Japanese investors have urged Bangladesh to implement policy stability, tax reforms, and regulatory clarity to improve the country’s investment climate and attract long-term foreign investment.
The concerns were raised at a Japan Business Day event in Dhaka, jointly organized by the Embassy of Japan in Bangladesh and Japan External Trade Organization.
Business leaders highlighted persistent challenges such as inconsistent tax practices, weak regulatory enforcement, and conflicting directives, which increase operational costs and delay business activities.
Manabu Sugawara, president of the Japanese Commerce and Industry Association in Dhaka (JCIAD), emphasized the need for transparent, consistent, and predictable policies. He called for simplified tax systems, faster administrative services, and effective dispute resolution mechanisms.
Investors also pointed to poor inter-agency coordination, recommending a fully functional digital one-stop service to streamline licensing, approvals, and renewals. Faster visa and work permit processing was also identified as a priority.
Hiroshi Uegaki stressed the importance of digitalization, improved data management, and alignment with international standards to enhance efficiency.
Speakers underscored the significance of the proposed Bangladesh–Japan Economic Partnership Agreement, which is expected to ensure market access, facilitate trade, and strengthen investor confidence.
Japanese Ambassador Shinichi Saida described the agreement as a landmark initiative that would provide legal certainty and reinforce a rules-based trade framework.
According to a survey by JETRO, 56.9% of Japanese companies in Bangladesh plan to expand operations, driven by strong domestic market potential. However, investors cautioned that policy inconsistency and administrative inefficiencies must be addressed to unlock greater investment flows.
Experts concluded that strengthening governance, ensuring policy continuity, and accelerating reforms are essential for positioning Bangladesh as a competitive manufacturing hub for Japanese investors.
