The strategy of expanding its own production framework beyond China’s borders is known as the “China Plus One” approach. By adopting this strategy, China has driven massive investments into several Southeast Asian countries, including Vietnam, Thailand, Myanmar, Cambodia, and Indonesia. However, Bangladesh has received significantly less Chinese investment despite being another potentially promising destination.

According to government statements, China is considered one of Bangladesh’s key allies from a geopolitical perspective. However, representatives of Chinese companies in Bangladesh and China analysts have stated that the main reason for the lack of Chinese investment is the absence of a proper investment-friendly environment in Bangladesh.

Statistics from the Bangladesh Bank show that as of September 2024, the Chinese Foreign Direct Investment (FDI) stock in Bangladesh stood at over 1.41 billion dollars. In contrast, data from Vietnamese media citing official sources report that Vietnam’s FDI stock exceeds 30 billion dollars. According to the German-based online statistics platform Statista, Thailand’s FDI stock stood at 12.66 billion dollars in 2023.

Official data from Myanmar indicates that by the 2023–24 fiscal year, the country had received at least 22 billion dollars in approved Chinese FDI. According to information from the U.S. State Department, Chinese FDI stock in Cambodia was just over 19 billion dollars as of 2022. Media reports suggest that Chinese FDI stock has exceeded 24 billion dollars in Indonesia.

When asked why Bangladesh can’t attract Chinese investment like many other Asian countries, Ke Changliang, chief adviser of the Chinese Enterprise Association in Bangladesh (CEAB), told Bonik Barta, “Business environment (Bangladesh) is still not as good as Vietnam or Indonesia. That’s the main reason.”

Officials from Chinese companies already investing in Bangladesh, speaking anonymously, mentioned several issues. They said countries that attract Chinese investment have easier and faster investment procedures. All necessary approvals are granted within seven working days in China’s economic zones. However, it takes nearly two years in Bangladesh to set up a factory and start production.

Meanwhile, investors want to relocate from China and begin production quickly—they can’t afford to wait two years.

Chinese businesses also blame Bangladesh’s frequently changing policies. Incentives promised to attract investors often change before the project even starts.

Sometimes, a benefit announced for five years is altered by the time the investor is ready to begin. After setting up, investors face bureaucratic delays and a lack of cooperation. Authorities like customs and port officials don’t create a business-friendly environment.

One Chinese company official said there’s a language gap in Bangladesh.

This causes misunderstandings about rules and regulations. Bangladeshi authorities expect Chinese investors to figure everything out themselves. As a result, investors have faced harsh penalties for unintentional mistakes. Corruption and political instability in Bangladesh also discourage Chinese investors. In China, they don’t have to worry about safety. But in Bangladesh, they remain concerned about security. Banking facilities in Bangladesh are not investor-friendly either. Foreign investors often face discrimination in banking services. The visa process for Chinese nationals is also very complicated.

According to sources, Chinese investments in Bangladesh were already going through a tough time even before the government was overthrown in last year’s mass uprising. After the interim government took charge, there were efforts to rebuild economic ties. Still, Chinese investors remain disappointed. Sources say that after the interim government came to power, 31 renewable energy projects—approved under a special power and energy law during the previous government—were canceled. Bangladesh Power Development Board (BPDB) officials confirmed that most of these canceled projects were from Chinese companies.

The total planned investment in these projects was around 5 billion dollars.

Al Mamun Mridha, former secretary general of the Bangladesh-China Chamber of Commerce and Industry (BCCCI), told Bonik Barta, “Countries like Thailand and Vietnam have aggressively promoted their economic zones to Chinese investors. Bangladesh has not done the same. If Chinese investors come independently and ask for help, we support them. But this approach doesn’t attract new investment.”

Experts also say Bangladesh faces challenges like high business costs and poor infrastructure. Customs procedures are complicated, and the overall economic situation is unstable. These factors are keeping not just Chinese but also other foreign investors away.

Dr. Mohammad Abdur Razzaque, Chairman of Research and Policy Integration for Development (RAPID), told Bonik Barta, “It’s not just China—we’ve failed to attract investment from other countries too. If our macroeconomic environment is not stable and strong, foreign investors won’t come. They want a predictable environment and a guarantee to return their profits home. Bangladesh has a poor track record in resolving disputes with investors. Another major problem is the shortage of skilled workers and capable managers.”

The Investment Summit 2025 was held in Bangladesh from April 7 to 10. Chinese investors participated in the event, and organizers claim that Chinese investment in Bangladesh will increase soon.

Chowdhury Ashik Mahmud Bin Harun, executive chairman of the Bangladesh Investment Development Authority (BIDA), said at a press conference. “The Chinese Ministry of Commerce has sent a letter to Bangladesh’s finance secretary. In that letter, it was said that a 200-member Chinese delegation, including the finance secretary of China, will visit Bangladesh next month.”

Recently, a Bangladeshi industrialist met with a foreign ambassador. The industrialist asked how soon investors from that country might begin work after the summit. The ambassador replied, “No investor will come to Bangladesh without a political government.”

He also said that law and order in Bangladesh has not improved much. Mobs are still active, he added.

Anwar-Ul Alam Chowdhury Parvez, President of the Bangladesh Chamber of Industries (BCI), told Bonik Barta, “Investors from China and other countries are waiting for a stable political government before making final decisions. What kind of proposals are being offered to investors is also important. When local investors are not interested, how can we expect foreigners like the Chinese to invest?”

When asked why Chinese investment is lower in Bangladesh than in other Asian countries, BIDA Chairman Chowdhury Ashik Mahmud Bin Harun replied, “Starting a business in Bangladesh is harder than other markets.”

Citing the gas price hike as an example, he told Bonik Barta, “This decision is discriminatory to new businesses and is an impediment to perfectly competitive market and will dry out FDI opportunity. This comes at an unfortunate time given we had a successful summit and there is likely a wave of Chinese businesses looking for overseas opportunities.”