Japan’s External Trade Organization has made a clear call during talks with Bangladesh garment exporters to improve logistics and port operations as a key to boosting Japanese investment in the country. This important development comes as Japanese business leaders express strong interest in expanding operations in Bangladesh, especially in the apparel sector, citing the country’s export potential and labor advantages. Japanese investors, already numbering more than 350 firms in Bangladesh, reaffirm their commitment but emphasize that sluggish customs processes, weak port connectivity and poor intermodal links are holding them back. Experts say that cutting trade logistics costs by 25 percent could raise exports by up to 20 percent, and even a one‑percent improvement in transport costs may lift export earnings by more than seven percent. Analysts note that Bangladesh ranks poorly in global logistics performance, and reducing administrative delays could significantly attract more foreign direct investment. They highlight options such as faster inland container depot development, better economic zone connectivity by rail and road, and fully implementing the national logistics policy. Japanese officials have urged stronger coordination among agencies and private sector involvement in upgrading multimodal transport systems connecting ports, railways and highways. Channels like the proposed Bay of Bengal Industrial Growth Belt initiative are also expected to support expanded industrial value chains and attract new investors under the Japan‑Bangladesh partnership. At the same time, stakeholders stress the need for regulatory clarity, predictable customs procedures and simplified tax systems, warning that policy shifts or bureaucratic delay risk undermining investor confidence. Many Japanese firms report frustration over lengthy administrative steps and uneven enforcement, and they advocate for more transparent governance and digital customs platforms. Leaders from Bangladesh’s garment industry welcomed the message, seeing logistics reform as essential to growing garment exports beyond current destinations and reaching higher value markets such as Japan. They believe improvements in supply chain infrastructure could complement existing strengths and private sector momentum. Investors and analysts suggest that aligning transport, port and trade policy with investor needs will make it easier for Japanese companies to relocate production, partner in manufacturing zones, and hire skilled local workers. If successfully implemented, logistics upgrades could help Bangladesh compete better with regional peers in attracting manufacturing investment. Stakeholders say that with stronger infrastructure and consistent policy support, the country can activate latent Japanese capital in apparel, shipping and related industries, unlocking long-term growth.
