BANGLADESH on Monday launched the construction of a long-delayed industrial zone near the port city of Chattogram, a joint venture with China that officials hope will attract investment and create tens of thousands of jobs.
Officials from both countries inaugurated the Chinese Economic and Industrial Zone (CEIZ), an 800-acre (324-hectare) development that was first agreed more than a decade ago.
The launch comes as Bangladesh looks to increase foreign investment and expand industrial production, while Beijing continues to deepen its economic presence in South Asia through infrastructure projects.
Bangladesh's Finance and Planning Minister Amir Khasru Mahmud Chowdhury said the industrial zone would help support the country's ambition of becoming a trillion-dollar economy by 2034.
"We are expecting strategic investments in areas such as high-tech chips, medical equipment and manufacturing," he said.
China's ambassador to Bangladesh, Yao Wen, described the CEIZ as a flagship project, saying delegations from more than 100 Chinese companies had already visited the site.
"The economic zone has already attracted approximately $500 million in potential investment," Yao said, adding that it was expected to create around 100,000 jobs across sectors including ready-made garments, electric vehicles, batteries and medical equipment.
Bangladesh and China signed a memorandum of understanding for the project in 2014, but progress was delayed for years because of issues related to appointing a developer, securing financing and obtaining administrative approvals.
The project regained momentum after prime minister Tarique Rahman's visit to China in June.
The launch follows Bangladesh's decision last month to transfer development rights for the 110-acre Mongla Port Economic Zone to China after revoking an allocation granted to India in 2015.
India and China have been competing for influence across South Asia as both countries seek to expand their economic and strategic presence in the region.
