China Accounts for Two-Thirds of EPZ Investment This Fiscal Year

Bangla Press Desk: Chinese investors have become the largest source of new industrial investment in Bangladesh's Export Processing Zones (EPZs), accounting for nearly two-thirds of the proposed investment commitments secured by the Bangladesh Export Processing Zones Authority (BEPZA) during the 2025–26 fiscal year.

According to BEPZA, land lease agreements were signed with 36 companies during the year, attracting proposed investments worth $717.71 million. Of these, 23 Chinese-owned or Chinese joint-venture companies pledged $498.86 million, underscoring China's growing role in Bangladesh's export-oriented manufacturing sector.

The latest investments reflect a notable shift in Chinese business interests. While Chinese companies have traditionally forced on the ready-made garment industry, they are now expanding into high-value manufacturing sectors such as drones, semiconductors, electronics, medical devices, logistics, copper products and automated hydroponic systems.

Among the 23 Chinese-linked investors, 18 are wholly Chinese-owned, including firms from Hong Kong, with combined proposed investments of $382.57 million. The remaining companies comprise joint ventures involving China and the British Virgin Islands, Singapore and Samoa (Taiwan).

BEPZA Executive Director (Public Relations) ASM Anwar Parvez said Chinese investment is becoming increasingly diversified beyond the apparel sector.

"Chinese investors are now entering high-value-added industries including drones, electronics, footwear, packaging materials, copper products and hydroponics," he said.

Parvez attributed the growing interest to BEPZA's stained investment promotion activities in China, including business seminars and one-to-one meetings, as well as the positive experiences of existing Chinese investors operating in Bangladesh.

"Our investors have become our strongest ambassadors. Their suppliers, business partners and affiliated companies are increasingly considering Bangladesh as an investment destination through their recommendations," he said.

He also cited Bangladesh's investment-friendly policies, competitive workforce and shifting global supply chains as key factors encouraging Chinese manufacturers to diversify their production bases.

Momentum after Prime Minister's China visit

The investment drive gathered pace following Prime Minister Tarique Rahman's official visit to China from 22 to 26 June, during which several agreements aimed at strengthening bilateral investment cooperation were concluded.

On 25 June, the Bangladesh Economic Zones Authority (BEZA) signed a memorandum of understanding with China Civil Engineering Construction Corporation to develop the China–Bangladesh Mongla Port Economic Zone on 110 acres of land adjacent to Mongla Port in Bagerhat.

BEZA also exchanged a developer agreement with China Road and Bridge Corporation for the development of the Chinese Economic and Industrial Zone in Anwara, Chattogram.

Separately, the Bangladesh Investment Development Authority (BIDA) signed a memorandum of understanding (MoU) with the China Council for the Promotion of International Trade (CCPIT) to strengthen business cooperation, facilitate Chinese investment and improve investor services.

In another development, Handa Industries Ltd received provisional land allocation at the Keraniganj Economic Zone for its planned $220 million second factory in Bangladesh, a project expected to create around 13,000 jobs.

Billions in investment proposals

Following meetings between the prime minister and senior executives of leading Chinese companies in Beijing, 12 firms expressed interest in investing $9.21 billion across energy, infrastructure, logistics, manufacturing and education.

BIDA and BEZA Executive Chairman Ashik Chowdhury said the government's immediate priority is to convert these proposals into actual investments.

"We cannot guarantee that the entire $9.21 billion will materialise, but we are working to turn as much of this investment interest as possible into operational projects," he said.

To support the process, BIDA plans to establish a representative office in China and is working with key Chinese institutions to facilitate implementation.

Ashik described Handa Industries' planned investment as a firm commitment rather than an expression of interest, adding that land allocation for the project is progressing.

He also said BEZA expects to hold the groundbreaking ceremony for the Chinese Economic and Industrial Zone in Anwara later this month.Growing confidence among Chinese investors

Chinese Ambassador Yao Wen said Prime Minister Tarique Rahman's visit had significantly strengthened Chinese companies' confidence in Bangladesh.

Speaking to journalists after the visit, he said the long-delayed Chinese Economic and Industrial Zone in Anwara had made substantial progress, with nearly all documentation completed within four months of the new government taking office.

According to the ambassador, more than 30 Chinese companies have already committed around $500 million to the project.

He described the response from Chinese businesses as one of the most significant outcomes of the prime minister's visit, saying Bangladesh continues to be viewed as an attractive destination for Chinese investment.

Priority sectors

BIDA has identified electronics, semiconductors, electric vehicle batteries, advanced and technical textiles, logistics, medical devices and IT-enabled services as priority sectors for Chinese investment.

BIDA Executive Member and Head of Business Development Nahian Rahman Rochi said Chinese investors place considerable importance on strong government-to-government relations and policy certainty.

"The prime minister's recent visit has further strengthened investor confidence. Progress on the Anwara Economic Zone, plans for a second economic zone in Mongla and our agreement with CCPIT will encourage more Chinese companies to invest in Bangladesh," he said.

Rochi added that BIDA intends to establish its China office within the next three months and that an additional $340 million in Chinese investment proposals remains in the conversion pipeline.

To facilitate investment, BIDA has established a dedicated China Desk, introduced a Chinese-language investment portal and is strengthening business-to-government coordination through a specialised investor support framework.

Officials believe that if the proposed investments are successfully implemented, Chinese capital could play a pivotal role in driving Bangladesh's next phase of export-led industrial growth.