Bangladesh Prepares $14 Billion Investment Push for Japan Visit
Bdbusinessdaily.com – Bangladesh is preparing to present Japan with a proposed strategic investment and cooperation package worth ¥2.2 trillion, or about $14 billion, during Prime Minister Tarique Rahman’s state visit to Tokyo beginning on 26 October.
The proposed 2026-31 programme covers 12 priority areas and would combine concessional financing with private-sector investment, technical partnerships and public-private partnerships. Transport, port development, manufacturing, technology, energy and climate resilience are among the central areas expected to feature in the discussions.
Much of the plan is linked to the Bay of Bengal Industrial Growth Belt, widely known as BIG-B 2.0. The Bangladesh-Japan initiative is intended to create a connected industrial and logistics corridor spanning Dhaka, Chattogram and Cox’s Bazar, helping connect Bangladeshi producers more efficiently with regional and global markets.
Japan has long been Bangladesh’s leading bilateral development partner. Since 1971, Japanese assistance commitments have exceeded $34 billion, while annual disbursements in recent years have generally ranged from $600 million to $700 million. The new proposal signals a broader approach, with Bangladesh seeking not only official development assistance but also Japanese capital, expertise and workforce cooperation.
Transport and urban connectivity seek $3.45 billion
Transport and urban mobility form one of the largest parts of the planned package. Bangladesh intends to seek ¥550 billion, equivalent to roughly $3.45 billion, for metro rail expansion, railway improvements, major bridges and stronger transport links in the Chattogram-Matarbari-Cox’s Bazar region.
Key metro projects include MRT Line-1, MRT Line-5 North and an extension of MRT Line-6. Bangladesh requires an additional ¥596 billion for Line-1 and ¥515.25 billion for Line-5 North. Japan has already agreed to provide loans for these two projects.
A proposed bridge over the Meghna River would create a direct connection between Narayanganj and Brahmanbaria. Bangladesh plans to request Japan International Cooperation Agency support for feasibility work, engineering design, climate-resilient approach roads and construction.
Another major proposal is a bridge across the Cox’s Bazar-Maheshkhali channel. The project would give Maheshkhali a direct mainland connection and improve access to the Matarbari deep-sea port and the Maheshkhali-Matarbari Integrated Infrastructure Development Initiative, or MIDI.
The transport proposals also include ¥3.831 billion for engineering services under the second phase of the Chattogram-Cox’s Bazar highway development project. Together, these projects are designed to reduce bottlenecks around a region that is expected to play a larger role in Bangladesh’s trade, industrial activity and port operations.
Matarbari and MIDI development at the centre of the plan
Bangladesh plans to request ¥500 billion, or around $3.14 billion, for MIDI and the Matarbari hub. The goal is to develop the Maheshkhali-Matarbari area as an integrated centre for industrial production, commercial activity, logistics and international investment.
The proposed financing would support deep-sea port facilities, logistics infrastructure, roads, rail connections, industrial sites and economic zones. A master plan running through 2041 is being developed with Jica support to guide the wider development programme.
Phase II of the Matarbari Port Development Project is a major component of that effort. Backed by a Jica loan of ¥105.362 billion, the project includes container and multipurpose terminals, dredging, access roads and associated facilities.
Improved access between Cox’s Bazar and Maheshkhali would have implications beyond passenger travel. It would assist port operations, industrial expansion and energy-related infrastructure in an area already receiving significant Japanese-backed investment.
Japan has also financed the Matarbari coal-fired power plant through eight loan tranches amounting to ¥712.430 billion. The concentration of port, power and industrial projects highlights the planned role of the region as a gateway for larger-scale industrial development.
Manufacturing, technology and semiconductor ambitions
Bangladesh is also seeking Japanese investment worth about $1.57 billion for export-focused manufacturing, including automobiles and auto parts. The government wants Japanese companies to establish vehicle and component factories at the Bangladesh Special Economic Zone in Araihazar, with exports potentially moving to Japan and regional destinations through Matarbari port.
Electronics, machinery and precision engineering are also expected to be promoted as potential areas for investment. For Bangladesh, the objective is to strengthen higher-value manufacturing capacity while creating links with Japanese industrial supply chains.
The package includes plans for joint semiconductor and nanotechnology laboratories at engineering universities. These facilities are intended to support domestic chip-related expertise and develop skilled workers for advanced industries.
Bangladesh has set a target of reaching $1 billion in semiconductor exports by 2030. The proposed academic and industrial cooperation is intended to support that ambition while also helping meet Japanese demand for skilled workers in technology-intensive sectors.
A proposed bilateral Economic Partnership Agreement could reinforce these goals through deeper investment ties, technology transfer, stronger supply chains and expanded trade opportunities.
A shift toward broader economic cooperation
The proposed package reflects Bangladesh’s effort to move beyond a development model centred primarily on infrastructure loans. By combining transport systems, port facilities, industrial zones, advanced manufacturing and skills development, the plan seeks to create connections between physical infrastructure and long-term economic capacity.
The success of the initiative would depend on coordinated implementation across public agencies, investors, universities and local industries. If the planned investments move forward, they could shape how Bangladesh develops its transport networks, industrial base and access to international markets during the coming decade.
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