Cost advantage draws Chinese investment in BD
Bangladesh is positioning itself as a key gateway for Chinese businesses seeking a strategic footprint beyond mainland China. Mohammad A.
Hafiz, Vice President of the Bangladesh China Club Limited, highlighted the country’s geographic location and growing regional connectivity as major advantages, making it an attractive hub for trade, investment, and supply chain diversification.
Speaking at a summit in Dhaka on Saturday, Hafiz said Bangladesh’s competitive cost structure allows Chinese firms to maintain global price advantages while relocating production.
“This creates strong opportunities for companies seeking efficient manufacturing alternatives while protecting profitability and export competitiveness,” he said.
The summit, organised by the Bangladesh China Club Limited with representatives from the Global Chinese General Chamber of Commerce and the Guangdong-Hong Kong-Macao Greater Bay Area Business Federation, showcased Bangladesh’s growing industrial and investment potential.
Hafiz emphasised the country’s proven ability to manage multi-billion-dollar projects and international syndicated financing, demonstrating readiness to support large-scale industrial development and long-term foreign partnerships.
Energy stability has been a key focus for investors.
Hafiz noted that Bangladesh is establishing government-to-government frameworks for long-term LNG supply and expanding floating storage and regasification infrastructure to ensure uninterrupted industrial operations.
Strengthened labour laws and professional service standards are also enhancing regulatory compliance, protecting institutional investors.
Specialised asset management companies and strategic advisers are being used to ensure investment capital fuels operational growth rather than debt accumulation.
Meanwhile, the government continues to demonstrate political commitment through robust bilateral ties and high-level policy dialogues to create a secure investment environment.
Bilateral trade with China reached $24.05 billion, dominated by Chinese exports of $22.88 billion, while Bangladeshi exports stood at $1.17 billion.
Saif Uddin Ahmed, CEO of the Bangladesh Foreign Trade Institute, noted that amid global turbulence—including US tariffs and geopolitical tensions in the Middle East—Bangladesh offers Chinese investors a stable, strategic alternative for relocating factories.
Mohammad Mamdudur Rashid, Managing Director of United Commercial Bank PLC, underlined the bank’s support for Chinese investment, highlighting a dedicated Chinese desk staffed by Mandarin-speaking professionals.
He identified future collaboration opportunities in green energy and climate technology, agribusiness, logistics, healthcare, education, fintech, and tourism.
Muzaffar Ahmed, Chairman of the Sustainable and Renewable Energy Development Authority, said Bangladesh is among Asia’s fastest-growing economies, with rapid progress in industrialisation, infrastructure, exports, digital transformation, and energy.
He added that the power, energy, and mineral sectors offer significant opportunities for international investors, while the government remains committed to energy security, sustainable development, and a clean energy transition.
With its cost competitiveness, strategic location, and improving regulatory and energy frameworks, Bangladesh is increasingly being viewed as a reliable and lucrative destination for Chinese investment and manufacturing relocation, offering a gateway to wider South Asian and ASEAN markets..
