Over the past decade, Bangladesh has experienced significant growth in foreign direct investment (FDI) from China, with more than $2.6 billion in FDI received, according to a report by the Chinese embassy in Dhaka. This surge in investment is attributed to Bangladesh’s participation in China’s Belt and Road Initiative (BRI) since 2016 and its favorable investment climate. The Chinese FDI has been directed towards various sectors, including garments, telecommunications, energy, manufacturing, infrastructure, leather, and chemicals.

Bilateral trade between Bangladesh and China has also witnessed substantial growth, reaching $25 billion in 2022 compared to $6.77 billion in 2013. China is a major contributor to Bangladesh’s economic development, with nearly 1,000 Chinese enterprises operating in the country, creating approximately 550,000 employment opportunities.

Despite the positive trends, the report highlights challenges faced by Chinese enterprises in Bangladesh, such as cultural differences, sub-par public safety conditions, and infrastructure issues. The report suggests addressing these challenges through special training for Chinese-funded enterprises’ employees to understand Bangladesh’s cultural characteristics, habits, and religious values.

The Chinese embassy emphasizes the need for Chinese companies to leverage their advantages in professional fields, expand operations, improve project management, and enhance international compliance. The report calls for the establishment of a comprehensive self-regulation and cooperation mechanism, as well as increased policy support from Bangladesh’s government, including tax reductions or exemptions and preferential loans. The embassy also seeks improved dialogue and coordination mechanisms to address project difficulties encountered by Chinese enterprises in Bangladesh.

Source: The Daily Star