Japan is aiming to secure up to 1 trillion yen ($6.34 billion) in private investment in Bangladesh over the next five years, which could generate 200,000 jobs. The initiative follows an agreement between the two nations to deepen economic cooperation, strengthen supply chains, and upgrade their flagship development initiative to "BIG-B for Shared Prosperity."
The projection was announced in a joint statement following a bilateral summit between Prime Minister Tarique Rahman and Japanese Prime Minister Sanae Takaichi in Tokyo today.
According to the joint statement, Takaichi praised the efforts of Tarique’s administration to promote foreign direct investment and welcomed the projection of Japanese private investment of up to 1 trillion yen, or around Tk 77,470 crore, over the next five years, which is expected to create 200,000 jobs in Bangladesh.
The two prime ministers welcomed major investments to be announced on the occasion. They also agreed on the need to establish complementary and resilient supply chains in sectors such as manufacturing, food and agriculture, information and communication technology (ICT), and pharmaceuticals.
Building on past bilateral cooperation in information and communications technology (ICT), including IT and information technology-enabled services (ITES), human resource development, and digital collaboration, the two leaders stressed the importance of exploring further cooperation to promote digital transformation, develop highly skilled ICT professionals, and ensure secure and reliable digital connectivity.
They also welcomed the signing of the Japan-Bangladesh Economic Partnership Agreement (EPA) and reaffirmed their commitment to bringing it into force at an early date. The agreement aims to boost bilateral trade and investment while supporting Bangladesh’s smooth and sustainable graduation from the least developed country (LDC) category.
The two prime ministers noted progress under the bilateral flagship initiative, the Bay of Bengal Industrial Growth Belt (BIG-B), which is an exclusive partnership between Japan and Bangladesh. Citing rapid changes in the global situation, growing supply chain risks, technological innovation and mounting social issues, they stressed the importance of strengthening resilience and preserving each country’s freedom of decision.
They decided to upgrade the initiative to “BIG-B for Shared Prosperity”.
The initiative aims to integrate the development of power, energy, deep-sea port, industrial and ICT infrastructure, build a major hub for industrial value chains, develop a trade and supply gateway, and generate growth and prosperity. It will focus on improving connectivity, strengthening resilience against risks, including natural disasters and geopolitical uncertainties, promoting public-private partnerships to create opportunities for economic growth and rulemaking, and stepping up cooperation for peace and stability.
The two leaders also agreed to collaborate on developing the Matarbari-Maheshkhali area into a major hub for logistics, energy, and industry, centered around the Matarbari Deep Sea Port.
Why it matters
The bilateral agreement establishes a major influx of Japanese capital and upgrades strategic infrastructure frameworks to support Bangladesh's economic growth and LDC graduation.