Finance Minister Amir Khosru Mahmud Chowdhury on Monday (27 July) urged Chinese investors to back high-tech and strategic sectors in Bangladesh, including semiconductor chip manufacturing.
Addressing the foundation stone laying ceremony for the proposed Chinese Economic and Industrial Zone (CEIZ) in Anwara, Chattogram, the minister highlighted the shifting focus of the country's economic priorities.
"While investment in readymade garments, medical equipment, and other traditional manufacturing sectors remains important, the time has come to pivot towards higher-tech and strategic industries. Bangladesh offers immense potential for advanced, tech-driven sectors, including semiconductor chips," he said.
Emphasising the need for knowledge sharing, Khosru added, "We are not looking merely for capital investment; technology transfer and the development of a skilled workforce are equally vital. The industries set up here will demand a large volume of highly skilled personnel."
The minister outlined the government's broader economic vision, noting that investment would serve as the primary driver for economic growth, job creation, and achieving a $1 trillion economy by 2034.
Reaffirming the government's commitment to creating a business-friendly environment, Khosru added, "Bangladesh is now open for business. Investment is the top priority for the current administration, and we are working continuously to implement the changes required to facilitate it."
Furthermore, the minister reassured investors regarding the repatriation of capital and profits, addressing a long-standing concern for foreign companies. "In the past, this was a major hurdle. Investors will now be able to easily repatriate their earned profits or capital back to their home countries whenever necessary."
Turning to the financial markets, Khosru invited Chinese enterprises to get enlisted on the Bangladeshi stock market. Listing locally would enable Chinese firms to raise capital more efficiently while allowing Bangladeshi retail investors to participate in their growth — ultimately reducing reliance on high-interest bank loans.
Chinese Ambassador to Bangladesh Yao Wen; Li Changgui, vice president of the China Road and Bridge Corporation (CRBC); Home Affairs Minister Salahuddin Ahmed; State Minister for Land Mir Mohammed Helal Uddin; Chattogram-13 MP Sarwar Jamal Nizam; and Chittagong Chamber of Commerce and Industry President Amirul Haq; and Bangladesh CEIZ Company Limited Chairman Wang Benqian also addressed the event, which was chaired by Chowdhury Ashik Mahmud Bin Harun, the executive chairman of Bangladesh Economic Zones Authority (Beza).
Based on an agreement between China's commerce ministry and the Prime Minister's Office of Bangladesh, the economic and industrial zone will be developed on approximately 800 acres of land in the Belchura area of Anwara. To develop and operate this zone, Beza is implementing the "Supporting Infrastructure Project for Chinese Economic and Industrial Zone Project", to construct the necessary supporting infrastructure.
Strategic location
The proposed economic zone will be located 12 kilometres from Chattogram Port, seven kilometres from Shah Amanat International Airport, and adjacent to the Karnaphuli Tunnel. As a result, it will benefit from strong transportation and logistics connectivity, making it an attractive location for industrial and economic activities.
Calling it one of the flagship projects of China-Bangladesh cooperation, Ambassador Yao Wen said the industrial zone has so far hosted visits from more than 110 companies, signed over 30 Letters of Intent (LoIs) with potential investors, and attracted prospective investments worth nearly $500 million.
These investments are expected to create more than 1,00,000 direct and indirect jobs, he said.
The envoy said the zone is expected to attract investment not only in the readymade garment and textile sectors but also in high-tech industries such as electric vehicles (EVs), batteries, and medical equipment. "It is set to become a key foundation for the development of Bangladesh's high-tech manufacturing sector."
According to Beza, Bangladesh and China signed a memorandum of understanding on the project in 2014, and land acquisition was completed in 2016. However, the project remained stalled for years due to delays in appointing a developer, finalising financing arrangements, and resolving administrative issues.
Initially, China Harbour Engineering Company (CHEC) was considered for the role of developer, but negotiations did not progress. In 2022, the Chinese government nominated CRBC to take over the project development, paving the way for its implementation.
Later, Beza and CRBC formed a joint venture company, with Beza holding a 30% stake. The share was determined based on the value of a 50-year land lease. In return for investing $100 million in developing the economic zone, the Chinese company acquired a 70% stake.
The government-to-government project gathered pace following Prime Minister Tarique Rahman's official visit to China on 22-26 June, during which the two countries signed several investment-related deals.
Shortly before the PM's China visit, the Executive Committee of the National Economic Council (Ecnec) approved a Tk4,189 crore supporting infrastructure project for the economic zone on 16 June. Of the estimated budget, the Chinese government will provide Tk2,467 crore through preferential buyer's credit, while the Bangladesh government will fund the rest.
The supporting infrastructure includes a 1,235-metre jetty link road; a 330-metre bridge; a 1,181-metre four-lane road; a 25-million-litre central effluent treatment plant (CETP); a multipurpose jetty capable of handling 20,000 deadweight tonnes; gas transmission facilities; power substations and transmission lines; water reservoirs; and nearly 12 kilometres of boundary wall. The project is expected to be completed by 31 December 2031.
