S Korea, China pledge Bangladesh major investments, WB sees strong promise, suggests reforms
Chairman of Youngone Corporation Kihak Sung announced that his company would establish a textile and fashion college in Chattogram within the next few months to create a talent pool that could help transform Bangladesh into the world's leading textile hub
Highlights
- South Korean investors plan major investments in Bangladesh
- Focus sectors include textiles, fashion, energy, logistics, and healthcare
- Chief Adviser Muhammad Yunus assured business-friendly reforms
- Youngone Corporation to establish a textile and fashion college in Chattogram
- Interest shown in setting up an API pharmaceutical plant
- Proposal made to build a hospital in Chattogram by a Korean surgeon
South Korean investors are poised to make substantial investments in Bangladesh, a delegation led by Youngone Corporation Chairman Kihak Sung announced during a meeting with Chief Adviser Muhammad Yunus at his official residence Jamuna today (8 April).
Chinese investors, in a separate meeting with Yunus, expressed interest in the Chinese Economic Zone in Chattogram and the proposed Mongla zone, where China is supporting seaport modernisation. Several companies also signalled plans to use Bangladesh as their South Asian manufacturing hub.
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Meanwhile, Bida and Beza Executive Chairman Chowdhury Ashik Mahmud Bin Harun today said the Brics-led New Development Bank (NDB) will provide $1 billion in funding to Bangladesh over the next year.
The South Korean delegation included representatives from leading Korean companies such as LG, and others operating in textiles, fashion, spinning, logistics, healthcare, power, and renewable energy sectors.
The delegation toured the Korean Export Processing Zone (KEPZ) in Chattogram on Monday, managed by Youngone Corporation, where several investors pledged immediate investments.
Chief Adviser Yunus highlighted ongoing reforms to improve the business environment, particularly in labour, industrial, energy, and investment sectors.
"We are delighted you're visiting at a time when we are building a new Bangladesh," Yunus said. "Foreign investment is now easier and more streamlined. We are committed to making up for lost time."
Kihak Sung, who first visited Bangladesh in 1979, praised the government's pro-business stance and confirmed that Youngone Corporation will soon establish a textile and fashion college in Chattogram to support the local talent pipeline.
Representatives from Korea's fashion and retail sectors also signalled plans to source garments from Bangladesh, citing the country's integrated supply chain. Additionally, interest was expressed in setting up an active pharmaceutical ingredient (API) plant, while a prominent Korean surgeon was encouraged by Dr Yunus to consider establishing a hospital in Chattogram.
Also present at the meeting were Bida Executive Chairman Chowdhury Ashik Mahmud Bin Harun and SDG Coordinator Lamiya Morshed, underscoring the government's commitment to attracting foreign investment.
Yunus to have breakfast meetings with Korean, Chinese investors
Chief Adviser Yunus also announced that monthly breakfast meetings will be introduced to address concerns of Korean and Chinese investors and fast-track their projects in Bangladesh. These meetings, organised by Bida on the 10th of each month, will sometimes be attended by Dr Yunus himself.
The announcement followed a meeting with a Chinese business delegation, visiting for the Bangladesh Investment Summit 2025. The group, led by Pauline Ngan, vice president of Mainland Headgear, included 30 top Chinese investors across sectors such as infrastructure, power, telecommunications, and IT services.
Larger Chinese firms showed particular interest in electric vehicle infrastructure, lithium-ion battery production, and renewable energy projects including wind and offshore solar power.
To further support investors, Dr Yunus proposed a dedicated hotline and call centre to resolve complaints quickly and efficiently.
Brics-led bank to provide $1 billion support
The bank has already invested $300 million, with plans to finance both public and private sector initiatives, including infrastructure, housing, and healthcare.
The NDB Vice President recently met Dr Yunus and expressed strong confidence in Bangladesh's economic prospects.
Ashik said, "The [NDB] vice president met with the chief adviser. He said their perception of Bangladesh is very positive. Recently, they have started a project with WASA.
"They want to provide funds not only to the government but also to the private sector. We have also tried to convince them that they have the opportunity to provide funds to social infrastructure including hospitals and housing."
WB advises transparency and reform
A World Bank report released during the Summit stated that Bangladesh's population growth will surpass most middle-income countries in the next two decades, creating strong demand across housing, manufacturing, and services.
The report, titled "Bangladesh: Country Private Sector Diagnostic", emphasised that reforms are necessary to harness this potential. It identified key bottlenecks such as corruption, slow customs clearance, and limited access to finance.
Sectors like green ready-made garments (RMG), middle-income housing, paint and dyes, and digital financial services were flagged for targeted reform. For instance, it recommended amending labour laws to maintain EU market access post-LDC graduation and introducing water efficiency certifications in the garment sector.
"... the readymade garments sector demonstrates that with the right policies, Bangladesh can successfully export manufactures and attract foreign direct investment [FDI]. It will need to do this in more sectors to create jobs for the many young Bangladeshis entering the labour force," the report says.
Pointing out the unemployment rate of 28% of youth with tertiary education, it, however, warned that "Bangladesh is at risk of wasting part of its demographic dividend."
The report also identified where Bangladesh needs to work to encourage private-sector investment.
In addition, Bangladesh needs to overhaul its customs procedures and tariff structure, it added.
"Long clearance times can lead importers to stockpile inventory which can be costly," it said. Other obstacles include access to finance, tax rates, electricity supply and the informal sector.
The report also identified four sectors where reforms could serve as a "signal of commitment to a more transparent and competitive economic model".
For digital financial services, it urged establishing a protocol to enable mobile financial services to issue and validate merchant/corporate wallets that have higher transaction limits, enabling their use for wholesale transactions, publishing the Bangladesh Bank methodology if it sets any limits on merchant discount, interchange, or other fees and eliminating transfer taxes on assets moved from originator to structured finance vehicles, among others.
With appropriate policy actions, the report estimates Bangladesh could generate over 2.37 million jobs annually in construction, over 660,000 jobs in paint and dye manufacturing, and up to 460,000 jobs through digital financial service reforms.
