BEPZA Chief Eyes Chinese Investment in High-End Manufacturing

Bangladesh Export Processing Zones Authority (BEPZA) Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman is optimistic that the upcoming visit of Chief Adviser (CA) Professor Dr. Muhammad Yunus to China will pave the way for the establishment of high-end manufacturing industries in Bangladesh, particularly in sectors such as electrical and electronics products, vehicles, and medical equipment.

"Professor Dr. Muhammad Yunus is a globally recognized figure, admired for his achievements and leadership. His visit holds significant potential for attracting Chinese investment, especially in advancing the establishment of high-end product manufacturing industries in Bangladesh," Ziaur Rahman stated in an interview with the national news agency BSS.

The Chief Adviser is scheduled to visit China from March 26-29. According to CA's Press Secretary Shafiqul Alam, the focus of the visit will be on the relocation of Chinese factories to Bangladesh, with the goal of transforming the country into a manufacturing hub for international markets.

Ziaur Rahman emphasized the “golden opportunity” created by the recent trade restrictions and tariff impositions by the United States, which have led Chinese investors to seek alternative locations for their production facilities. "With looming high tariffs on Chinese exports to the US, manufacturers are eager to relocate production. Bangladesh has emerged as a prime destination for such investments," he noted.

The BEPZA chief expressed confidence in Bangladesh's improving law and order situation following the changes brought about by the August 2024 uprising. He credited the government's firm measures for restoring stability and creating an environment conducive to foreign investments. "Investors from countries such as China and South Korea have already shown strong interest, and with the nation's image improving, we are optimistic about attracting even more investment, particularly from Europe and other global markets," he said.

To facilitate the flow of Chinese investment, Ziaur Rahman mentioned that Chinese investors have requested the establishment of consular offices in industrial hubs such as Shanghai and Guangzhou. “Most Chinese investors are located outside Beijing, and the distance and time involved in obtaining visas can be a challenge. Opening consular offices in Shanghai and Guangzhou would streamline the process and encourage more Chinese investors to explore opportunities in Bangladesh,” he explained. The issue is currently under consideration by the government.

In addition, Chinese investors have called for increased direct flight connectivity between Dhaka and key cities like Shanghai and Guangzhou, which would further ease travel and business exchanges.

Highlighting Bangladesh’s strategic location and its rapidly growing economy, the BEPZA Executive Chairman pointed out that the country is positioned at the crossroads of South Asia and Southeast Asia, offering seamless access to both regional and international markets. “With a vibrant population of over 180 million people, many of whom are young, educated, and skilled, Bangladesh has the workforce needed to drive businesses forward,” he added.

Ziaur Rahman also emphasized that Bangladesh's low wages and easily trainable workforce make it an attractive destination for foreign investors. “The country offers one of the lowest minimum wages in Asia, and its investment policies have been progressively liberalized to create a favorable environment for foreign enterprises," he said. "Additionally, BEPZA’s ‘One Stop Service’ initiative simplifies the process of setting up and running industries in the country’s export processing zones.”

These factors are contributing to the growing interest from Chinese investors in Bangladesh’s manufacturing sector. Currently, Chinese investors have established 110 industrial units in BEPZA’s Export Processing Zones and BEPZA Economic Zone, with a combined investment of approximately $1.5 billion, generating employment for over 138,850 Bangladeshi workers.

Between July 2024 and February 2025, BEPZA signed new agreements with 26 companies, 18 of which are Chinese, further indicating the strong interest in Bangladesh as a prime investment destination.