Chinese Firms Account for Two-Thirds of Bangladesh EPZ Investments in FY2025-26

Photo: Collected Chinese investors have emerged as the principal drivers of new industrial investments in Bangladesh's Export Processing Zones (EPZs).

Chinese-owned and joint-venture companies accounted for nearly two-thirds of the investment commitments secured by the Bangladesh Export Processing Zones Authority (Bepza) in the fiscal 2025-26.

Bepza signed land lease agreements with 36 companies during the fiscal year, securing proposed investments worth $717.71 million, according to official figures.

Of those companies, 23 are either wholly Chinese-owned or Chinese joint ventures, representing $498.86 million in proposed investments.

Traditionally concentrated in the ready-made garment industry, Chinese companies are increasingly moving into higher value-added manufacturing sectors, including drones, semiconductors, electronics, medical devices, logistics, copper products, and automated hydroponic systems.

Among the 23 Chinese-linked firms, 18 are wholly Chinese-owned, including investors from Hong Kong, with a combined investment of $382.57 million.

The remaining companies comprise one China-British Virgin Islands joint venture, two China-Singapore joint ventures and one Samoa-China (Taiwan) joint venture.

ASM Anwar Parvez, executive director for public relations at Bepza, said Chinese investment is no longer confined to the apparel sector.

"Chinese investors are now entering high-value-added manufacturing sectors such as drones, electronics, footwear, packaging materials, copper products and hydroponics," he told The Business Standard.

📊 Key Details

According to him, Bepza's investment seminars, business meetings and one-to-one engagement programmes in China over the past several years have increased awareness of Bangladesh's EPZs among potential investors.

Parvez said existing Chinese investors' positive experiences with Bepza's services, infrastructure and investment environment had also encouraged fresh investment.

In many cases, their suppliers, business partners and affiliated companies are now considering investments in Bangladesh through investor referrals," he said.

He added that Bangladesh's investment-friendly policies, competitive labour force and changing global supply chain dynamics had enhanced the country's appeal to Chinese manufacturers seeking to diversify their production bases.

Fresh momentum after PM's China visit The investment drive gained momentum following Prime Minister Tarique Rahman's visit to China from 22 to 26 June, during which several investment-related agreements were signed.

💡 Analysis & Context

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 Chattogram's Anwara.

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

Meanwhile, provisional land allocation has been completed for Handa Industries Ltd at the Keraniganj Economic Zone.

The company plans to invest $220 million in its second factory in Bangladesh, a project expected to create around 13,000 jobs.

🎯 What This Means for Bangladesh

Billions in proposals under review Following meetings between the prime minister and senior executives of major Chinese companies in Beijing, 12 firms proposed investments worth $9.21 billion across the energy, infrastructure, logistics, manufacturing and education sectors.

Ashik Chowdhury, executive chairman of Bida and Beza, said the government's immediate priority is to convert the proposals into actual investments.

"We cannot guarantee that the entire $9.21 billion will materialise.

However, we are trying our best to convert as much of this investment interest as possible into real projects," he said.

"Our strategy has two equally important components – building a strong investment pipeline while simultaneously converting the existing pipeline into actual investments." To support the process, Bida plans to establish an office in China and is working with major Chinese institutions to facilitate implementation.

📈 Looking Ahead

Referring to Handa Industries' investment, Ashik said the project represented a firm commitment rather than a preliminary expression of interest.