Bangladeshi, Chinese firms ink 16 MoUs covering textile, EVs, solar, fintech

Infographic: TBS

Bangladeshi and Chinese companies signed 16 memoranda of understanding (MoUs) on Tuesday in Beijing to boost collaboration in textiles, electric vehicles, solar power, financial technology, and technology at a summit focused on trade and investment opportunities between the two countries.

Four of these 16 MoUs will bring nearly $500 million in investments to Bangladesh, including one involving $400 million for establishing the largest PSF, PET bottle, and textile-grade factory in the Mongla Economic Zone.

Prime Minister Sheikh Hasina is now on a three-day official visit to China which was originally for four days, and attended the summit as the chief guest.

PM invites Chinese cos to explore Bangladesh

During her speech as the chief guest at the summit, Prime Minister Sheikh Hasina invited Chinese companies to visit Bangladesh and explore business opportunities.

"Bangladesh is the most favourable investment destination in the world. Bangladesh is committed to ensuring your business is profitable," she told the Chinese investors.

The Embassy of Bangladesh in Beijing, Bangladesh Investment Development Authority (Bida), Bangladesh Securities and Exchange Commission (BSEC) and China Council for the Promotion of International Trade organised the summit at China World Summit Wing, Shangri-La Circle, Beijing.

In her speech, the prime minister said that China is Bangladesh's largest partner, with trade volumes increasing yearly. However, she said immense potential remains to expand the trade ties further.

"We are committed to addressing trade imbalances and creating a more equitable trade relationship," she said.

"Our shared vision for economic growth, technological advancement, and sustainable development forms the cornerstone of our bilateral relations," said the premier.

"You will find in us all the support and assistance you need. Let us work together to build a stronger, more prosperous, and more connected world. It is time to invest in Bangladesh, and I am confident that with our hands joined together, we can achieve great things," she added.

PM invites joint ventures

To enhance business cooperation, Sheikh Hasina encouraged Chinese companies to form joint ventures with Bangladeshi firms.

"This collaboration will facilitate technology transfer, skill development, and market access for both parties. Investment in research and development is crucial for fostering innovation and competitiveness," she said.

She invited Chinese companies to establish R&D centres in Bangladesh, leveraging Bangladesh's skilled workforce and academic ingenuity.

"We believe there is significant potential for Chinese investment, particularly in the energy sector, including renewable energy," Sheikh Hasina said.

She mentioned that Climate-resilient smart farming opens opportunities for collaboration in agro-processing industries, with buy-back arrangements with China.

The prime minister also urged Chinese investors to explore portfolio investments in Bangladesh as the Bangladesh Securities and Exchange Commission (BSEC) is actively working to further develop our capital markets.

"The aim is to make them more attractive to foreign investors. We have made significant progress in developing a robust bond market. We are on the brink of introducing derivative products, which will further diversify and widen our financial markets," she said.

Sheikh Hasina mentioned that Bangladesh offers one of the most liberal investment regimes in the world, and the Bangladesh Investment Development Authority (Bida) provides a number of services to foreign investors under one roof.

"In line with our commitment to economic development, we are establishing 100 Special Economic Zones (SEZs), each equipped with state-of-the-art facilities," she said.

"We plan to establish three special tourism zones where China can invest in the real estate and hospitality sectors," the premier said.

She said as Bangladesh is embracing the digital age with open arms, the government is actively promoting the growth of the ICT sector, offering incentives for startups, investing in tech parks, and fostering an ecosystem that encourages innovation and entrepreneurship.

"Our young entrepreneurs are making their mark on the global stage, and we invite you to be a part of this exciting journey," she added.

Chinese investment may cross $5b

Shibli Rubayat-Ul-Islam, chairman of the BSEC told The Business Standard, "In addition to the Chinese companies signing the 16 MoUs, officials from other companies also met with Prime Minister Sheikh Hasina and expressed their interest in investing in Bangladesh's private sector."

He said the companies that signed the MoUs are having one-on-one discussions to determine the size of their investments. The overall investment figure might cross $5 billion if the companies that showed interest eventually decide to invest in Bangladesh.

"We hope through this summit, more Chinese investment will come to Bangladesh," said the BSEC chairman.

Government ministers and private sector leaders attended the investment summit and delivered speeches.

Private sector leaders are optimistic

Ahsan Khan, chairman of the Pran-RFL Group, in his speech, said it is a good day for Bangladesh to organise such a successful summit with Chinese investors.

"Chinese investors are very much interested in investing in Bangladesh. I have seen this earnestness in investing more in Bangladesh and China," he said.

"Pran-RFL exports its product to China and imports raw materials. If the Belt Road initiative succeeds, connecting by road and train will be possible. Then we will get a chance to export and import by rail and road, which will be cheaper. It will make us more competitive in the global market," Ahsan Khan added.

Al Mamun Mridha, secretary general of Bangladesh China Chamber of Commerce and Industry, said, "We expect more Chinese investment in Bangladesh's potential sector. More than 1,000 Chinese investors wanted to invest in Bangladesh in the last two years and we invited all of them to today's summit."

"We expect our bilateral trade gaps to narrow if Chinese investors invest in Bangladesh export sectors," he said.

"Chinese investment in Bangladesh has been boosted in the last two years. Our chamber is always ready to serve all the quarries of the investor without any cost. We are planning to arrange a Chinese trade and investment summit in Dhaka this year," Mridha added.

What are the 16 MoUs signed?

The signed MoUs between Bangladeshi and Chinese companies are: 

• Around $400 million in investment will come from China under an MoU signed between Deshbondhu Group, Chemtex and China National Chemical Engineering (CNCEC) for establishing the largest PSF, PET bottle, and Textile-grade factory at 33 acres of land in the Mongla Economic Zone.
• An MoU between Nagad and Huawei Technologies (Bangladesh) Ltd will fetch a $50 million investment in a strategic partnership to build a next-generation digital financial platform towards Smart Bangladesh. 
• A $20 million investment will come under an MoU signed between Dex Bangladesh Tech Ltd and Huawei Technologies (Bangladesh) for the "Bangladesh Capital Market Digital Transformation Project".
• Intraco Refuelling Station PLC and Shijiazhuang Enric Gas Equipment Co Ltd signed an MoU for a $20 million investment in CNG transportation by river and road in Bangladesh.
• China Road and Bridge Corporation (CRBC) and Ningbo Cixing Company Limited signed an MoU on the investment framework agreement in Bangladesh's Chinese Economic and Industrial Zone. 
• Billion10 Communications Ltd and CHTC (HengYang) Intelligent EV Company Ltd signed an MoU on manufacturing electric vehicles.
• Billion10 Communications Ltd and Ningbo Sun East Solar Co Ltd signed an MoU to set up a Solar Park in Sylhet.
• Billion10 Communications Ltd and HeSheng (Hoshine) Silicon Industry Co Ltd signed an MoU to invest in the renewable energy industry.
• Billion10 Communications Ltd and Zhongke Guorui (Zhuhai) New Material Technology Co Ltd signed an MoU to invest in Bangladesh's waste lubricant oil recovery and refining industry.
• EB Solution Ltd and Hongji Intelligent Transport Co Ltd signed an MoU to invest in the Dhaka City Mobile Project.
• EB Solution Ltd and Ningbo Shering New Energy Technology Ltd signed an MoU to invest in Bangladesh's Smart Cold Chain Logistic Solutions sector.
• Zibo Jinhuateng Paper Machinery Co Ltd will invest in the paper machinery sector in Bangladesh jointly with Nitol Niloy Group. Both the parties signed an MoU on it. 
• Chinese company Zhengzhou Dongfeng Mid-South Enterprise Company will invest in TBR Tyre Projects in Bangladesh in collaboration with Nitol Niloy Group.
• Chinese company Shandong Sunite Machinery and Nitol Niloy Group signed an MoU to invest in Bangladesh's Aerated Autoclave Concrete (AAC) Block. 
• Chinese company Dalian Huahan Rubber and Plastic Machinery Ltd will invest in Bangladesh's rubber machinery with Nitol Niloy Group.
• Chinese company ZP Technology (Anhui) Co Ltd will invest in lithium batteries and electric vehicles in Bangladesh jointly with Nitol Niloy Group.