Zakir Hossain from Dhaka
Chinese investment in Bangladesh is rising but remains limited compared to Southeast Asia and concentrated in low-value sectors. So far in 2025, three Chinese firms confirmed $322m investment — $250m by Hong Kong-based Handa Industries in two garment factories and a knit-and-dyeing unit, expected to employ 25,000; $40m by Kaixi Group in BEPZA Economic Zone, Mirsarai, though with no job estimates; and $32.77m by China Lesso Group to produce PVC pipes, solar panels and household goods.
Bangladesh Bank data show China invested $208.23m in 2024, 16.4% of total FDI, slightly down from $230.25m in 2023. In contrast, Vietnam drew $2.5bn Chinese investment in 2024, while Cambodia received nearly half of its total FDI from Beijing, which has poured $30bn there in a decade.
China promised $1bn investment during chief adviser Muhammad Yunus’s March visit, but experts remain sceptical. “China’s record of acting on its promises over the last decade was very poor,” said Hasan Mehedi of the Bangladesh Working Group on Ecology and Development. Economist Mustafizur Rahman of CPD noted: “Compared to Vietnam and Cambodia, what Bangladesh is getting from China is hardly exceptional. Beijing is leveraging Bangladesh’s duty-free access in Europe, Canada and Australia.”
Local industry leaders argue Chinese investments lack technological value. “China is investing in traditional factories which we can run ourselves,” said BKMEA’s Fazlee Shamim Ehsan. “A meaningful investment would have been in polyester spinning or high-tech electronics. In Vietnam and Cambodia, they are building semiconductor plants. Here, it’s average garment factories.”
BIDA officials disagreed, insisting these are higher-end ventures. “Kaixi will produce lingerie, a first for Bangladesh, while Handa’s knit-dyeing facility will add synthetic high-end products,” said Nahian Rahman Rochi of BIDA.
Dhaka University professor MM Akash called the inflows “insignificant,” arguing they are driven by US tariffs pushing Chinese firms abroad. “Geopolitically, China is expanding its footprint here. Closer ties could strain relations with Washington,” he warned. FDI overall is shrinking. Bangladesh Bank data show inflows fell to $1.27bn in 2024, down from $1.46bn the previous year. BIDA, however, hopes Chinese projects can “break the FDI drought” and open doors for broader investment.
