Japan and Bangladesh are Asian countries whose relations are friendly, last longing, trusted and they are reliable development partners. To maximize the benefits in terms of faster economic growth and poverty reduction, Japan and Bangladesh will need to strengthen bilateral economic cooperation in several areas, particularly in trade and businesses. The bilateral economic and trade relations between Japan and Bangladesh are old enough and they have strong historical and cultural relation — the share many similar facts. Japan and Bangladesh are two faithful, helpful and beneficial countries and this relationship has contributed in socio-economic development, culture, education, infrastructure, knowhow transfer, trade, migration, human resource exchange, capacity building of the institutions and in many areas.
Japan always fulfils her economic interest in Bangladesh through investment. As a developing country, Bangladesh welcomes the flow of foreign investment in the country hoping for the introduction of new technology to help improve the job market and the economic growth. Japan is one of the largest investors and donors in Bangladesh. In 1961, Japan, for the first time, invested in Bangladesh; a joint venture textile mills. The number Japanese companies operating in Bangladesh has grown more than triple time since 2008 reaching 253 as May, 2017 according to JETRO.
According to board of investment sources, up to June, 2017 Japanese companies registered with BIDA of invest more than 2003.53 Million USD. Japanese investment in Bangladesh ranks 4th among the foreign investing countries after the USA, UK and Malaysia. Japan is one of major sources of Foreign Direct Investment in Bangladesh and also a significant source of development aid to Bangladesh.
At present, more than two hundred projects with Japanese investment or joint venture operating in Bangladesh. It is known that Bangladesh, geo-strategically located at the junction of East Asia and South Asia, may emerge as the most important hub apart from India for Japan. From that point of view, transport network improvement, stable power supply, urban development, blue economy development, economic zone development, and private sector development such as financial accessibility promotion are the areas where Japan wishes to cooperate under its BIG-B initiative. Since its independence in 1971, Bangladesh has consistently maintained good relations with Japan and the people of Bangladesh have a strong affinity towards Japan.
Japan is one of the important trading partners of Bangladesh. Bangladesh exports agro products, readymade garments, woollen goods, carpets, handicrafts, paper and paper products, leather goods, and silverware and ornaments. Bangladesh’s imports from Japan include vehicles and spare parts, electronic goods, machinery and equipment, iron and steel products, photographic goods, medical equipment fabric and industrial raw materials.