Japanese companies favour Bangladesh as their first choice among Asian countries to expand business.
According to a survey by the Japan External Trade Organisation (JETRO) it is because of its high potential and profitability.
Some 70.3 per cent of the Japanese companies in Bangladesh are mulling expanding business in the next one to two years, 23.4 per cent believe their operations would remain the same and 1.6 per cent are pondering over going for a reduction, according to the survey.
The statistics are from the ‘2019 JETRO Survey on Business Condition of Japanese Companies in Asia and Oceania’, which is yet to be released officially, according to reports.
The survey took comments of 13,458 Japanese firms engaged in manufacturing and non-manufacturing sectors in 20 Asia and Oceania countries between the months of August and September last year.
The Japanese firms in India are the next most optimistic ones, 65.5 per cent are planning expansion.
Vietnam comes in third, with 63.9 per cent of the Japanese firms there are planning expansion.
It is followed by Pakistan at 62.5 per cent.
Bangladesh came in 5th in terms of profitability for Japanese companies.
The survey also found some 68.3 per cent of the Japanese companies are planning to increase the number of local employees they have in the next one year, 29.3 per cent to keep it the same and 2.4 per cent to go for a reduction.
According to the survey, local production cost is 30.4 per cent cheaper in Bangladesh compared with that in Japan.