Japan plans $6b in private-sector investment in Bangladesh over five years: Report

Oct 23: Japan will arrange $6.36 billion in private-sector investment in Bangladesh over the next five years, Japanese newspaper Nikkei reported.

The announcement is expected in a joint statement following a meeting between Japanese Prime Minister SanaeTakaichi and her Bangladeshi counterpart, Tarique Rahman, during his visit to Japan from Oct 26 to 29, Reuters reported, citing Nikkei.

The investment, equivalent to 1 trillion yen, is expected to support the automobile and other manufacturing industries, as well as the construction of energy facilities.

Japanese companies operating in Bangladesh’s special economic zone are also expected to be involved, Nikkei reported. The zone is being developed with participation from Japanese trading house Sumitomo Corp.

Japan is seeking to deepen economic cooperation with Bangladesh and reduce China’s influence in the South Asian country, according to Nikkei. China remains Bangladesh’s largest source of imports.

A Japanese business delegation is expected to visit Bangladesh soon, while a public-private dialogue on the economy and investment is also planned.

The two countries signed an economic partnership agreement in February. Bangladesh’s relatively low labour costs, manufacturing potential and population of about 170 million make it an attractive destination for investment, Nikkei reported.

Japan has long supported Bangladesh through official development assistance. The proposed investment would signal a greater willingness to commit private-sector capital alongside development aid.
Reuters said it could not independently verify Nikkei’s report.�"Reuters