Chowdhury Ashik Mahmud Bin Harun, executive chairman of BIDA and Heng Zeli, chairman, Handa (Dhaka) Textile Co. Ltd, signed a MoU on behalf of their respective sides at a hotel in the capital on 9 April 2025. Photo: BSS
Handa Industries Invests $150 Million in Bangladesh
Handa Industries Limited, a leading China-based apparel manufacturer specializing in high-quality knitted textiles, dyeing processes, and global apparel production, is set to invest $150 million in Bangladesh.
The investment will include:
- $100 million allocated to the textile and dyeing sectors within Bangladesh’s economic zones.
- $50 million directed toward the garments industry under the export processing zones.
To formalize this investment, Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of BIDA, and Heng Zeli, Chairman of Handa (Dhaka) Textile Co. Ltd, signed a Memorandum of Understanding (MoU) at an event in Dhaka on April 9, 2025.
This initiative highlights Handa Industries’ commitment to investing in Bangladesh’s rapidly growing textile and garments industries. Handa aims to foster foreign direct investment (FDI) and strengthen bilateral economic relations between China and Bangladesh. The company is working to achieve the necessary approvals and regulatory compliance to implement its plans successfully.
Founded in 1995, Handa Industries has evolved from a small to a globally influential enterprise. With operations across China, Japan, the United States, Southeast Asia, and Africa, along with a workforce of over 10,000 employees, Handa boasts an annual turnover exceeding $300 million. Specializing in the full industrial chain of textiles and garments, the company focuses on innovative R&D, high-end fabric production, and garment design, all while upholding its core values of innovation, integrity, and customer-first service.
This investment marks another step in Handa’s aim to create value for customers and communities worldwide.
Who Are Handa Industries?
Handa Industries Limited has built a reputation as a forward-thinking company with a global outlook. Known for their diversified investment portfolio spanning innovations in manufacturing, logistics, and energy, Handa Industries places a strong emphasis on fostering economic development while delivering top-tier products and services.
Their latest venture into Bangladesh’s garment and textile sectors showcases the company’s commitment to long-term growth and sustainable development. By leveraging advanced production techniques and international expertise, Handa Industries hopes to make a lasting impact in one of the world’s fastest-growing economies.
An Overview of Bangladesh’s Garment and Textile Industries
Bangladesh’s garment and textile sectors are the backbone of the country’s economy, accounting for over 84% of export revenue. With a favorable business environment, low labor costs, and a well-established supply chain, the South Asian nation stands as the second-largest garment exporter globally, surpassed only by China.
Several factors make Bangladesh an attractive hub for garment and textile manufacturing:
- Affordable Workforce: The country offers cost-effective yet skilled labor, making it a preferred destination for global brands.
- Government Incentives: The Bangladeshi government actively supports the textile and garment industries with tax breaks, subsidies, and policies favorable to investors.
- Eco-Friendly Initiatives: As sustainability becomes central to global business practices, Bangladesh has risen as a leader in eco-friendly textile manufacturing, boasting the highest number of green garment factories in the world.
- Global Demand: International retailers like H&M, Zara, and Walmart source a significant portion of their products from Bangladesh, making it an integral part of the global supply chain.
However, there’s ample room for growth. Streams of international investors and businesses like Handa Industries are accelerating Bangladesh’s progress toward becoming a center of innovation in garment production.
Handa Industries’ Investment Plans in Bangladesh
Handa Industries Limited has unveiled plans for substantial investment into Bangladesh’s garment and textile industries. Their vision includes:
- Establishing State-of-the-Art Production Facilities: Handa Industries will set up advanced manufacturing plants designed for efficiency and environmental sustainability. The company intends to incorporate automation and cutting-edge machinery to meet global standards of quality and speed.
- Promoting Innovation: By focusing on research and development within textile production techniques, Handa Industries plans to foster innovation that can enhance material quality, improve designs, and reduce waste.
- Developing Local Workforce: Beyond financial investment, Handa Industries is committed to uplifting the local workforce. This includes offering training programs to upskill workers and create job opportunities.
- Expansion of Export Markets: By creating high-quality, competitively priced products, Handa Industries seeks to expand Bangladesh’s reach to new markets and increase its share in existing ones.
- Environmental Sustainability: Given the global focus on green manufacturing, Handa Industries plans to adopt eco-friendly practices, including energy-efficient technologies, zero-waste objectives, and sustainable materials.
The scale of these initiatives is expected to generate significant employment opportunities while enhancing the reputation of “Made in Bangladesh” on a global scale.
Why Investing in Bangladesh’s Textile Sector Makes Sense
Bangladesh’s textile sector is filled with untapped potential, making it an exciting prospect for investors. Here’s why:
1. Growing Global Demand for Affordable Apparel
The world’s hunger for affordable, high-quality clothing continues to grow. Developing economies, in particular, are driving demand for cost-effective fashion, and Bangladesh is perfectly positioned to cater to this trend.
2. Strong International Relations
Bangladesh maintains excellent ties with global retailers and importers. Free trade agreements and favorable policies make exporting textiles from Bangladesh more seamless.
3. Sustainability Leadership
Bangladesh is setting new benchmarks in green manufacturing. With increasing pressure on brands to adopt eco-friendly practices, manufacturing in Bangladesh aligns perfectly with global standards for sustainability.
4. Government Support
The Bangladeshi government is proactive in its support for textile investments. Incentives such as tax holidays, export subsidies, and reduced import duties on machinery are enticing factors for foreign investors.
5. Skilled Labor with Competitive Costs
Bangladesh has a large, industrious workforce dedicated to meeting the demands of global markets. Compared to many other countries, labor costs remain significantly lower, allowing manufacturers to keep production efficient.
By investing in Bangladesh’s garment and textile sectors, companies like Handa Industries can not only drive profitable growth but also contribute to an industry that positively impacts millions of people worldwide.
Dominic O. McCoy is a passionate writer who loves crafting engaging and informative blogs on a wide range of topics. With a deep curiosity and a knack for storytelling, he explores everything from lifestyle and technology to business and home improvement. Whether breaking down complex ideas or sharing practical tips, McCoy aims to deliver valuable content that resonates with readers. When he’s not writing, he enjoys learning about new trends and expanding his knowledge to bring fresh perspectives to his work.
