China eyes to boost investment in Bangladesh as business environment improves

Black_cats · Mar 3, 2023

China eyes to boost investment in Bangladesh as business environment improves

ECONOMY

TBS Report
03 March, 2023, 09:25 pm
Last modified: 03 March, 2023, 09:33 pm

In FY22, China invested around $644 million in Bangladesh

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FILE PHOTO: The Chinese national flag is seen in Beijing, China April 29, 2020. REUTERS/Thomas Peter

Bangladesh will see an increased investment in the textile and clothing sectors in the coming days as the business environment has marked tremendous improvement in recent years, said Calvin Ngan, president of the Overseas Chinese Association in Bangladesh (Ocab).

Bangladesh and China enjoy warm relations that will reach a new height in the coming days, he said at the Chinese New Year celebration at Le MERIDIEN Hotel in the capital recently.

The event was hosted by the Ocab and Hong Kong Economic and Trade Office in Bangkok.
According to the annual report of the Bangladesh Bank, China invested $465.17 million (13.5% of total foreign direct investment in Bangladesh) and Hong Kong invested $179.22 million (5.2%) in the July–June period of FY22, talking the total Chinese investment to $644.30 million.

The USA was the top investor with $661.12 million in investment in FY2022, which was 19.2% of the total foreign direct investment, the central bank report shows.

A 100% export-oriented Chinese company called the South China Bleaching and Dyeing Limited has invested $150 million in the Dhaka Export Processing Zone (EPZ) with an employment of 10,000 workers and employees.

As a rapidly growing multinational organisation in Bangladesh, South China Limited has earned a solid reputation both locally and globally in the textile and clothing sectors over the years.

With its state-of-the-art technology and a highly competent management team, the company has successfully etched its brand name worldwide as a reliable manufacturer of textile products.

Laying emphasis on people-to-people contact, Calvin Ngan, who is also the managing director of South China Ltd, said, "In China, Chinese New Year also means Spring celebration, it is a moment for gathering, for expressing our thanks and to give blessing to our friends and family."

"The Overseas Chinese Association in Bangladesh is home to all Chinese in Bangladesh. Our mission is to foster a relationship between two nations and two cultures. During the past two years, our organisation has worked with authorities concerned to distribute vaccines and donate PPEs to people," said Calvin.

"The past three years of the pandemic have been a stormy winter for many of us. Fears and worries loom over our heads. We faced and overcame challenges that were not seen in our generation," he said.

"2023 is a very special year. It is the year of the rabbit. The pandemic winter has ended, and spring has come. We see our motherland opening up the border, no more quarantine.

Flights between Bangladesh and China are increasing. Economic and cultural activities begin to pick up. We are seeing more Chinese coming to Bangladesh and more Bangladeshi going to China, said the Ocab president.

"We are here to seek a win-win relationship between Bangladesh and China. Together we must maintain peace and prosperity for both countries to build a better future for our generations," Calvin Ngan added.

Addressing the event, Shah Mohammad Mahboob, director general of International Investment Promotion of the Bangladesh Investment Development Authority (Bida), said the business environment in Bangladesh has marked a gradual improvement in recent years as the country has become a hub of investment in the South Asian region.

Under the leadership of Prime Minister Sheikh Hasina, stakeholders are working relentlessly to improve the business environment in Bangladesh, he said.

"Bangladesh holds a strategic position in South Asia and Southeast regions, and developed countries have a special interest in the country," said Shah Mohammad Mahboob, expressing hope that Chinese investment in Bangladesh will mark a gradual rise in the coming days.

He also said the Bida, in cooperation with the stakeholders concerned, is ensuring One-Stop services to entrepreneurs and businesses to invest in different sectors.

Director of Hong Kong Economic and Trade Office in Bangkok Sheung-yuen Lee, in his speech, said Hong Kong has become one of the leading investors in Bangladesh, pouring $1.8 billion to date mainly in the textile and energy sectors. Bilateral trade has already reached over $1 billion.