Japan announces $6.35bn investment in Bangladesh over 5 years

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Japan will invest about 1 trillion yen ($6.35 billion) in Bangladesh's private sector over the next five years, Japanese Prime Minister Sanae Takaichi said on Tuesday, as the two countries upgraded their ties to a "strategic partnership".

Takaichi announced the investment following a meeting with Bangladesh Prime Minister Tarique Rahman in Tokyo.

At a joint press conference, Takaichi said the "Bay of Bengal Industrial Growth Belt" (BIG-B), a key framework for bilateral cooperation, would be expanded.

Agreeing with Tarique, she said the initiative would move forward under the name "BIG-B for Sharing Prosperity".

Takaichi also stressed the need to implement the Economic Partnership Agreement (EPA) as soon as possible and improve Bangladesh's investment climate to strengthen economic ties.

Japan will also send a business delegation to Bangladesh in the near future, she said.

The new strategic partnership will be built on four pillars: regional connectivity; preparedness for natural disasters and geopolitical risks; economic growth and rule-making through public-private initiatives; and regional peace and stability.

Alongside economic cooperation, Japan will support Bangladesh's security capabilities, Takaichi said. Tokyo has decided to provide patrol vessels to Bangladesh under its official development assistance (ODA) programme to strengthen maritime security.

She also pledged to continue official security assistance and defence cooperation to promote regional peace and stability.

Takaichi said Bangladesh's strategic location connecting South and Southeast Asia offered significant economic potential for both countries.

She expressed confidence that the partnership would usher in a new era of cooperation, enabling Japan and Bangladesh to grow stronger and more prosperous together.

Earlier, Tarique was welcomed by Takaichi at the Japanese prime minister's office, where he was accorded a guard of honour.