Content

1. Introduction
2. Bilateral relation
3. Science and technology exchange
4. Low cost distribution
5. Japanese Garments Industries
6. Japanese top companies in Bangladesh
7. Ideological view of Japan to give priority Asian countries
8. Political view of economic relation
9. Population and economic relation
10. Bangladeshi Manpower in Japan
11. Japanese Investment
12. Bangladesh is the latest destination of Japanese companies
13. Industrial facts
14. Leather market in Japan
15. Agricultural technology
16. Steel industry
17. Conclusion
18. Reference

Reference

1. World economic outlook database, IMF.org

2. World Bank Country and Leaving Groups

3. Hman Development Index 2018

Assignment

Japan and Bangladesh economic relationship: present and Future prospects


Sumitted to

Nashia Zaman
Lecturer, Department of Japanese Studies
University of Dhaka

Submitted by
Khandaker Niamul Haque
Masters in Japanese studies
17th batch
Roll: 63

Introduction

Japan and Bangladesh relationship is remaining from long year old. Though, In British colonial period and during Division of Bengle relationship between Japan and Bangladesh shirnk down.
During Bangladeshi liberation war, the outstanding support of Bangladesh is from Japan is memorable. In that time Japanese students sacrifying of one day tiffin cost to sponsor Bangladesh was made an emotional event in history.
The diplomatic relationship with Bangladesh established from the begening of independence of Bangladesh.
Relarionship between Japan and bangladesh reflects through the National flag of both countries.
Bangladeshi fag is red like sun surrounded by green and Japanese flag is surrounded by red like sun surrounded by white.

Bilateral relation

Bilateral relationship of both two country is start from 1972, by establishing embasy of Japan in Dhaka and Embasy of Bangladesh in Tokyo.
In BBC world poll report, 71 percent people of Bangladesh have very friendly view about Japan
In 10th February 1972, at first the bilateral relationship between two country Japan and Bangladesh establish.  This relationship established by establishing an Embassy of Japan  in Bangladesh  at Dhaka,  the capital city of Bangladesh.
Japanese Embassy in Bangladesh perform the exchange of economic, technology cooperation, culture between two countries.
In December 2002, both country signed an agreement between Japan and Bangladesh for technical cooperation.

Science and technology exchange

Japan is very advance in science and technology. The present position in economy is dependent on the Japanese education. Japan was very rich in science and technology. From the history of Japan, Japanese people adopted different science and technology knowledge. It is also true that for growing up as an economical miracle in world within short period of time Japanese people have to sacrify hard industry. Besides of hard industry, Japanese people had well learned in science and technology from early Japanese period. Japan contains diverse people these who are inhibitant from China and Korea specially.

With adopting the inhibitant from China and Korea, Japan also adopt science and technology from Korea and China along with Japanese own science and technology knowledge.

Though, Japan is foccuses on hard technology, japan already established in soft technology else. Electronics is one of the great proud of Japanese people and nation. Bangladesh imports Japanese electronic product with highest quality with cheap cost and long lasting feature benefit.

Pharmaceuticals is another sector of Japan to export. Bangladesh also very famous in Pharmaceuticals industries. Bangladesh and Japan may gain mutual benefit by exchanging pharmaceuticals technology between both countries.

Due to shortage of agricultural land for cultivation Japan adopt to learn and innovation of modern agricultural technology, including modern harvesting technology, modern cultivation, irrigation, fertilization and controlling pestisides from harmfull effect. On the other hand Bangladesh have an abundance of farming land to produce more crops.

This feature of both two countries creates opportunity to exchange technology knowledge for mutual benefit.

Low cost distribution

Main aspacts of profitable business is nothing but an highest price selling with lowest cost in each unique product. To ensure this business owner wants to reduces some cost of unit product cost of selling.
Distribution cost is one of the major cost of selling.  The product that need more distribution cost to reach in front of final consumer,  need to fixed more price.  Price increases leads demand to decrease.  That leads less selling and generating less income.
Japan is a country of thousand of Islands. It is very easier for any supplier to use water way distribution channel to reach product in different Island to coverage maximum population.
Moreover,  In Japanese city a large population lives in a small range area.  This feature gives suppliers to ensures less cost of distribution.
Road and train transport in Japan is so reach.  These transports are may use in distribution.
When distribution cost may reduce then it is possible to sell product in less price and possible extra capital to invest to improve quality.

Japanese Garment industries

Bangladesh and Japan have a close similarity of developing. During the developing period of Japan, the clothing industries was became very rich in country and worldwide. Japan started to produce quality of cloths. In fashion and clothing Japan established as a good position in world market. As same as that Bangladesh is also in developing period very well estableshed in Garments manufacturing industries. Due to extensive quality product in Bangladeshi Garments Industries, Bangladesh became 2nd largest garments clothing exporting country in world. After China Bangladesh place as 2nd position.

Bangladesh exports cloths in Japan. For Bangladeshi Garments product Japan is a good market for generating huge income.

Garments is such kind of industry there need most of the human effort. Here automated machine technology is important, but human effort is more important. In garments manufacturing industry there need maximum number of labor. Where the question arose in terms of Maximum Number of labor then maximum labor cost is a fact. Comparing other country, bangladesh Garments industries get an extra benefit that here required low labour cost. The labor cost in bangladesh is fourth half of China and half of India. So Garments industries in Bangladesh can produce maximum production with low cost. With this benefit they also can improve the quality of product.

Japanese Top companies in Bangladesh

There have some top listed world ranking company in Japan, these are Sumitomo, Mitsubishi, Toyota, Suzuki, Honda,

These companies of Japan have a strong influence in Bangladesh market. Japan is very strong in automobile industries. Honda and Toyota is one these. Bangladesh imports Honda motor and Toyota car from Japan.

Nippon is a telegraph and television company of Japan operating there business in Bangladesh.

List of Japanese electronic companies in Bangladesh: Japanese electronic company is very well reported in world. electronics is a strong industry in Japan. Japanese electronic companies opperating their business in Bangladesh is Hitachi,

ideological view of Japan to give priority Asian countries

In Japan from the history we find The Isolation of Japan for 200 years in Tokugawa period. There have a fear of colonisation of western power,

Japan fears about colonization from long since. Therefore, Japan allow Asian country to enter in Japanese market that westerners.

Once, Japan suffered a lot of colonial problem by Dutch and portugese and other western countries.

Moreover, Japan is more conservative in their own culture. Therefore, the fear of entering different ideology in Japan the peoples fears about this.

Bangladesh, in that case very opportunistic of sharing economy with Japan.

Political view of economic relationship

In all types of relationship between different countries, mostly dependent on political view. If the relationship in terms of economical then politics plays an important role. Japan political view in terms of Bangladesh is long experienced. In liberation war Support of Japanese government is honorable. The momorable event of Japanese student by saving of a one day tiffin meal cost to sponsor Bangladesh.

Population and economic relation

Over population have a benefit of economic development of country and other country to trade with them.
Japan is a populated country with approximately 125000000 people, out of them about 2 millions are foreign residence. It is a big market for trading. A big size market increases higer consuming rate. Hence, it is more profitable idea for investors to trade in Japan.
On the other hand Bangladesh is also a big populated country. Hence, due to having big population consuming rate in Bangladesh is very high with less marketing effort.

Large popolation in both Japan and Bangladesh, gives mutual benefit and opportunity to both country to trade extensively.

Market is required for a successful business. What will be produce that mast have to sell. To sell product there need a strong market. Large population market always give benefit producer to sell product. Japan is a large population market. On the other hand bangladesh is also a large population market.

In a short range of place in both Bangladesh and Japan exists abundance of people. Both country can take this beneficial effect by considering the large population market to sell product and invest in market.

Large population market significantly reduces sells cost of distribution else. From 6800 small island and 4 major Island in Japan, Major island is densely populated. In that dense populated area also give an extra economical benefit to producer. Within short coverage of space and time maximum product can sell is ensures in large populated dense area. These major dense populated area is Tokyo, Kyoto, Hokkaido, Honshu.

As same as that Bangladesh also gives another same picture. Only a few cities are large populated dense. Most important is Dhaka and Chittagong. In these dense city it is very easy to reach in front of maximum consumer of the product.

Bangladeshi Manpower in Japan

The more population is not burden now a day.  Population is a power when population can utilise in productivity properly.
Bangladeshi Manpower is well reported all over world.  Bangladesh started to export Manpower extensively all over world after independence of Bangladesh.

In Japan, Bangladeshi Manpower have a great demand.  Japanese,  government toward Bangladeshi Manpower is positive. In Bangladesh there have an abundance of Manpower in Garments sector.  They are more skilled comparing other countries.
Recently,  An agreement have been accomplished between Bangladesh and Japan. In this agreement Bangladesh got an opportunity to export skilled Manpower in Japan.

Japanese investment

According to Board of Investment, Upto 2017 Japan invested 2003.53 Million US dollar on Bangladesh. Top 4 countries in world these Invest a big amount of Dollar in Bangladesh is UK, USA, Malaysia and Japan. Japan placed in 4th position among all other vast investing countries in world.
In Arayhazar Upozila in Narayangonj District Japanese government established an economic zone.
A large number of Japanese companies involvement happend in Moheshkhali Matarbari development initiative project.


Japanese companies is now looking the opportunity to invest and land manufacturing in Bangladesh. That have two major reason. One is political relationship and for big profit. According to Bloomberg report With cheap labour cost,  producer can produce more product in Bangladesh.
According to Japan External Trade organisation, Japanese companies in Bangladesh tripped in 2017 from 2008. In 2017, number of Japanese company in Bangladesh is about 253. Among these companies number 30 companies are clothing companies.
Another sector of Japanese investment in Bangladesh is in leather Industries.
Though, this number is less than China and Thailand,  the number of Japanese company in Bangladesh is increasing.

Mostly, any countries strategy about investment in any another country depends on the factor describe bellow,

Political situation

Population of market

Production cost

Selling cost

Political situation: If any country is politically unstable in situation then other country shows discourages to invest. Because, in politically unstable country, there have a chance of loosing in business. there have a chance of great risk. Business owner shows less tendency of taking unnecessary risk.

After, liberation war in 1971, Bangladesh is a politically stable and peaceful country. Bangladesh did not faces any major and minor war after liberation war. The political situation with other neighboir country is good. Bangladesh tries to maintain a good relationship with other Asian countries. Hence, Bangladesh should be good destiny for risk free investment.

Population of market

Large population market is very profitable for businessmen because large population market ensures greater sells within shortest period of time. Another benefit of large population market is it reduces distribution cost of selling product. Bangladesh is a large population market. Not only that it is also a dense populated country. In short range of space in Bangladesh there live most people. Estimate shows that if any company can effectively coverage Dhaka City only, it will be a great business. In that context Japanese company willing to invest in Bangladesh in order to make huge profit.

Production cost

Production cost is another great factor of investing. Wages rate of Bangladeshi labor is one fourth then China and half than India. Low labor cost ensures low cost of production. Low cost production ensures high profit.


JICA, Japan International Co Operation agency announced to keen investment in six mega infrastructure project in Bangladesh. It foccus on investing ODA project. ODA means, Official Development Assistance.

Important project of JICA investment is Cross Border Road construction project, Jamuna Bridge Railway construction project, Dhaka Mass Rapid Transit Development, Disaster Risk Management project, Matarbari Ultra Super Critical Coal-Fired Power Project,  Energy Efficiency and Conservation Promotion Financing Project

 According to officials of the Economic Relations Division (ERD, JICA is interest to invest in Bangladeshi mega project. Bangladesh Government is also positive with JICA investment.

A big investment in Tobacco sector in Bangladesh happened by JTI, Japan Tobacco Industries. Japan agreed to purchase Akij Group tobacco with 1.5 billion dollar.

Bangladesh is the world eighth largest tobacco market. Akij is placing number 2 in position. Moreover, This market in Banglades is more different from other strong market. this in that context that there have large population. In Bangladesh, Tobacco market grows annually over 2 percent.

Bangladesh is the latest destination for Japanese company

Japanese companies is now looking the opportunity to invest and land manufacturing in Bangladesh. That have two major reason. One is political relationship and for big profit. According to Bloomberg report With cheap labour cost,  producer can produce more product in Bangladesh.
According to Japan External Trade organisation, Japanese companies in Bangladesh tripped in 2017 from 2008. In 2017, number of Japanese company in Bangladesh is about 253. Among these companies number 30 companies are clothing companies.
Another sector of Japanese investment in Bangladesh is in leather Industries.
Though, this number is less than China and Thailand,  the number of Japanese company in Bangladesh is increasing.

Industrial Facts

Bangladesh is more reach in some industry.  Among these,  Garments,  Leather,  Manpower,  Leather products.
Among these,  Garments and pharmaceuticals sector Bangladesh reaches in ranking position in world.  Agriculture is also a rich sector.
Bangladesh exports agriculture,  Garments,  Manpower and leather product in Japan.
On the other hand, Bangladesh imports hard technology from Japan. In electronics and automobile market Japan is world leading position.

Due,  to having a lot of hills and stones in Japan,  The agricultural land is not as sufficient for Japan.  Due to this reason in Japan agricultural product is very costly price in Japan. To overcoming this lackings Japan all ready developed modern agricultural technology.
Bangladesh having flat land there have a lot of scope of producing agricultural product.  In that case, Japan is a prominent market for Bangladeshi agricultural product.  On the other hand Bangladesh is also a good market for Japan to export agricultural technology in order to reach in a mutual benefit.


Among all other exporting zone, Japan placed in number seven position for Bangladeshi product exporting. Major exporting product of Bangladesh in Japan is textile, clothings, leather and shirmp.

Leather market in Japan

Japanese people loves to use leather product. These leather products are leather shoes, leather hand bag, leather jacket, etc.

Bangladesh is number one leather exporting country in world. Bangladesh produces a huge amount of leather every year. Bangladesh have a enermous availability of leather product manufacturing raw materials.

The common bangladesh produce leather product is leather shoes, leather bags. Bangladesh exports leather and leather product in Japan. Japan is very good market of leather and leather product for exporting from Bangladesh.

Though, due to replacing Tennary industries from Hazaribag, Dhaka to Hemaietpur in order to maintain the residence area polution and more productivity, the export of leather is shirnked now. But, it is not for ling time continuing. The complete establishment of Tenary industry in Hemayetpur, Savar the productivity will increase to make coverage the exporting need.

Agricultural technology

The number of fulltime farmer in Japan is declining dramatically. It drops in 1.7 million from 2.2 million. Basically it may have two cause, Young people shortage for agricultural farming, Industrial development, Introducing of innovative technology in Japanese agriculture.

Young people shortage for Farming: In  young generation there found a trend to live in city area than village area. They have also a tendency of feeling a proud of getting any Job in a private company. They feels it is more prestigious in society.

Industrial development in Japan: Industrial development in Japan also introduce a negative impact on agricultural. For growing up of more manufacturing industry in Japan, land for farming is shirnked. Moreover, Japan is a land of hill. farmland decreased significantly that leads Japanese people of loosing of opportunity of Farming.

Introducing New technology: Introduction of new technology in Japanese agricultural technology reduces the need of human labour.

Steel industry

Once during the Meiji period in Japan, the economic and industrial revolution happened with a view to support millitary power. Because in that time Japan aggressively increasing the Millitary power in order to defence themselves from western colonization. The aggressive advancement of Japanese millitary powe leads to develop such industry in Japan that can support millitary. Japan develop Iron and Steel industries for millitary support. Steel and Iron industries gradually developing in Japan. Following the steel Industry development, shipbuilding and automobile is also developed.

From long since before, Japanese technology steel industries is enter  in Bangladesh to produce strong, hard and quality steel.

Iron and Steel made product of Japan is very popular in Bangladesh. And peoples search for Made in Japan

Conclution

Japan and Bangladesh had an outstanding relationship from the liberation of bangladesh. This relationship was very clear if we look at the flag of two countries.