Japan Set to Announce 77,470 Crore Taka Investment in Bangladesh During Prime Minister's Tokyo Visit

Japan is set to arrange investment of one trillion yen in Bangladesh's private sector over the next five years. In Bangladeshi currency the amount is 77,470 crore taka, or 6.35 billion dollars. The investment is expected to be announced in a joint statement after a summit during Prime Minister Tarique Rahman's upcoming visit to Japan.

Japanese media outlet Nikkei Asia reported the information on Thursday, and news agency Reuters also published a report citing it. According to the report, the Japanese government has agreed to arrange the funds for private-sector investment in Bangladesh.

The main aims cited for the announcement are to increase economic cooperation with Bangladesh and to reduce China's influence in the Asian region. Another goal is to build Bangladesh into an investment hub.

The investment will be spent in Bangladesh's automobile and other manufacturing industries and on infrastructure in the power and energy sectors. Japanese companies will also invest in the Bangladesh Special Economic Zone being developed by Japanese trading house Sumitomo Corporation and other partners.

Notably, Japan signed an economic partnership agreement with Bangladesh last February. The large-scale investment plan now emerging is seen as building on that agreement.

Prime Minister Tarique Rahman will travel to Japan on a state visit on 26 October. On the second day of the visit, 27 October, he will hold a bilateral meeting with Japanese Prime Minister Sanae Takaichi at her office in Tokyo. He will also attend a dinner hosted by the Japanese prime minister.

Foreign Secretary Asad Alam Siam has said the visit will discuss expanding access for Bangladeshi products to the Japanese market, increasing Japanese investment and strengthening business ties. He gave the information at a press conference at the foreign ministry last Tuesday.

He added that around eight memoranda of understanding are under discussion with Japan covering cooperation in agriculture, fisheries, human resource development and skills, and civil aviation. Three to four of them are expected to be signed during the visit.

The foreign secretary also expressed hope that the visit will create opportunities to expand cooperation in new areas including renewable energy, environment, science, technology, digital innovation, research and human resource development.

An unusual picture has also emerged around the visit. Bangladesh's ambassador to Japan, Md Daud Ali, will not be in Tokyo during the prime minister's visit; it has been decided to keep him in Dhaka. Foreign ministry secretary for bilateral affairs Md Nazrul Islam has been sent to Tokyo with special responsibility for diplomatic support and overall coordination, and has already arrived in Japan. It is very rare for an ambassador to be absent during a prime ministerial visit to his posting country.

The prime minister's entourage will include Finance Minister Amir Khosru Mahmud Chowdhury, finance and planning adviser Rashed Al Mahmud Titumir, state minister for foreign affairs Humayun Kabir and state minister for power and energy Anindya Islam Amit, among other officials. It will be Tarique Rahman's fourth foreign visit since taking office as prime minister in February this year.

Japan is one of Bangladesh's principal development partners, cooperating for years on major infrastructure projects including the metro rail, the third terminal of Hazrat Shahjalal International Airport and the Matarbari deep-sea port. That relationship may now reach a new height through private investment.

All eyes are now on the 27 October summit and the joint statement. If the investment announcement takes formal shape there, a new chapter of Japanese investment is expected to begin in Bangladesh's industry, energy and economic zone sectors.