The Apparel Digest Report
From apparel sourcing to investment, technology and higher-value exports, the Hong Kong connection is gaining a broader commercial dimension after recent visit by Bangladesh Commerce, Industries and Textiles & Jute Minister.
Bangladesh and Hong Kong are looking to build a broader commercial partnership that goes beyond the traditional apparel and sourcing relationship, with investment protection, technology, logistics, product diversification and access to wider Asian markets emerging as important areas of cooperation.
The momentum was reinforced during Bangladesh Commerce, Industries, Textiles and Jute Minister Khandakar Abdul Muktadir’s visit to Hong Kong from September 8 to 11 to attend the 11th Belt and Road Summit, where he held discussions with Hong Kong government officials, investment agencies, business organisations and investors.
For Bangladesh’s apparel and textile sector, the development is particularly significant. Hong Kong has long been an important commercial and sourcing link between Bangladesh and the wider Chinese manufacturing ecosystem. The latest engagement suggests that this relationship could evolve into a wider platform for investment, technology transfer, financing and higher-value manufacturing.
A Significant Investment Agreement
The most concrete outcome of the visit was the signing of the Hong Kong–Bangladesh Investment Promotion and Protection Agreement (IPPA) on September 9, on the sidelines of the Belt and Road Summit.
Signed by Minister Muktadir and Hong Kong’s Secretary for Commerce and Economic Development Algernon Yau, the agreement is designed to strengthen investor confidence and encourage greater two-way investment. It provides investors with protections including fair and equitable treatment, protection against expropriation and the ability to freely transfer investments and returns. It also provides mechanisms for resolving investment disputes through internationally accepted procedures.
The agreement still requires the completion of the respective internal procedures before it enters into force, but its signing provides a formal framework for encouraging Hong Kong investment in Bangladesh.
For a country seeking greater foreign investment as it prepares for life beyond LDC status, that framework could become increasingly important.
The Commerce Ministry has identified the IPPA as the principal outcome of the visit, alongside stronger government-to-business engagement, new investment sectors and prospects for cooperation in energy, technology, shipbuilding, jute, leather and aircraft maintenance.
Hong Kong’s Role in the Apparel Supply Chain
The relationship has particular relevance for Bangladesh’s apparel industry.
Bangladesh’s garment manufacturers depend heavily on imported textile raw materials, machinery and accessories, with China remaining a major source. Hong Kong adds another layer to this ecosystem through its international trading, financial, logistics and professional-services capabilities.
At the Belt and Road Summit, Minister Muktadir described Hong Kong as an important commercial centre for Bangladesh, particularly for exports, financial transactions and the sourcing of raw materials. He also identified Hong Kong as an important supply-chain hub for Bangladesh’s garment exports.
The minister called for greater cooperation in technology transfer, technological collaboration, product diversification and faster production. He also suggested that cooperation with Hong Kong and China in artificial intelligence could help make garment factories more productive and support cost-efficient diversification.
This is increasingly relevant as Bangladesh’s apparel industry moves beyond its traditional dependence on basic products and competes for more sophisticated orders.
The direction also fits the broader message of the Belt and Road Summit. Hong Kong officials presented the city as a hub connecting Belt and Road economies with mainland China and global markets, while highlighting its financial, legal, logistics and professional-services capabilities.
Beyond RMG
One of the clearest messages from the minister’s Hong Kong meetings was that Bangladesh wants to expand the relationship beyond ready-made garments.
Hong Kong investors were invited to explore opportunities in leather and leather goods, high-quality jute products, shipbuilding and ship recycling, while discussions with Invest Hong Kong also covered renewable energy, aircraft maintenance and training.
The minister proposed investment in higher-value jute products and the establishment of a joint research centre. He also highlighted Bangladesh’s potential in shipbuilding and ship recycling and sought Hong Kong’s cooperation in expanding LNG import capacity.
Jute received a visible push during the visit. A ‘Jute Corner’ was inaugurated at the Bangladesh Consulate General in Hong Kong to showcase jute and higher-quality jute products. The initiative reflects Bangladesh’s effort to move the country’s traditional natural fibre further into higher-value applications rather than relying primarily on commodity exports.
Closing the Trade Gap
Trade diversification is another major objective.
Bangladesh–Hong Kong bilateral trade was around US$415 million in FY2024-25, with Bangladesh importing approximately US$307 million and exporting US$108 million. Bangladesh’s exports increased marginally to around US$109.5 million in FY2025-26.
Minister Muktadir has called for greater exports of diversified and higher-value products—including fresh fruits, jute and leather goods—to reduce Bangladesh’s trade deficit with Hong Kong and reduce dependence on ready-made garments.
This is an important distinction. Hong Kong is not being viewed only as another destination for Bangladeshi garments. The objective is to use its commercial ecosystem to develop new export channels and connect Bangladeshi products with a wider network of buyers and markets.
A Gateway to Greater China
The opportunity also extends beyond Hong Kong itself.
During the minister’s meetings, Hong Kong officials highlighted the Greater Bay Area, linking Hong Kong with Shenzhen, Guangzhou and Macao. The Northern Metropolis was presented as an emerging platform for artificial intelligence, logistics, technology and skilled industries, with Bangladeshi companies invited to consider establishing operations there.
For Bangladeshi businesses, Hong Kong can therefore provide access to a much larger commercial geography.
This is particularly relevant at a time when global apparel supply chains are being reshaped by diversification, technology and geopolitical uncertainty. Bangladesh needs to strengthen connections with suppliers, investors and technology providers while continuing to expand its own manufacturing capabilities.
The Belt and Road Summit provided a natural platform for this discussion. The 2026 event brought together government and business leaders from across Asia, the Middle East and other Belt and Road markets to explore trade, investment and regional connectivity. More than 60 memoranda of understanding were expected to be witnessed during the summit, while deals and projects finalised around the event were valued at more than US$3.1 billion, according to the Hong Kong Government.
Possible FTA on the Horizon
Bangladesh also raised the possibility of examining a Hong Kong–Bangladesh Free Trade Agreement.
For now, this remains a proposal to assess rather than a negotiated agreement. The Commerce Ministry has identified a feasibility study as a potential follow-up, alongside the appointment of a possible commercial representative in Hong Kong.
The idea comes as Bangladesh prepares for a changing trade environment following LDC graduation and seeks greater market access through trade agreements and economic partnerships.
Whether an FTA eventually becomes practical will depend on further negotiations and an assessment of the commercial benefits for both sides. But the proposal itself indicates that the relationship is being considered at a more strategic level.
Making Business Easier
Several practical issues that affect business were also raised during the visit.
Bangladesh highlighted improvements in ports, logistics and business procedures, including new container-terminal developments and measures intended to reduce the time required to establish businesses. The government also sought cooperation in technology, investment and logistics modernisation.
At the same time, the minister raised delays in Hong Kong visas for Bangladeshi businesspeople and called for faster processing. Bangladeshi business leaders in Hong Kong also requested the early resumption of direct Biman Bangladesh Airlines services on the Hong Kong–Dhaka route.
Closer institutional cooperation is also being planned. Bangladesh proposed regular meetings, seminars and trade fairs involving the Hong Kong Trade Development Council, Export Promotion Bureau, FBCCI, DCCI and other trade associations. HKTDC has invited Bangladesh to participate in its Asian Financial Forum in January 2027 and its new online-offline hybrid fair model.
From Sourcing Link to Strategic Partner
The Hong Kong visit has therefore opened a wider conversation about the future of Bangladesh–Hong Kong business relations.
The immediate opportunity is clear for Bangladesh’s apparel industry: stronger access to Hong Kong’s sourcing, finance, logistics, technology and professional networks could support the next phase of the country’s garment manufacturing journey.
But the ambition is broader.
Investment protection, higher-value jute and leather products, shipbuilding, renewable energy, technology, logistics and potential trade agreements all point towards a relationship that is gradually moving beyond a traditional buyer-supplier connection.
For Hong Kong, Bangladesh offers a large manufacturing base, a growing domestic market and an increasingly important position in global supply chains. For Bangladesh, Hong Kong offers a gateway to international capital, Chinese manufacturing networks and wider Asian markets.
The challenge now is to turn the agreements, proposals and business discussions into actual investment, trade and technology partnerships.
The Investment Promotion and Protection Agreement (IPPA) provides the framework. The Belt and Road Summit provided the platform. The public and private sectors from both locations now need to work proactively to convert the new momentum into business.
