Japan eyes $6.5bn investment in Bangladesh over next 5 years, Kyodo reports

Japan expects its domestic companies to invest 1 trillion yen ($6.5 billion) in Bangladesh over the next five years, Japanese Prime Minister Sanae Takaichi said Tuesday following summit talks with Bangladesh Prime Minister Tarique Rahman in Tokyo, Kyodo News reported.

The two leaders also agreed to expand cooperation in energy security and supply chains, according to a joint statement issued after their meeting at the Japanese prime minister's office.

"Japan will strongly support Bangladesh's autonomy and resilience," Takaichi said at the outset of the meeting, adding that Tokyo looked forward to contributing to regional peace and prosperity.

The investment outlook comes as Bangladesh seeks to strengthen economic ties with major partners following a period of political upheaval, while the ongoing war in the Middle East continues to fuel global economic uncertainty.

Tarique is visiting Japan for the first time since taking office in February, following his party's victory in the parliamentary election held after the ouster of his predecessor, Sheikh Hasina, in 2024.

The joint statement also referred to Japan's "free and open Indo-Pacific" vision, an approach widely viewed as seeking to counter China's growing influence in the region. It said Tarique recognised the importance of the vision in ensuring regional peace and prosperity.

Bangladesh, which borders India and lies close to China, has pursued engagement with multiple major powers. In June, Tarique visited China and held talks with President Xi Jinping, with the two countries agreeing to strengthen cooperation in trade and infrastructure.

Japan and Bangladesh have expanded their economic ties in recent years. The two countries upgraded their relationship to a strategic partnership in 2023 and signed an economic partnership agreement in February this year, including measures to reduce tariffs.

Cooperation has also grown in maritime security. In July, Japan's Foreign Ministry announced the handover of five patrol boats to the Bangladesh Navy under a framework for providing defence equipment to like-minded countries.