocal investment opportunities.
Japan has provided more than $34 billion in assistance to Bangladesh since 1971, supporting major infrastructure and development projects.
Dhaka now wants to attract greater Japanese investment into export-oriented manufacturing, advanced technology and industrial supply chains.
The proposed package includes $3.45 billion for transport and urban connectivity, covering metro rail expansion, railway development and major bridges.
Another $3.14 billion is earmarked for the Maheshkhali-Matarbari Integrated Infrastructure Development Initiative and the development of Matarbari as an industrial, port and commercial hub.
The projects could strengthen Bangladesh’s position as a regional manufacturing and logistics centre, provided port facilities are backed by efficient road and rail links, reliable energy supplies and competitive industrial costs.
During the seventh Bangladesh-Japan Foreign Office Consultations in Dhaka in August, Japanese Senior Deputy Foreign Minister Namazu Hiroyuki conveyed Prime Minister Sanae Takaichi’s invitation to Tarique to visit Japan. Both sides reiterated their commitment to expanding the strategic partnership.
Manufacturing and technology
Bangladesh is seeking around $1.57 billion for manufacturing and technology, including investment in automobiles, vehicle components, electronics, machinery, semiconductors and precision engineering.
The government wants Japanese companies to establish export-oriented production facilities at the Bangladesh Special Economic Zone in Araihazar.
It is also proposing joint semiconductor and nanotechnology laboratories at engineering universities to develop domestic expertise and support a $1 billion semiconductor export target by 2030.
A proposed bilateral Economic Partnership Agreement could provide a framework for stronger commercial ties, although its benefits will depend on implementation and a more predictable business environment.
Japan External Trade Organisation country representative Kazuiki Kataoka said political and social stability had improved following the formation of Bangladesh’s new government, encouraging Japanese companies to reassess investment opportunities.
He stressed the need to develop supporting industries, saying: “Without upstream industries, it will be difficult to develop downstream industries.”
Bangladesh will need reliable industrial inputs, efficient customs procedures, dependable infrastructure and stronger domestic supply chains to attract manufacturers.
The country currently hosts hundreds of Japanese companies and aims to increase their number to 500 by 2030.
The proposed package includes a ¥25 billion facility to prepare commercially viable public-private partnership projects and a regular high-level Development and Economic Partnership Dialogue.
Kataoka has urged Bangladesh to address investor concerns over customs clearance, taxation, payments and visa processing.
Skilled workers and energy
Bangladesh wants to send 100,000 skilled workers and students to Japan annually, supported by language training, professional certification and technical education.
The two governments are reportedly discussing a memorandum of understanding on manpower cooperation that could be signed during the visit, subject to the completion of negotiations.
Dhaka is also proposing a Human Resource Development Special Zone to prepare workers for jobs in nursing, caregiving, engineering, manufacturing, information technology and other technical fields.
The initiative could help Japan address labour shortages while expanding employment opportunities for Bangladeshis.
Its success will depend on recognised qualifications, transparent recruitment, adequate language training and safeguards against exploitation.
The package proposes $2.20 billion for energy and climate resilience, including renewable energy, storage systems, grid modernisation, coastal protection and climate-resilient infrastructure.
Agricultural modernisation, seafood processing, marine logistics and sustainable tourism are also included.
Concessional loans and grants will remain important to financing long-term infrastructure and climate adaptation while limiting debt pressures.
The $14 billion proposal is a negotiating framework, not a confirmed investment commitment. Individual projects will require financing agreements, feasibility studies, approvals and commercial assessments.
For Tarique’s visit, key outcomes could include progress on priority infrastructure, new business commitments, an agreement on skilled-worker recruitment and a mechanism to resolve investor concerns.
Dhaka’s challenge will be to translate longstanding diplomatic goodwill into productive investment, industrial diversification, export growth and sustainable employment.