Around 72% of Japanese firms in Bangladesh plan business growth in 1-2 years, according to a Jetro survey.

This statistic positions Bangladesh as the second most attractive country in the Asia and Oceania regions for Japanese companies seeking business growth.

The survey findings were presented at the Gulshan office of the Metropolitan Chamber of Commerce and Industry (MCCI) in Dhaka.

Conducted between August 22 and September 21, 2022, the survey garnered responses from almost 4,400 companies.

Yuji Ando, the country representative of Jetro, stated that 214 Japanese companies based in Bangladesh participated in the survey.

The report indicated that around 62% of these companies anticipate making a profit in 2023. Yuji Ando commented on the results, noting that Japanese companies with operations in India, Indonesia,

Bangladesh, and Vietnam held positive expectations for market growth due to the size and potential for expansion.

The same sentiment was observed among companies in Cambodia and Pakistan, where growth expectations exceeded the current market size.

Despite these optimistic growth prospects, assessments of the general business environment were less favorable.
In contrast to the positive reception of the business environment by 60% of Japanese firms in Australia, Singapore, Thailand, Vietnam, and Malaysia, the sentiment in Bangladesh was less positive.

Approximately 70.8% of firms surveyed in Bangladesh expressed dissatisfaction with the country’s overall business environment.

Of this group, 26.2% reported high levels of dissatisfaction, while 44.6% reported moderate dissatisfaction.
The survey identified several challenges faced by Japanese companies in Bangladesh.

73% of respondents cited complicated customs clearance procedures as the primary obstacle to smooth business operations.

Other notable challenges included currency exchange rate volatility, difficulties in procuring local raw materials and parts, and electricity shortages.

Despite these challenges, Japanese companies in Bangladesh remain eager to expand their operations, driven by the potential for growth in the market.