Bangladesh possesses immense potential to transform into a global export hub by strategically utilising Chinese investment, technology, and vast industrial capacity, according to Han Kun, president of the Chinese Enterprises Association in Bangladesh (CEAB).
In an exclusive interview with BSS, Han Kun highlighted the significant, yet often low-profile, contributions Chinese firms have made to the nation’s infrastructure and power sectors. He noted that Chinese enterprises are responsible for approximately 54 per cent of the roughly 8,000 megawatts of private power capacity added in Bangladesh in recent years.
“Bangladesh is no longer just a domestic market—it can become an export-driven industrial hub.” — Han Kun, President, CEAB
FTA Urged to Unlock Manufacturing Shift
Han Kun underscored Bangladesh’s strategic advantages—including its competitive labour cost, improving infrastructure (like the Chinese-involved Padma Bridge), and geopolitical location—as major draws for manufacturers.
Crucially, he urged the finalisation of the proposed Free Trade Agreement (FTA) with China. He stated that aligning tariff, regulatory, and investment frameworks would allow Chinese companies to shift manufacturing capacity from China to Bangladesh, leveraging lower input costs and then exporting globally.
China currently controls about 30 per cent of global manufacturing capacity, making the proposed shift highly impactful.
Call for Policy Stability and Investment Credibility
While expressing optimism, the CEAB president cautioned that policy stability and credibility remain paramount for attracting and retaining large-scale investors. He warned that sudden policy changes can cause substantial financial losses for firms that have invested heavily in bidding preparation and technical studies.
Han Kun affirmed that Chinese companies—which include around 250 firms operating in infrastructure, RMG/textile, and trading—are prepared to transfer technology and establish export-oriented facilities, provided the necessary framework is put in place. This includes ensuring access to low-cost raw materials, predictable regulations, and supportive logistics infrastructure.
He concluded that with the right policy environment, Bangladesh has all the necessary ingredients to become “one of Asia’s key export and industrial centres.”
