Chinese investors want better infrastructure in Bangladesh to boost joint ventures

Chinese investors have expressed strong interest in forming joint ventures with leading Bangladeshi institutions to take advantage of the country's tax and incentive facilities.

However, they have called for improvements in infrastructure, particularly in ports, energy, and transport, alongside streamlined trade policies and assurances of stable power supply for factories.

These findings were presented in a research report released during a seminar titled "China-Bangladesh Industrial and Supply Chain Cooperation," organised by the Chinese Enterprises Association in Bangladesh in Dhaka's Gulshan today (9 July).

The report examined current market trends, investment opportunities and challenges, and prospects for collaboration in sectors such as power and energy, roads and bridges, ports, textiles and garments, trade and services, railways, civil aviation, information and communication technology, and water and environment.

The event was attended by business and investment representatives from both countries, as well as officials from relevant ministries and government departments of Bangladesh.

Chowdhury Ashik Mahmud Bin Harun, executive chairman of both the Bangladesh Investment Development Authority (Bida) and the Bangladesh Economic Zones Authority (Beza), and Chinese Ambassador to Bangladesh Yao Wen were present at the event.

According to the Chinese Enterprises Association report, more than 150 Chinese factories are currently operating in Bangladesh, employing over 2 lakh people.

The report's strategic recommendations indicate that Chinese investors are keen to utilise Bangladesh's tax incentives by partnering with top local factories. It also suggests that Chinese enterprises are interested in establishing a Bangladesh–China Green Industrial Platform.

However, to achieve this, investors have stressed the need for modernising ports, improving transport systems and energy infrastructure, enacting appropriate trade policies, and ensuring a reliable power supply for industrial operations.

During the discussion, Chinese Ambassador Yao Wen stated, "China's investment in Bangladesh has increased since last August compared to the same period before," adding, "China will continue to increase trade and investment in Bangladesh."

He further noted, "The commercial cooperation between both countries has reached new heights."

Chowdhury Ashik Mahmud Bin Harun also expressed optimism, stating, "Most likely, China will be the largest investor in Bangladesh."

He identified significant investment opportunities in textiles, ready-made garments, and the digital economy.

'Tripartite cooperation not aimed at any third country'

In response to journalists' questions about a recent meeting in Kunming between Bangladesh, China, and Pakistan, Ambassador Yao Wen said that the cooperation between the three countries is "open and transparent" and "not targeting any third country."

"We are in very critical moments… so we need to work together," he said. "Our cooperation is based on mutual trust, an open and transparent process. It does not target any third country."

"It is for peaceful cooperation and development for the livelihood of all three countries," he added.

He also noted that Bangladesh, China, and Pakistan have already identified 12 areas for cooperation, including trade, industries, education, environmental protection, water resources management, and culture.

Addressing the issue of recent US tariffs on Bangladesh, the Chinese ambassador expressed confidence in Bangladesh's ability to manage the situation.

"I believe you have enough ways and your own capacity to overcome [the tariff issue imposed by the US]," he said.

He also emphasised the need to protect international trade norms, stating, "China and Bangladesh need to work together to safeguard the World Trade Organization rules."

Asked about the upcoming visit of a delegation from Bangladesh Jamaat-e-Islami to China, Ambassador Yao Wen clarified that it had no connection to the upcoming national election.

"The delegation led by Shafiqur Rahman [Jamaat's ameer] will discuss cooperation between the two parties with the Communist Party of China," he said.

"As for the election, it's up to the Bangladeshi people to decide. It is not part of the discussion."