Chen Huaiyu, the chairman of the China Export-Import Bank, announced on Thursday (27 March) that his bank would support the relocation of Chinese manufacturing plants to Bangladesh in a bid to transform the country into a platform for exports to other nations.
This marks the first time that the China Exim Bank has expressed interest in supporting Chinese private manufacturers in Bangladesh, which traditionally has focused on large-scale infrastructure and energy projects funded by Beijing.
The announcement was made during a meeting between Chen Huaiyu and Bangladesh Chief Adviser Professor Muhammad Yunus on the sidelines of the Boao Forum for Asia Annual Conference 2025 held in the Chinese coastal town of Boao.
During the meeting, Professor Yunus highlighted the strategic location and human resources available in Bangladesh, which he believes position the country to become a manufacturing hub for global companies, both from China and beyond.
He invited Chinese private manufacturers to move their operations to Bangladesh, emphasizing that the interim government would offer attractive incentives and create a trade corridor to facilitate investment.
"Bangladesh can be complementary to China as far as manufacturing is concerned," Prof Yunus stated, adding that the government is rapidly advancing the construction of a Chinese Special Economic Zone in the Chattogram region.
In addition to manufacturing, he mentioned that Bangladesh is also building new large ports that would serve the country as well as its landlocked neighbours, Nepal and Bhutan, and India's northeastern states.
In response, Chen Huaiyu stressed that Bangladesh's location provides strategic access to Southeastern Asia, Far Eastern Asia, the Middle East, and Western Asia.
He further revealed that China Exim Bank would support Chinese companies seeking to expand globally and establish manufacturing operations in Bangladesh.
“More and more Chinese companies are going global, and our bank will support their investment in Bangladesh’s manufacturing sector,” Chen said.
He also emphasised that the bank would assist in developing infrastructure to support socio-economic growth and sustainability in the country.
Citing the transformation of Vietnam's economy through the attraction of Chinese and Western manufacturers, Chen noted that Bangladesh must focus on improving its business environment to attract similar investments.
Prof Yunus agreed, saying, “We will learn from Vietnam.”
Officials from Bangladesh also raised concerns about the timely disbursement of funds from Eximbank for ongoing and upcoming infrastructure projects, such as the Dasherkandi Sewage plant.
Additionally, they requested a reduction in the commitment fees that are inflating project costs.
Chen assured that the bank would review these proposals and consider adjustments.
Lastly, Chen encouraged Bangladesh to switch to Chinese currency (RMB) for concessional loans to ease financial transactions and increase cooperation.
Both sides agreed to reconvene shortly to formalise and implement the decisions made during the meeting, with high-level officials from both governments—including Foreign Adviser Touhid Hossain, Energy and Transport Adviser Fouzul Kabir Khan, and Executive Chairman of the Bangladesh Investment Development Authority Ashiq Chowdhury—in attendance.
