A STRATEGIC PLAYBOOK FOR FUTURE JAPANESE FOREIGN DIRECT INVESTMENT IN BANGLADESH’S READYMADE GARMENTS INDUSTRY

On a recent episode of the Good to Great podcast, hosts Yume Towhida and Masrur Rahman posed a deceptively simple question, one that may quietly shape the future of global apparel manufacturing:

What if Japanese companies did not just buy from Bangladesh, but invested directly, bringing capital, technology, and manufacturing philosophy into the country’s ready-made garments industry?

To explore that question, the hosts were joined by Tareq Rafi Bhuiyan (Jun), Managing Director of New Vision Solutions Limited and President of the Japan-Bangladesh Chamber of Commerce and Industry. With over eighteen years of hands-on experience advising Japanese investors, Jun brings a rare dual perspective, combining factory-level operational exposure with boardroom-level investment insight.

“As someone who has worked with more than 125 Japanese companies operating in Bangladesh,” Jun noted, “I’ve seen how interest in the garments and textile sector has evolved over the last seventeen, eighteen years.”

What followed was not speculation, but a strategic roadmap, grounded in lived experience and long-term institutional thinking.

Bangladesh at an Inflection Point

Bangladesh’s ascent as a global garments powerhouse is well documented. Yet, as Jun emphasized, scale alone is no longer enough.

“Bangladesh started with very basic garments in the 1980s,” he explained, “but now the country is clearly moving up the value chain.”

That transition is not optional. It is structural. Rising wages, tighter compliance expectations, and shifting buyer priorities mean that the next phase of growth must be driven by capability, not cost.

Japan’s potential role is pivotal precisely because it does not invest in low-end manufacturing. “Japanese investments usually happen only in higher-value categories,” Jun said. “That’s where the technology and know-how really matter.”

Japan’s Quiet, Longstanding Interest

Japanese engagement with Bangladesh’s RMG sector dates back nearly two decades. Brands such as Uniqlo helped open the door, and others followed.

“Right now, Bangladesh exports about USD 1.2 billion worth of garments to Japan,” Jun said. “But I believe we can reach five to seven billion dollars by 2030.”

That confidence is not theoretical. Jun pointed to concrete signals, increased factory visits, expansion of existing Japanese-backed operations, and growing interest from Japanese SMEs seeking alternatives to China and Southeast Asia.

“We are seeing more and more Japanese companies, not just trading houses, but actual manufacturers, coming to Bangladesh to explore investment.”

The Confidence Trigger: Why Policy Matters

For Japanese investors, confidence is built on predictability.

Jun was unequivocal about the role of the Economic Partnership Agreement (EPA) between Japan and Bangladesh. “When the EPA is signed,” he said, “the confidence level of Japanese investors will go up significantly.”

While Bangladesh already enjoys duty-free access to Japan, the EPA formalizes the relationship. “It brings structure and predictability,” Jun explained. “And Japanese companies value predictability more than almost anything else.”

In Japanese corporate culture, long-term planning is paramount. Trade agreements are not paperwork. They are trust signals.

The Japanese Difference: Mindset Before Machines

When asked about Japanese know-how transfer, Jun reframed the conversation.

“There are two ways to look at it,” he said. “One is technology. The other is mindset, and mindset is extremely important.”

Japanese manufacturing philosophy is built on uncompromising quality consciousness. “In Japan, zero defect is not a slogan,” Jun noted. “It’s a belief system.”

Practices such as Kaizen, 5S, lean production, and the Toyota Production System are embedded deeply into daily operations. “They plan everything to minute detail,” he said. “That’s how they reduce waste, both of time and materials.”

The result is not just higher efficiency, but cultural transformation. “People who are exposed to these systems carry them forward,” Jun observed. “That’s how the entire ecosystem improves.”

Skills, Language, and the Architecture of Trust

One of the most underestimated aspects of Japanese investment is its focus on communication.

“Language is a barrier, yes,” Jun acknowledged, “but it’s also an opportunity.”

In several Japanese-backed factories, Bangladeshi employees attend Japanese language classes after work. Some are sent to Japan for training. “Once communication improves,” Jun said, “trust improves, and that changes everything.”

Trust, in Japanese business culture, is foundational. “They take time,” Jun explained. “They ask the same questions in different ways. But once the relationship is formed, there is very little divorce.”

Where Capability Upgrading Begins

If Japanese investment scales, certain capability areas will advance first.

Productivity systems lead the way. “With proper line planning and industrial engineering,” Jun said, “you get less disruption and higher ROI.”

Quality assurance and traceability follow closely. “Claims are a very serious issue for Japanese buyers,” he noted. “If traceability is strong, you can identify problems and make sure they never happen again.”

Sustainability is increasingly central. “Japanese buyers are also talking about ESG now,” Jun said. “Energy efficiency, waste management, data-backed reporting, these are becoming standard expectations.”

How Japanese Capital Actually Enters

Japanese companies are cautious by design.

“They don’t believe in full acquisition at the very beginning,” Jun explained. “Usually they start with minority stakes or joint ventures.”

Due diligence is exhaustive. “They don’t just look at financials,” he said. “They look at succession planning. They want to know who will take over in the next generation.”

This patience often frustrates local partners, but it serves a purpose. “Once the marriage happens,” Jun said, “they stay with you in good times and bad times.”

Ecosystem-Level Transformation

The ripple effects of Japanese investment extend far beyond individual factories.

Local suppliers upgrade to meet higher standards. “More and more Japanese companies are sourcing fabrics, accessories, and packaging from Bangladesh,” Jun noted. “Because local vendors are reaching global standards.”

Skills diffuse across the industry. Reputation improves internationally. “When I go to Japan and see ‘Made in Bangladesh’ in stores,” Jun said, “I feel very proud.”

Japanese consumer acceptance is a powerful signal. It elevates Bangladesh’s brand globally.

Moving Up the Value Chain

Japanese investment aligns naturally with Bangladesh’s push into higher-value products.

“Companies like Kojima make high-value ladies’ suits in Bangladesh,” Jun said. “These require technology and very strong know-how.”

Such production shifts the industry’s economics. Higher margins. Deeper skills. Longer-term buyer relationships.

“If you do business with Japan,” Jun emphasized, “it’s usually a long-term relationship. That gives factories the ability to plan for the future.”

What Success Looks Like by 2030

By 2030, Jun envisions a transformed landscape.

“We are seeing more SME companies visiting Bangladesh,” he said. “Not just traders, but manufacturers with factories in China, Vietnam, and Laos who want to move here.”

Existing Japanese investors are expanding. New ones are exploring entry. “These are very positive signs,” Jun noted.

The broader outlook is optimistic, but conditional. “The next five years are crucial,” he said. “If political stability is maintained, a lot of good things will happen.”

Japan, he believes, is the right partner for this moment. “Wherever Japan has invested, in China, Vietnam, Thailand, the countries have done very well,” Jun said. “Bangladesh can follow the same path.”

A Partnership Measured in Decades

The future of Bangladesh’s ready-made garments industry will not be secured by chasing the lowest cost.

It will be built through discipline, systems, and partnerships that think in decades, not quarters.

Japanese foreign direct investment offers exactly that, patience, precision, and a belief in shared growth.

As the Good to Great Podcast conversation made clear, the strategic playbook already exists. The question now is whether Bangladesh, and its partners, are ready to execute it.