News Desk :
Japanese foreign direct investment (FDI) in Bangladesh has grown steadily over the past decade, with more than 350 Japanese companies now operating in the country-nearly triple the number a decade ago.
While this reflects increasing confidence in Bangladesh’s economic prospects, experts say much more investment could be unlocked if critical policy, regulatory, and infrastructure challenges are addressed.
Tareq Rafi Bhuiyan Jun, president of the Japan-Bangladesh Chamber
of Commerce and Industry (JBCCI), noted the encouraging trend but stressed the need for further reform. “Many Japanese companies remain in a wait-and-see position due to persistent uncertainties in regulatory and policy frameworks,” Jun said.
He identified strong interest from Japanese firms in sectors such as light engineering, logistics, IT services, infrastructure, and manufacturing.
However, he warned that Bangladesh faces stiff competition from regional peers like Vietnam, Indonesia, and India, which offer more predictable investment environments and streamlined regulatory procedures.
Jun cited the Bangladesh Special Economic Zone (BSEZ) in Araihazar-a joint initiative between Sumitomo Corporation and the Bangladesh Economic Zones Authority (BEZA)-as a model example of investor-friendly development.
The zone hosts global brands including Singer, Art Nature, Lion Corporation, and IRIS, and has received praise for its world-class infrastructure. “Zones like Araihazar are encouraging, but a single project is not enough. We need more such developments, backed by consistent and stable policy,” Jun stated.
He highlighted concerns around sudden policy shifts, particularly in taxation, customs procedures, and overlapping regulations, which continue to undermine investor confidence. Long port delays, inconsistent customs valuations, and cumbersome processes-especially for importing sensitive equipment or perishable goods-remain persistent issues for Japanese firms.
Jun called for urgent customs reform, including full digitisation of clearance procedures and curbing discretionary authority at checkpoints. He welcomed recent initiatives such as the Bangladesh Single Window (BSW) and the Authorized Economic Operator (AEO) schemes, which aim to streamline trade facilitation.
Creating a level playing field was another key point of emphasis. Jun noted that Japanese companies often follow rigorous standards in labour, safety, and environmental compliance, while some local firms bypass such requirements, creating an uneven competitive environment. He urged the government to promote responsible business conduct by incentivising higher compliance standards across the board.
To attract targeted investment, Jun recommended developing sector-specific investment roadmaps that clearly define infrastructure, energy, and certification requirements, giving investors clarity for long-term planning.
He also underscored the value of sustained public-private engagement through forums like the Japan-Bangladesh Public-Private Economic Dialogue (PPED), which he described as critical for addressing investor concerns and turning dialogue into actionable policy outcomes.
“Bangladesh has immense potential to attract greater Japanese investment,” Jun concluded. “But realising this will depend on the country’s ability to deliver stable policies, improve ease of doing business, and ensure fair competition.”
