BANGLADESH INSTITUTE OF INTERNATIONAL AND STRATEGIC STUDIES

JAPANESE FDI IN ASEAN COUNTRIES: LESSONS FOR BANGLADESH

Author: Abdullah-Al-Mamun, Mad Saifullah Akon, Shiblee Noman

DOI Link: https://www.doi.org/10.56888/BIISSj2024v45n4a1

ABSTRACT

This study employs ASEAN experiences to examine Japan’s FDI in Bangladesh. It examines the variables that have made Japanese FDI in Bangladesh effective and draws lessons from ASEAN, where Japan has invested for decades. The analysis shows that political stability, infrastructural development, and a growing consumer market have attracted Japanese FDI in Bangladesh in recent years. It also emphasises the relevance of bilateral agreements and trade connections in encouraging investment. Out of 10 ASEAN countries, three countries — Vietnam, Indonesia and Thailand have been selected to study Japanese FDI flow in ASEAN countries. Bangladesh may learn from these three ASEAN countries to attract and maintain Japanese FDI. These lessons include streamlining regulation, improving infrastructure, investing in workforce skills, and encouraging enterprise. Policymakers, investors, and others might learn from ASEAN experiences on Japan’s FDI in Bangladesh. The qualitative analysis provides a roadmap for Bangladesh to enhance the positive impact of Japanese FDI on its economic development and emphasises the need of creating an appealing investment environment in today’s competitive world.