‘Transparency, consistency can unlock greater Japanese investment in Bangladesh’

Kazuiki Kataoka, Country Representative of the Japan External Trade Organization (JETRO), Bangladesh, has said Bangladesh is gaining strong attention from Japanese investors.

“Every week, JETRO receives enquiries from companies across Japan seeking to understand Bangladesh’s economy and explore opportunities for joint ventures or direct investment,” he told FE.

“During our recent seminars in Tokyo and Osaka, attendance far exceeded capacity—proof of the country’s rising appeal among Japanese businesses.”

The JETRO official points out that Japanese companies are particularly interested in manufacturing, food processing, and human resource development.

Traditionally, Japanese firms came to Bangladesh to produce goods for export, but the large domestic market of 170 million people has now become equally attractive. Yet, despite this growing interest, two long-standing challenges—lack of transparency and policy inconsistency—continue to slow progress.

“One of the biggest obstacles is the work permit process. Foreign experts must obtain security clearance before receiving a permit, but the procedure lacks clarity and often takes months—or even more than a year—to complete.”

“Without work permits, companies cannot open bank accounts or begin operations. The Bangladesh Investment Development Authority (BIDA) has launched a digitalized system for security clearance, which is an important first step.”

Expanding this digital process to all stages of the work permit system will reduce delays, eliminate unnecessary meetings, and enhance transparency.

Another major concern involves customs procedures. Japanese firms face inconsistent requirements when importing or exporting products. Frequent staff rotations and differing interpretations of regulations make the process unpredictable and costly.

Japanese cos bid for business in diverse BD sectors

The National Board of Revenue’s National Single Window system is a promising initiative, but it must ensure uniform enforcement. Investment procedures should depend on the system, not on individual officers. Transparency means minimizing the space for personal interpretation.

Despite these issues, Japanese interest in Bangladesh remains strong. Several firms are conducting feasibility studies for joint ventures in manufacturing and food processing. A new venture is expected to start operations this December.

In the automobile sector, Mitsubishi Motors has partnered with Rancon Group to assemble cars locally, while Honda and other firms are producing components such as car seats for export.

These examples show how Bangladesh’s abundant and dedicated workforce continues to attract Japanese investors, especially as Japan’s own manufacturing labor force declines.

Japan and Bangladesh are also strengthening collaboration in human resource development.

Many Japanese organizations are now recruiting manpower from Bangladesh to meet Japan’s growing demand for workers in caregiving, construction, and agriculture.

To sustain investor confidence, Bangladesh must also ensure policy stability, particularly regarding tax incentives.

Sudden withdrawal of tax benefits after investment creates uncertainty and undermines business planning. Consistent, predictable policies are essential to attract long-term partners.

Bangladesh has made commendable progress in improving its business environment.

Continued efforts toward digitalization, transparency, and policy consistency will make it a more reliable destination for Japanese investment. With these reforms, Bangladesh can become a major hub for manufacturing, technology, and human resource cooperation—fostering a win-win partnership between the two countries.