Recent agreements inked in the Bepza Economic Zone (EZ) in Mirsharai, Chittagong, demonstrate the sharp increase in Chinese investment in Bangladesh’s ready-made garment (RMG) industry. 24 Chinese companies have signed leasing agreements to invest in the zone, totalling US $ 614.58 million, according to the Bangladesh Export Processing Zones Authority (Bepza).
Among the key players in this investment boom are YiXin Bangladesh Co Ltd, which plans to establish a manufacturing unit for shoe accessories, and Home Joy Socks Bangladesh Co Ltd, which has pledged a substantial US $ 50 million for a socks and garments factory. The overall proposed investment in the Bepza EZ, including contributions from all foreign investors, stands at US $ 867.22 million.
In addition to the agreements already in place, Bepza has identified a robust pipeline of potential investments from Chinese companies. Between August 2024 and March 2025, 34 proposals from Chinese firms have been received, with eight agreements signed since July 2024. These companies aim to diversify their production, focusing on solar accessories, bags, luggage, and other related products, alongside traditional RMG manufacturing.
The rising costs of production in China and potential increases in US tariffs on Chinese goods are motivating companies to relocate their operations. Bepza Executive Chairman Maj Gen Abul Kalam Mohammad Ziaur Rahman emphasized that the competitive labor market in Bangladesh is also a significant attraction for these investors, positioning the country as a preferred choice over others like Vietnam and Cambodia.
Despite the optimism surrounding investment, challenges remain. Water scarcity in the Bepza EZ has led to the rejection of proposals from water-intensive industries, including a US $ 135 million investment for a textile factory. However, ongoing efforts to manage water resources, such as the construction of a 45-acre rainwater storage lake, aim to mitigate these issues.
Looking ahead, Bepza expects to see further diversification of Chinese investments beyond the RMG sector, potentially expanding into renewable energy and raw materials for solar panel production. The upcoming Bangladesh Investment Summit-2025, scheduled for 7th-10th April, is anticipated to attract even more interest from Chinese investors.
As Bangladesh continues to strengthen its position as a hub for international trade, the growing influx of Chinese investment in the RMG sector is poised to create significant economic opportunities, generating jobs and enhancing the country’s export capabilities.
