Japanese apparel buyers are seeking to increase sourcing from Bangladesh as businesses from both countries move to capitalize on the recently signed Economic Partnership Agreement (EPA), a development that could further strengthen bilateral trade and help Bangladesh diversify its export markets beyond Europe and North America.
The renewed interest emerged during a meeting held in Dhaka between leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and representatives of Japanese organizations, including the Japanese Commerce and Industry Association in Dhaka (JCIAD), the Dhaka office of the Japan External Trade Organization (JETRO), and the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI).
Officials from the Apparels and Textiles Committee of JCIAD also attended the discussions, which focused on expanding sourcing opportunities and strengthening partnerships between manufacturers and buyers in both countries.
According to Kazuiki Kataoka, Country Representative of JETRO Dhaka, Japanese companies are keen to establish stronger business relationships with Bangladeshi manufacturers and identify factories capable of meeting the quality and compliance requirements of the Japanese market.
“This was the first meeting between Japanese apparel entrepreneurs and BGMEA leaders, and it is expected to create new opportunities for expanding business relations between the two countries,” Kataoka said following the meeting.
Bangladesh currently exports more than $1.4 billion worth of garment products to Japan annually, with apparel accounting for around 80% of the country’s total exports to the East Asian nation. The remaining 20% consists of non-apparel products.
The latest initiative comes after Bangladesh and Japan signed an Economic Partnership Agreement on February 6, 2026, a landmark move aimed at deepening trade and investment cooperation between the two countries. Industry stakeholders believe the agreement will provide a solid framework for expanding bilateral commerce and attracting further Japanese investment into Bangladesh.
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Entrepreneurs from both sides are eager to see the EPA implemented quickly to unlock its full potential, Kataoka said, adding that Japanese businesses continue to show growing confidence in Bangladesh as a manufacturing destination.
Membership in the Japanese Commerce and Industry Association in Dhaka has steadily increased to 163 companies, reflecting rising interest among Japanese firms in expanding their presence in Bangladesh.
The development also aligns with Japan’s long-standing “China Plus One” strategy, introduced in 2008, under which Japanese manufacturers have been seeking alternative production bases to reduce overdependence on China. Bangladesh has emerged as an attractive destination due to its competitive labor costs, expanding industrial base and improving infrastructure.
The dedicated Special Economic Zone for Japanese investors in Araihazar, Narayanganj, has already become operational and is expected to accommodate more Japanese companies in the coming years. Industry observers say the zone could play a pivotal role in boosting Japanese investment and facilitating greater integration of Bangladesh into Asian supply chains.
JBCCI President Tareq Rafi Bhuiyan Jun said a new committee, titled “Market Strategy for Development of Japan Markets,” has been established to promote trade relations and facilitate greater access for Bangladeshi exporters to the Japanese market.
The committee is working with BGMEA to prepare a model list of qualified supplier companies capable of serving Japanese buyers, an initiative aimed at simplifying sourcing and strengthening buyer confidence.
The increased focus on Japan comes at a time when Bangladesh’s garment sector is facing slower growth in several traditional markets. Exporters are increasingly turning toward Asian destinations such as Japan, South Korea and Turkey to diversify risks and reduce dependence on Western markets amid shifting consumer demand and global supply chain uncertainties.
Under the EPA, Bangladeshi garment products are expected to continue enjoying duty-free access to Japan once the agreement becomes effective. Bangladesh currently benefits from preferential access to the Japanese market under its least developed country (LDC) status, and Japan has already extended those preferences until 2029 despite Bangladesh’s graduation from the LDC category.
BGMEA President Mahmud Hasan Khan said the industry aims to more than double apparel exports to Japan, targeting shipments worth $3 billion within the next one to two years.
“We are placing greater emphasis on Asian markets such as Japan, South Korea and Turkey as part of our export diversification strategy,” he said.
Japan is already among Bangladesh’s largest apparel destinations in Asia, and industry analysts believe the combination of duty-free access, rising Japanese investment and evolving supply chain strategies could create significant opportunities for the South Asian nation.
As global brands and retailers continue to seek resilient and diversified sourcing bases, Bangladesh’s apparel sector is positioning itself to capture a larger share of Japanese demand, potentially making Japan one of its fastest-growing export markets over the next decade.
