Bangladesh seems rapidly emerging as an investment hub for Chinese manufacturers seeking to diversify production bases to tide over high tariffs imposed by the United States on Chinese goods.
Such change of fortune is in sight as a number of companies from China have recently signed agreements with the Bangladesh Export Processing Zones Authority (BEPZA), and officials think others may be up and coming for relation.
They say this trade migration highlights growing confidence of Chinese investors in Bangladesh’s economic zones, particularly the BEPZA Economic Zone (BEPZA EZ) in Mirsarai, close by the Chattogram seaport.
Officials of the BEPZA have said the country’s preferential duty benefits on the vast European Union (EU) market, comparatively lower tariffs on the US market, and expanding industrial infrastructure with low labour costs make Bangladesh an attractive alternative for Chinese firms which face higher tariffs both in the United States and India.
The influx of investment is expected to not only expand Bangladesh’s manufacturing capacity but also diversify its industrial base beyond ready-made garments or RMG, supporting long-term economic growth and job creation.
Combined, the newly signed projects are expected to create employment opportunities for nearly 19,000 Bangladeshi workers across footwear, apparel, accessories, and household products.
Analysts say this could mark the beginning of a larger wave of foreign direct investment (FDI) in diversified manufacturing sectors, reducing Bangladesh’s overreliance on garments.
Industry-insiders note that Trump tariff hikes on Chinese goods have accelerated the relocation of Chinese manufacturers to alternative production hubs. By relocating capacity to Bangladesh, Chinese firms not only gain tariff-free or preferential access to western markets but also tap into the country’s growing reputation as a reliable manufacturing base.
Dunion Taiyang Sheng Shoes (BD) Co. Ltd has signed a deal to invest $10.20 million in a new footwear facility in BEPZA EZ. The factory will annually produce 2.10 million pairs of footwear, including sandals, flats, high heels, pumps, and
booties, boots, and sport shoes. The project is expected to create 1,939 jobs for Bangladeshi workers.
Executive Chairman of the BEPZA Major-General Abul Kalam Mohammad Ziaur Rahman welcomes the investment and emphasizes eco-friendly factory designs, including rooftop solar panels, rainwater-harvesting systems, and provisions for future vertical expansion.
Baishili Household Products Bangladesh Co. Ltd, another Chinese company, will invest $10.47 million to manufacture household products and bags. The plant will have an annual production capacity of 21.41 million units, covering household storage, decorative products, and bags, generating 989 jobs for local workers.
Khaixi Group is expanding its presence in BEPZA EZ with $40.05 million worth of investment to produce lingerie and related products. The facility will produce 18 million pairs of lingerie and undergarments and 20 million bra components annually, creating 3,003 new jobs.
This group’s earlier project, approved in 2022 with $60.85 million, began commercial production in June 2024 and currently employs around 3,700 workers, while the two factories combined employ 6,000.
Handa (Bangladesh) Garments Co. Ltd has pledged $41.33 million to set up a large-scale apparel-production facility. The factory will annually manufacture 72.10 million apparel items, including T-shirts, vests, polo shirts, overcoats, jackets, suits, baby garments, and dressing gowns, creating 10,112 employment opportunities.
Chairman Han Chun has said his company plans a digital, automated factory, emphasizing advanced technology, sustainable production systems, and local technical teams to connect directly with Japanese and European buyers.
Unifa Accessories (BD) Co. Ltd, a China-British Virgin Islands joint venture, will invest $48.66 million to produce 28 million fashion items annually, including bags, belts, caps, hats, scarves, mufflers, eyewear, and eyeglass frames, creating 2,830 jobs.
So far, more than 45 companies have signed agreements with the BEPZA EZ, committing over $1.0 billion in total investment. Five industries have already started commercial operation, another five are set to begin soon, and 22 factories are under construction.
BEPZA EZ in Mirsarai has a total of 540 plots, of which over 300 have already been allocated to investors.
Besides Chinese investors, South Korea’s OCF Co. Ltd has signed a deal to invest $8.06 million in Mongla EPZ. The company plans to produce tents, tent-and furniture accessories, camping chairs and tables, aluminium, carbon, ski-and trekking poles, mountain-and walking sticks, bed cots, stands, pet furniture, arrows, and bags, creating 820 jobs for Bangladeshi nationals.
Talking to The Financial Express, BEPZA Executive Director Abu Sayeed Anwar Pervez said, “These investments cover a wide range of sectors, including footwear, apparel, accessories, household products, and bags, and aim to generate tens of thousands of new jobs in Bangladesh.”
He adds: “BEPZA EZ has emerged as a key investment hub for foreign companies, particularly for industries that do not rely heavily on water consumption.”
Other essential utilities are available for the investors in the new zone, he said. Some companies are investing for producing accessories for footwear industry, following which now footwear manufactures are also investing in the same zone that would be benefiting from both of them, said Parvez.
He strikes an upbeat note on the investment front: “The recent wave of investment signals Bangladesh’s rising status as a preferred manufacturing hub, attracting diversified foreign investment while generating substantial employment and enhancing the country’s export potential.”
