Transport, tech, energy: Bangladesh to seek $14b investment from Japan during PM’s visit

$3.45b for transport, urban mobility

According to the ERD, Bangladesh will seek ¥550 billion ($3.45 billion) for transport and urban connectivity, including metro rail expansion, railway development, major bridges and improved links across the Chattogram-Matarbari-Cox’s Bazar region.

Proposed projects include MRT Line-1, MRT Line-5 North and MRT Line-6 expansion. The country needs an additional ¥596 billion for Line-1 and ¥515.25 billion for Line-5 North, for which Japan has already agreed to provide loans.

Bangladesh will also seek Jica assistance to build a bridge over the Meghna River, directly linking Narayanganj and Brahmanbaria. The proposed support will cover feasibility studies, engineering designs, climate-resilient approach roads and construction.

Another proposal involves a bridge across the Cox’s Bazar-Maheshkhali channel to provide direct mainland access to Maheshkhali, improving connectivity to Matarbari deep-sea port, the Maheshkhali-Matarbari Integrated Infrastructure Development Initiative (MIDI).

Bangladesh will also seek ¥3.831 billion for engineering services under Phase II of the Chattogram-Cox’s Bazar highway development project.

$3.14b for MIDI, Matarbari hub

The government plans to propose ¥500 billion ($3.14 billion) in financing for MIDI and the Matarbari hub to develop an integrated industrial, port and commercial centre.

The investment would cover deep-sea port and logistics facilities, road and rail links, industrial infrastructure and economic zones, positioning the Maheshkhali-Matarbari region as an international hub for industry, logistics and investment.

With Jica’s support, a master plan extending to 2041 is being prepared to guide development under the MIDI.

A key component is Phase II of the Matarbari Port Development Project, backed by a Jica loan of ¥105.362 billion. The project includes container and multipurpose terminals, dredging, access roads and related infrastructure, according to the ERD.

The proposed Cox’s Bazar-Maheshkhali channel bridge would improve mainland access, supporting port operations, industrial development, and energy infrastructure.

Japan has also financed major energy infrastructure in the region. Jica provided eight loan tranches totalling ¥712.430 billion for the Matarbari coal-fired power plant.

$1.57b for manufacturing, semiconductors, automobiles

Bangladesh will seek Japanese investment in export-oriented vehicle and auto-parts manufacturing, as well as joint semiconductor and nanotechnology laboratories at engineering universities.

The proposed labs aim to develop domestic chip technology and skilled workers, supporting a target of $1 billion in semiconductor exports by 2030 and meeting Japan’s demand for skilled industry workers.

The government also plans to attract Japanese manufacturers to the Bangladesh Special Economic Zone in Araihazar to establish vehicle and auto-parts factories for export to Japan and regional markets through Matarbari deep-sea port.

The package will also target investment in electronics, machinery and precision engineering. A proposed bilateral Economic Partnership Agreement (EPA) is expected to support technology transfer and investment, strengthen industrial supply chains and expand exports.

$2.2b for energy and climate resilience

The package allocates ¥350 billion ($2.20 billion), including ¥200 billion for energy and the green transition and ¥150 billion for climate-resilient infrastructure.

Bangladesh will seek Japanese investment in renewable energy, energy storage and grid modernisation to improve efficiency and reliability. The government aims to raise installed power generation capacity to 35,000MW by 2030.

Climate investments will cover coastal protection, embankments, integrated water management and climate-resilient urban infrastructure. The government will also seek grants and concessional financing for long-term climate adaptation, ERD officials said.

$1.22b for agriculture, blue economy, tourism

The package allocates ¥195 billion, including ¥120 billion for agriculture and agro-processing and ¥75 billion for the blue economy and tourism.

Bangladesh aims to modernise northern agriculture through Japanese technology, including smart irrigation, precision farming and advanced food-processing facilities, to boost productivity and exports.

Blue economy initiatives will focus on sustainable use of Bay of Bengal resources, including deep-sea fishing, seafood processing, international certification, coastal infrastructure, marine logistics and cold-chain transport.

Tourism plans include attracting Japanese investment in eco-resorts, hotels, wellness centres and digital services in Cox’s Bazar, the Sundarbans, the Chattogram Hill Tracts and archaeological heritage sites.

The government also plans a Buddhist pilgrimage circuit linking Paharpur, Mainamati, Mahasthangarh, Rangamati and Bandarban, with Japanese-language guides, signage and interpretation services to attract more visitors from Japan.

Bangladesh seeks to send 100,000 workers, students to Japan annually

Bangladesh will propose sending 100,000 skilled workers and students to Japan annually to meet the country’s growing labour demand and improve employment opportunities for young Bangladeshis.

More than 10,000 Bangladeshis travelled to Japan on student and employment visas between February and April 2026, the ERD report said. Around 25,000 Bangladeshis have received opportunities to study in Japan this year, while approximately 9,500 have gone for work in engineering, ICT and technology, 3,500 under technical training programmes and 1,600 as specified skilled workers.

To achieve the annual target, Bangladesh will propose establishing a Human Resource Development Special Zone with joint financing from Japanese public and private institutions.

The proposed zone will house Japanese-language training and professional certification centres, alongside specialised technical programmes in nursing, caregiving, driving, ICT, mechanics, engineering, and manufacturing.

International-standard trainers, modern curricula and recognised qualifications will be introduced to ensure that workers acquire the necessary skills before travelling to Japan.

PPP facility, more Japanese investors

Bangladesh will also propose establishing a ¥25 billion Public-Private Partnership Project Preparation Facility to develop bankable projects and attract private investment.

Another proposal is to launch a regular high-level Development and Economic Partnership Dialogue between the two countries.

Bangladesh currently hosts 338 Japanese companies, with the government targeting an increase to 500 by 2030, according to the ERD report.