BEPZA gets $382m investment proposal in H1

Bangladesh Export Processing Zones Authority (BEPZA) has received investment proposals of $382 million from foreign and domestic investors during the first half of 2021 amid the ongoing Covid-19 pandemic.

Of them, $334 million investment proposals came for BEPZA Economic Zone at Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) at Mirsarai in Chattogram, while other EPZs could woo $47.98 million investment between January and June this year, according to data of BEPZA office.

The BEPZA official data also showed that the country received $1,688.08 million in actual Foreign Direct Investment (FDI) for EPZ in the last five financial years.

“The BEPZA received a $144.10 million proposal in 2020 while the actual FDI was $239.82 million. Besides, the proposed FDI was $199.07 million in 2019, $179.13 million in 2018 and $106.51 million in 2017 in the EPZs. And actual FDI was $169.32 million in 2019, $312.50 million in 2018 and $480.83 million in 2017,” the data also showed.

BEPZA officials said so far, 531 companies have invested in EPZs. Of them, 460 are in operation and 71 are in the pipeline. The BEPZA signed lease agreements with 19 companies between January 2020 and June 2021.

The investments came from different countries including South Korea, China, Japan, Taiwan, India, the USA, the UK, Pakistan, Malaysia, Sri Lanka, Canada, Netherlands, Germany, British Virgin Islands, Italy, Singapore, France, Denmark, Indonesia, Spain, Australia, Belgium, Cayman Islands, Ireland, Kuwait, Malta, Marshal Island, Romania, Ukraine, Turkey, Thailand, Mauritius, Saint Kitts and Nevis, Sweden, UAE, Oman, and Portugal, according to the authority.

BEPZA is providing facilities including plots/factory buildings in customs bonded area, infrastructural and administrative facilities, fiscal and non-fiscal incentives to attract foreign and local investments to the zones.

Now, BEPZA is preparing nine EPZs in Chattogram, Dhaka, Mongla, Ishwardi, Cumilla, Uttara, Adamjee and Karnaphuli and BEPZA Economic Zone in Mirsarai.

The organisation is going to prepare three new zones — Payra EPZ in Patuakhali, Noapara EPZ in Jashore, and Setabganj EPZ in Gaibandha district— in a short time.

Talking to The Business Post, BEPZA Executive Chairman Major General Md Nazrul Islam said they received ‘satisfactory’ foreign investment proposals in the last couple of months of the current year despite the coronavirus pandemic.

“We have received a good number of FDI proposals from January to June this year as per our target. We are trying to woo more and more investors. We are providing a lot of facilities for foreigners to increase FDI in Bangladesh,” he said.

Nazrul said they are now working with a total of nine EPZs. “Three new EPZs will be set up soon at Payra in Patuakhali, Noapara in Jashore, and Setabganj in Gaibandha to increase investment in the country,” he added.

When asked about investors’ interest in EPZs, the BEPZA chief said, “Many foreign investors came from different countries including China, Japan, South Korea, Hong Kong and India to our EPZs, thanks to safety, political stability and tax exemption.”

Nazrul Islam added that alongside the facilities, they are providing infrastructural facilities including gas, water connections and security etc.

“We can start production in the first phase by August 2022. We are giving priority to export quality products instead of apparel items,” he added.

Nazrul Islam told The Business Post that around 4,66,000 people are now working in the EPZs of Chattogram, Dhaka, Mongla, Ishwardi, Cumilla, Uttara, Adamjee and Karnaphuli. 

“We hope that further 4,00,000 people will get jobs in Mirsarai by 2023. Beside, nearly 3,00,000 people also will be employed at the new three EPZs soon,” he added.