DHAKA, May 20, 2025 (BSS) – Most of the Japanese companies operating in Bangladesh want to expand their business here considering the prevailing investment friendly environment, according to a survey of the Japan External Trade Organization (JETRO).

“Bangladesh has demonstrated very high business even after political changes. Considering the trend of business development in the next 1-2 years, 57.7 percent of Japanese companies have signaled that they are intended to expand in Bangladesh,” said Country Representative of JETRO Yuji Ando while talking to BSS during an interview at JETRO office in the city. 

Ando said a total of 315 Japanese firms are currently running their business in Bangladesh. 

“During the last nine-month, around 900 companies visited our office for taking investment related information. Most of them were Japanese companies. Out of them, one third was new companies which want to invest in Bangladesh. Some of them have already invested here,” he added. 

Ando stated that Japanese companies seek business opportunities both for export-oriented business and domestic-market-oriented.

He said fast-moving consumer goods (FMCG), automotive and parts, renewable energy, food processing, medical, education and services are the potential sectors for Japanese investors to set up companies for domestic market oriented. 

Man-made fiber, textile chemicals and food processing, IT and ITES are also potential sectors for setting up export oriented industries in Bangladesh, he added. 

He said Bangladesh is one of the major destinations for Japanese entrepreneurs and they are investing in different fields, including ready-made garments (RMG), textile, IT and infrastructure taking the advantage of competitive human resource and huge domestic market.

They are showing their keenness to invest in the country's manufacturing, FMCG (Fast-Moving Consumer Goods), infrastructure development and tech and digital based startup companies, he added.

Ando said the important factors for expanding business are smooth procedures with transparency, policy consistency and international standard in business environment.
 
“Bringing success to existing Japanese companies in Bangladesh will bring success to Bangladesh in FDI promotion. Continuous efforts and dialogues in businesses are significant,” he added. 

He said many Japanese infrastructure development companies are running their business in Bangladesh at the Japanese Official Development Assistance (ODA) projects, including Matarbari Deep Sea Port.

Recently, Chattogram Port Authority (CPA) signed an agreement with two Japanese firms to develop the Matarbari Deep Sea Port, the country's only deep sea port in the Bay of Bengal.

The JETRO country representative, however, mentioned that there are many challenges, which still exist for Japanese companies and for other foreign companies in Bangladesh, citing examples of infrastructure and taxation.

He urged the authorities concerned to review the complex tax system and to ensure simplification, quick and transparent administrative procedures, especially the customs clearance and registration. 

He said Japan has been significantly contributing to Bangladesh's socio-economic development since its independence and the business relationship is getting stronger and productive day by day.

To attract more Japanese investments, he said, it is crucial to simplify the criteria and procedures for visa and work permit for expatriates here.

The country representative laid emphasis on policy consistency to increase the confidence of foreign investors.

Japan and Bangladesh have maintained friendly relations since February 10th, 1972, through economic and technical cooperation, cultural exchanges and mutual visits. Japan is a major development partner of Bangladesh, extending support to the efforts of Bangladesh for its economic and social development.