Political stability boosts Japanese investor interest in Bangladesh: JETRO

Japan External Trade Organization (JETRO) Country Representative Kazuiki Kataoka said political and social stability following Bangladesh's February 2026 general election has encouraged Japanese companies to reassess the country's market potential and investment opportunities.

In an interview with BSS, Kataoka said political and social instability had been one of the major concerns for Japanese investors under the interim government. 

The establishment of a new government following the election, however, has provided companies with greater scope to formulate medium- and long-term business plans and consider investment decisions, he added.

According to JETRO's FY2025 Survey on Business Conditions of Japanese Companies Operating Overseas, 94.4 per cent of Japanese companies operating in Bangladesh identified "unstable political and social conditions" as an investment risk.

The figure was almost unchanged from 94.8 per cent in the previous year, indicating that political and social stability remained a major concern for Japanese businesses, he said.

"Greater stability makes it easier for companies to formulate medium- and long-term business plans and make investment decisions," Kataoka said.

He noted that JETRO has recently observed an increase in visits to Bangladesh by senior executives of Japanese companies from their headquarters in Tokyo and regional offices such as Singapore.

"I believe that one factor behind this trend is that, with political and social conditions becoming more stable, more companies are reassessing Bangladesh's market potential and business opportunities," he said.

However, Kataoka cautioned that political stability alone would not automatically lead to a significant increase in investment.�"BSS