(Yicai) July 30 -- Construction has begun on the Chinese Economic and Industrial Zone (CEIZ) in Bangladesh, marking the launch of China's first national-level industrial park investment in the country after more than a decade of planning.

The project, developed by state-owned engineering firm China Road and Bridge Corporation (CRBC), covers about 314.4 hectares and will be developed in three phases under a 50-year concession. More than 30 Chinese companies have already committed to invest about USD500 million, and the industrial park is expected to create around 100,000 jobs across upstream and downstream industries once it becomes operational.

Guan Yongzhe, general manager of the CEIZ project company under CRBC, told Yicai that the project will soon enter its substantive construction phase. A groundbreaking ceremony was held at the site in Chittagong, the southeastern part of the South Asian country, on July 27, according to the Chinese embassy in Bangladesh.

Located about 12 kilometers from Shah Amanat International Airport via the Karnaphuli Tunnel and from Chittagong Port, the park will focus on industries including textiles and apparel, machinery manufacturing, electronic information, biomedicine, and green energy. To attract more investors, the Bangladeshi government plans to shorten the investment approval and industrial licensing process from the current six months to one year to just 14 days.

Experienced Workforce

When Yicai visited the project preparation site in May, most of the construction workers had previously participated in building South Asia's first underwater road tunnel, the Karnaphuli Tunnel. Chinese employees were already familiar with local customs, while Bangladeshi workers had developed strong working relationships with their Chinese counterparts through years of cooperation.

Liu Zongyi, director of the Center for South Asia Studies at the Shanghai Institutes for International Studies and the Chinese director of the Centre for China Studies in Bangladesh, said the government led by Prime Minister Tarique Rahman is seeking to reduce Bangladesh's reliance on the textile sector by diversifying the economy and expanding employment opportunities for young people.

Liu noted that China was the first major country visited by Rahman after he took office last February. During the visit, the two sides signed a series of agreements, including the CEIZ Investment and Development Agreement, removing longstanding obstacles to the project's implementation.

Md. Shaheduzzaman, a senior engineer at the industrial park company, has worked for China Road and Bridge Corporation for eight years and is preparing to move from the final phase of the Karnaphuli Tunnel project to the CEIZ.

He told Yicai that Chinese companies excel not only in engineering expertise but also in project management. At the peak of the tunnel's construction, about 4,000 workers were on site simultaneously. He added that once Chinese companies establish a construction schedule, delays are rare. Despite the disruptions caused by the Covid-19 pandemic, the Karnaphuli Tunnel was completed on schedule, while many other foreign contractors requested extensions.

Asked why Chinese companies often submit more competitive bids, Md. Shaheduzzaman said the advantage stems from more efficient resource allocation rather than lower labor costs. The tunnel project used a self-developed tunnel boring machine that was dismantled after completion and shipped back to China for use on other projects, spreading equipment costs across multiple developments. By contrast, European and US companies often leave equipment on site because dismantling and transporting it is too expensive, increasing their overall project costs.

Editor: Emmi Laine