Bangladesh’s prime minister, Tarique Rahman, extended an invitation to Japanese companies during a high-level economic forum in Tokyo to invest across five strategic sectors, including rail infrastructure and technology development. This outreach follows the signing of the first Economic Partnership Agreement (EPA) between the two nations, designed to strengthen trade and investment collaboration.
The Bangladesh-Japan Economic Forum Dialogue, organized by the Japan External Trade Organization (JETRO) and the Japan-Bangladesh Committee for Commercial and Economic Cooperation, identified five key focus areas: automotive production, energy development, technology and space initiatives, high-speed rail and logistics networks, and agro-processing industries. Rahman highlighted ongoing government reforms aimed at addressing persistent challenges, such as unreliable energy supply, inefficient infrastructure, and cumbersome customs procedures that have deterred foreign investors.
Japanese investment in Bangladesh has historically been modest, with total direct foreign investment remaining under $500 million despite the presence of 350 Japanese firms operating in the country. Trade figures from the previous fiscal year show Bangladesh exporting $1.36 billion worth of goods to Japan while importing $2.16 billion. The newly ratified EPA eliminates tariffs on 7,379 Bangladeshi products and provides preferential market access for Japanese steel, automotive components, and electronics.
Bangladesh’s population of 180 million, with a median age of 27, positions the country as a rapidly growing consumer market projected to rank among the world’s top ten by 2030. To capitalize on this potential, the government is implementing measures to stabilize energy supplies and simplify customs processes, making the environment more attractive for Japanese businesses. Toyota has already committed to establishing a vehicle manufacturing plant in Bangladesh, with full-scale production expected by 2029.
Energy remains a critical area for collaboration, with Bangladesh inviting Japanese firms to participate in liquefied natural gas infrastructure, gas-powered electricity generation, and renewable energy projects. Additionally, the government plans to develop a Bangladesh-Japan Technology Park dedicated to supporting advancements in artificial intelligence, cloud-based solutions, and robotic systems. Space technology and satellite engineering are also on the agenda, as Bangladesh seeks Japanese technical support to enhance its capabilities in these fields.
The high-speed rail project represents one of the most ambitious initiatives under discussion. Authorities intend to create an raised rail network linking major urban centers, including Dhaka, Chattogram, and Sylhet. A detailed master plan will be prepared, demand assessments conducted, and feasibility studies carried out, with Japanese institutions encouraged to take part in these efforts. The Araihazar Special Economic Zone is being promoted as a hub for agro-processing, with Sumitomo Corporation leading development efforts aligned with Japanese industry standards.
Beyond economic cooperation, Rahman emphasized the importance of strengthening cultural and professional ties, proposing expanded Japanese-language education programs to produce a workforce skilled in meeting the needs of both nations. The bilateral relationship between Bangladesh and Japan dates to 1972, with Japan serving as Bangladesh’s largest development partner for over five decades. The EPA and targeted sector investments are intended to deepen this alliance into a more robust and mutually advantageous partnership.
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