Dhaka: Bangladesh is set to position itself as a global export hub by capitalizing on Chinese investment, technology, and industrial capacity, particularly in the sectors of infrastructure, power generation, ready-made garments (RMG), and manufacturing.
According to Bangladesh Sangbad Sangstha, President of the Chinese Enterprises Association in Bangladesh (CEAB), Han Kun, emphasized the significant contributions made by Chinese firms to Bangladesh's economic and social development, notably through major infrastructure and power projects. Han highlighted that in the power sector alone, private investment in Bangladesh has surged by approximately 8,000 megawatts in recent years, with about 54 percent of this growth attributable to Chinese enterprises.
Chinese companies have played a pivotal role in enhancing Bangladesh's power generation and transmission capacity, which now totals around 27-28 GW. Despite these contributions, Han noted that Chinese firms often maintain a low profile, and many may not recognize the substantial impact of Chinese investment in reducing development costs and accelerating infrastructure growth in Bangladesh.
Han pointed out large-scale projects such as the Padma Multipurpose Bridge, constructed with Chinese expertise, as examples of successful collaboration. He also highlighted Bangladesh's potential to transform from a domestic market to an export-driven industrial hub, emphasizing its competitive labor costs, improving infrastructure, and strategic location near key regional markets.
Han stressed the importance of a proposed Free Trade Agreement (FTA) with China, which he sees as crucial for Bangladesh's transformation. He suggested that aligning tariff, regulatory, and investment frameworks could encourage Chinese companies to relocate manufacturing to Bangladesh for global exports. With China holding about 30 percent of the global manufacturing capacity, Chinese firms could leverage low-cost inputs in Bangladesh and export products worldwide.
However, Han cautioned that maintaining policy stability and credibility is essential, as investors become wary of sudden policy changes. He expressed concerns about the costs associated with bidding preparation, technical studies, and approvals, which could be lost if a project is abruptly shelved.
With access to Chinese inputs, equipment, and technology under an FTA, Bangladesh could enhance its competitiveness and supply-chain integration, enabling its RMG and manufacturing sectors to upscale for global exports. Han outlined several enabling factors necessary for Bangladesh to become an export hub, including access to low-cost raw materials, a stable policy framework, robust infrastructure, and a supportive regulatory environment.
Han remarked that Chinese companies are prepared to bring manufacturing capacities, technology transfers, and collaborate on setting up export-oriented facilities in Bangladesh. With aligned policies and frameworks, the potential for growth is immense. The Chinese business community in Bangladesh, which comprises approximately 250 firms under the CEAB, could serve as a bridge between the two economies, contributing to job creation, technology upgrading, and export-oriented supply-chain formation.
Looking ahead, Han expressed optimism about expanding cooperation in sectors beyond infrastructure and power, such as new energy, the digital economy, logistics, and manufacturing. He concluded that with the right policy support, Bangladesh has the potential to become one of Asia's key export and industrial centers. Despite importing large volumes of machinery and equipment from China, Bangladesh's exports to China remain modest. The CEAB, established in 2004, serves as a platform for Chinese enterprises to engage with local stakeholders and government agencies, fostering business growth and collaboration in Bangladesh.