Japan to invest $6.35b, create 2 lakh jobs in 5yrs

Tarique, Takaichi agree to upgrade bilateral ties

Japan projects up to one trillion yen ($6.35 billion) in private investment in Bangladesh over the next five years, with the investment expected to create 2 lakh jobs.

The projection was welcomed by Prime Minister Tarique Rahman and his Japanese counterpart Sanae Takaichi at their bilateral summit in Tokyo yesterday, according to a joint statement issued after the meeting. Dhaka and Tokyo agreed to deepen economic cooperation, strengthen supply chains, and expand strategic ties.

The two leaders also agreed to upgrade their flagship bilateral initiative, the Bay of Bengal Industrial Growth Belt (BIG-B), to “BIG-B for Shared Prosperity”, with the aim of developing the Matarbari-Maheshkhali area into a major hub for logistics, energy, and industry centred on the Matarbari Deep Sea Port.

The two countries also shared a vision of developing resilient supply chains in manufacturing, food and agriculture, information and communication technology, and pharmaceuticals.

According to Japan’s Ministry of Foreign Affairs website, the two countries signed six instruments: four memorandums of cooperation (MoCs), a letter of intent (LoI), and a letter concerning grant aid.

The MoCs cover economic relations and improvement of the business environment; cooperation in agriculture; and cooperation in fisheries and livestock. The two agriculture-related areas are intended to strengthen business ties and attract investment. The LoI concerns climate change cooperation, while the grant-aid letter provides for up to 2.12 billion yen ($13 million) for a maritime security capacity-building project.

Tarique reached Tokyo on Monday on a four-day official visit at the invitation of his Japanese counterpart. The two leaders yesterday held a summit meeting, followed by a joint press appearance and lunch.

At the start of the meeting, Takaichi said Japan strongly supported Bangladesh’s ability to make its own decisions and strengthen its resilience under Japan’s updated Free and Open Indo-Pacific (FOIP) vision. She said Japan wanted to further develop bilateral relations under the Strategic Partnership and contribute to regional peace and prosperity.

Tarique said the two leaders had held fruitful discussions on a broad range of bilateral, regional, and international issues.

“Reaffirming our long-standing friendship, we expressed our shared commitment to further strengthening our partnership through enhanced cooperation in energy, ICT, rail, and infrastructure, deep-sea ports, and foreign direct investment,” he said.

“Our ambition is clear: to turn this friendship between our two nations into a powerful engine of economic opportunity and shared prosperity.”

INVESTMENT, TRADE

Takaichi commended the efforts of Tarique’s administration to promote foreign direct investment and stressed the need to improve Bangladesh’s investment environment.

She expressed the expectation that Tarique’s leadership would help create conditions conducive to Japanese business activities and promote public-private cooperation. Tarique said Bangladesh would work towards that goal transparently.

The two leaders welcomed a memorandum of cooperation between Japan’s Ministry of Economy, Trade and Industry and Bangladesh’s Economic Relations Division on economic relations and improving the business environment. They also welcomed two separate MoCs covering agriculture and fisheries and livestock.

The joint statement said the two countries would promote resilient supply chains and explore further cooperation in digital transformation, the development of skilled ICT professionals, and secure digital connectivity.

Takaichi also said Japan looked forward to further discussions on Bangladesh’s request to accede to the Regional Comprehensive Economic Partnership (RCEP) Agreement.

The two prime ministers welcomed the signing of the Bangladesh-Japan Economic Partnership Agreement (EPA) and reaffirmed their commitment to its early entry into force. They said the agreement would help expand trade and investment, promote industrial diversification, and support Bangladesh’s smooth and sustainable graduation from least developed country status.

ENERGY SECURITY

Japan will provide a 50-billion-yen loan, equivalent to around $317 million, under the “Emergency Support Loan for Enhancing Economic Resilience and Stable Energy Supply”.

The loan is the first yen-loan project under Japan’s Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia) initiative.

Recognising volatility in global energy markets and rising energy prices, the two leaders stressed the importance of international cooperation to strengthen oil stockpiles and improve coordination between energy-producing and consuming countries.

Takaichi promised Japan’s continued support for Bangladesh’s energy infrastructure to help bridge the gap between energy supply and demand.

The two countries also agreed to deepen cooperation on climate change, energy efficiency, and renewable energy.

CONNECTIVITY, SECURITY

Under the upgraded BIG-B framework, the two countries will work to strengthen regional connectivity, improve resilience against natural disasters and geopolitical uncertainties, promote public-private partnerships, and step up cooperation for peace and stability.

They agreed to advance preparatory work for the early operationalisation of the third terminal of the Hazrat Shahjalal International Airport in Dhaka. 

They also expressed their aspiration to move forward with the early construction of Dhaka metro rail lines and discuss future cooperation on the operation and management of Matarbari Deep Seaport.

According to the statement, the two leaders reaffirmed their commitment to work towards upholding international order, which is free, open, and based on the rule of law. To this end, Tarique noted the importance of Takaichi’s initiative of the “Free and Open Indo-Pacific (FOIP)”.

The statement further welcomed a pledge for a yen-loan programme for the second phase of the Upazila Governance and Development Project, aimed at strengthening the administrative and fiscal capacities of local governments.

The two leaders also reaffirmed their commitment to cooperation in education, skills development, public health, disaster management, and sustainable local governance.

Following the bilateral meeting, Tarique visited the onshore liquefied natural gas (LNG) terminal and power plant of JERA, a major Japanese energy company, in Futtsu city in Japan’s Chiba Prefecture. He also visited the Nittsu logistics hub.

Besides, Tarique will today call on the governor of the Japan Bank for International Cooperation (JBIC), visit UNIQLO’s Ariake office, and meet the president of the Japan External Trade Organization (JETRO).

He is also scheduled to meet representatives of Mitsui & Co, Sumitomo Corp and JERA, and attend the Bangladesh-Japan Economic Forum, where MoUs on education and human resource development are expected to be inked.

On the final day of his tour, the PM will visit a Toyota factory before departing for Dhaka.