Japan Eyes $6 Billion Investment in Bangladesh Over Five Years After Urging Better Business Climate in 2023 Talks

Tarique Rahman-Sanaye Takaichi summit in Tokyo, implementation of strategic partnership 

 

Staff Correspondent. October 28, 2026.

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Japan has set a target of 1 trillion Japanese yen, or about 6.3 billion US dollars, in private investment in Bangladesh over the next five years. This investment is expected to create about 200,000 jobs in Bangladesh. The plan was announced in a joint statement issued after a bilateral summit between Japanese Prime Minister Sanae Takaichi and Bangladeshi Prime Minister Tarique Rahman in Tokyo.

In a meeting held at the Japanese Prime Minister’s Office Kantei on Tuesday (October 27), the two leaders discussed deepening economic cooperation between Bangladesh and Japan, as well as Bay of Bengal-centric industrialization, infrastructure development, energy security, technology, and regional stability.

The investment plan and the meeting between the two leaders have also been reported in reports on Nippon.com, the English version of Japanese media outlet GG Press, and several Bangladeshi media outlets. According to an official statement from the Japanese Foreign Ministry, in addition to the potential investment amount, there are plans to create 200,000 jobs and send a business delegation to expand Japanese business in Bangladesh.

 

New dimension in ‘Big-B for Shared Prosperity’ initiative

The two Prime Ministers have decided to upgrade the ‘Bay of Bengal Industrial Growth Belt’ or ‘Big-B’ initiative, launched in 2014 to increase economic cooperation between the two countries, to a new framework. The new initiative has been named ‘BIG-B for Shared Prosperity’.

According to a statement from Japan’s Foreign Ministry, the four main goals of the new framework are:

• Strengthening communication systems and regional connectivity;
• Increasing the capacity to deal with natural disasters and geopolitical risks;
• Creating opportunities for economic growth through public-private partnerships and
• To contribute to regional peace and stability.
• It also aims to transform the Bay of Bengal region, centered on Bangladesh, into a zone of shared prosperity.

 

According to a report by GG Press published on Japanese media outlet Nippon.com, the Bay of Bengal is part of Japan’s important maritime trade route. Therefore, increasing economic and infrastructure cooperation in the region is also important for Tokyo.

Proposal for cooperation in energy, technology and infrastructure

During the meeting, Prime Minister Tarique Rahman called for Japan’s more active participation in Bangladesh’s energy, information technology, railways, infrastructure, deep-sea ports and foreign investment sectors.

He also proposed establishing a ‘Bangladesh-Japan Tech Park’ in Bangladesh. He outlined plans to connect young Bangladeshi manpower, entrepreneurs and technology professionals with Japanese companies, universities and investors. He proposed considering artificial intelligence (AI), cloud computing, robotics and electronics manufacturing as priority sectors for this initiative.

The Prime Minister also sought Japanese technical assistance, investment and financing for the construction of a high-speed rail network connecting the country’s six major divisional cities and a flyover across the country. He also called for increased Japanese investment in liquefied natural gas (LNG) infrastructure, power generation and renewable energy sectors.

 

Tarique Rahman also promised to simplify tax policy, customs clearance, regulatory management, licensing and money transfer processes to improve Bangladesh’s investment environment. At the same time, he emphasized the importance of quickly implementing the Economic Partnership Agreement (EPA) signed between the two countries in February 2026.

Japan to provide patrol ships to Bangladesh Coast Guard

In addition to economic cooperation, the two countries have also agreed to enhance maritime security and defense cooperation.

Japan has decided to provide a patrol ship under the Security-Supporting Official Development Assistance (ODA) to enhance Bangladesh’s maritime security capabilities, the Japanese Foreign Ministry said. The leaders also agreed to strengthen security in the Bay of Bengal and continue defense cooperation between the two countries.

 

Earlier, the original report mentioned the signing of a note on Monday (October 26) for the supply of Japanese patrol boats to the Bangladesh Coast Guard, not 2.12 billion yen, but 2.12 billion yen in grant aid. The aid is planned to be used in combating maritime crime and rescue operations. In addition, the Japanese Foreign Ministry announced the handover of five patrol boats to the Bangladesh Navy last July.

Japan’s strategic importance in the India-China balance

Japan’s initiative to deepen ties with Bangladesh comes at a time when China’s economic and strategic influence in South Asia is growing. At the same time, Bangladesh is pursuing a multifaceted diplomacy, maintaining ties with China and India.

Japanese Prime Minister Takaichi spoke of his support for strengthening Bangladesh’s independent decision-making capacity and resilience under his ‘Free and Open Indo-Pacific’ (FOIP) policy. In a joint statement, Tarique Rahman also expressed his understanding of the importance of this policy in ensuring peace and prosperity in the region.

The meeting also discussed North Korea’s nuclear and missile programs, the abduction issue, and the situation in Myanmar. The two leaders also agreed to continue their coordination at the United Nations in the context of Bangladeshi Foreign Minister Khalilur Rahman’s tenure as the President of the 81st UN General Assembly.

 

Meetings with businessmen and development partners during four-day visit

This is Tarique Rahman’s first visit to Japan after assuming office as Prime Minister. The four-day official visit, which began on October 26, will continue until October 29. Before Tuesday’s summit, he held separate meetings with a high-level parliamentary delegation led by former Japanese Prime Minister Taro Aso, Marubeni Corporation Chairman Masumi Kakinoki, and Japan International Cooperation Agency (JICA) President Akihiko Tanaka.

After the meeting, the two prime ministers held a joint press conference and exchanged several important memorandums of understanding. Later, Takaichi hosted a luncheon in honor of Tarique Rahman. The rest of the visit includes a keynote address at the Bangladesh-Japan Economic Forum and meetings with Japanese business leaders.

The Prime Minister of Bangladesh has called on Japanese investors to be partners in the country’s economic development. Japan, on the other hand, has emphasized improving Bangladesh’s business environment, transferring technology, and creating jobs.

However, the target of 1 trillion yen in investment over five years is still an expected private investment target. Its actual implementation will depend on the decisions of the investing institutions, project finalization, financing, and the effectiveness of measures taken to improve the investment environment in Bangladesh.