China’s Export-Import (Exim) Bank has announced plans to assist Chinese manufacturers in relocating their production facilities to Bangladesh.
This strategic support aims to establish the South Asian nation as a global export platform.
During a meeting today on the sidelines of the Boao Forum for Asia Annual Conference in China, Chen Huaiyu, Chairman of the Chinese Exim Bank, shared this information with Bangladesh’s Chief Advisor, Professor Muhammad Yunus.
The details of the discussion were later confirmed through the Chief Advisor’s verified Facebook account.
Chen Huaiyu explained that his bank would play a crucial role in facilitating the relocation of Chinese manufacturing units to Bangladesh, positioning the country as an ideal gateway for exports to various regions, including Southeast Asia, East Asia, the Middle East, and West Asia.
Highlighting the country’s strategic location, Chen noted that Bangladesh could serve as a key hub for the global expansion of Chinese companies.
In the meeting, Chen revealed that the Chinese government has already invited top private manufacturers from China to relocate their factories to Bangladesh.
These companies have been promised attractive incentives, as well as the development of a trade corridor to ensure smooth business operations.
Exim Bank, which is the principal lender for several Chinese-funded infrastructure and energy projects in Bangladesh, is now expanding its role by showing keen interest in supporting Chinese private industrial investments in the country for the first time.
This development could mark a significant shift in the region’s industrial dynamics.
Commenting on the matter, Professor Muhammad Yunus said Bangladesh’s advantageous geographical position and abundant human resources have the potential to attract top companies from China and other parts of the world, allowing the country to develop into a major manufacturing hub.
He also emphasized that Bangladesh could complement China in the global production supply chain.
Professor Yunus further mentioned that the interim government is fast-tracking the development of a special Chinese economic zone in the Chittagong region, underscoring the country’s commitment to providing a favorable environment for foreign investors.
Additionally, he pointed out that Bangladesh is building new major ports that will not only benefit its own economy but also create trade opportunities for landlocked nations like Nepal and Bhutan, as well as India’s seven northeastern states.
Chen Huaiyu also acknowledged the growing global presence of Chinese companies and assured that Exim Bank would provide the necessary financial backing to encourage them to invest in Bangladesh and help develop the country’s manufacturing sector.
During the meeting, Bangladeshi officials requested the prompt disbursement of Exim Bank’s funds for infrastructure projects, such as the Dasherkandi Sewage Treatment Plant.
They also urged the bank to reconsider its commitment fees, which have led to increased project costs.
Senior officials from both Bangladesh and China are expected to meet again soon to ensure the swift implementation of the key decisions made during this important meeting, furthering cooperation between the two nations.
