Handa plans to invest $220m in Keraniganj factory

Prime Minister Tarique Rahman has invited Chinese companies to expand their manufacturing value chains into Bangladesh, pledging sweeping reforms, faster approvals and stronger institutional support as the government seeks to position the country as a leading destination for foreign investment.

Addressing the Bangladesh Investment Forum in Beijing on Thursday, the prime minister announced that Bangladesh will establish its first Investment Office in China to provide direct support to prospective Chinese investors and facilitate quicker investment decisions.

“We are inviting Chinese companies to extend their value chain into Bangladesh.

We can help Chinese companies serve global markets while benefiting from growing large domestic demand,” he said, describing the opportunity as a complementary and mutually beneficial partnership.

Organised by the Bangladesh Investment Development Authority (BIDA) in partnership with the Bangladesh Embassy in China and the China Council for the Promotion of International Trade (CCPIT), the seminar brought together leading Chinese businesses and investors to explore investment opportunities in Bangladesh.

In addition, a series of key agreements were signed and exchanged during the event to strengthen bilateral investment cooperation.

Among them was a Memorandum of Understanding (MoU) for the development of the China-Bangladesh Mongla Port Economic Zone, a project expected to enhance industrial activity around Mongla Port in Bagerhat and strengthen Bangladesh’s export infrastructure.

Another major agreement was signed with the China Civil Engineering Construction Corporation (CCECC) concerning the development of the Chinese Economic and Industrial Zone in Anwara, Chattogram, a flagship project aimed at attracting large-scale Chinese manufacturing investment.

BIDA and CCPIT also signed a cooperation MoU to enhance collaboration in investment promotion, investor facilitation and business matchmaking between Chinese enterprises and Bangladesh.

Speaking before Chinese business leaders, industrialists and institutional investors, Tarique Rahman said Bangladesh and China had progressed from diplomatic cooperation to development partnership, then to expanding trade ties, and were now entering a new phase of deeper industrial collaboration.

He said Bangladesh was undergoing a major economic and governance transformation and was ready to emerge as a trusted and competitive hub for Chinese enterprises seeking to expand their global footprint.

“Bangladesh is open for business, ready for the future, and keen to work with China, one of our longstanding and trusted friends,” the prime minister said.

Highlighting the significance of the proposed Investment Office, he said Chinese investors should not have to wait until arriving in Bangladesh to receive assistance.

“We want to be closer to you, speak to you more regularly and help you move faster from interest to decision,” he added.

The prime minister noted that as China continues its transition towards advanced manufacturing and high-value industries, parts of its manufacturing ecosystem would seek competitive overseas destinations.

He said Bangladesh was well placed to become one of those destinations due to its strategic location, growing market and expanding industrial capacity.

To improve the investment climate, Tarique Rahman said the government had launched a 180-day Action Plan aimed at reforming institutions responsible for international investment and eliminating longstanding bureaucratic barriers.

The initiative includes measures to ensure policy continuity, reduce overlapping regulatory procedures and digitise government services to enhance transparency, predictability and efficiency for investors.

Reaffirming the government’s commitment to protecting foreign investments, he assured investors of non-discriminatory treatment, the repatriation of capital and dividends in accordance with existing laws, and strong legal safeguards.

As part of efforts to attract greater Chinese investment, the prime minister said Bangladesh was developing dedicated industrial facilities, including the Chinese Economic and Industrial Zone in Anwara and another economic zone in Mongla.

He expressed confidence that stronger economic cooperation and increased investment would further deepen the longstanding friendship and strategic partnership between Bangladesh and China.

The seminar also witnessed a significant private investment commitment from Handa Industries Ltd, which completed the provisional allotment of land in the Keraniganj Economic Zone.

The company plans to invest US$220 million in establishing a new manufacturing facility, expected to create approximately 13,000 jobs.

The planned investment will mark Handa Industries’ second major venture in Bangladesh.

The company previously established a factory in the Mirsharai Economic Zone in Chattogram with an investment of US$100 million, generating around 12,000 employment opportunities.

Speaking at the seminar, BIDA Executive Chairman Ashik Chowdhury highlighted Bangladesh’s reform agenda and investment potential across sectors including textiles and apparel, agro-processing, electronics, information technology, pharmaceuticals, healthcare, automotive manufacturing and renewable energy.

CCPIT Chairman Ren Hongbin noted that China has remained Bangladesh’s largest trading partner for 16 consecutive years and is now its second-largest source of foreign investment, with nearly 700 Chinese-funded enterprises registered in the country.

On the sidelines of the event, Prime Minister Tarique Rahman also held meetings with representatives of major Chinese companies, including KMK Group and Handa Industries, as part of efforts to attract further investment into Bangladesh.