Bangladesh has awarded the development of a Special Economic Zone (SEZ) near the strategically important Mongla Port to a Chinese state-owned company, marking a significant shift in the project’s direction after an earlier allocation to India was cancelled.
The proposed economic zone will be developed on 110 acres of land adjacent to Mongla Port. The site had previously been earmarked for an India-backed economic zone. However, as work on the project failed to commence, the Bangladeshi authorities cancelled the allocation in 2025.
The Bangladesh government has now signed a Memorandum of Understanding (MoU) with a Chinese state-owned enterprise to develop the SEZ, paving the way for greater Chinese involvement in the country’s infrastructure and industrial development.
The development is being viewed as strategically significant, as Mongla Port is Bangladesh’s second-largest seaport and plays a crucial role in regional trade and connectivity. Along with the economic zone, China is also expected to play a larger role in the port’s modernisation efforts.
The decision comes amid increasing competition between India and China for economic and strategic influence in South Asia. Analysts believe the project could strengthen China’s presence in Bangladesh while representing a setback for India’s plans to expand its industrial footprint in the neighbouring country.
Officials from both Bangladesh and China have expressed optimism about the project, saying it is expected to boost investment, create employment opportunities and enhance trade through the Mongla Port region. The timeline for construction and implementation is expected to be announced after the completion of detailed project planning.