Govt plans for 2 new economic zones for Chinese investors
Beza’s governing board meeting expected to approve proposal for establishment of nine economic zones on Sunday
Highlights:
- Bangladesh plans two new economic zones solely for Chinese investors
- Chinese firms shifting due to high U.S. tariffs on exports
- Zones target textiles, electronics, ceramics, agriculture, and renewable energy sectors
- 200-member Chinese business delegation visiting Bangladesh to explore investments
The Bangladesh government is planning to establish two additional economic zones exclusively for Chinese investors, complementing the existing Chinese Economic and Industrial Zone in Anwara, Chattogram.
According to officials from the Bangladesh Economic Zones Authority (BEZA), the move comes in response to growing Chinese interest in investing in Bangladesh.
Among the planned zones, Power Construction Corporation of China Ltd (PowerChina)—a state-owned enterprise—will develop Chandpur Economic Zone-1 on 3,038 acres in Matlab North upazila, Chandpur, under a government-to-government (G2G) agreement.
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The second economic zone, the Bhola Eco-Development Economic Zone, will be located in Bhola Sadar and Daulatkhan upazilas and privately developed by Leez Fashion Industries Limited, a Chinese company operating in Bangladesh.
On Sunday, a meeting of BEZA's governing board, chaired by Chief Adviser Professor Muhammad Yunus, is expected to approve the proposal for the establishment of nine new economic zones, including the two designated for Chinese investment, according to the meeting agenda.
Officials indicate that the upcoming governing body meeting may also decide to allocate land from abandoned jute, textile, and sugar mills under BEZA's management to fast-track foreign investment, ensuring gas and electricity availability to make these areas investment-friendly.
Chinese-focused economic zones
BEZA has already prepared a detailed project proposal for the Chinese Economic and Industrial Zone, which has been under development in Anwara since 2016, and submitted it to the Planning Commission. Officials expect the project to receive approval at an upcoming Executive Committee of the National Economic Council (ECNEC) meeting.
The expected investment for the Chinese Economic Zone in Anwara is $1.5 billion, while the Bhola Eco-Development Economic Zone is projected to attract $1.8 billion. The final investment amount for the Chandpur Economic Zone-1 will be determined following a technical feasibility study, BEZA officials confirmed.
According to BEZA documents, Chandpur Economic Zone-1 is situated on an island within the Meghna River. Currently, it lacks waterway infrastructure connecting it to the mainland, meaning regular transportation links are unavailable.
Due to these logistical challenges, renewable energy projects and agriculture-based industries will take priority over traditional manufacturing and industrial setups in the zone.
Following the signing of an MoU between Bangladesh and China for this economic zone, a technical feasibility study will assess the investment potential.
BEZA anticipates that the Bhola Eco-Development Economic Zone has strong potential for foreign investment in garment, textile, electronics, and ceramics industries, which could create approximately 40,000 jobs.
Growing chinese investment interest
Several BEZA officials stated that rising US tariffs on Chinese products—reaching 125%—have prompted export-oriented Chinese companies to explore alternative investment destinations.
Additionally, Chinese firms supplying raw materials for textiles and ready-made garments are increasingly considering relocating factories to Bangladesh.
BEZA Executive Chairman Chowdhury Ashik Mahmud Bin Harun has announced that 200 Chinese business representatives, led by the Chinese Minister of Commerce, will visit Bangladesh next month to explore investment opportunities. They have already initiated discussions with the Bangladesh Investment Development Authority (BIDA).
A BIDA official, speaking anonymously, confirmed that the majority of the 200-member Chinese delegation consists of raw material exporters for textiles and ready-made garments.
These companies already export goods to Bangladesh, and based on their internal cost analysis, establishing operations within Bangladesh would allow them to supply raw materials at lower costs—prompting their interest in direct investment.
Chinese delegations strengthening business ties
Additionally, Al Mamun Mridha, former Secretary General of the Bangladesh-China Chamber of Commerce and Industry, informed The Business Standard that a business delegation from China's Yunnan province, led by the head of state, will visit Bangladesh next month.
This delegation previously visited Bangladesh last year and engaged in discussions with ACI, Energypac, and other companies regarding investments in automotive and electronics industries.
"However, due to political changes, progress on those investment plans slowed," Mridha noted.
He confirmed that the Chinese business delegation is now returning next month to revisit investment proposals.
Mridha also highlighted that many Chinese investors are keen on investing in Bangladesh's renewable energy, textiles and RMG, leather and leather goods, ICT, agro-processing, agro-machinery industries, and the blue economy.
