Bangladesh Signs China Deal to Locally Produce Military Aerial Drones With Full Tech Transfer.

The Bangladesh Air Force has signed a government-to-government agreement with China’s CETC International to establish a domestic military UAV manufacturing and assembly facility in Dhaka. The deal signals a significant shift toward defense self-reliance, giving Bangladesh local production, sustainment, and long-term control over advanced drone capabilities.

Bangladesh is taking a decisive step toward indigenous defense production after the Bangladesh Air Force finalized an agreement on January 27, 2026, with CETC International, the export arm of China Electronics Technology Group Corporation, to establish a domestic military uncrewed aerial vehicle manufacturing and assembly plant. Signed at Dhaka Cantonment, the government-to-government agreement includes complete technology transfer. It is expected to enable local production, maintenance, and lifecycle support of multiple UAV platforms for surveillance, reconnaissance, and potentially strike-related missions, according to officials familiar with the program.
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A CETC-developed drone on display during a recent international defense exhibition, showcasing China's expanding UAV portfolio and export ambitions in the global defense market. (Picture source: Social Network)

The project, formally titled “Establishment of Manufacturing Plant and Transfer of Technology (ToT) for Unmanned Aerial Vehicles (UAVs),” carries an approved budget of Tk608.08 crore, approximately US$55 million. Of this, around Tk570.60 crore will cover the import, installation, and commissioning of the plant and associated technological systems. In contrast, the remaining Tk37.47 crore will address local costs, including letters of credit and value-added tax. The funding is structured over four fiscal years, from FY2025–26 to FY2028–29. It will be sourced entirely from within the Bangladesh Air Force's existing budget allocations, avoiding the need for supplementary fiscal measures.

While full technical specifications of the technology transfer remain undisclosed, the official scope includes the domestic assembly and eventual manufacturing of a broad range of UAV platforms. These will include Medium Altitude Long Endurance (MALE) drones for persistent surveillance and reconnaissance operations, Vertical Take-Off and Landing (VTOL) systems optimized for tactical support and austere terrain operations, and a suite of indigenous UAVs for multi-domain applications. Notably, the program also prioritizes dual-use capabilities for humanitarian assistance and disaster response, underscoring the growing importance of drones in both military and civilian crisis environments.

Defense sources within Bangladesh emphasize that the CETC partnership is designed to gradually reduce dependence on foreign unmanned systems by embedding critical knowledge and industrial capability within national institutions. The facility will serve not only as a production hub but also as a foundation for future research and development, enabling the Bangladesh Air Force to maintain, adapt, and potentially innovate beyond the initial platforms provided under this agreement.

This agreement follows broader trends in South Asia, where regional powers are seeking to strengthen local defense production amid shifting geopolitical alignments and evolving threat landscapes. For CETC International, the deal further expands its presence in the region, reinforcing China’s strategic defense-industrial outreach under its “military-civil fusion” model. Industry analysts note that such collaboration offers Bangladesh a pathway to join the ranks of UAV-producing nations, enhancing its defense credibility and operational independence.

The program aligns closely with Forces Goal 2030, the long-term modernization roadmap set by the Bangladeshi government, which envisions a technologically advanced, self-reliant armed force. By acquiring the ability to assemble and potentially develop its own unmanned aerial systems, Bangladesh takes a substantial step toward fulfilling this vision. Experts predict the emergence of a domestic support and supply chain around the UAV plant, with potential benefits for allied industries including avionics, composite materials, and electronics integration.

While full operational timelines have yet to be announced, officials expect construction and initial production to begin within the next 18 to 24 months. The facility's strategic location and the nature of the technology partnership also carry broader regional implications, particularly as Dhaka balances close economic ties with Beijing against the strategic interests of neighboring India and other Indo-Pacific stakeholders.

As the project moves from signature to implementation, the Bangladesh Air Force now stands at the forefront of a transformative initiative that may redefine its long-term operational capabilities and national defense posture.

Written by Alain Servaes – Chief Editor, Army Recognition Group
Alain Servaes is a former infantry non-commissioned officer and the founder of Army Recognition. With over 20 years in defense journalism, he provides expert analysis on military equipment, NATO operations, and the global defense industry.