China’s foreign direct investment (FDI) in Bangladesh has reached $2.67 billion as of September 2024, making China the country’s second-largest investor. This includes $1.41 billion from mainland China and $1.26 billion from Hong Kong, driven by China’s efforts to diversify amid the US-China trade war.
Key sectors attracting Chinese FDI include textiles ($760.14 million), telecommunications ($322.45 million), trading ($203.78 million), and agriculture, energy, and pharmaceuticals. Experts suggest that Bangladesh can attract even more investment by improving its business environment.
Opportunities exist in electronics, the semiconductor industry, and agriculture, with potential for growth in garments, footwear, the blue economy, and fisheries. While China has heavily invested in Vietnam and Cambodia, Bangladesh has the potential to capitalize on shifting global trade dynamics if it enhances its investment climate.
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