Photo: Collected

DHAKA, Nov 07, 2025 (BSS) - Despite the political changes following the July Uprising in 2024, Japanese investment interest in Bangladesh remains remarkably robust, according to observations shared by the Japan External Trade Organization (JETRO).
 
"The perception that foreign investors are waiting for political clarity during the interim government period is not true. Japanese companies are actively expanding their business footprint and expressing high interest in the country," said JETRO Country Representative Kazuiki Kataoka at an interview with BSS.
 
JETRO is a Japanese government body that promotes trade and investment between Japan and other countries.
 
Demonstrating the high interest, Kataoka noted that the number of inquiries received from Japanese companies at the JETRO Dhaka office is increasing.
 
"The Dhaka office is now recognized as one of the busiest overseas offices within the JETRO organization, reflecting the high interest of Japanese companies in Bangladesh," he added
 
He provided specific examples of ongoing investment and operation expansion, including the construction of a factory for a bonded warehouse by NICCA Chemical Co Ltd at the Bangladesh Special Economic Zone( BSEZ) at Araihazar operated by Sumitomo Corporation.
 
Additionally, Lion Corporation, which has formed a joint venture with local Kallol Group is now setting up factory to manufacture dishwashing soap and toothbrush, he added. 
 
Referring to a JETRO survey conducted in 2024, specifically after the uprising, he said, the survey revealed strong intentions for expansion among Japanese firms operating in the country.
 
Around 57.7 percent of Japanese companies currently operating in Bangladesh expressed a desire to expand their business in the country, he mentioned.
 
He said this percentage represents the second-highest intention for expansion within the Asia-Pacific region, placing Bangladesh third globally, following India.
 
The country representative clarified that this intention to expand directly translates to a plan to increase investment in Bangladesh.
 
While manufacturing for export remains the traditional main business, he said, the high interest is driven partly by Bangladesh's attractive domestic market.
 
More Japanese companies are now focusing on the consumption market, even considering establishing factories domestically to counter high import tariffs, he added.
 
Kataoka, also secretary general of the Japanese Commerce and Industry Association in Dhaka, noted that while investment intent is high investors are simultaneously facing persistent and sometimes worsening micro-level operational issues.
 
A critical concern raised was corruption, particularly at the customs level, he added.
 
He said that other major challenges involve procedural delays.
 
"Obtaining work permits and security clearances still takes a significant time, often requiring three to six months to complete the necessary procedures," he added.
 
Kataoka highlighted the financial hardship caused by these delays, noting that without a work permit, foreigners cannot open a bank account or withdraw money upon arrival.
 
"Efforts are being made to address the clearance issue, including the introduction of a digitalized security clearance system where applications are automatically approved if no objection arises within 21 days," he mentioned.
 
Kataoka, however, emphasized that policy consistency is crucial for enhancing business activity.
 
Referring to the political landscape, the representative stressed that foreign investors should not interfere with politics, but noted that politics inevitably influences business activities.
 
"Investors are closely paying attention to the upcoming election," he added.
 
He hoped that investors would be happy if the election takes place in February.
 
Furthermore, he underscored the need for a free, fair, and credible election.
 
"This is viewed as essential because a new administration resulting from the national voice is more likely to be sustained. Once a new administration announces its economic policy and incentives, more investors are expected to arrive, as many Japanese companies are currently conducting feasibility studies," he added.
 
The representative concluded by stating that despite the challenges, Bangladesh is quite attractive and the domestic market is becoming more attractive, which is why JETRO continues to receive numerous inquiries from Japan.