What Japan’s Investors Want From Tarique’s Tokyo Visit
Japan’s trade agency says Prime Minister Tarique Rahman’s expected visit could open new investment opportunities, as Japanese firms regain confidence in Bangladesh’s political stability.
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In a Nutshell
- Prime Minister Tarique Rahman is expected to visit Japan from October 26 for three days.
- Japan External Trade Organisation (JETRO) Country Representative Kazuiki Kataoka said the visit could open new investment opportunities and allow Japanese companies to reaffirm their long-term commitment to Bangladesh.
- He said political stability after February has encouraged Japanese firms to visit Bangladesh, study the market and conduct feasibility studies.
- Around 340–350 Japanese companies operate in Bangladesh, and Toyota Tsusho has expressed interest in exploring car assembly.
- Kataoka identified customs clearance, taxation, payments, visa processing and slow implementation as ongoing investor concerns.
Context
The interim government sought to rebuild investor confidence through the April 2025 investment summit, which brought together about 450 foreign investors from 40 countries and resulted in investment declarations totalling Tk3,100 crore.
But investors remained cautious due to uncertainty about future policies, incentives, and political stability. PM’s visit to Japan would focus on investment, trade, energy, infrastructure and labour migration.
Why It Matters
Japanese investors are now more interested in investing in Bangladesh as an elected political government has taken office. Japan has been Bangladesh’s largest bilateral development partner since independence, supporting major projects. The number of Japanese-affiliated companies rose from 82 a decade ago to 322 by 2020, with investments of about $386 million.
The February EPA now provides 7,379 Bangladeshi products with duty-free access to Japan and is expected to attract investment in manufacturing, infrastructure, energy, and logistics. The visit can help if it produces clear commitments on investment, technology transfer, and market access, rather than only diplomatic statements.
What We Think
Bangladesh’s investment position has improved since February. But investors still face problems JETRO has raised: customs delays, taxation issues, payment difficulties and slow implementation. These make it harder for companies willing to invest.
A bilateral agreement can help streamline these processes, while stronger intellectual property protection can give global brands greater confidence to bring technology, trademarks, and research into Bangladesh.