A Study on the Prospects and Challenges of Japanese Trade and Investment in Bangladesh

Abstract

Foreign investment and trade have become essential for the sustainability of economic growth of the countries in the modern era. It is even more valid for developing countries like Bangladesh. As Japan is the biggest development partner of Bangladesh, the role of Japan is very significant in this regard. Historically, Japanese investment and trade have contributed to the socio-economic development of Bangladesh to a considerable extent. On the other hand, the “economic diplomacy” is a key element of Japanese foreign policy and the contemporary geopolitical reality has made Japan more interested in the countries of South Asia to secure its broader strategic interests. So, there is a huge opportunity for Bangladesh to attract more Japanese investment and trade which can take the economic growth of this country to the next level. The government of Bangladesh needs to be more active to have an effective collaboration with its Japanese counterpart. In addition, Bangladesh must remove the impediments in this regard. This qualitative study critically analyzes Japanese trade and investment attitudes towards Bangladesh. This research further contributes to the literature of the trade and investment situation of Bangladesh as well as specially how Japan can find opportunities and challenges in this climate. This study finds that although Bangladesh is very lucrative for trading and investment for Japan, much remains to be done. Therefore, Bangladesh should focus on developing those key areas to attract Japan even more.