Bangladesh Set to Sign Deal with China for Military Drone Factory

The Chronify

January 13, 2026

Government to Establish Military Drone Manufacturing Plant with Chinese Collaboration

Bangladesh is poised to sign a significant agreement with China for the establishment of a military drone manufacturing facility, aiming to enhance the country's air defense capabilities. The government will enter into a deal worth 608 crore BDT (approximately $60 million), with China supplying the necessary technology for the factory.

As reported by The Business Standard, the proposed project will be implemented on a government-to-government (G2G) basis, marking a major step towards bolstering Bangladesh’s defense infrastructure. The Ministry of Finance approved the project proposal on January 6, 2026, ahead of the official signing. The project will involve a total expenditure of 608 crore BDT, with the bulk of the funds, 570 crore BDT, allocated for technology imports and setting up the drone factory. The remaining 37 crore BDT will cover charges for opening letters of credit, VAT, and SWIFT charges.

The Bangladesh Air Force will oversee the implementation of the project, utilizing technology provided by China Electronics Technology Group Corporation International (CETGC). This collaboration underscores the growing defense ties between Bangladesh and China, as the country seeks to strengthen its self-reliance in military technology.