Bangladesh Launches Construction of China-Backed Industrial Zone in Chattogram

Chattogram, July 27, 2026 — Bangladesh formally launched construction of the long-awaited China Economic and Industrial Zone (CEIZ) in Chattogram's Anwara upazila on Sunday, marking the start of physical work on one of the country's largest China-backed industrial initiatives after nearly a decade of delays. The project is expected to attract around $1.3 billion in investment and create more than 100,000 jobs once fully operational. 🚀

🇧🇩🇨🇳 The launch ceremony, held at the project site on the southern bank of the Karnaphuli River, also saw the signing of several sub-lease agreements with investors, the inauguration of the CEIZ One Stop Service Centre, and the participation of around 70 Chinese business representatives — a turnout that officials described as a strong vote of confidence in Bangladesh's investment climate.

💰 A Trillion-Dollar Ambition

🏛 Finance Minister Amir Khasru Mahmud Chowdhury, addressing the inaugural session, described investment as the government's highest priority, saying it would drive economic growth, employment creation, and Bangladesh's longer-term aspiration to become a trillion-dollar economy.

"Investment is the only thing that is going to drive development, create employment and lead Bangladesh to a trillion-dollar economy. Today's development of the China Economic and Industrial Zone is a building block towards that ambition."

📊 Home Minister Salahuddin Ahmed said the project represented more than the construction of an industrial park, framing it as a strategic economic bridge between Bangladesh and China:

"Bangladesh is open for business, and we mean business. Today's groundbreaking is not just the start of construction, but the foundation of a lasting economic bridge between Bangladesh and China."

🏭 Project Scope and Sectors

📏 Developed on nearly 800 acres under a government-to-government initiative between Bangladesh and China, CEIZ is expected to become a major manufacturing and logistics hub for Chinese and other foreign investors. The zone aims to attract export-oriented industries across several advanced manufacturing sectors:

• 🚘 Electric vehicles — supporting the global EV transition
• 🔋 Batteries — energy storage manufacturing
• 🩺 Medical equipment — high-value healthcare manufacturing
• 💻 Electronics — consumer and industrial electronics
• 🔧 Other advanced manufacturing — complementary industries

📍 Located strategically on the southern bank of the Karnaphuli River, the zone is close to Chattogram Port, the Karnaphuli Tunnel, and Shah Amanat International Airport — providing multimodal logistics connectivity that is critical for export-oriented industrial operations.

🤝 Joint Venture Structure

💼 The project is being implemented through Bangladesh CEIZ Company Ltd, a joint venture between the Bangladesh Economic Zones Authority (BEZA) and China Road and Bridge Corporation (CRBC). The Cabinet Committee on Economic Affairs earlier in July approved the development and land lease agreements with the joint venture.

📊 The ownership structure of the joint venture is:

• 🇧🇩 BEZA (Bangladesh) — 30 percent equity stake
• 🇨🇳 CRBC (China) — 70 percent equity stake

📜 Chinese Ambassador to Bangladesh Yao Wen said the groundbreaking marked an important step in implementing the outcomes of Prime Minister Tarique Rahman's visit to China and reflected the two countries' commitment to expanding practical economic cooperation.

💵 Li Changgui, Vice-President of CRBC, said construction had entered a new phase following years of preparatory work:

"CRBC will work closely with all partners to build CEIZ into a key platform for bilateral industrial cooperation, a major destination for international investment and a model zone of mutual benefit."

📈 Investor Commitments Strengthen

💰 BEZA Executive Chairman Ashik Chowdhury said investor confidence had strengthened significantly following the prime minister's visit to China in June, with concrete financial commitments already in place:

"More than 30 Chinese companies have already committed roughly half a billion dollars to a site that, as of this morning, is still open ground."

📊 The signing of sub-lease agreements at the launch ceremony signals that the project is moving beyond commitment letters to actual land allocation — a critical milestone for any industrial zone development. The inauguration of the One Stop Service Centre will enable investors to secure necessary approvals and utility connections through a single window, reducing bureaucratic friction.

💰 Tk 41.89 Billion Infrastructure Project

🏛 The construction launch comes little more than a month after the Executive Committee of the National Economic Council (ECNEC) approved a Tk 41.89 billion supporting infrastructure project for the zone. The project financing structure is:

• 🇧🇩 Tk 17.22 billion — Bangladesh government funds
• 🇨🇳 Tk 24.67 billion — preferential buyer's credit from the Export-Import Bank of China

🚢 The infrastructure package includes a comprehensive set of utilities and connectivity required to make the zone investment-ready:

• 🚢 Multipurpose jetty — enabling direct cargo movement via Karnaphuli River
• 🛣️ Connecting roads — linking to Chattogram Port and Karnaphuli Tunnel
• ⚡ Power substations — ensuring reliable industrial electricity supply
• 🔥 Gas transmission line — fuelling industrial operations
• 💧 Water reservoir — supporting industrial water demand
• 🧹 Central effluent treatment plant — for environmentally compliant wastewater management
• 🛞 Waste management facilities — for solid industrial waste

📅 Implementation of the supporting infrastructure project is scheduled from January 2027 to December 2031, aligning with the broader zone development timeline.

📜 A Decade of Delays Finally Overcome

⏳ The China Economic and Industrial Zone in Chattogram's Anwara was first proposed in 2016 under a Bangladesh-China memorandum of understanding signed during Chinese President Xi Jinping's visit to Dhaka. Although BEZA completed land acquisition in 2018, the project made little progress for years because of delays in:

• 📜 Appointing the developer (eventually CRBC)
• 🤝 Finalising the development agreement
• 💰 Securing Chinese financing
• 🏗️ Approving supporting infrastructure

✅ The project gathered fresh momentum following Prime Minister Tarique Rahman's official visit to China in June 2026, during which the developer agreement with CRBC was exchanged. With almost all required documentation completed within four months of the new government taking office, the path was cleared for physical construction to begin.

🌏 Strategic Significance for Regional Supply Chains

📊 Officials said the project would increase industrial traffic through the Karnaphuli Tunnel and attract large-scale export-oriented investment, particularly from China. The zone's strategic location near Chattogram Port — Bangladesh's principal seaport handling the vast majority of the country's containerised trade — positions it as a critical node in regional supply chains.

🌏 The launch also supports the government's broader efforts to transform Chattogram into a regional logistics and manufacturing hub, complementing other major infrastructure projects in the area including the Karnaphuli Underwater Expressway, the Matarbari deep-sea port, and the ongoing modernisation of Chattogram Port.

💼 For Chinese investors, CEIZ offers a strategic manufacturing base that combines Bangladesh's competitive labour costs and duty-free market access with Chinese capital, technology, and supply chain expertise — an increasingly attractive proposition as global companies seek to diversify production away from concentrated manufacturing bases in East Asia.

📊 With construction now formally underway, attention shifts to the pace of infrastructure delivery and the speed at which committed investors can begin factory construction. For Bangladesh, the CEIZ represents one of the most consequential test cases of its ability to translate high-profile investment announcements into operational industrial capacity over the coming five-year implementation window.