Toyota plans Bangladesh vehicle plant, production targeted for 2029: Tarique

Toyota has informed the Bangladesh government of its plan to begin work on a vehicle manufacturing facility in the country, with full production targeted for 2029, Prime Minister Tarique Rahman said on Wednesday.

Speaking at the Bangladesh-Japan Economic Forum Dialogue at the Japan External Trade Organization (JETRO) headquarters in Tokyo, Tarique said the government would provide all possible support for the initiative.

He made the remarks while inviting Japanese companies to invest in five priority sectors in Bangladesh: automotive manufacturing, energy, technology and space, high-speed rail and logistics, and agro-processing.

The forum was jointly organised by JETRO and the Japan-Bangladesh Committee for Commercial and Economic Cooperation (JBCCEC).

Tarique said around 350 Japanese companies were operating in Bangladesh, but Japanese direct investment remained below $500 million. In the last fiscal year, Bangladesh exported goods worth $1.36 billion to Japan and imported $2.16 billion worth of goods from the country.

Under the recently signed first-ever Economic Partnership Agreement (EPA) between the two countries, 7,379 Bangladeshi products will enjoy duty-free access to Japan, while Japanese goods, including steel, automotive parts and electronic components, will receive preferential access to Bangladesh, he said.

Highlighting Bangladesh's investment potential, the prime minister said the country had a market of more than 180 million people, a young workforce with a median age of 27 and a growing middle class. Bangladesh was expected to become one of the world's top 10 consumer economies by 2030, he added.

He said the government had taken note of Japanese companies' concerns over reliable energy supplies, efficient infrastructure, predictable customs clearance and taxation, and was working to address them.

“I fully understand that businesses need certainty. Investors need confidence. Our job is creating the right environment to deliver both,” Tarique said.

In the energy sector, he invited Japanese companies to invest in liquefied natural gas (LNG) infrastructure, efficient gas-fired power generation and renewable energy. Bangladesh had short-, medium- and long-term plans to develop its gas and electricity sectors, he said, while highlighting cooperation with Japanese energy company JERA.

On technology, Tarique said Bangladesh planned to establish a Bangladesh-Japan Technology Park focusing on artificial intelligence, cloud computing, robotics and electronics manufacturing, with the participation of Japanese companies, universities and investors.

He also called for cooperation with Japanese institutions in space science, satellite engineering and related technologies to strengthen Bangladesh's capabilities in the sector.

On rail and logistics, the prime minister said Bangladesh planned to develop a nationwide elevated high-speed rail network connecting Dhaka, Chattogram, Sylhet, Rajshahi, Khulna and Barishal.

The government planned to prepare a national master plan, assess passenger and freight demand, prioritise routes and conduct feasibility studies. He invited Japanese institutions to invest in the initiative.

Tarique also urged Japanese companies to explore opportunities in food processing and agro-based manufacturing, particularly at the Bangladesh Special Economic Zone in Araihazar, which is being developed by Sumitomo Corporation to Japanese standards.

Emphasising people-to-people ties, he said Bangladesh wanted to prioritise Japanese-language education so that millions of young people could learn the language alongside technical skills. Skilled Bangladeshi professionals proficient in Japanese could help meet employment needs in both countries, he added.

Recalling Japan's recognition of Bangladesh in February 1972 and its role as the country's largest development partner for more than five decades, Tarique said the two countries should build on their long-standing friendship to create more opportunities for their people and achieve shared prosperity.