TOKYO - Prime Minister Sanae Takaichi said Tuesday that Japan expects 1 trillion yen ($6 billion) in investment from domestic companies into Bangladesh in the coming five years, following summit talks with her counterpart Tarique Rahman in Tokyo.
The projected investment comes as the two agreed to deepen economic cooperation by upgrading an existing bilateral framework to promote industrial growth around the strategically important Bay of Bengal, according to a joint statement issued after their meeting at the prime minister's office in Tokyo.
"Japan will strongly support Bangladesh's autonomy and resilience," Takaichi said at the outset of their meeting, adding that the country "looks forward to contributing to regional peace and prosperity."
Japan's efforts to deepen economic ties with Bangladesh come as the fast-growing South Asian country is exiting a period of political turmoil and increasing its engagement with China, while the ongoing war in the Middle East continues to fuel economic uncertainty.
The meeting's joint statement said the leaders agreed to upgrade the 2014 bilateral Bay of Bengal Industrial Growth Belt initiative, or Big-B, into a broader "Big-B for Shared Prosperity" framework aimed at safeguarding the countries' economic autonomy amid supply chain and geopolitical risks.
The initiative, centered on a deep-sea port developed with Japanese yen loans, aims to attract Japanese investment and develop Bangladesh as a regional hub through related infrastructure projects, the joint statement said.
The visit is Rahman's first visit to Japan since taking office in February, after his party won Bangladesh's parliamentary election that followed the ousting of his predecessor Sheikh Hasina in 2024.
Regarding the "free and open Indo-Pacific" policy approach championed by Takaichi, seen as aimed at countering China's growing clout in the region, the joint statement said Rahman "heeds its importance" in ensuring peace and prosperity.
Bangladesh, which neighbors India and is located close to China, takes an all-around approach to diplomacy. In June, Rahman traveled to China for talks with President Xi Jinping, with the two countries agreeing to strengthen cooperation in trade and infrastructure.
Cooperation between Japan and Bangladesh has been advancing in recent years. In 2023, the countries upgraded ties to a "strategic partnership," while in February this year they signed an economic partnership agreement that involved tariff-cutting steps.
The two countries have also been deepening their ties in maritime security, with the Japanese Foreign Ministry saying that they exchanged notes Monday for 2.12 billion yen in grant aid to provide the Bangladesh Coast Guard with Japanese patrol vessels for responding to crimes and conducting rescues in the Bay of Bengal.
It comes after the ministry previously announced in July the handover of five patrol boats to the Bangladesh Navy under an initiative framework to provide defense equipment to like-minded countries.
