Amid rising labour costs there, the Japanese garment industry has more or less shifted production from China to Bangladesh and other Asian countries.

But even after last Friday's terrorist attack in Dhaka, Japanese clothing makers will continue to do business in Bangladesh as it remains important both in terms of sales and production. However, the Japanese would demand additional security, it is understood.

Fast Retailing, the operator of the Uniqlo casual wear chain, is one of the major Japanese companies that is conducting business in Bangladesh. The Japanese company established a joint venture with Grameen Bank's local unit to operate stores and set up a production office to supervise factories.

Fast Retailing has been boosting production in Bangladesh along with Sweden's Hennes & Mauritz (H&M) and Inditex, the Spanish owner of Zara. These so-called fast-fashion brands are supported by their Bangladesh operations.

Some Japanese companies that have client plants in Bangladesh, such as casual clothing retailer Adastria and men's clothing store Aoki, said that they will keep their policies unchanged.

A representative of Fiber maker Toray Industries that is also operating its joint venture plant there have said that his company was not considering scaling back operations immediately given its favorable environment for exporting to Western markets. He further added that Bangladesh is one of their important production bases.