Construction has kicked off on the China-Bangladesh Economic and Industrial Zone (CEIZ), marking the country’s first major industrial park investment by China in over ten years. The project, developed by a state-owned engineering firm, spans approximately 314 hectares and will unfold in three phases over a 50-year period. More than 30 Chinese companies have already pledged around $500 million in investment, with the park expected to generate roughly 100,000 jobs in various industries once fully operational.
The project’s project manager of the CEIZ division stated that the construction phase is about to enter a full-scale operation. A groundbreaking ceremony was held in Chittagong, situated in southeastern Bangladesh, on July 27. The park is strategically located about 12 kilometers from Shah Amanat International Airport through the Karnaphuli Tunnel, as well as from Chittagong Port. It will focus on sectors such as textiles and apparel, machinery manufacturing, electronics, biomedicine, and renewable energy. To facilitate investment, the Bangladeshi government is planning to cut down the approval process for investments and licenses from six months to just 14 days.
When visiting the site in May, it was noted that most workers had previously been involved in building the Karnaphuli Tunnel, South Asia’s first underwater road tunnel. Chinese staff members appeared well-acquainted with local customs, while Bangladeshi workers had established strong working relationships with their Chinese counterparts over the years of collaboration.
An expert from Shanghai’s South Asia Studies Center emphasized that Bangladesh’s government, led by Prime Minister Tarique Rahman, is actively trying to diversify its economy beyond textiles and create more employment opportunities for young people. Rahman’s first visit abroad after taking office last February was to China, where a series of agreements, including one for the investment and development of the CEIZ, were signed—removing long-standing hurdles to moving forward with the project.
A senior engineer at the park’s development company, with eight years of experience at the engineering firm, is preparing to transition from working on the Karnaphuli Tunnel to the new industrial zone. He praised Chinese companies’ skills not only in engineering but also in project management. During construction of the tunnel, as many as 4,000 workers were on-site at peak times. He explained that Chinese firms are known for their effective scheduling and rarely experience delays. Even amid COVID-19 disruptions, the tunnel was finished on time, whereas many other international contractors needed extensions.
He noted that Chinese companies often submit more competitive bids because of smarter resource management rather than lower labor costs. For example, the tunnel was built using a custom-designed tunnel boring machine, which was disassembled after use and shipped back to China for use in other projects. This approach distributes equipment costs across multiple developments. In contrast, European and American companies tend to leave equipment on-site due to the high expenses involved in dismantling and transporting it, which raises overall project costs.