Japan eyes turning BD, NE India, Nepal, Bhutan an industrial hub Kishida briefs Hasina

Japan plans to develop Bangladesh and the landlocked northeastern states of India, Nepal and Bhutan as an industrial hub by developing a port and transport connectivity in the region to foster the growth of the entire region.

Japanese Prime Minister Fumio Kishida shared the idea of a new industrial hub for the Bay of Bengal and northeast India with Bangladesh Prime Minister Sheikh Hasina on Wednesday in a meeting in Tokyo what he shared with the Indian Primer Narendra Modi last month during a visit to India to bolster development in the impoverished region of 300 million people.

Meanwhile, the Japan government recently approved US$1.27 billion in funding to Bangladesh for three infrastructure projects - including a new commercial port in the Matarbari area with links to adjacent landlocked Indian states, including Tripura, and wider international markets.

However, Japanese funded Matarbari deep seaport was likely to become operational by 2027 and would be a key to building an industrial hub connecting Bangladesh to landlocked areas of India.

"We have already launched a joint study group [with India] on the possibility of an economic partnership with Bangladesh," Kishida said while unveiling a $75 billion plan for the development of the Indo-Pacific, in India in March, 2023.

Meanwhile, Hiroshi Suzuki, the Japan's ambassador to India officially unveiled the Japanese plan to Bangladesh last month at a meeting of Indian, Bangladeshi and Japanese officials in Agartala, the Tripura state capital of India.

G Kishan Reddy, India's federal minister for its northeast region, Bangladeshi Minister of State for Foreign Affairs Shahriar Alam were present in the meeting.

"I believe that this vision nurtured by the voices of different countries which can be characterised as our Free and Open Indo-Pacific. It's becoming more important than ever towards the goal of leading the International community in the direction of cooperation rather than division and confrontation," Japanese primer Fumio Kishida said.

However, the Bay of Bengal Industrial Development Belt (BIG-B) programme, introduced in 2014 by ex-Japanese Prime Minister Shinzo Abe and Bangladeshi Prime Minister Sheikh Hasina, would be supported by large-scale infrastructure projects undertaken by JICA.

During his India visit in March, 2023, the Japanese Primer unveiled a $75-billion  plan for the development of the Indo-Pacific, under which the landlocked Northeast India may soon get a trade gateway through Matarbari deep sea port in Bangladesh. Kishida said while elaborating on his vision for a free and open Indo- Pacific

"The BIG-B initiative is to accelerate industrial agglomeration along the Dhaka- Chattogram-Cox's Bazar belt area and beyond, encompassing developing economic infrastructure, improving investment environment and fostering connectivity. We expected the initiative, with maximum use of Japan's advanced technologies and socioeconomic development experiences, to yield mutual benefits and prosperity to both countries," Prime Minister Sheikh Hasina said on Wednesday following the meeting with the Kishida.

Giving thank to the Japanese Primer, Sheikh Hasina said Bangladesh and Japan have successfully elevated the bilateral relations to a "Strategic Partnership" from the existing "Comprehensive Partnership".

"Free and Open Indo-Pacific (FOIP) is a vision gaining traction. The FOIP is a visionary concept. It is to defend rule of law and freedom," Japanese PM said, he recalled that former Japanese PM Shinzo Abe in 2016 delivered a vision called Free and Open Pacific (FOIP).

He said that the international community has entered an era in which cooperation and division are "intricately intertwined."

Sheikh Hasina also discussed about the Moheshkhali-Matarbari Integrated Infrastructure Development Initiative (MIDI) and BIG-B Initiative for development of Southern Bangladesh for connecting the Bay of Bengal and the neighbouring regions, Foreign Ministry said.

"In the International community, a big balance of power change is occurring, shifting dramatically. The International community has entered an era in which cooperation and division are intricately intertwined," Kishida said.

According to the Foreign Ministry, during the talk, issues of mutual interests involving security cooperation, investment, enhanced trade relations, power and energy sector cooperation and Rohingyas topped the agenda.

However, against the backdrop of the global economic downturn and ongoing Covid-19 pandemic and Russia-Ukraine war, the two countries also discussed enhanced cooperation to overcome the crisis, it added.

According to the Japanese Embassy in Dhaka more than 300 Japanese companies were already operating in Bangladesh. Both countries are expected to sign an economic partnership agreement soon that could further boost manufacturing and attract more foreign companies.

Bangladesh needs Japanese support to switch to renewable energy for 40 per cent of its energy by 2041.

To increase Bangladesh's exports to the wealthy nations of Asia, Dhaka had long advocated a joint feasibility study to be undertaken to sign an FTA or a preferential trade agreement (PTA). For Bangladesh, it will contribute to realise its full economic potential, overcome obstacles to becoming a Developing Country in 2026, and expand its network of diplomatic ties with other important powers.

Japan has previously provided Bangladesh with approximately $9.2 billion in overseas development assistance (ODA). However, Bangladesh and Japan inked their 40th ODA agreement worth $2.5 billion to carry out four projects to strengthen bilateral ties.