Bida to open China office to woo investment

The move – part of a 180-day reform drive under Tarique Rahman – comes as Bangladesh positions itself to benefit from rising labour costs in China, tariff tensions with the United States and a broader realignment of global supply chains

The Bangladesh Investment Development Authority (Bida) is set to open its first overseas office in China within six months, aiming to capture a share of shifting Chinese investment flows and address long-standing investor bottlenecks at source.

The move – part of a 180-day reform drive under Tarique Rahman – comes as Bangladesh positions itself to benefit from rising labour costs in China, tariff tensions with the United States and a broader realignment of global supply chains.

Bida officials said the proposed office will recruit Chinese nationals to engage investors directly, resolve queries in real time and coordinate with its Dhaka headquarters under the Prime Minister’s Office. The proposal has already been submitted for approval.

“This will allow us to respond faster to investor concerns and improve Bangladesh’s visibility in China,” said Bida Executive Chairman Chowdhury Ashik Mahmud Bin Harun, adding that the office is expected to be operational within six months.

While officials say Chinese firms have shown growing interest, Bida stopped short of projecting inflows. “It is not possible to quantify the increase at this stage,” Ashik said.

Bida has identified 13 priority areas in the infrastructure sector, with the implementation of the Chinese Economic Zone project in Anwara, Chattogram, placed at the top of the list. Bida expects that the successful execution of this project will lead to a significant surge in Chinese investment in the country.

Business leaders flag persistent risks

Business leaders, however, caution that an overseas office alone will not unlock large-scale investment without parallel reforms at home.

They cite concerns over law and order, weaknesses in the banking sector and frequent changes to VAT and customs policies as key deterrents.

Al Mamun Mridha, former secretary general of the Bangladesh-China Chamber of Commerce and Industry, said the idea of a China office had been proposed around 18 months ago, along with plans to include desks for Bangladesh’s commercial counsellor in Beijing and the chamber itself.

“The Bida office will help with documentation and licensing,” he said. “But stronger institutional presence could further boost investment by facilitating business-to-business links, joint ventures and post-investment support.”

He added that countries with free trade agreements with China tend to attract significantly higher investment. Talks on a Bangladesh-China FTA have stalled since the fall of the Sheikh Hasina government, and resuming negotiations would be important.

Chinese investment in Bangladesh

According to Bida’s annual report, China ranks second after Saudi Arabia in terms of private FDI in Bangladesh between 2019 and 2024. During the period, investment from mainland China amounted to $4.38 billion, while Hong Kong contributed $173 million. 

In 2025, three Chinese companies committed a total of $322 million in investments in Bangladesh’s textiles, apparel, and manufacturing sectors. Of this, Hong Kong-based Honda Industries pledged $250 million, Kiaxi Group $40 million, and China Lesso Group $32.77 million.

The total FDI stock from China, including Hong Kong, in Bangladesh reached $2.67 billion as of September 2024.  

At the end of the fiscal 2024-25, the total FDI stock in Bangladesh stood at $18.95 billion, of which Chinese FDI accounted for 8.44%.