Japan bets big on Bangladesh
Bangladesh Prime Minister Tarique Rahman’s visit to Japan has opened a new chapter in bilateral relations, with the two countries agreeing to deepen their strategic partnership through Japanese private investment of up to ¥1 trillion and the potential creation of 200,000 jobs in Bangladesh over the next five years.
At a summit in Tokyo on Tuesday, Tarique Rahman and Japanese Prime Minister Sanae Takaichi agreed to transform the Bay of Bengal Industrial Growth Belt (BIG-B) into BIG-B for Shared Prosperity, placing investment, industrial development, regional connectivity and resilient supply chains at the centre of future cooperation.
The agreement marks a shift towards a more investment-driven partnership, building on Japan’s longstanding support for Bangladesh since its independence in 1971.
The two leaders also agreed to expand collaboration in energy security, public health, agriculture, digital technology, maritime security, climate change and defence.
Takaichi described Bangladesh as an important partner and Tarique Rahman as a leader in the development of the Bay of Bengal region. She said Japan wanted to strengthen supply-chain connectivity and promote trade and investment across the region.
Thanking Japan for its longstanding support, Tarique Rahman said: “Our ambition is clear: to turn this friendship into a powerful engine of economic opportunity and shared prosperity.”
The joint statement said the upgrade of BIG-B was intended to address growing supply-chain risks, technological change and geopolitical uncertainty while strengthening economic resilience and preserving the two countries’ freedom of decision.
The initiative will integrate power, energy, deep-sea port, industrial and information and communication technology infrastructure to position Bangladesh as a trade and supply-chain gateway between South and South-east Asia.
Investment and industrial growth
The leaders identified the Matarbari-Maheshkhali area, centred on the Matarbari deep-sea port, as a regional logistics, energy and industrial hub.
They also agreed to advance preparations for the early operation of the third terminal at Hazrat Shahjalal International Airport and pursue the development of Dhaka’s mass rapid transit network.
Future cooperation on the operation and management of Matarbari port will also be discussed.
The initiative rests on four pillars: stronger connectivity; resilience against natural disasters and geopolitical uncertainty; economic opportunities through public-private partnerships and rule-making; and cooperation for peace and stability.
Priority sectors include manufacturing, food and agriculture, pharmaceuticals and ICT. The two countries also pledged to promote digital transformation, advanced ICT training, technology transfer and secure digital connectivity.
Takaichi welcomed the projected Japanese private investment of up to ¥1 trillion over five years, linked in the joint statement to an expected 200,000 jobs in Bangladesh.
She stressed the need to improve Bangladesh’s investment climate, while Tarique Rahman pledged to strengthen transparency and predictability in taxation, customs clearance, remittances and licensing.
Three memoranda of cooperation (MoCs) were specifically identified in the joint statement: one between Japan’s Ministry of Economy, Trade and Industry and Bangladesh’s Economic Relations Division on economic relations and the business environment; and two involving Japan’s agriculture ministry and Bangladesh’s agriculture and fisheries and livestock ministries.
The statement also identified an MoC between Japan’s environment ministry and Bangladesh’s Ministry of Environment, Forest and Climate Change, as well as a letter of intent on climate cooperation.
The leaders welcomed the Japan-Bangladesh Economic Partnership Agreement (EPA) and pledged to work towards its early entry into force.
The agreement is expected to boost trade, diversify industry and support Bangladesh’s sustainable graduation from least developed country status.
Takaichi also welcomed further discussions on Bangladesh’s request to join the Regional Comprehensive Economic Partnership.
Energy and public services
Energy security featured prominently amid volatile international markets. Rahman welcomed Japan’s ¥50 billion emergency support loan to strengthen economic resilience and stabilise energy supplies.
It is the first yen-loan project under Japan’s Partnership on Wide Energy and Resources Resilience Asia initiative.
The two sides agreed to expand cooperation in energy infrastructure, renewable energy, efficiency and low-emission development.
They also welcomed a yen-loan project to improve Bangladesh’s investment environment and the second phase of the Upazila Governance and Development Project, aimed at strengthening local government administration and financial capacity.
Cooperation will also cover public health, education, disaster management, waste management and judicial capacity-building, alongside academic exchanges, Japanese-language education and scholarships.
Maritime security and defence
The leaders welcomed the provision of a Japanese patrol vessel to Bangladesh through official development assistance (ODA), alongside five patrol boats under Japan’s Official Security Assistance programme.
They also welcomed the signing and entry into force of an agreement on the transfer of defence equipment and technology, expressing interest in further defence cooperation.
Japan will continue supporting maritime security through patrol vessels, security assistance and defence cooperation. Both countries highlighted maritime awareness, coastal patrols and port security, reaffirming freedom of navigation and the peaceful settlement of maritime disputes under international law.
Rohingya crisis and global issues
Takaichi commended Bangladesh for temporarily sheltering displaced people from Myanmar’s Rakhine State and pledged continued support for humanitarian assistance.
The joint statement called for an end to violence in Myanmar, the release of detainees, humanitarian access and dialogue involving all parties, including the Rohingya.
The leaders also endorsed a free and open international order based on the rule of law, called for de-escalation in the Middle East and safe passage through the Strait of Hormuz, and backed Gaza’s reconstruction and a two-state solution to the Palestine question.
They supported reform of the United Nations Security Council, including expansion of both permanent and non-permanent membership, and reaffirmed their commitment to nuclear disarmament and non-proliferation.
Takaichi welcomed Bangladesh Foreign Minister Dr Khalilur Rahman’s election as president of the 81st session of the UN General Assembly and expressed Japan’s readiness to cooperate with his presidency.
Concluding the talks, Tarique Rahman said the two countries must build a partnership that “serves our people today and creates a lasting legacy for generations to come”. He also invited Takaichi to visit Bangladesh at a mutually convenient time.
