[🇧🇩] Strategic Aspect of Bangla-Japan Relation

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Japan reaffirms support for Bangladesh interim govt

Japan Sunday reaffirmed its support for Bangladesh’s interim government and sought to increase bilateral engagement for a boost in businesses and development cooperation

en.prothomalo.com

Japan reaffirms support for Bangladesh interim govt
BSS
Dhaka
Updated: 02 Feb 2025, 22: 11

Ikuina Akiko, the Parliamentary Vice-Minister for Foreign Affairs of Japan, called on Chief Adviser Professor Muhammad Yunus at the State Guest House Jamuna in Dhaka on 2 February 2025 PID

Japan Sunday reaffirmed its support for Bangladesh’s interim government and sought to increase bilateral engagement for a boost in businesses and development cooperation.

Ikuina Akiko, the Parliamentary Vice-Minister for Foreign Affairs of Japan, conveyed the message to Chief Adviser Professor Muhammad Yunus as she called on him at the State Guest House Jamuna here.

“Japan values its relationship with Bangladesh and has consistently supported it. My visit is to convey our commitment towards supporting Bangladesh and further enhancing our bilateral relationship,” Akiko told the Chief Adviser.

Chief Adviser Muhammad Yunus termed Japan as a very close ally and helpful friend and said the two countries need strong cooperation at this historic period.

“This is a new Bangladesh and a very opportune time in view of our relationship,” he said.

Japan is the single largest bilateral development partner of Bangladesh, which offered sustained and generous support over the years to Bangladesh’s socio-economic advancement.

The bilateral trade between the two countries now stands at around US$ 4 billion, with Japan being one of Bangladesh’s top five export destinations.

More than 350 Japanese companies are currently operating in Bangladesh.

The Japanese vice minister enquired about the interim government’s ongoing reform initiatives and plans for the next general elections.

Ikuina Akiko invited the Chief Adviser to visit Japan for the Nikkei 30th Future of Asia event to be held on 29-30 May 2025 in Tokyo.

She also invited Professor Yunus, a recipient of the Nikkei Asia Prize in 2004, for Osaka Expo 2025, a separate event, in May.

The organiser of the Expo will observe 11 May as Bangladesh Day, the Japanese vice-minister said, adding that the Bangladesh Chief Adviser’s presence there could be encouraging for all.​

 

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Bashir urges top Japanese groups to invest more

Commerce adviser Sk Bashir Uddin on Monday called upon the top Japanese investors to invest more in Bangladesh...

www.newagebd.net

Bashir urges top Japanese groups to invest more
Bangladesh Sangbad Sangstha . Dhaka 17 February, 2025, 22:47

Commerce adviser Sk Bashir Uddin and Bangladesh ambassador to Japan Md Daud Ali, among others, are present at a bilateral meeting in Tokyo on Monday. | PID/Focus Bangla photo

Commerce adviser Sk Bashir Uddin on Monday called upon the top Japanese investors to invest more in Bangladesh.

He made this call in a bilateral meeting with representatives of Japan’s one of the largest trade groups NEXI (Nippon), Mitsui, Marubeni, HSBC, Mitsubishi Heavy Industry and JT in Tokyo.

The commerce adviser said that currently the bilateral trade volume between Bangladesh and Japan was about $4 billion while Japan is Bangladesh’s one of top five export destinations, said a commerce ministry press release.

‘Currently, more than 350 Japanese companies are operating in Bangladesh. We expect more investment from Japan,’ Bashir added.

The commerce adviser also urged the Japanese side to import more products as well as manpower from Bangladesh.

In the meeting, the top Japanese business representatives assured to continue their business and thus increase their investment in Bangladesh.

Bangladesh ambassador to Japan Md Daud Ali, JETRO representative Iuji Ando and JICA representative Yasuyuki Murahashi, commercial counselor to Japan Morarji Desai Burman and representatives of Bangladesh Investment Development Authority (BIDA) and National Board of Revenue (NBR) were present in the meeting.

Later, the commerce adviser had a meeting with Watami Group head Miki Watanabe.​

 

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Bashir assures Japanese investors of support

Commerce adviser Sk Bashir Uddin has assured of extending all necessary cooperation to Japanese entrepreneurs and businesspeople who were interested to invest in Bangladesh...

www.newagebd.net

Bashir assures Japanese investors of support
Bangladesh Sangbad Sangstha . Dhaka 18 February, 2025, 22:30

Sk Bashir Uddin. | BSS file photo

Commerce adviser Sk Bashir Uddin has assured of extending all necessary cooperation to Japanese entrepreneurs and businesspeople who were interested to invest in Bangladesh.

He gave the assurance while speaking as chief guest at a seminar on ‘Investment Promotion’ at a hotel in Tokyo on Tuesday morning during which he urged Japanese entrepreneurs and businesspeople to invest more in Bangladesh.

He said that Japan was a very trusted friend of Bangladesh and also the largest development partner of Bangladesh as a single country.

He thanked the Japanese government for its continued support and cooperation towards the development of Bangladesh, said a ministry press release.

At the seminar, Bangladesh Investment Development Authority executive chairman Chowdhury Ashik Mahmud Bin Harun made a power-point presentation on investment opportunities in Bangladesh.

Nahian Rahman Rochi, head of business development of BIDA, and Yuji Ando, representative of JETRO in Bangladesh, participated in the panel discussion titled ‘Investment Potentials in Post-Reform Bangladesh’.

Bangladesh ambassador to Japan Md Daud Ali, senior vice-president of JICA Sachiko Imoto and senior vice-president of JETRO Kazuya Nakajo spoke at the seminar.

Economic minister of the Bangladesh embassy in Japan, representatives from the Bangladesh Bank and National Board of Revenue and commercial counsellor Tokyo were present at the event.

The seminar was jointly organised by the BIDA, Japan International Cooperation Agency and Japan External Trade Organization. More than a hundred entrepreneurs and businesspeople from Japan participated in the seminar.

Meanwhile, commerce adviser Sk Bashir Uddin met with Ogushi Masaki, state minister of economy, trade and industry of Japan on Tuesday and discussed in details bilateral trade, investment and economic partnership agreement and the Public-Private Economic Dialogue.

In the meeting, the commerce adviser requested the Japanese state minister to take measures so that more Japanese companies invest in Bangladesh.

Bashir said that currently there was a favourable investment situation in Bangladesh as Bangladesh Single Window had been launched in the country to provide services to the investors in a speedy manner.

He requested the Japanese investors to avail of this service.

The Japanese state minister also urged the commerce adviser to expedite process for economic partnership agreement.

In the meeting, both the adviser and the state minister expressed their keen intention to work together to strengthen the bilateral trade.​

 

[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.​

 

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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.​