Japan Announces 1 Trillion Yen Investment and 200,000 Jobs in Bangladesh

Bangladesh Prime Minister Tarique Rahman and Japanese Prime Minister Sanae Takaichi have announced plans to take the longstanding strategic partnership between the two countries to a new level. The two leaders welcomed projections that Japanese private-sector investment in Bangladesh could reach 1 trillion yen over the next five years, creating an estimated 200,000 jobs.

The two countries also signed a landmark Economic Partnership Agreement (EPA) and an agreement on the transfer of defence equipment and technology. These developments were outlined in a 14-point joint statement issued after the bilateral summit between the two prime ministers in Tokyo on Tuesday (October 27). The meeting took place on the second day of Rahman’s four-day official visit to Japan, from October 26 to 29.

Praise for February election and congratulations to Mr. Rahman

Ms. Takaichi praised Bangladesh’s vibrant democracy and welcomed the credible and peaceful general election held in February 2026, which was observed by a Japanese government election observation mission. She also warmly congratulated Mr. Rahman on becoming prime minister.

Mr. Rahman expressed gratitude for Japan’s continued support for Bangladesh’s development over the five decades since independence. He also praised Japan’s role in promoting global peace and stability. The two leaders reaffirmed their shared commitment to democracy, freedom and the rule of law. They also stressed the importance of Japan’s Free and Open Indo-Pacific (FOIP) vision.

‘BIG-B for Shared Prosperity’ and infrastructure development

In response to changing global conditions and growing supply-chain risks, the two prime ministers agreed to upgrade their flagship bilateral initiative, Bay of Bengal Industrial Growth Belt (BIG-B), to BIG-B for Shared Prosperity. Under the initiative, the Matarbari-Maheshkhali region will be developed into a major logistics, energy and industrial hub centred on the Matarbari deep-sea port.

The two countries also agreed to advance preparatory work to bring the third terminal of Hazrat Shahjalal International Airport into operation, accelerate construction of Dhaka’s Mass Rapid Transit (MRT) lines, and discuss future cooperation on the operation and management of the Matarbari port.

The expanded BIG-B initiative aims to integrate power, energy, deep-sea port, industrial and ICT infrastructure; establish a major hub for industrial value chains; strengthen trade and supply routes; and generate economic growth and prosperity.

The initiative will focus on improving connectivity, building resilience against natural disasters and geopolitical uncertainty, promoting public-private partnerships (PPPs), and strengthening cooperation for peace and stability.

The two leaders agreed to work together to develop the Matarbari-Maheshkhali region into a major logistics, energy and industrial centre.

50 billion yen emergency loan for energy security

Mr. Rahman thanked Japan for providing Bangladesh with a 50 billion yen emergency assistance loan under Japan’s Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia) initiative. It is the first yen-loan project under the initiative and aims to strengthen economic resilience and ensure a stable energy supply.

The two prime ministers stressed the need for international cooperation to strengthen oil reserves and improve coordination between energy-producing and consuming countries amid volatile global energy markets.

They also agreed to deepen cooperation on climate change, energy efficiency, capacity building and renewable energy. They welcomed a Letter of Intent (LoI) on climate cooperation between Japan’s Ministry of the Environment and Bangladesh’s Ministry of Environment, Forest and Climate Change, as well as ongoing public-private dialogue under an environmental cooperation memorandum.

The leaders also agreed to expand cooperation on economic security, supply-chain resilience, energy security and safe, sustainable digital connectivity.

1 trillion yen investment and business opportunities

Ms. Takaichi praised the Mr.  Rahman administration’s efforts to attract foreign direct investment (FDI). She welcomed projections that Japanese private-sector investment in Bangladesh could reach 1 trillion yen over the next five years, creating around 200,000 jobs.

The two leaders welcomed major investments expected to be announced and agreed on the importance of building complementary and resilient supply chains in manufacturing, food and agriculture, ICT, and pharmaceuticals.

They also agreed to explore further cooperation in digital transformation (DX), developing highly skilled ICT professionals, and establishing secure and reliable digital connectivity. Their existing cooperation in IT, IT-enabled services (ITES), human resource development and digital technology will provide a foundation for these efforts.

Ms. Takaichi stressed the need to improve Bangladesh’s investment climate. Rahman pledged to make policies and procedures involving taxation, customs clearance, remittances and licensing more transparent and predictable, making it easier for businesses to invest.

The leaders welcomed a memorandum of cooperation (MoC) between Japan’s Ministry of Economy, Trade and Industry and Bangladesh’s Economic Relations Division (ERD) to improve economic ties and the business environment.

They also welcomed two separate MoCs involving Japan’s Ministry of Agriculture, Forestry and Fisheries and Bangladesh’s Ministry of Agriculture and Ministry of Fisheries and Livestock. These agreements aim to strengthen business ties and attract investment in food, agriculture, fisheries and livestock.

The two sides also welcomed a yen-loan commitment to improve the investment climate. To maintain momentum following commitments by Japanese businesses, they expressed interest in sending a Japanese business delegation to Bangladesh in the near future, holding economic dialogue, and expanding bilateral cooperation through the Japan-Bangladesh Joint Public-Private Partnership (PPP) Platform and the Bangladesh Special Economic Zone (BSEZ).

Economic Partnership Agreement signed

The two prime ministers welcomed the signing of the Japan-Bangladesh Economic Partnership Agreement (EPA) and pledged to work towards its early implementation so that people in both countries can benefit from it.

They said the agreement would expand trade and investment, diversify industries, and support Bangladesh’s smooth, sustainable and resilient graduation from the least developed country (LDC) category. Ms. Takaichi said Japan was willing to continue discussions on Bangladesh’s request to join the Regional Comprehensive Economic Partnership (RCEP).

Defence agreement and six patrol vessels

Amid growing geopolitical uncertainty, the two leaders reaffirmed their commitment to strengthening bilateral security cooperation. They welcomed the signing and entry into force of the Agreement on the Transfer of Defence Equipment and Technology.

They also discussed a review of Japan’s Three Principles on Transfer of Defence Equipment and expressed hope for further progress in defence cooperation. Ms. Takaichi recognised Bangladesh as one of the leading contributors to United Nations peacekeeping operations. She pledged to deepen cooperation in defence, maritime domain awareness, coastal patrols and port security to support peace and stability.

The two leaders welcomed Japan’s decision to provide Bangladesh with one patrol vessel through its Official Development Assistance (ODA) programme to strengthen coastal security. They also welcomed the provision of five patrol boats under Japan’s Official Security Assistance (OSA) programme and agreed to explore further cooperation under the initiative.

Local government, education and cultural exchanges

The two leaders reaffirmed their commitment to resilient and inclusive development to help Bangladesh address economic and social challenges. Mr. Rahman highlighted his government’s commitment to good governance, social and financial support, and balanced regional development.

They agreed to continue cooperation in public health and medical services, education, disaster risk reduction and management, and waste management. These efforts aim to strengthen human resources, develop a skilled workforce, reduce social vulnerabilities, and support sustainable cities and local government.

The leaders welcomed Japan’s commitment to a yen-loan programme for the second phase of the Upazila Governance and Development Project, which aims to strengthen the administrative and financial capacity of local government.

They also reaffirmed the importance of quality infrastructure, transparent and fair development financing, and sustainable and transparent debt management. Japan will continue to support capacity building for judicial officials through legal technical assistance.

The two prime ministers also pledged to increase people-to-people exchanges. They welcomed the Japan Festival held in Dhaka in September this year to promote Japanese culture and encourage cultural exchange. They recognised the important role of the Department of Japanese Studies at the University of Dhaka in promoting Japan-related research and academic exchanges. Both sides agreed to expand educational cooperation through existing programmes, including scholarships offered by Japan’s Ministry of Education, Culture, Sports, Science and Technology (MEXT).

They also agreed to explore exchange and capacity-building opportunities for senior Bangladeshi government officials and promote Japanese-language education in Bangladesh with support from relevant Japanese institutions.

Rohingya crisis and Myanmar

The two prime ministers expressed concern over Myanmar’s worsening crisis, its impact on regional security, the displacement of Rohingyas and other people, and the rise in cross-border crime. They called for an immediate end to violence, the release of detainees, an environment conducive to humanitarian assistance, and dialogue among all concerned parties and affected communities, including the Rohingyas.

Ms. Takaichi praised Bangladesh for temporarily sheltering Rohingyas displaced from Myanmar’s Rakhine State and expressed support for continued humanitarian assistance. The leaders stressed the need to end violence against vulnerable people, including the Rohingyas, and to engage actively with all parties to restore peace and stability through reconciliation.

Mr. Rahman emphasised that the Rohingya crisis originated in Myanmar and that its solution also lay there. Both leaders agreed that the ultimate solution was the voluntary, safe, dignified and sustainable repatriation of displaced people, including the Rohingyas, to Myanmar.

Middle East and international issues

The two prime ministers reaffirmed their commitment to lasting peace, security and stability in the Middle East. They called for rapid de-escalation, the urgent and full reopening of the Strait of Hormuz, and the safe, uninterrupted and unimpeded passage of all vessels without additional charges, in accordance with international law reflected in the United Nations Convention on the Law of the Sea (UNCLOS).

They also highlighted the strategic importance of peace and stability in the Red Sea and the Bab el-Mandeb Strait for global energy security and the uninterrupted flow of goods. The leaders stressed the need to protect seafarers, safeguard civilian vessels from attacks and prevent actions that endanger the lives of maritime personnel.

They called for urgent progress on the Comprehensive Plan for Gaza’s reconstruction and reaffirmed their support for a just, lasting and comprehensive resolution of the Palestinian issue, including the implementation of a two-state solution.

Maritime security and North Korea

The two leaders agreed that any action that disrupts the safety and freedom of navigation at sea or overflight was unacceptable. They reaffirmed the importance of peacefully resolving all international maritime disputes through dialogue, negotiation and judicial procedures in accordance with international law, including UNCLOS adopted in 1982.

They also expressed concern over North Korea’s continued development of nuclear weapons and ballistic missile programmes in violation of United Nations Security Council resolutions. They called for the immediate resolution of the abductions issue.

United Nations reform and nuclear disarmament

The two prime ministers reaffirmed their commitment to multilateralism, the rule of law, respect for international law and the principles of the United Nations Charter. They stressed the importance of international cooperation, collective action and a rules-based international order to address shared global challenges.

Ms. Takaichi congratulated Bangladesh Foreign Minister Dr Khalilur Rahman on his election as president of the 81st session of the United Nations General Assembly. She expressed Japan’s willingness to support efforts to make the United Nations more resilient and effective during his presidency.

The two leaders agreed to continue working together for the early reform of the United Nations Security Council, including the expansion of both permanent and non-permanent membership through constructive participation in the Intergovernmental Negotiations process.

They also pledged to work towards a world free of nuclear weapons. Both sides reaffirmed the importance of maintaining and strengthening the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) as a cornerstone of global nuclear disarmament and non-proliferation. Rahman recognised Japan’s continued efforts in these areas.

Invitation to visit Bangladesh

At the end of the visit, PM Tarique Rahman expressed his sincere gratitude to Ms. Takaichi and the people of Japan for the warm welcome and generous hospitality extended to him and his delegation. He also invited the Japanese prime minister to visit Bangladesh at a mutually convenient time.