I. Overview

Bangladesh shares land borders with India to the east, west and north, and Myanmar to the southeast, and is adjacent to the Bay of Bengal to the south. Bangladesh is located at the northeast coast of the Bay of Bengal with a population of around 170 million in an area of 148,460 square kilometers.

Bangladeshi is a key node of the Maritime Silk Road in the Belt and Road Initiative. In 2016, the Sino-Bangladesh relationship was upgraded into a strategic cooperation partnership, and the two governments decided to jointly promote the development of the Belt and Road Initiative, which will bring benefits to the peoples of both countries and contribute to regional connectivity, development and prosperity.

II. Investment Strength

Supported by geographical advantages, rich labor resources, and a huge consumption market, Bangladesh has become the one of the countries with the most economic and development potential in South Asia. In recent years, the country’s rapid economic development and increased foreign investment have seen its GDP grows steadily.

The export trade of Bangladesh has radiated onto the global market. As the second largest garment exporting country, over 85% of its clothing products are sold to North America and Europe. On September 1st, 2022, China officially implemented a zero tariff on 98% of exports from Bangladesh to China.

Bangladesh has sufficient labor resources, with 60% of the labor population being aged between 15-20, and its population dividend estimated to sustain until the year 2038. Its labor costs are an obvious advantage, where the common laborer is around $70/month, that of a technician is $100/month, middle-level management staff receiving $400-500/month and senior management staff $ 1,000-2,500/month.

Bangladesh has an easy trading environment and enjoys EU preferential treatment, with tariff exemption on exports to Canada, Norway, Japan, New Zealand, and the UK. Furthermore, Bangladesh is also a member of the Asia-Pacific Trade Agreement (APTA), the South Asian Association Regional Cooperation, the Group of Eight Developing Countries, the ASEAN Regional Forum, BIMSTEC—EC. Meanwhile, Bangladesh is negotiating with Turkey and Nepal on Free Trade Agreements.

III. Profile of Chinese Economic and Industrial Zone (CEIZ)

China and Bangladesh are traditional friendly neighbors. Since the establishment of a diplomatic relationship in 1975, bilateral relations have continued to develop steadily and healthily. In October 2016, the Sino-Bangladesh relationship was upgraded to a strategic cooperation partnership. The CEIZ became part of the first batch of strategic cooperation projects, where the G-G cooperation & development document was signed under the witnesses of leaders of both countries.

The CEIZ is the first industrial zone in Bangladesh invested, developed and operated by a Chinese company. As the developer of the CEIZ, the CRBC plans to invest $300 million, which may bring 50,000 job opportunities. The CRBC has rich experience to undertake the infrastructure construction and development of the industrial zones, and has successfully undertaken the Kanapuri River tunnel and the Sixth China-Bangladesh Friendship Bridge in Bangladesh.

IV. The Location of the CEIZ

The CEIZ is situated in Chattogram district, where the largest port and the second largest city - Chattogram city - are located. Chattogram has a major deepwater port and the country’s largest sea port, as well as being the earliest city to have access to the export processing zone. Thanks to the industry-shipping-air linked model, Chattogram district has become the driving engine for industrial and economic growth in Bangladesh.

Location of the Park

The CEIZ is located on the east bank of the Kanapuri River. Through the underground tunnel, it can reach the international airport, railway hub, city center and other major commercial centers within 20 minutes by road. The CEIZ is just 12km from Chattogram Port and has convenient transport links. 

V. Industrial Planning and Orientation

The overall planned area of the CEIZ is 314 hectares and will be developed in three phases, with a focus on developing modernized logistics, textile & leather, home furnishing, automobile &  spare parts, engineering machinery, domestic appliance, new energy, bio-medicine, electronics, and food processing. The sound industrial layout will greatly improve the overall competition capacity of the CEIZ, as well as drive the transformation and upgrade of the industrial structure of Bangladesh.

Planning Map of the Park

The CEIZ will be developed as a demonstration zone for modernized industry cooperation between China and Bangladesh, a pioneer of industrial development in South Asia and a booster for the industrial development of Bangladesh, which will add impetus to realize the “Golden Bangladesh”.

VI. Supporting Facilities

The CEIZ will provide comprehensive supporting facilities, including:

1. An international logistics center and cross-border overseas warehouse to serve transnational trade and provide efficient logistics;

2. An international exhibition center and star hotel to meet the requirements for products exhibition, business reception and industrial linkage;

3. A vocational school and administrative apartments to provide training education and living services for enterprises’staffs and experts;

4. A one-window service center to simplify administrative approval procedures, and provide highly-efficient services to the zone's enterprises;

5. The CEIZ will provide comprehensive water, electricity, road, telecommunication, gas, jetty and other supporting facilities, which will effectively ensure the production and operation of the zone’s enterprises;

6. A water supply system: a water treatment plant with a daily water quantity of 30,000/ m3;

7. An effluent treatment system: an effluent treatment plant with the handling capacity of 25,000m3;

8. A power supply system: a 33/11KV substation equipped with two sets of 31.5MVA transformers;

9. Road works: expansion and newly constructed work on 7.8km of road;

10. Jetty work: construct one new multipurpose jetty with an annual throughput of 400,000 tons, and a 20,000-ton berth.

VII. Incentives

The zone enterprises can enjoy the following incentives:

1. Exemption of 100% on income tax for three years, exemption of 80% on income tax for the fourth year, and then the exemption of income tax will be reduced 10% each year;

2. Duty free on the import of construction materials for building the factories, as well as any machinery and equipment required for production;

3. 10-year exemption of income tax on the dividend and share transfer;

4. 100% repatriation of capital and dividends;

5. Exemption of 50% on stamp duty and service charges for land and plant transactions;

6. Exemption of the valued added tax on the public service (water, gas, power etc…);

7. Permanent exemption of custom duty on exports;

8. Allowing 100% of raw materials and accessories produced in the CEIZ to supply export-oriented enterprises that are not located in the Export Processing Zone;

9. Duty free on the import of two vehicles under 2,000cc;

10. Exemption of 50% on the income tax of employees deployed abroad;

11. Permission to open a foreign account by any enterprise;

12. Visa issuance to those who invest $75,000 or more;

13. Issuance of a local identity card to those who invest over $500,000.

VIII. Contact Information

Chinese Contact: Ms. Wang, Beijing HQ, China Road and Bridge Corporation

Tel: 010-84267849                            

Email: wangl4@crbc.com

Bangladeshi Contact: Mr Wu, Bangladesh Branch, China Road and Bridge Corporation

WeChat: CRBC-CEZA

Email: wuqd@crbc.com