China’s Huarun Tex Co. Ltd. will invest $30 million to build a textile manufacturing plant at the Bangladesh Export Processing Zone Authority’s (BEPZA) economic zone in Mirsharai, Chattogram, marking fresh Chinese capital inflow into the country’s export-oriented textile sector.
The plant, worth around 366 crore taka, will be constructed on 36,000 square metres of land inside the BEPZA Economic Zone and will produce 24,000 tonnes of yarn and 20 million metres of grey woven fabric annually once fully operational, BEPZA said. The project is expected to generate direct employment for approximately 580 Bangladeshi workers.
A land lease agreement formalising the investment was signed on July 16, 2026, at the BEPZA Complex in Dhaka, according to BEPZA. Md. Tanvir Hossain, member for investment promotion at BEPZA, signed on behalf of the authority, while Bin Wang, managing director of Huarun Tex, signed for the Chinese company. BEPZA executive chairman Maj. Gen. Mohammad Moazzem Hossain witnessed the signing.
The chairman thanked Huarun Tex for choosing Bangladesh, and BEPZA’s economic zone specifically, for its investment, and said the authority remained committed to providing a safe, modern and business-friendly environment for investors, pledging full institutional support to help the company begin operations smoothly. The ceremony was also attended by BEPZA members Abdullah Al Mamun (engineering) and A N M Foyzul Haque (finance), along with executive directors Md. Khorshid Alam, Samir Biswas and A.S.M. Anwar Parvez, project director Mohammad Anamul Haque, and representatives of Huarun Tex.
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The investment adds to a growing list of Chinese manufacturers relocating or expanding textile and apparel production capacity into Bangladesh, drawn by competitive labour costs, duty-free market access to the European Union and other preferential trading arrangements, and dedicated export-processing infrastructure.
Mirsharai, a sub-district of Chattogram that hosts one of BEPZA’s newer economic zones, has increasingly attracted foreign direct investment as authorities seek to diversify the industrial base beyond Dhaka and Chattogram’s older industrial belts.
Grey woven fabric, the unfinished, undyed cloth Huarun Tex plans to produce, typically feeds downstream dyeing, finishing and garment-manufacturing operations, positioning the new plant to supply raw material directly into Bangladesh’s broader ready-made garment export chain. Combined with the plant’s yarn output, the facility is designed to serve both textile intermediaries and RMG exporters sourcing locally rather than importing fabric inputs.
Bangladesh’s export processing zones have remained a focal point for foreign investment even as the broader economy contends with energy-supply constraints and global trade policy uncertainty. BEPZA-run zones offer tax holidays, duty-free import of capital machinery and raw materials, and streamlined customs procedures, incentives that have historically appealed to textile investors from China, South Korea, Japan and elsewhere in Asia.
The Huarun Tex investment follows a broader pattern of Chinese textile firms establishing manufacturing footholds in South and Southeast Asia, partly in response to rising costs at home and partly to maintain tariff-advantaged access to Western markets through third-country production. For Bangladesh, such investment supports government efforts to expand backward-linkage textile capacity, reducing reliance on imported yarn and fabric for its garment export industry, the largest foreign-exchange earner in the country.
China has remained one of Bangladesh’s largest sources of industrial investment and machinery imports in recent years, with Chinese firms active across spinning, weaving, dyeing and finishing segments of the textile value chain. Bangladeshi trade officials have repeatedly courted Chinese manufacturers as part of efforts to attract backward-linkage investment that reduces the country’s dependence on imported grey fabric and yarn, inputs that account for a significant share of raw-material costs for local garment exporters.
BEPZA currently oversees multiple economic zones across the country, collectively hosting hundreds of foreign and joint-venture manufacturing units, and has positioned the Mirsharai zone as a priority site for new industrial investment given its proximity to the port city of Chattogram. Neither BEPZA nor Huarun Tex disclosed a timeline for breaking ground on construction or the start of commercial production at the plant.