Japan is likely to help Bangladesh's small enterprises to manufacture spare-parts for its high-tech manufacturing industries like cars and motors as Dhaka has sought technical support for developing the production houses here, officials have said.
This strategic support will enable local production houses to produce components for export to global Japanese manufacturing giants, including Suzuki, Honda and Toyota, says a senior Ministry of Finance (MoF) official.
Following a request from Bangladesh's Finance Minister, Amir Khosru Mahmud Chowdhury, on Thursday, visiting Japan International Cooperation Agency (JICA) President Dr Tanaka Akihiko assured of the help to Bangladeshi manufacturers. The assurance was given by the visiting JICA President during a high-level bilateral meeting with Bangladesh's Finance and Planning Minister, Amir Khosru Mahmud Chowdhury, in Dhaka.
In response to the minister's request, the JICA chief has assured of the technical support, saying that JICA has a 50-billion yen (US$310 million) emergency fund under the first POWERR Asia initiative to support such kind of programmes.
The JICA President also met Prime Minister Tarique Rahman and Road Transport Minister Sheikh Rabiul Alam and took part in different official programmes as his 5-day tour of Bangladesh concludes today (Sunday).
During the meetings, JICA and Bangladesh have also agreed to form a high-powered committee to facilitate implementation of the Japan-funded projects in Bangladesh on a "fast-track" basis, says the MoF official.
The committee is proposed to be formed with the leadership of a Director-General of JICA and Additional Secretary of the Economic Relations Division (ERD), he adds.
This committee would work with the JICA and with the line ministries to expedite the ongoing and pipeline projects and their works.
Besides, the JICA and Bangladesh have also agreed to streamline the execution of the long-stalled JICA-funded projects like MRT-1 and MRT-5, and the 3rd terminal of Hazrat Shahjalal International Airport (HSIA).
Both sides have agreed to open the 3rd terminal at HSIA by December this year by completing all the project works before the inauguration, MoF officials have said.
According to a senior official from the MoF, the initiative aims to upgrade the foundational capabilities of small and medium enterprises (SMEs) in Bangladesh.
Under this technical -cooperation framework, local vendors will receive training, technology transfers, and standard compliance frameworks necessary to enter the tightly controlled Japanese automotive -and other manufacturing-supply chains.
The project focuses on developing dedicated production houses for enhancing precision manufacturing capacities within local industrial zones in Bangladesh.
The initiative follows a formal proposal placed by Finance Minister Amir Khosru Mahmud Chowdhury, who highlighted the need for Bangladesh to pivot beyond its traditional apparel -export dominance.
As Bangladesh progresses with the implementation of its landmark Economic Partnership Agreement (EPA) with Japan, the government is prioritizing high-value electronics and automobile engineering to create high-skilled youth employment.
The JICA President, Dr Tanaka Akihiko, responded positively to the proposal. He reiterated JICA's long-term commitment to boosting Bangladesh's private -sector productivity, stating that upgrading local manufacturing standards presents a "win-win" economic opportunity for both nations.
Senior ministry officials have confirmed that a framework for technical matching and expert deployment is being mapped out to expedite the setup of these light-engineering production lines.
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