Japanese Investment in Bangladesh | 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.