$1b China Economic Zone Takes Off, Opening New Industrial Frontier for Bangladesh

CHATTOGRAM, July 27: Bangladesh on Monday launched one of its most ambitious industrial development projects, breaking ground on the long-awaited China Economic and Industrial Zone (CEIZ) in Anwara, a flagship initiative expected to attract more than US$1 billion in investment, create over 100,000 jobs, and redefine the country's manufacturing and export landscape.

The launch marks a major milestone in Bangladesh-China economic cooperation and is expected to transform the southern bank of the Karnaphuli River into a vibrant industrial, logistics and investment hub, unlocking a new phase of export-led growth.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury, while laying the foundation stone of the specialised government-to-government (G2G) economic zone at Belchura, described the project as a turning point for the nation's industrial future and a critical pillar in Bangladesh's ambition to become a US$1 trillion economy by 2034.

"This is not simply another economic zone; it is the beginning of a new chapter in Bangladesh's industrialisation," he said. "The CEIZ will reshape the economy of Anwara, drive the development of southern Chattogram and open new horizons for investment, exports and employment across the country."

The minister said the government has set a target of creating 10 million jobs, with the CEIZ alone projected to generate employment for more than 100,000 people through direct and indirect economic activities.

"Although discussions currently involve investments of around US$500 million, total investment, including industrial establishments and infrastructure, will eventually exceed US$1 billion," he said.

He said the project would stimulate growth far beyond manufacturing by creating opportunities in housing, transportation, logistics, supply chains, services and small and medium-sized enterprises (SMEs), injecting fresh momentum into the economy of the entire Chattogram region.

Highlighting the need for a skilled workforce, Amir Khosru urged China to establish a vocational and skill development centre in Anwara or Chattogram to prepare local workers for emerging industries while expanding overseas employment opportunities.

He also encouraged Chinese enterprises to participate in Bangladesh's capital market, saying the country's financial sector is undergoing comprehensive reforms to make it more attractive for international investors.

Chinese Ambassador Yao Wen described the project as one of the most significant outcomes of Prime Minister Tarique Rahman's recent visit to China and a powerful symbol of the growing strategic partnership between the two countries.

He said the CEIZ would strengthen Bangladesh's industrial and supply chains, enhance export competitiveness, create quality employment and deepen bilateral economic cooperation.

Reaffirming Beijing's commitment, the ambassador said China would work closely with Bangladesh to ensure the project's timely completion, attract globally competitive Chinese manufacturers and develop the zone into a flagship of high-quality Belt and Road cooperation.

Following the foundation-laying ceremony, Ambassador Yao held discussions with representatives of several Chinese companies preparing to establish manufacturing operations in the economic zone.

More than 300 guests attended the ceremony, including Home Minister Salahuddin Ahmed, State Minister for Land and Chittagong Hill Tracts Affairs Mir Mohammad Helal Uddin, Bangladesh Economic Zones Authority (BEZA) Executive Chairman Chowdhury Ashik Mahmud Bin Harun, CEIZ Chairman Wang Benchian, Members of Parliament, senior government officials, business leaders, Chinese investors and diplomats.

The groundbreaking comes nearly a decade after Bangladesh and China signed a memorandum of understanding during Chinese President Xi Jinping's landmark visit to Dhaka in 2016 to establish a dedicated Chinese economic zone in Bangladesh.

Despite being regarded as one of the country's most strategically important investment projects, the initiative remained stalled for years because of administrative and procedural delays before finally receiving approval from the Executive Committee of the National Economic Council (ECNEC) on June 16, ahead of Chief Adviser Tarique Rahman's official visit to China.

Spread across 317 hectares in Anwara, the project will be developed at an estimated cost of  Tk 41.89 billion, with Bangladesh contributing Tk 17.22 billion and China providing Tk 24.67 billion in loan financing. Construction is scheduled for completion by December 2031.

According to BEZA, the zone will feature world-class industrial infrastructure, including a 20,000-tonne multipurpose jetty, dedicated road networks, gas and electricity transmission facilities, a 25-million-litre-per-day Central Effluent Treatment Plant (CETP), water reservoirs, solid waste management systems, substations and other modern utilities required for export-oriented industries.

The project also includes a 1,235-metre jetty access road, a 1,181-metre internal road, gas transmission capacity of 4.24 million cubic feet per day, two 33/11-kilovolt substations, nearly 12 kilometres of boundary walls, and a waste management facility capable of processing 60 tonnes of solid waste each day.

Officials believe the economic zone will substantially increase the commercial significance of the Karnaphuli Tunnel, Bangladesh's first underwater road tunnel, by accelerating industrialisation and urbanisation on the southern bank of the Karnaphuli River and attracting global manufacturers to the region.

BEZA estimates the project will initially attract at least US$500 million in foreign direct investment before total investment surpasses US$1 billion as industries become operational.

As Bangladesh's first specialised government-to-government economic zone, the CEIZ is expected to become a flagship symbol of Bangladesh-China economic cooperation, strengthen the country's position in regional supply chains and usher in a new era of industrial growth, export diversification and large-scale employment generation.