An opportunity Bangladesh should not miss

By Sadia Karim

Japan’s Ministry of Economy, Trade, and industry has applied for the second round of applications in regards to reallocating their production companies to Southeast Asian countries, such as India and Bangladesh.

To encourage the set-up of Japanese manufacturers, Indian Prime Minister Narendra Modi has also proposed to reform the global supply chain based on not only the cost-benefits but mutual trust and stability. Such a statement can act as an incentive for the Japanese producers to set up their industries in India, where India has been upholding a good image in the global trade chain.

This might also be a good chance for Bangladesh to get into the global supply chain with the help of Japanese FDI. DCCI president Shams Mahmud said that the FDI to GDP ratio in Bangladesh is 1.2 percent, which is less than the neighboring countries.

That is mostly because Japanese companies which are functioning in different sectors, quite often complain that they are not getting proper facilities from the government. It can act as a hindrance to enhance the FDI inflow in the country because foreign investors rely upon the words of the investors who have already invested or have been investing in the country.

The communal problem that the Japanese investors face is the tax burden and business environment issues in Bangladesh. Immediate modifications such as, easing the tax burden, improving infrastructure, and augmenting the skilled labor force can perhaps reassure the Japanese companies to invest in our country.

It is still a matter of concern if Bangladesh can strengthen its relationship with foreign investors. The trade between Bangladesh and Japan can aid Bangladesh to gain competitiveness in the global market. 

However, Bangladesh has been maintaining an impressive economic performance to get better FDI inflow by focusing on its strength. For instance, affordable and flexible labor market, liberal rules and regulations, strategic geographic location, and preferential market access. 

Thus, if Bangladesh can improvise the lagging sectors then it can soon boom in the global market, where a reassuring statement by Bangladesh can bolster the foreign investors’ confidence.

About the Author:
Sadia Karim is a second year student studying Economics at East West University.



  1. The Business Standard. 2020. ‘Bangladesh, Japan Will Form Joint Working Group To Boost Trade’. [online] Available at: <> [Accessed 13 December 2020].
  2. Express, T., 2020. Japan Adds Bangladesh, India To ‘China Exit’ Subsidy Destinations. [online] The Financial Express. Available at: <> [Accessed 13 December 2020].

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