Defense Development Drive: Bangladesh Eyes Foreign Investment in Military Industry
During the three-day Bangladesh Investment Summit, international investors showed keen interest in the country's pharmaceutical, light engineering, and IT sectors. However, the Bangladesh Investment Development Authority (BIDA) is now actively seeking foreign investors for the nation's defense industry.
BIDA Chairman Ashiq Chowdhury, a self-proclaimed skydiving enthusiast, emphasized the need for technological advancement within the military sector. He believes the Bangladesh Ordnance Factories (BOF)—the largest supplier to the Bangladesh Army—already possesses some fundamental indigenous skills, which can serve as a foundation for establishing localized military manufacturing facilities.
Speaking at a press briefing on Wednesday, April 9, at the InterContinental Hotel in Dhaka, Chowdhury shared the latest investment updates following the summit's final day.
“We, in principle, believe that for technological advancement, we also need some progress on the military side,” he stated. “Our Ordnance Factory already has some indigenous skillsets. Just like we are talking about a manufacturing hub for classic commercial industry, we must also envision something similar for the military industry. We don’t need to build tanks or spaceships or fighter jets. But on a small scale, we can produce advanced radios, tank accessories, small bullets, and small arms. These have huge demand.”
Chowdhury noted that both the Bangladesh Army and Air Force could collaborate in this initiative. The goal is to attract foreign investors who are willing to transfer technology to Bangladesh, manufacture defense equipment locally, and then sell the products to the Bangladeshi military. These products could also be exported to regional markets. He hinted at the potential development of a dedicated Military Economic Zone to support this initiative.
“Creating a Military Economic Zone is a long journey,” he acknowledged. “It will require policy interventions—security policy, digital data policy, IP rights—all these need to be addressed before we move forward. That process has begun, but it will take some time.”
Chowdhury also emphasized the importance of maintaining bipartisan support for investment and employment policies. “Regardless of which political party is in power, BIDA wants investment interests to remain unchanged. That is why all political parties were invited to the summit.”
In terms of concrete investments, the BIDA Chairman announced that Chinese apparel manufacturer Handa Industries Limited will invest $150 million in Bangladesh. A memorandum of understanding has been signed, and the investment is expected to create 15,000 jobs within one to two years. Additionally, global port operator DP World has expressed interest in establishing a free trade zone near the Matarbari deep-sea port, with the assurance of full cooperation from Bangladesh.
