Around 58 percent of Japanese companies in Bangladesh have expressed a desire to expand their business in the country, according to JETRO Country Representative Kazuiki Kataoka.
Citing a JETRO (Japan External Trade Organisation) survey conducted after the July Uprising in 2024, he said this percentage represents the second-highest intention for expansion within the Asia-Pacific region, placing Bangladesh third globally, following India.
Kataoka further clarified that this intention to expand directly translates to a plan to increase investment.
He said that while manufacturing for export remains the traditional main business, the high interest is driven partly by Bangladesh’s attractive domestic market.
More Japanese companies are now focusing on the consumption market, even considering establishing factories domestically to counter high import tariffs, he added.
Kataoka also informed that Japanese investment interest in Bangladesh remains remarkably robust despite the ongoing political uncertainty.
“The perception that foreign investors are waiting for political clarity is not true. Japanese firms are actively expanding their businesses and expressing high interest,” Kataoka said.
Kataoka noted that the number of inquiries received from Japanese companies at the JETRO Dhaka office is increasing.
“The Dhaka office is now recognised as one of the busiest overseas offices within JETRO, reflecting the high interest of Japanese companies in Bangladesh,” he said in an interview with BSS.
However, he added that while the investment intent is high, investors are facing persistent and sometimes worsening micro-level operational issues.
Kataoka pointed out that a critical concern raised was corruption, particularly at the customs level, while other major challenges involve procedural delays.
Kataoka highlighted the financial hardship caused by these delays, noting that without a work permit, foreigners cannot open a bank account or withdraw money upon arrival.
He mentioned that efforts are being made to address the clearance issue, including the introduction of a digitalized security clearance system.
