The South Asian region is gradually emerging as one of the significant marketplaces in the world. According to the experts, the wave first hit in the year of 2008. It was the development in the field of technology and few changes in the field that pushed for the expansion. Recently, the wage hike in China has forced many countries to stumble over the new situation. The shift has become an obstruction for the Japanese companies and they’re looking for an alternative marketplace to carry out their business. In this regard, the Japanese companies have expressed their willingness to expand their businesses with Bangladesh.
The strategic location of China and other facilities had helped numerous foreign companies to make that land as their production bases in Asia. According to a report from a popular media outlet, the Japanese companies are in search of cheaper production bases, and the criteria are being fulfilled only by Bangladesh. According to the experts, cheap labour cost is cutting off a major sum of the amount from maintenance and this is why the companies are looking forward to expanding their business in the land. According to a statement made by Japan External Trade Organization, the number of Japanese Companies working in Bangladesh has been increased by more than tripled from 2008. Now there are more than 200 companies in 2017.
The companies belong to different fields like near about 30 companies are in the leather or clothing industries, 10 of them deals in the field of logistics and 15 deals in the field of IT services. It is very important to note that the number of Japanese companies seems less than Thailand or China, however, the rate of growth is very high due to the cheap labour cost in the Asia-Pacific region.