Written by The Banking Post
Over half of Japanese companies in Bangladesh expect profit growth and expansion this year, buoyed by the post-election political stability, according to a survey released on Monday.
Speaking at the “Japan Business Day” event in Dhaka, Kazuiki Kataoka, country representative of the Japan External Trade Organization (JETRO), called Bangladesh a “high-stakes frontier for growth” and noted that several firms are considering shifting operations from ASEAN countries to South Asia.
However, business leaders stressed the need to remove barriers under the Economic Partnership Agreement (EPA) framework to fully unlock trade and investment potential. They pointed to policy inconsistency, slow government procedures, ineffective one-stop services, visa complications, and inadequate intellectual property protection as key challenges.
“The EPA can help shift Bangladesh from relying on foreign aid to boosting foreign investment, but policy continuity and better regulatory coordination are critical,” said Dr Rashed Al Mahmud Titumir, Prime Minister’s Adviser on Finance and Planning.
The 2025 JETRO survey revealed that 56.9 per cent of Japanese firms in Bangladesh plan to expand operations, compared with 81.5 per cent in India and 63.4 per cent in Pakistan. Expansion prospects were stronger in non-manufacturing sectors (62.2 per cent) than manufacturing (47.6 per cent).
Japanese Ambassador Shunichi Saida described the EPA as a strategic partnership based on trust and shared values, expressing hope that post-election reforms will strengthen law and order and encourage investment-led economic growth.
Industry leaders highlighted the potential of Japanese investment to modernize Bangladesh’s industries and infrastructure. Syed Nasim Manzur, MD of Apex Footwear, noted that Japanese investment could help the country move beyond a low-cost, low-productivity model while emphasizing the importance of intellectual property protection.
Dr M Masrur Reaz, Chairman of Policy Exchange Bangladesh, stressed that the EPA provides a legal and institutional framework to secure Japanese investment, but success will depend on consistent policy, tax arbitration, and regulatory clarity.
The event, organised by the Embassy of Japan, JETRO, Japan-Bangladesh Chamber of Commerce and Industry (JBCCI), and Japan Commerce and Industry Association in Dhaka (JCIAD), also unveiled the survey on business conditions of Japanese companies in Asia and Oceania.
Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of BIDA, and other panelists echoed the call for streamlined processes and faster services to make Bangladesh a more attractive investment destination.
