Why Japan should look to Bangladesh for its next big tech investment

As Japan IT Week 2025 opens in Tokyo from April 23-25, it marks not just a celebration of technological advancement but also an opportunity for strategic collaboration. Bangladesh enters the arena with a clear and confident message: the country is ready to become Japan's next major partner in the global tech ecosystem.
Bangladesh's ICT sector has grown from modest beginnings into a $1.4 billion export industry. Its services now reach more than 80 countries, including Japan, the US, the UK, Germany and Australia. With an ambitious target of $5 billion in ICT exports by 2027 and a long-term goal of $50 billion by 2041, Bangladesh's growth is not speculative—it is the result of focused policies, strong infrastructure, and a highly capable workforce.
Central to this growth is a young and skilled population. Over 60 percent of Bangladesh's 180 million citizens are under 35. Each year, more than 20,000 students graduate with IT-related degrees from universities, while another 30,000 receive industry-standard certifications in areas like cloud computing, cybersecurity, UI/UX design, and data science. Bangladesh now ranks among the top 10 countries for the number of computer science graduates per year. According to the Oxford Internet Institute, it is also the second-largest supplier of online freelance services globally.

To better serve Japanese markets, new language and cultural training programmes in Dhaka, Chattogram, and Rajshahi are preparing tech graduates to work seamlessly with Japanese firms. Hundreds have already achieved JLPT N3 or higher levels, enabling easier integration into Japanese corporate environments.
The existing Bangladesh-Japan tech partnership is already bearing fruit. In fiscal year 2021-22, Bangladesh's ICT exports to Japan reached $120 million—up from just $56 million in 2016-17. More than 100 Bangladeshi companies are now engaged with Japanese clients either directly or via subcontracting. Sectors such as embedded systems, mobile app development, and enterprise solutions have seen the most traction. Notably, several Japanese firms have quietly established remote development teams or back-office operations in Dhaka and Sylhet.
This growing bilateral engagement is supported by proactive government initiatives. Under the "Digital Transformation of Bangladesh" agenda, led by the ICT Division, the government has prioritised investment in broadband infrastructure, digital education, and e-governance. There are now 29 high-tech parks and software technology zones offering modern facilities, 10-year tax holidays, 100 percent profit repatriation, and duty-free import of capital equipment. These zones are fully open to foreign investors.
The Bangladesh Investment Development Authority ensures fast-track services for company registration, work permits, land acquisition, and more. In the latest JETRO survey, 71.6 percent of Japanese firms operating in Bangladesh expressed interest in expanding, citing improved regulatory conditions and workforce availability.
Beyond the tech sector, Bangladesh's macroeconomic fundamentals are strong. With consistent GDP growth averaging over 6 percent over the past decade—even during global crises—Bangladesh's economy surpassed $450 billion in 2024. The country's 35 million-strong middle class is driving increased adoption of digital services, creating new markets in fintech, health-tech, and e-commerce. More than 1,500 startups are currently active, and global venture capital investments crossed $250 million in a single year recently.
This is not about competition, but complementarity. Japan's aging population and shrinking domestic IT workforce have created a talent gap that Bangladesh is uniquely positioned to help fill. Bangladeshi firms can offer agile back-end development, app localisation, AI model training, and round-the-clock support that aligns with Japan's needs. Already, Japanese SMEs have partnered with Bangladeshi teams to build IoT solutions for agriculture and AI tools for logistics.
Japan IT Week is more than a trade fair, it is a bridge -- a bridge connecting mature economies like Japan with emerging digital powerhouses like Bangladesh. We invite our Japanese counterparts to walk across this bridge with us.
Bangladesh offers world-class talent, unmatched cost efficiency, and a sincere commitment to partnership. Let this be the beginning of a new chapter in Japan-Bangladesh digital cooperation—one built on trust, mutual respect, and shared growth.
Shish Haider Chowdhury, ndc, is secretary of the ICT Division. Md Taibur Rahman is team leader of the Bangladesh delegation to Japan IT Week 2025 and joint secretary at the ICT Division. Contact: [email protected] or [email protected]
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