Japan wishes to explore new commercial opportunities in the rapidly growing information technology industry of Bangladesh. The courtesy call of our honorable Prime Minister Sheikh Hasina to Tokyo with Akihiko Tanaka, the head of the Japan International Cooperation Agency (Jica), is a clear indication of Japan’s willingness to invest in Bangladesh.
In the recent past, Japan has indicated an interest in diversifying its businesses by investing in the textile, vehicle, motorbike, energy, and information technology sectors of Bangladesh. During a courtesy call with our honorable Prime Minister Sheikh Hasina at her official residence in Dhaka in February 2023, Nobumitsu Hayashi, Governor of the Japan Bank for International Cooperation (JBIC), conveyed this message.
The IT industry of BAngladesh has been a significant contributor to our consistent economic growth over the past few years. We are an appealing market for IT investments considering we have more than 60% of the population under the age of 35.. Besides, the IT industry in Bangladesh has been thriving as a result of the government’s Digital Bangladesh Vision 2021 initiative. Many international companies have already started investing in our IT sector.
Japan, on the other hand, is soon about to face an employee shortage and lower productivity since it has a rapidly aging population. With more than one-third of the population aged 65 and more, the country’s economy is about to experience some significant challenges.
Investing in Bangladesh’s IT sector could be beneficial to Japan’s economy considering that the business sector demands qualified staff, which our country has in abundance. Every year, thousands of IT students graduate in Bangladesh. This makes us an attractive location for international investors that want to create IT enterprises. Furthermore, while the Covid-19 pandemic was forcing many businesses to embrace remote work, Bangladesh’s IT industry has proven its adaptability to the new work culture. Our IT industry has had a substantial development potential, with an expected annual growth rate of 40%.
This is not simple speculation. To strengthen this argument, the Japan Information Technology Services Industry Association (JISA) and BASIS signed a memorandum of understanding on April 27, 2023, during Japan’s trade and investment conference. This memorandum of understanding is expected to significantly increase bilateral collaboration in the IT industry, encouraging Japanese enterprises to invest in Bangladesh’s ICT sector. On behalf of both organizations, JISA Chairman Takashi Hara and BASIS President Russell T. Ahmed signed the Memorandum of Understanding.
In addition, JISA and BASIS inked a Memorandum of Understanding to strengthen collaboration and encourage Japanese investors to participate in Bangladesh’s ICT sector. The conference was attended by Prime Minister Sheikh Hasina, who emphasized the significance of expanding trade and investment ties. In total, 11 Memorandums of Understanding have been signed at the Tokyo business summit
Congratulations to BJIT and Marubeni for their partnership. It is huge. At Dohatec we are actively learning how to engage with Japanese IT companies.