‘Bangladesh-Japan ties evolving from aid to strategic investment partnership’

Secretary General of the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) Maria Howlader, FCA, has said Japan has been one of Bangladesh’s most trusted and time-tested partners for over five decades.

“Since the establishment of diplomatic relations in 1972, Japan—mainly through JICA—has played a vital role in our development journey. From the Jamuna Bridge to the Dhaka Metro Rail and Matarbari Deep Sea Port, these projects have transformed our connectivity and industrial landscape,” she told FE.

“What’s exciting is that this relationship is now evolving from development assistance to a true strategic investment partnership. It’s moving toward private-sector collaboration, innovation, and shared prosperity.”

“Japan is now promoting industrial and private investment—especially in the Araihazar Japanese Economic Zone—which will attract world-class manufacturers and create a new model of industrial cooperation.”

“At the same time, both countries are negotiating an Economic Partnership Agreement (EPA) that will expand trade, protect investments, and deepen value-chain integration. It shows how the partnership is shifting from aid to long-term business collaboration.”

They see Bangladesh as an emerging manufacturing and technology hub—thanks to our young workforce, strategic location, and expanding domestic market. Many Japanese companies now recognize Bangladesh not just as a low-cost base but as a growth market.

Japanese cos bid for business in diverse BD sectors

Of course, they are also realistic about the challenges, but the overall confidence level is growing stronger every year.

There are a few practical areas we must address.

First, policy consistency is a big concern. Tax and vat exemptions, for example, are a major attraction—but when they are withdrawn prematurely, it disrupts business planning and confidence.

Second, while the National Single Window system is a great step toward digitizing customs, there are still inconsistencies in HS code classification that create confusion and delays in import–export processing.

And finally, even though the National Board of Revenue has made progress in digital filing, investors still face delays in getting VAT refund and advance income tax refunds. These issues may sound technical, but for investors, they directly impact cash flow and trust.

The key words are consistency, transparency, and digital efficiency.

We must make sure Investment and tax policies remain predictable, that procedures are simplified, and that refund or approval systems are automated.

“If we can ensure a fair and reliable system, Japanese investors—and foreign investors in general—will see Bangladesh as not only a competitive destination but also a stable and dependable one.”

“I see it as a partnership of trust, innovation, and shared growth. Japan has supported Bangladesh for more than 50 years, but now we are entering a new phase—one based on mutual investment and knowledge exchange.”

With the EPA, the Araihazar zone, and continuous reforms, I believe the next decade will redefine how Japan and Bangladesh work together—not as donor and recipient, but as equal partners building sustainable prosperity.