A growing number of Japanese companies are planning to expand their operations in Bangladesh, reflecting steady business confidence and the country’s rising importance as a regional investment destination, according to a survey by the Japan External Trade Organisation (Jetro).
The survey shows that 56.9% of Japanese firms in Bangladesh intend to expand their business over the next one to two years, placing the country on par with Vietnam and ahead of several regional economies.
The figure is also notably higher than the global average of 45%, underlining Bangladesh’s increasing attractiveness.
Among regional peers, India recorded the highest expansion intent at 81.5%, followed by Pakistan at 63.4%, while the ASEAN average stood at 46.3% — all trailing or comparable to Bangladesh’s strong position, according to the survey.
Jetro’s Country Representative Kazuiki Kataoka unveiled the survey, titled “2025 Jetro survey on Business condition of Japanese companies in Asia and Occeania”, at a hotel in Dhaka today (30 March).
The survey period ranged from 19 August to 17 September, 2025.
The survey was shared during the “Japan Business Day” programme, where the first session commemorated Japan’s EPA agreement with Bangladesh, jointly organised by the Embassy of Japan in Dhaka and Jetro.
The survey identified robust domestic demand as the primary driver of expansion, with 66.7% of Japanese firms citing growth in the local market as the key reason. This is closely aligned with the global average of 66.6%, highlighting Bangladesh’s emergence as a significant consumer market in Asia.
Sectoral trends show that non-manufacturing industries are leading the expansion drive. About 62.2% of Japanese non-manufacturing firms plan to expand, compared to 47.6% in manufacturing, indicating stronger optimism in services, trading, and distribution sectors. This also places Bangladesh above global averages for non-manufacturing expansion.
Other contributing factors include export opportunities (30.3%), competitive advantages (24.2%), and demand for value-added products (18.2%), although these remain secondary to domestic market growth.
At the same time, only a small share of firms are considering downsizing or relocation, while many plan to maintain current operations — suggesting cautious optimism amid ongoing regulatory and infrastructural challenges.
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