JAGARAN CHAKMA

Nearly half of Japanese firms doing business in Bangladesh are expecting to post operating profits this year, thanks to rebounding business confidence after national polls, strong domestic demand and cost competitiveness, according to a survey.

The number is up by more than 8 percentage points from 2024 and stands at the highest level since 2019.

“Profit growth is expected to be driven mainly by three factors: greater political and social stability after the election, rising expansion plans among Japanese firms, and growing opportunities in non-manufacturing sectors,” said Kazuiki Kataoka, country representative of Japan External Trade Organization (Jetro).

The Japanese government-backed agency promoting trade and investment conducted the survey titled “Business Conditions Survey 2025”. The report will be officially released by Jetro’s Dhaka office today.

Currently, around 340 to 350 Japanese companies operate in Bangladesh, and the number is gradually increasing.

Survey data shows that 21.6 percent of Japanese firms foresee breaking even this year, while 28.5 percent anticipate losses.

Alongside improving profit expectations, 56.9 percent of Japanese firms plan to expand their businesses in Bangladesh within the next one to two years, underscoring strong investor confidence. Only a small number of firms indicated plans to scale down, while the remainder expect to maintain current operations.

The primary driver of expansion is rising local market demand, cited by 66.7 percent of respondents. Firms also pointed to improved competitiveness and growing acceptance of their products and services.