[🇧🇩] Strategic Aspect of Bangla-Japan Relation

[Saif]

Japan lending Bangladesh $581 million

Japan is going to lend Bangladesh US$581 million for improving power generation and ensuring food safety, officials said Monday, in aid to the interim government. The Economic Relations Division (ERD) under the Ministry of Finance (MoF) and Japan are likely to sign two loan deals on March

thefinancialexpress.com.bd

Japan lending Bangladesh $581 million
FHM Humayan Kabir
Published :
Mar 11, 2025 00:40
Updated :
Mar 11, 2025 00:40

Japan is going to lend Bangladesh US$581 million for improving power generation and ensuring food safety, officials said Monday, in aid to the interim government.

The Economic Relations Division (ERD) under the Ministry of Finance (MoF) and Japan are likely to sign two loan deals on March 25 to this effect MoF officials said.

Japan International Cooperation Agency (JICA) under the 45th Overseas Development Assistance (ODA) package would provide $386.72 million (8th tranche) loan for completing the Matarbari Ultra Super Critical Coal-fired Power Project.

Another $194.30 million would be confirmed for upgrading capacity of the Bangladesh Food Safety Authority (BFSA) in ensuring the food quality and its safety for the people.

"We are going to sign loan deals on March 25. The loans will be provided under the ongoing 45th ODA package. The funds will be utilized for completing Matarbari coal-fired power-plant project and ensuring food safety in Bangladesh," said a senior MoF official.

The proposed $386.72-million loan will be the last tranche for the Matarbari coal-fired power project, which is already supplying 1200 megawatts (MW) of power into the national grid, he added.

Earlier in September 2023, JICA confirmed the 7th tranche of the loan for the Matarbari power project, and this will be the 8th and last instalment.

Under the 44th Japanese ODA Loan Package (2nd batch), Japan extended financial support of 217,556 million Japanese Yens (JPY), approximately $1,500 million, for the seaside power project.

The Japanese aid agency has been a crucial partner in different phases of this project, having already disbursed 437,754 million JPYs in six tranches. The 7th tranche, under the ODA Loan for this project, involves an additional 217,556 million JPYs.

Meanwhile, the government has recently approved a project of the BFSA where JICA will provide the proposed $194.30 million worth of funds and work for improving the food safety and security across the country, the MoF official said.

The ECNEC early February approved a Tk 24.09 billion 'Food Safety Testing Capacity Development Project' run by the Bangladesh Food Safety Authority under the Ministry of Food.

The project will be implemented by December 2034.

The first phase of the 45th Japanese ODA package brought approximately $257 million in November last year. Under the loans, $11.07 million was provided for Chittagong WASA and $249.34 million for the Jamuna Rail Bridge Construction Project (III).

Japan usually charges 1.70-percent interest rate for construction work and 0.40 per cent for consultancy services. Additionally, there is a one-time front-end fee of 0.2 per cent.

The repayment period is spread over 30 years, including a 10-year grace period.​

 

[Saif]

Half of Japanese firms optimistic about profit growth in 2025: survey

After a challenging year, Japanese companies in Bangladesh are eyeing 2025 with cautious optimism, as 50 percent anticipate a rise in operating profits despite persistent hurdles.

www.thedailystar.net

Half of Japanese firms optimistic about profit growth in 2025: survey

After a challenging year, Japanese companies in Bangladesh are eyeing 2025 with cautious optimism, as 50 percent anticipate a rise in operating profits despite persistent hurdles.

However, political instability, unclear regulatory policies, and difficulties in local procurement continue to hinder smooth business operations, according to findings of the latest Japan External Trade Organisation (Jetro) survey 2024, which will be released today.

The report also highlighted both optimism and concerns among Japanese firms navigating these obstacles.

As of 2024, nearly 315 Japanese companies are operating in Bangladesh, with cumulative investments exceeding $508 million.

Despite the interest from Japanese businesses, the percentage of companies expecting profitability in Bangladesh in 2024 remains among the lowest in Asia and Oceania, standing at just 37.4 percent, according to the Jetro survey.

However, looking ahead to 2025, 50 percent of these companies anticipate a rise in operating profits, indicating cautious optimism.

Bangladesh has consistently ranked as one of the top investment destinations in South Asia for Japanese firms, with 57.7 percent of surveyed companies planning to expand their business activities in the next one to two years.

"The local market demand is a significant factor driving this expansion," said Yuji Ando, country representative of the Jetro in Dhaka.

"However, a combination of structural inefficiencies and policy uncertainties pose serious challenges," he said.

Among the major concerns highlighted in the survey are political and social instability, unpredictable regulatory policies, and insufficient infrastructure.

Notably, 94.8 percent of Japanese firms cited political uncertainty as a key risk while 75.3 percent pointed to unclear government policy management.

Moreover, Bangladesh's legal and administrative processes, including delays in obtaining permits and tax-related complexities, were identified as significant hurdles to smooth business operations.

Further challenges are posed by a shortage of skilled labour, which impacts productivity and efficiency.

Japanese companies have noted that while Bangladesh has a growing workforce, gaps in technical training and professional expertise create barriers to scaling up operations.

Investing in workforce development, Ando suggested, would significantly improve the investment climate and increase the competitiveness of the local industry.

A key area where Bangladesh struggles is in local procurement, which remains significantly lower than in other regional economies.

Only 23.3 percent of materials and parts used by Japanese companies are sourced locally, compared to higher rates in Vietnam, Indonesia, and India.

"The lack of reliable suppliers meeting international quality and technical standards remains a major obstacle," Ando noted.

The survey found that 79.3 percent of Japanese companies in Bangladesh faced difficulties in finding suppliers who met their quality requirements while 55.2 percent reported challenges in securing necessary raw materials.

To mitigate this, Japanese businesses are calling for more investment in the backward linkage industries and increased government support to strengthen local supply chains.

"Improving the local supplier ecosystem is critical to reducing dependency on imports and ensuring cost efficiency in production," Ando emphasised.

Additionally, logistical inefficiencies, such as delays at ports and high transportation costs, further complicate supply chain operations.

Japanese firms have called for streamlined customs procedures and improved transport infrastructure to ensure a more seamless movement of goods, which would reduce costs and enhance profitability.

Despite these obstacles, Japanese firms see long-term potential in Bangladesh, given its growing consumer base and strategic location.

The Jetro report suggests that expansion of business activities in Bangladesh remains a priority, particularly in sectors such as high-value manufacturing, consumer goods, and technology.

Ando emphasised that while Bangladesh presents numerous investment opportunities, addressing regulatory transparency and policy consistency would be essential in sustaining investor confidence.

"A stable and predictable business environment is crucial for attracting more Japanese investments," he noted.

One promising development is an increase in economic cooperation between Japan and Bangladesh.

Large-scale infrastructure projects supported by Japanese investment, such as the ongoing construction of the Matarbari deep-sea port and various road and energy projects, demonstrate Japan's commitment to enhancing Bangladesh's business environment.

These improvements could alleviate some of the logistical constraints currently affecting foreign businesses.

With Japan being one of Bangladesh's largest development partners, continued collaboration between the two nations could help overcome these challenges and pave the way for stronger economic ties.

Experts believe that a combination of government policy reforms, infrastructure advancements, and skilled workforce development will be key to ensuring long-term success for Japanese investors in Bangladesh.

While risks persist, the overall sentiment remains one of cautious optimism as Bangladesh works towards becoming a more favourable investment destination.

If the country can successfully address its regulatory and infrastructure shortcomings, it has the potential to emerge as a premier hub for Japanese investment in South Asia.​

 

[Saif]

Political stability key to higher Japanese investment: experts

Bangladesh must ensure long-term political stability, maintain policy consistency, and improve regulatory processes to create an environment conducive to attracting more Japanese investment, according to speakers at a discussion yesterday.

www.thedailystar.net

Political stability key to higher Japanese investment: experts

Bangladesh must ensure long-term political stability, maintain policy consistency, and improve regulatory processes to create an environment conducive to attracting more Japanese investment, according to speakers at a discussion yesterday.

The findings of the Japan External Trade Organization (Jetro) 2024 survey have underscored the country's resilience and investment potential, particularly in attracting Japanese businesses, they said.

The discussion on the "2024 Jetro Survey on Business Conditions of Japanese Companies in Asia and Oceania" was organised by Jetro at The Westin Dhaka.

"Political stability and policy consistency remain vital to investor confidence," said Ashik Chowdhury, executive chairman of Bida

"Bangladesh's investment potential and key areas for improvement have been reflected in the Jetro 2024 survey," said Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority (Bida).

Speaking on the country's commitment to fostering a business-friendly environment, he reaffirmed Bida's dedication to addressing investor concerns, particularly those of Japanese businesses.

"The structured flow of human capital is crucial," he said, noting that Japanese investors emphasise skilled labour export and knowledge exchange.

Bida is actively working to streamline labour management systems to ensure a stronger economic partnership with Japan, he said.

Chowdhury also stressed the need to integrate Bangladesh into the broader regional trade network.

He acknowledged that investment decision-making varies globally and that Japanese investors typically adopt a long-term approach.

"Political stability and policy consistency remain vital to investor confidence," he said.

Chowdhury also emphasised the need for structural reforms to ensure transparency and predictability.

"Developing quantifiable indicators will help track progress and build a more stable investment environment," he said.

An upcoming investment summit has drawn significant global interest, said Chowdhury, expressing optimism about Bangladesh's potential to become a leading investment destination.

Saida Shinichi, Japan's ambassador to Bangladesh, said the findings of the Jetro survey reaffirm what has long been recognised—that Bangladesh holds immense potential as a destination for Japanese investment.

He said the country's business environment was improving and that despite global uncertainties, the Bangladeshi economy remained resilient.

"While some investors may be waiting for the outcome of upcoming national elections, it is reassuring to see a growing sense of stability and optimism in the market," he said.

"My recent visit to Japan, along with high-level exchanges between our two countries, highlights the deepening economic relationship we share," he pointed out.

"However, to fully unlock this potential, we must continue working together to enhance business conditions, address investor concerns, and ensure long-term policy continuity," the ambassador emphasised.

He also said Japanese companies were eager to explore opportunities in Bangladesh, particularly in manufacturing, infrastructure, and human capital development.

"To attract more investment, it is crucial to streamline regulatory processes, improve logistics, and create a more predictable business environment," he said.

"These efforts will not only benefit Japanese investors but also contribute to Bangladesh's long-term economic growth," Shinichi added.

He said stability, continuity, and cooperation would be essential in shaping a future where Japanese and Bangladeshi businesses thrive together.

"I… remain confident that, through collaboration, we can further strengthen our economic partnership," he said.

"Japan remains committed to supporting Bangladesh's development journey, and I believe our cooperation will only grow stronger in the years ahead," Shinichi said.

"The Jetro 2024 survey highlights Bangladesh's strong business momentum despite political changes, reflecting its resilience and investment potential," said Tareq Rafi Bhuiyan, president of the Japan-Bangladesh Chamber of Commerce and Industry.

He said Japanese companies were increasingly exploring both export and domestic market opportunities, showcasing confidence in Bangladesh's economic landscape.

However, for sustainable growth, key factors must be addressed—ensuring political stability, maintaining policy consistency, and developing backward linkage industries to enhance local procurement, he added.

"BIDA's proactive approach and the Japanese ambassador's continuous support are crucial in this regard. Strengthening these areas will further solidify Bangladesh's position as a key investment destination for Japanese businesses," he said.

Yuji Wagata, vice president of the Japanese Commerce and Industry Association in Dhaka, said they were committed to creating a stable and conducive environment for business growth through collaboration and effective regulation.

"By working together, we can enhance Bangladesh's business climate and contribute to its economic development," he said.

Yuji Ando, country representative of Jetro in Dhaka, highlighted that business momentum in Bangladesh remains strong despite political changes.

He said Japanese companies were increasingly exploring both export-oriented and domestic market opportunities in the country.

He emphasised that political stability, policy consistency, increasing local procurement to reduce costs, and the development of backward linkage industries were crucial for business expansion.

Ando stressed that the success of Japanese companies in Bangladesh directly contributes to the country's foreign direct investment promotion, underscoring the importance of continuous efforts and dialogue in business development.​

 

[Saif]

Over 60pc Japanese cos keen to expand business in Bangladesh

Japanese vice-minister for economy, trade and industry Matsuo Takehiko while referring to a survey said that more than 60 per cent of the Japanese companies were considering expanding their business in Bangladesh...

www.newagebd.net

Over 60pc Japanese cos keen to expand business in Bangladesh
Bangladesh Sangbad Sangstha . Dhaka 23 April, 2025, 22:41

Participants pose for photo during The 6th Bangladesh-Japan public-private joint economic dialogue held on Wednesday at the Ministry of Economy, Trade and Industry at Tokyo in Japan. | BSS photo

Japanese vice-minister for economy, trade and industry Matsuo Takehiko while referring to a survey said that more than 60 per cent of the Japanese companies were considering expanding their business in Bangladesh.

He said that his government is ready to facilitate enhancing Japanese investment in Bangladesh through public private partnership.

The vice-minister was speaking at the 6th Bangladesh-Japan Public-Private Joint Economic Dialogue held today at the Japanese Economy, Trade and Industry ministry in Tokyo, according to a message received here today.

The Bangladesh delegation, comprising senior government officials and private sector representatives, was led by principal secretary to the chief advisor M Siraz Uddin Miah.

Bangladesh Ambassador to Japan Md Daud Ali and Japanese Ambassador to Bangladesh Saida Shinichi also attended the event.

The dialogue provided a platform for continued open and constructive engagement between stakeholders from both countries.

The discussions focused on strengthening trade and investment cooperation, with particular attention to connectivity, the Bay of Bengal Industrial Growth Belt (BIG-B), logistics, energy transition, agriculture, and the simplification of tax and customs procedures.

At the dialogue, Bangladesh highlighted its investment potential and ongoing reform initiatives aimed at fostering a more business-friendly environment.

The Japanese side was updated on the progress made in response to earlier feedback from Japanese investors.

The Japanese delegation conveyed their private sector’s strong satisfaction with Bangladesh’s improving business climate, noting that the number of Japanese companies in the country has tripled over the past decade.

This reflects increased investor confidence and strong interest in business expansion.

Both sides reaffirmed their commitment to deepening bilateral economic ties and expressed the hope for concluding the Economic Partnership Agreement (EPA) by the end of this year.

Bangladesh reiterated its full support to facilitate Japanese investment and emphasized its willingness to work closely with Japanese stakeholders.

The Japanese side welcomed the ongoing reforms and expressed optimism that the current momentum would continue.

Principal Secretary Miah assured that the Bangladesh government will continue working to address the key challenges, as raised in the discussion.

He highlighted reform and automation efforts to ensure a more investor-friendly environment and underscored the importance of concluding the EPA before Bangladesh’s graduation from Least Developed Country (LDC) status.

The dialogue, held in a hybrid format, was attended by senior officials from both governments and prominent business leaders.

From Bangladesh, participants included representatives from the chief advisor’s Office, National Board of Revenue, Ministry of Commerce, Bangladesh Investment Development Authority (BIDA), Bangladesh Bank and FBCCI.

From the Japanese side, participants included among others the Chairman of the Japan-Bangladesh Committee for Commercial and Economic Co-operation of the Japan Chamber of Commerce and Industry (JCCI), Japanese foreign ministry and other ministries officials as well as heads of the JICA and JETRO offices in Bangladesh and representatives from the Japanese private sector.​

 

[Saif]

Bangladesh now a unique example of growth and development: Commerce Adviser

Commerce Adviser Sk Bashir Uddin has said Bangladesh is now a unique example of growth and development in the world. “With extensive socio-economic development, the country now aspires to become an upper middle income country by 2031,” the adviser said, while speaking at a programme or

thefinancialexpress.com.bd

Bangladesh now a unique example of growth and development: Commerce Adviser
Published :
May 11, 2025 21:50
Updated :
May 11, 2025 21:50

Commerce Adviser Sk Bashir Uddin has said Bangladesh is now a unique example of growth and development in the world.

“With extensive socio-economic development, the country now aspires to become an upper middle income country by 2031,” the adviser said, while speaking at a programme organised on the occasion of “Bangladesh Day” of World Expo 2025 in Japan’s Osaka on Sunday afternoon.

He also mentioned that the growing young population and stable growth have elevated the people of the country to a level of prosperity, reports UNB.

The adviser has called on business leaders around the world to be partners in the journey of a developed and prosperous Bangladesh.

Bashiruddin has called on business leaders around the world to be partners in the journey of a developed and prosperous Bangladesh.

Calling for investment by exploring business opportunities in Bangladesh, Adviser Bashir said that we need to work together for the future generations by utilizing technology and experience.

Urging visitors to visit the Bangladesh Pavilion, he said that the pavilion highlights the rich history, culture and heritage of Bangladesh. As a symbol of bridging the gap between tradition and future society, the pavilion has been built with a wooden structure, which is an example of zero carbon and sustainable practices.

He also said that in addition to the growing domestic market, Bangladesh has become a strategic hub for ASEAN countries. As such, Bangladesh has immense potential to become one of the most important strategic trade partners in the region.

Stating that the July-August Revolution led by the youth has created new possibilities in Bangladesh, he further said that by taking advantage of the liberal investment regime, developed countries of the world can take advantage of investment opportunities in ready-made garments, leather, pharmaceuticals, light engineering, IT, jute and jute products, and ceramic industries.

Speaking as a special guest at the event, State Minister of the Ministry of Economy, Trade and Industry of Japan (METI) Ogushi Masaki said that Japan has been engaged in diplomatic and economic relations with Bangladesh since 1972.

“This relationship is constantly growing and Japan’s cooperation will continue in the LDC transition process of Bangladesh in 2026,” he added.

Bangladesh Ambassador to Japan Md. Daud Ali was present at the event.​

 

[Saif]

Bangladesh-Japan FOC to focus on CA's Japan visit

The upcoming visit of Chief Adviser Professor Muhammad Yunus to Japan will be a key focus during the Foreign Office Consultation (FOC) between the two countries on May 15 in Tokyo. Professor Yunus is expected to attend the Nikkei Forum, scheduled to be held in Tokyo on May 29. He is also likely to

thefinancialexpress.com.bd

Bangladesh-Japan FOC to focus on CA's Japan visit
FE OLINE REPORT
Published :
May 13, 2025 19:43
Updated :
May 13, 2025 19:43

The upcoming visit of Chief Adviser Professor Muhammad Yunus to Japan will be a key focus during the Foreign Office Consultation (FOC) between the two countries on May 15 in Tokyo.

Professor Yunus is expected to attend the Nikkei Forum, scheduled to be held in Tokyo on May 29. He is also likely to hold a bilateral meeting with the Japanese Prime Minister on 30 May, before departing for home on the same day, according to sources at the Foreign Ministry.

“Issues related to trade, investment, and the continuation of economic cooperation will be highlighted during the FOC,” said the Japanese Ambassador to Dhaka, Saida Shinichi.

Speaking to reporters at the Foreign Ministry following a meeting, the envoy noted that the Japanese government has not yet made a public announcement regarding the Chief Adviser’s visit.

“Japan has been your faithful development partner since independence,” he stated.

He also highlighted Japan’s involvement in key development projects in Bangladesh, such as the Matarbari Deep Sea Port, metro rail, and railway line initiatives.

According to Foreign Ministry officials, Mr Nazrul Islam, Secretary (East), will lead the Bangladeshi delegation.

Although the Foreign Secretary typically leads such consultations, he will not be attending this time. His absence from the recent FOC with Denmark has further fuelled speculation regarding his possible removal.​

 

[Saif]

Dhaka-Tokyo meeting: Nazrul Islam to lead Bangladesh, not Jashim Uddin

Chief Adviser of the interim government Professor Muhammad Yunus is scheduled to visit Tokyo at the last week of May.

en.prothomalo.com

Dhaka-Tokyo meeting: Nazrul Islam to lead Bangladesh, not Jashim Uddin
Raheed Ejaz Dhaka
Published: 14 May 2025, 17: 19

Flags of Bangladesh and Japan

Uncertainty shrouded all of a sudden on Monday over the foreign secretary-level meeting between Bangladesh and Japan, scheduled to be held on 15 May.

Finally, the meeting will go ahead, and Md Nazrul Islam, secretary (east) at the foreign ministry, will lead the Bangladesh side at the meeting, not the foreign secretary Md Jashim Uddin.

The two countries agreed some time ago to hold the foreign secretary-level talks in Tokyo, but the foreign ministry sent a diplomatic note to the Japanese embassy on Monday morning infirming the latter that Bangladesh postponed the meeting due to ‘unavoidable circumstances.’

Chief adviser of the interim government Professor Muhammad Yunus is scheduled to visit Tokyo at the last week of May.

Prior to that, there had been talk of postponing the foreign secretary-level meeting between the two countries.

According to diplomatic sources, Japan brought the matter to the attention of the chief adviser’s office on Monday afternoon.

That evening, the chief advisor's special envoy for international affairs, Lutfey Siddiqi, instructed the foreign ministry to propose to Japan that a preparatory meeting be held on 15 May instead of the foreign secretary-level meeting.

Later that night, national security adviser Khalilur Rahman spoke to the chief adviser about the previously scheduled foreign secretary-level meeting. It was then decided that the meeting between the foreign secretaries of Bangladesh and Japan will be held in Tokyo.

However, Md Nazrul Islam, secretary (east) of the foreign ministry, would lead Bangladesh in the meeting on 15 May, not foreign secretary Md Jashim Uddin.

When asked, Md Nazrul Islam confirmed to Prothom Alo on Tuesday evening that he would participate in the foreign secretary-level meeting in Tokyo.

He said Tokyo has been officially informed that he would lead the Bangladeshi delegation in the talks.

Earlier, in light of the evolving situation, foreign secretary Md Jashim Uddin held a meeting on Tuesday afternoon in his office with Japan's ambassador to Dhaka, Saida Shinichi.

After the meeting with the foreign secretary, Saida Shinichi told Prothom Alo, “To the best of my knowledge, the prescheduled foreign secretary-level meeting is going to take place in Tokyo on 15 May. Various bilateral relations, as well as regional and international matters will be discussed at the meeting. Since professor Yunus is scheduled to visit Tokyo at the end of this month, that visit will also be discussed in the meeting.”

Just a week ago, ambassador Saida Shinichi also met with foreign secretary Md Jashim Uddin in preparation for the foreign secretary-level meeting between Dhaka and Tokyo.

The foreign ministry’s sudden decision to postpone the meeting via a letter surprised not only Japan but also policymakers within the Bangladeshi government.

Given that Japan is a long-standing and trusted partner, postponing the foreign secretary-level meeting just before professor Yunus’s visit—citing “unavoidable reasons”—was deemed unwelcome.

If the scheduled meeting had not taken place, there was concern that Japan might receive the wrong impression about the Bangladeshi government. However, due to timely intervention from the government, the risk of unnecessary complications between the two countries has been avoided.

According to government sources, the postponement of the foreign secretary-level meeting with Japan is linked to changes in the position of Bangladesh’s foreign secretary.

About a week ago, top policymakers of the government had nearly finalised the decision to remove Jashim Uddin from the post of foreign secretary. However, as of Tuesday, no official order was issued in this regard.

Currently, foreign adviser Md Touhid Hossain is on a visit to Germany to attend a UN ministerial-level meeting.

He is expected to return to the country this Thursday. Government officials indicated that decisions regarding changes to the foreign secretary post and the future of Jashim Uddin will be finalised after Touhid Hossain returns.

Agenda of foreign secretary-level meeting

Diplomatic sources have said the foreign secretary-level meeting between Bangladesh and Japan in Tokyo on 15 May will be held in two parts.

The initial session will focus on bilateral issues. In this segment, Japan will present a summary of the current state of bilateral relations. Japan is also expected to share its stance on a ‘Free and Open Indo-Pacific.’ Japan will also raise defence and security cooperation issues.

On the other hand, Bangladesh will bring up issues related to economic relations and cooperation, cultural exchange, and people-to-people contact. The Rohingya refugee issue is also expected to be addressed by Bangladesh during the first session.

In the second session, the focus will shift to regional issues. Bangladesh will raise matters concerning South Asia, while Japan is expected to discuss China and East Asia. Japan also plans to talk about global issues and mutual cooperation in the international arena.​