30 Chinese companies pledge over $1bn for investment in Bangladesh

The BIDA chief says the commitment is rooted in the Chinese industrial and economic zone in Chattogram’s Anwara

Bangladesh has secured over $1 billion in investment commitments from the Chinese government and businesses as part of a $2.1 billion package, which also includes loans and grants.

A total of 30 Chinese companies have committed to investing in the country, according to the Bangladesh Investment Development Authority (BIDA) Executive Chairman Ashik Chowdhury.

Chief Advisor Muhammad Yunus returned to Dhaka on Saturday after a four-day state trip to China.

Speaking at a press conference on Sunday afternoon at the Foreign Service Academy about the visit, the BIDA chief said: “This total commitment of $2.1 billion is different from previous deals. Many of our past agreements were in the form of loans, which require repayment.

“While loans provide immediate funding, the challenge lies in paying them back, with interest, over time.

“On the other hand, investments stay within our economy, offering long-term benefits and job creation,” he added.

The bulk of the Chinese investment will focus on a Chinese industrial and economic zone being developed in Chattogram’s Anwara.

Work is under way to set up the zone on an 800 acre, or 323.76 hectares, plot of land.

Despite delays since 2022, Ashik highlighted that progress had “notably” sped up in the last three months.

He said, “We’ve made considerable strides and received major decisions from the government.

“Negotiations have reached a stage where investors are confident that construction work will begin sometime this year.

“Land acquisition has been completed, and the focus is now on the construction phase.”

He added that half of the $750 million loan will be directed towards developing the Chinese economic zone in Chattogram while the other half will go towards modernising the Mongla Port.

In addition, Ashik revealed an additional proposal from China to establish another Chinese economic zone in Mongla.

If accepted, this would mark the second such zone in Bangladesh.

The healthcare sector collaboration was a key focus of the interim prime minister’s China visit.

One key area of collaboration during the trip was in the healthcare sector.

The BIDA chief said: “About 12 percent of the commitment comes as grants, totalling around $250 million—$150 million for technical assistance and $100 million for hospitals.

“We are working to secure China’s support for advanced hospitals and primary healthcare, reducing reliance on India and Thailand.”

Ashik said the Chinese economic zone played a crucial role in securing these investments. “We have long discussed Chinese investment and have once again realised its significance.

“We, however, have not fully utilised this opportunity. Chinese investors have some understanding of Bangladesh, but their knowledge is still limited.

“We must engage more actively with China, as it holds the greatest investment potential for us,” he added.