Hong Kong investors have set up production sites in Bangladesh.
They are shifting from China, where costs are rising, including wages, rent and other fees. They have chosen Bangladesh because of its abundant labor and low production costs, including wages and land.

Hong Kong firms have invested 800 million dollars in 150 projects in Bangladesh, making them the eighth largest investor. The largest sector is services. Textiles come next and third is chemicals. Another factor driving Hong Kong and other foreign companies to Bangladesh is the Sino-US trade war. Goods made in China face tariff or other barriers to enter the US – so it is safer to diversify risk and spread production over different countries.

Their investment in Bangladesh is secured by law against nationalization or expropriation. There is equal treatment for local and foreign firms. Investors can have 100 per cent foreign equity ownership and unrestricted exit of capital. Bangladesh has bilateral investment treaties with 31 countries and double tax treaties with 28. Because it is a least-developed country, its exports pay no duty in Australia, Canada, Japan and the European Union. Bangladesh is the world’s second largest garment exporter and the country is suitable for labor-intensive industries.