Munima Sultana
Japanese companies in Bangladesh are hopeful about expanding their businesses this year though operating profit forecast by them for the last year dropped significantly among Asia and Oceania countries, according to an annual survey.
The Japan External Trade Organisation (JETRO) 2024 survey, conducted across 20 Asia and Oceania countries found that while the number of profitable Japanese companies increased in ASEAN countries and India, it remained low in Bangladesh.
The survey conducted in between August 20 and September 18 just after the country's changed political scenario found that 41.9 per cent Japanese companies in Bangladesh expect to make a profit in 2024 which is second-lowest rate in the region after Myanmar.
According to JETRO survey, though the Diffusion Index (DI) of Bangladesh dropped to 6.6 from 41.8 in 2024, it is expected to rebound to 43.5 in 2025. Bangladesh ranked fifth in the whole region and its score is the lowest in South Asia. The 2024 business confidence DI stood at 11.1 points.
"The percentage of companies intending to expand in Bangladesh has always remained among the highest in the region for the last 15 years, along with India," the survey noted.
The JETRO has been conducting the survey since 1987 to understand the current business activities of Japanese-affiliated companies operating in Asia and Oceania and to disseminate these findings widely.
The survey forecast for 2025 found that 50 per cent Japanese companies expect their profit to increase this year while 6.5 per cent anticipate a decline and 43.5 per cent expect to break even.
Among other surveyed countries, 37.4 per cent companies projected an increase in their operating profits, while 26.3 per cent anticipated a decrease. Regarding business development over the next 1-2 years, 43.8 per cent companies indicated that they intended to expand in the region.
"In Bangladesh, 57.7 per cent companies expressed intentions to expand their business activities, which is the second highest," according to the survey which cited the "Strengthened sales structure in local market" as reason for the expansion. China recorded its lowest-ever expansion rate.
munimaruna@yahoo.com
