[🇧🇩] Strategic Aspect of Bangla-Japan Relation

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PM’s Japan visit: Reducing metro rail costs, loan interest rates likely to be discussed

Reducing metro rail costs and interest rates on loans taken from Japan will be among the issues discussed during Prime Minister Tarique Rahman's four-day visit to Japan.

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PM’s Japan visit: Reducing metro rail costs, loan interest rates likely to be discussed

Diplomatic Correspondent

Foreign Secretary Asad Alam Siam speaks at a press conference at the Ministry of Foreign Affairs on Tuesday afternoon ahead of Prime Minister Tarique Rahman’s visit to Japan Prothom Alo

Reducing metro rail costs and interest rates on loans taken from Japan will be among the issues discussed during Prime Minister Tarique Rahman's four-day visit to Japan.

Foreign Secretary Asad Alam Siam disclosed this at a press conference organised by the Ministry of Foreign Affairs on Tuesday afternoon ahead of the prime minister's upcoming visit to Japan.

The foreign secretary said several memorandums of understanding (MoUs) could be signed during the visit on issues including cooperation in agriculture, fisheries, human resource development and skills enhancement, civil aviation, marine environmental conservation and modernisation of local government.

Asked how many MoUs would be signed, Asad Alam Siam said, "We are discussing around eight MoUs. We hope three to four of them will be signed."

The cost of Dhaka's MRT Line-1 has increased by 83 per cent, while that of MRT Line 5 has risen by 113 per cent. Asked whether these issues and a reduction in interest rates on loans from Japan would be discussed, the foreign secretary said, "We have sought various forms of technical assistance from Japan for infrastructure development, including what you mentioned – capital funding and substantial technical support. These infrastructure cooperation issues will certainly come up during the bilateral meeting between the two prime ministers. Besides the metro rail, there are other areas of mutual cooperation in infrastructure development. So, these matters will be discussed in detail."

Asad Alam Siam said, "We want to obtain loans at lower interest rates from all countries. However, there are global arrangements as well as domestic factors specific to each country. These are very important. The issues you have raised will be discussed. The outcome will be clear after the discussions."

Referring to the current relations between Bangladesh and Japan as being at the level of a "strategic partnership", the foreign secretary said various joint cooperation initiatives were underway in areas including Bangladesh's infrastructure development, technological advancement, human resource development and security cooperation.

He hoped that the visit would further strengthen these activities.

The foreign secretary said the prime minister's upcoming visit would create an opportunity to make relations between the two countries "deeper and stronger".

He noted that the signing of the Economic Partnership Agreement (EPA) between Bangladesh and Japan in February had opened up new opportunities to expand trade and investment.

As one of Bangladesh's major development partners, Japan has been supporting the construction and implementation of several important infrastructure and connectivity projects, including the metro rail, the third terminal of Hazrat Shahjalal International Airport and the Matarbari deep-sea port.

The foreign secretary said the prime minister's visit would create opportunities to expand access for Bangladeshi products to the Japanese market, increase Japanese investment and strengthen business ties. It would also pave the way for broader cooperation in new areas, including renewable energy, the environment, science, technology, digital innovation, research and human resource development.

He said Prime Minister Tarique Rahman would hold a bilateral meeting with Japanese Prime Minister Sanae Takaichi at her office on 26 October, the second day of his visit. He would also attend a dinner hosted by the Japanese prime minister in his honour.

In addition, the prime minister will hold courtesy meetings with representatives of the Japan-Bangladesh Parliamentary Friendship League, the chairman of the Japan-Bangladesh Committee for Commercial and Economic Cooperation, the president of the Japan International Cooperation Agency (JICA), the governor of the Japan Bank for International Cooperation (JBIC), the president of the Japan External Trade Organization (JETRO) and the chairman of the Sasakawa Peace Foundation.

The foreign secretary also said Prime Minister Tarique Rahman would deliver the keynote address at the Japan-Bangladesh Economic Forum.

Asad Alam Siam said the prime minister's visit would help accelerate the implementation of ongoing priority projects with Japan and ensure their timely completion. It would also strengthen the economic partnership, increase economic and development assistance, and ensure the continuation of security cooperation.

Prime Minister Tarique Rahman will leave for Japan on 26 October on a four-day visit.

Sources said, his entourage will include his wife, Zubaida Rahman; Finance Minister Amir Khasru Mahmud Chowdhury; Prime Minister's Adviser on Finance and Planning Rashed Al Mahmud Titumir; State Minister for Foreign Affairs Humaiun Kobir; State Minister for Power, Energy and Mineral Resources Aninda Islam Amit; Prime Minister's Adviser on Posts, Telecommunications and Information Technology Rehan Asif Asad; BIDA Chairman Ashik Chowdhury; and Prime Minister's Special Assistant for Overseas Employment in the Asia-Pacific region Md Shakirul Islam Khan.

Officials concerned of the Bangladesh government, media representatives and other distinguished individuals will also accompany the prime minister as part of the delegation.​

 

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Bangladesh-Japan trade passes $3.3b on garment demand

Trade between Bangladesh and Japan has grown steadily over the past decade, mainly due to rising demand for competitively priced Bangladeshi garments. Bangladesh’s exports to Japan have more than tripled during this period, according to data from the Export Promotion Bureau (EPB) and Bangladesh...

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Bangladesh-Japan trade passes $3.3b on garment demand

Refayet Ullah Mirdha

Trade between Bangladesh and Japan has grown steadily over the past decade, mainly due to rising demand for competitively priced Bangladeshi garments. Bangladesh’s exports to Japan have more than tripled during this period, according to data from the Export Promotion Bureau (EPB) and Bangladesh Bank (BB).

In the past, Bangladesh’s exports to Japan were worth only a few hundred million dollars. Shipments of ready-made garments (RMG) began to grow rapidly in 2011, when Japan relaxed its rules of origin for knitwear imports from least developed countries (LDCs).

As an LDC, Bangladesh benefited from duty-free access for its knitwear in the Japanese market, helping boost exports.

Annual exports to Japan have exceeded $1 billion since fiscal year 2015-16 (FY16). Meanwhile, two-way trade between the countries crossed $3 billion in FY18.

Bangladesh’s exports to Japan grew by 20.74 percent in FY19 but declined over the next two fiscal years amid the Covid-19 pandemic.

According to EPB data, exports returned to pre-pandemic levels in FY22. They then rose sharply in FY23, reaching $1.9 billion. Two-way trade between Bangladesh and Japan increased to more than $3.31 billion in FY25, up from $3.12 billion in the previous fiscal year, the data showed.

Japan is now Bangladesh’s ninth-largest export destination globally and its second-largest in Asia. It is also an important source of foreign direct investment (FDI) for Bangladesh.

Tareq Rafi Bhuiyan Jun, immediate past president of the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI), said Bangladesh has significant potential to increase exports to Japan as demand for Bangladeshi products is growing in the country.

He said Japan can become one of Bangladesh’s most promising export destinations, alongside Europe and the United States.​

 

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Business leaders want PM’s Tokyo trip to bring investment

Business leaders and trade officials say Bangladesh should use Prime Minister Tarique Rahman’s upcoming Tokyo visit to attract more Japanese investment and press for swift implementation of the Economic Partnership Agreement (EPA) signed in February this year.

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Business leaders want PM’s Tokyo trip to bring investment

They also urge faster EPA rollout as garment exports to Japan target $3 billion

Refayet Ullah Mirdha

Business leaders and trade officials say Bangladesh should use Prime Minister Tarique Rahman’s upcoming Tokyo visit to attract more Japanese investment and press for swift implementation of the Economic Partnership Agreement (EPA) signed in February this year.

The PM will visit the island nation from October 26 to 29.

Japan is already an important export market and a major source of investment for Bangladesh. Recently, several leading Japanese companies have expressed interest in investing in Bangladesh or expanding their operations here.

Japanese businesses are also looking at new markets, including Bangladesh and its neighbours, under Tokyo’s “China Plus One” policy, which aims to diversify investment beyond China and reduce dependence on a single country.

“We should seize this opportunity to attract Japanese investment to Bangladesh, as several major Japanese companies have already shown interest in investing here,” said Tareq Rafi Bhuiyan Jun, immediate past president of the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI).

Senior executives from three major Japanese business groups, Toyota, Mitsui and Marubeni, have recently visited Bangladesh and met senior government officials, Tareq told The Daily Star over the phone.

Commerce Minister Khandakar Abdul Muktadir also said representatives of Marubeni and Toyota have visited and discussed investment opportunities.

Tareq expects the visit to focus on implementing the EPA, launching the third terminal at Hazrat Shahjalal International Airport in Dhaka and attracting more Japanese investment.

Mahmud Hasan Khan, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said investment should be a priority too.

Last month, the BGMEA opened a dedicated desk for the Japanese market at its Uttara office to attract more Japanese textile and garment businesses, as part of its strategy to expand into Asian markets.

The association will also hold a roadshow in Hong Kong next month to attract Asian garment retailers and brands. Japanese retailers are expected to attend, as the association has been working closely with them, Mahmud said.

Bangladesh exports more than $1.4 billion worth of garments to Japan annually, benefiting from duty-free access under its Least Developed Country (LDC) status, according to the Export Promotion Bureau (EPB).

Garments account for about 80 percent of its exports to Japan. The BGMEA aims to raise garment exports to Japan to $3 billion in the near future. Japan has committed to continuing LDC-related duty-free access for three years after Bangladesh graduates from the category.

Md Fazlul Hoque, administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), called for swift ratification of the EPA to boost trade and investment between the two countries.

“However, I would like to see a greater focus on investment during the prime minister’s visit,” Fazlul said.

Kazuaki Kataoka, country representative of the Japan External Trade Organization (JETRO) in Bangladesh and current president of the JBCCI, also expects economic issues to feature in the talks.

He said Japanese investors are showing greater interest in Bangladesh since the country’s political situation stabilised after the general election in February this year.

Commerce Minister Muktadir said he hopes both countries will soon ratify the EPA in their national parliaments, paving the way for implementation and stronger bilateral trade.

Japan’s Ministry of Foreign Affairs said in a statement on Tuesday that Prime Minister Sanae Takaichi would hold a meeting and lunch with Tarique Rahman during his visit.

“The visit of Prime Minister Rahman is expected to further strengthen the ‘Strategic Partnership’ between Japan and Bangladesh, a key regional partner that shares values and principles such as freedom, democracy and the rule of law, and enhance coordination towards realising the updated ‘Free and Open Indo-Pacific (FOIP)’,” the statement said.

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Foreign Secretary Asad Alam Siam said on Tuesday that the visit would build on the EPA to expand trade and investment.

Bangladesh is also discussing about eight memorandums of understanding (MoUs) with Japan, and three or four are expected to be signed during the visit. The proposed agreements cover agriculture, fisheries, skills development, civil aviation, trade, environmental protection and the modernisation of local government.

Business surveys also support Bangladesh’s prospects for attracting Japanese investments.

Bangladesh has ranked among the top 20 promising destinations for overseas business in surveys by the Japan Bank for International Cooperation (JBIC) for the past three years, and a recent JETRO survey found that 71.5 percent of Japanese companies want to expand their businesses in Bangladesh.

To attract more Japanese foreign direct investment, Bangladesh is developing the Japan Economic Zone in Araihazar, Narayanganj.​