Japan plans $6.36bn private investment in Bangladesh over five years: Nikkei

Japan is preparing to arrange 1 trillion yen ($6.36 billion) in private-sector investment in Bangladesh over the next five years, Japanese business newspaper Nikkei reported on Thursday.

The investment plan is expected to be included in a joint statement following talks between Japanese Prime Minister Sanae Takaichi and her Bangladeshi counterpart Tarique Rahman in Tokyo on October 27.

The proposed investments will focus on automobile manufacturing, other industrial sectors and energy infrastructure, according to Nikkei.

Japanese companies are also expected to expand their presence in the Bangladesh Special Economic Zone at Araihazar in Narayanganj, which is being developed with the involvement of Japanese trading giant Sumitomo Corporation.

Reuters, which also reported Nikkei's findings, said it could not independently verify the investment plan.

The proposed commitment comes ahead of Tarique's four-day official visit to Japan from October 26 to 29, during which Bangladesh hopes to secure fresh investment, expand industrial cooperation and strengthen economic ties with Tokyo.

The $6.36 billion arrangement would mark a significant expansion of Japan's private-sector engagement in Bangladesh, where Japanese involvement has traditionally been concentrated in development financing and major infrastructure projects.

Bangladesh is separately preparing to seek a broader $14 billion investment and cooperation package from Japan covering transport, manufacturing, energy, technology and industrial development.

That proposal includes concessional loans, private investment and public-private partnerships, according to an Economic Relations Division document.

The two figures represent different initiatives, and neither should be treated as investment already received.

Japan is Bangladesh's largest bilateral development partner, having committed more than $34 billion in assistance since independence.

Foreign Secretary Asad Alam Siam said earlier this week that Tarique's visit was expected to attract fresh Japanese private investment and open new opportunities for economic cooperation.

Several agreements covering agriculture, fisheries, skills development, aviation, trade and environmental cooperation are also under discussion.

Bangladesh currently hosts more than 300 Japanese companies and aims to increase that number to 500 by 2030.

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