Published at: The Financial Express, February 04, 2019
Twelve international companies would make around US$ 5.78 billion in foreign direct investment (FDI) in Bangladesh’s special economic zones (SEZs), generating 13,000 new jobs for the local people, reports BSS.
The FDI is coming from Japan, Malaysia, China, United Kingdom (UK), Singapore, UAE, India, Australia and South Korea to the sectors like building materials, steel, power, processed food, paint, petro chemical and garment accessories, said officials.
Meanwhile, the companies have signed agreements with Bangladesh Economic Zones Authority (BEZA) for land acquisition and a few of them have already started land development works.
Talking to BSS, BEZA Executive Chairman Paban Chowdhury said different world renowned big companies are coming to Bangladesh with huge investment proposals.
“We’ve signed land allocation agreements with 12 multinational companies which would make $ 5.78 billion FDI in the SEZs,” he said, adding, “BEZA has approved the investment proposals.”
In addition, another $ 5 billion FDI proposals are in the pipeline, disclosed the BEZA Executive Chairman.
Among the companies, Macdonald Steel Bldg. Ltd (Japan) would make $ 59.19 million investment in building materials while Eonmetall Intl. Ltd (Malaysia) $ 9 million in steel rack, Beijing Zhenyuen Cons. Ltd (China) $ 304 million for 200 MW solar power, Hangzhou Jinjiang Group Co. Ltd (China) $ 2.5 billion in 1,400 MW coal power, Euresia Food Process Ltd (UK) $ 30 million in processed food and Edible Oil Ltd (Singapore) $ 400 million in food park.
Besides, Arab Bangladesh Food Ltd (UAE) would make $ 12.50 million investment in frozen food while Asian Paints (BD) ltd (India) $ 26 million and Berger Paints (BD) Ltd (UK) $ 13 million in paint production, Merchant Melbourne Ltd (Australia) $ 3.67 million in meat net, Aust-Bangla Accessories Ltd $ 12.15 million in garment accessories and Super Petro Chemical (Pvt) Ltd (South Korea) $ 2.38 billion in petro chemical factories.
Mr. Paban Chowdhury said the 12 companies have been allocated a total of 1,810 acres of land, most of which are located in the Mirershorai and Maheshkhali economic zones. “A few companies have planned to go on production within the next year,” he added.
He said the BEZA was developing separate SEZs for the investors of Japan, China and India.
Referring to the investment proposal of the world’s third largest steel producing company, Japan’s Nippon Steel & Sumitomo Metal Company, he said many Japanese companies are communicating with the BEZA expressing their interest to make investments in Bangladesh.
“It was not thought in the past that there would be a separate economic zone for Japanese investors in the country but now Japan would act as the ‘game changer’ for the foreign investors in the SEZs,” he said.
With the aim of expediting and increasing industrialisation, new jobs, production and export diversification, BEZA is working to develop 100 economic zones on 75,000 acres of land in the country by 2030 which would also generate over 10 million employments and additional $ 40 billion in exports.