Investment Cooperation Guide — Bangladesh (2026 Edition) | Published by AERI

Introduction

Bangladesh is one of South Asia's most dynamic economies, renowned as the world's second-largest garment exporter. AERI's research reveals that Bangladesh, with competitive labour costs and strategic location between South and Southeast Asia, is emerging as a significant manufacturing hub.

In 2024, Bangladesh's GDP reached approximately USD 460 billion, with growth of 5.2%. Population approximately 173 million. China-Bangladesh bilateral trade reached USD 24 billion in 2024.

AERI believes Bangladesh's core investment value lies in competitive labour costs, growing infrastructure, and duty-free market access to the EU and other developed markets as a least-developed country.


Part I: Bangladesh Overview

Located in South Asia, bordered by India and Myanmar, facing the Bay of Bengal. Area: 147,570 km². Capital: Dhaka. Population approximately 173 million. Currency: Taka (BDT). The garment sector accounts for over 80% of exports.


Part II: Investment Environment

BEZA provides investment incentives. Corporate tax 25% (reduced for export industries). VAT 15%. 100% foreign ownership permitted in most sectors. EPZs offer tax holidays and duty-free imports.


Part III: Chinese Enterprise Investment

Major projects: Padma Bridge rail link, Payra Port, power plants. Chinese Economic and Industrial Zone in Chattogram under development.


Compiled by: Asia Economic Research Institute | April 2026

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