B Mirror Report: Bangladesh is rapidly emerging as a high-stakes growth frontier for Japanese companies, with rising profitability and strong interest in expanding operations in the local market.
This was highlighted in the FY2025 Survey on Business Conditions of Japanese Companies Operating Overseas, presented by JETRO Dhaka Country Representative Kazuiki Kataoka at an event marking Japan Business Day in the city.
According to the survey, 56.9% of Japanese firms in Bangladesh plan to expand their business within the next one to two years, driven largely by increasing local demand, cited by 66.7% of respondents. The expansion outlook is on par with Vietnam, indicating growing confidence among investors.
The event, jointly organised by the Embassy of Japan and JETRO Dhaka, was attended by Prime Minister’s Adviser on Finance and Planning Dr. Rashed Al Mahmud Titumir and BIDA Executive Chairman Chowdhury Ashik Mahmud Bin Harun as chief guests.
The survey findings show an improving business outlook, with 50% of Japanese companies expecting operating profits in 2025, up from 41.9% in 2024. The non-manufacturing sector showed stronger expansion plans, with 62.2% of firms aiming to grow, compared to 47.6% in manufacturing.
Kataoka highlighted Bangladesh’s strong market fundamentals, including a population exceeding 180 million and consistent GDP growth of over 5–6% in the past decade. The country is projected to become the world’s ninth-largest consumer market by 2030, surpassing the UK.
Rising per capita income, nearing $3,000, is also attracting Japanese brands to directly target local consumers. Currently, around 350 Japanese companies operate in Bangladesh, particularly in sectors such as FMCG, food processing, electronics, automobiles and healthcare.
Major Japanese brands already expanding their footprint include Lion Corporation, Ajinomoto, Kewpie, Kikkoman, Mitsubishi and Honda, along with SHIP International Hospital.
The survey also identified key advantages for investment in Bangladesh, including low labour costs, large market size, strong growth potential and fewer language barriers compared to other regions. Bangladesh is also ahead among developing countries in implementing Human Rights Due Diligence, with 40.7% of companies already engaged in such practices.
The programme also featured discussions on the proposed Bangladesh-Japan Economic Partnership Agreement (EPA), described as a significant step toward strengthening bilateral economic ties as Bangladesh prepares to graduate from LDC status.
Speakers noted that the EPA would help address the challenges arising from the phase-out of trade benefits such as the Generalised Scheme of Preferences, providing a structured framework for future economic growth.
The event included presentations on Bangladesh’s investment environment and growing Japanese interest in the consumer market, followed by a panel discussion involving representatives from both public and private sectors.
