We enter into negotiations to draw investment in BSEZ

We will try to operate Bangladesh Special Economic Zone (BSEZ), also known as Japanese Economic Zone, by global standards, so that we can bridge the gap between Bangladesh standard and global ones, said Managing Director of BSEZ Limited Taro Kawachi in an exclusive interview with The Business Post’s Rafikul Islam.

Prime Minister Sheikh Hasina has recently opened the BSEZ at Araihazar upazila in Narayanganj district. What is the current condition of the zone?

The first phase was inaugurated officially on December 6 this year. Singer Bangladesh starts its construction work.

Rudolf (Germany), ONODA (Japan), Nicca Chemical (Japan) have signed reservation agreements as well. Thirty Japanese companies and 10 other foreign companies have shown their interest to invest in the zone.

How can Bangladesh get more benefits from the economic zone?

I believe that we can contribute to industrial diversification in Bangladesh for drawing foreign direct investment (FDI).

What types of challenges you are facing to implement the project? Have you received any complaints from investors here? If so, please explain?

This is the first economic zone supported by the governments of Bangladesh and Japan. We will try to operate it by global standards, so that we can narrow the gap between Bangladesh standard and global ones.

In such case, the Bangladesh Economic Zones Authority (BEZA) supports us very closely. So, we don’t face any major problem.

How do you get responses from investors here? How many Japanese companies will invest in the zone?

We have directly received inquiry from FDI. I don’t know about the amount of investments made by Japanese companies, but as I mentioned we have already started negotiations with 30 Japanese companies.

What types of products are getting priority in the zone?

We don’t give any priority to specified industry, but an industry which hasn’t yet invested in Bangladesh is better to diversify industry in Bangladesh.

The BEZA holds a 24 per cent stake in the BSEZ, followed by JICA 15pc and Sumitomo Corporation (SC) 61pc. You are Assistant to General Manager of the SC. Please tell us what types of products the SC will manufacture in the zone.

Currently, the SC doesn’t have any plan to manufacture products in BSEZ. The SC is one of investors and BSEZ will manage and operate the economic zone for 50 years.

How can the BSEZ help Bangladesh economically to tackle post-LDC graduation impacts after 2026?

The FDI receipts would help diversify industries, create jobs, and transfer new technology and boost import-export business. These will help scale up the country’s economic growth.

Bangladesh and Japan have a 50-year diplomatic relationship. How can the BSEZ further strengthen the ties in the future?

It’s also the same to receive FDI from Japan, create recruitment, transfer new technology etc.

Will you put forward any recommendation about the ease of doing business in Bangladesh?

Currently, it’s needed to be improved, but if we receive a lot of FDI, I believe it’ll be improved.

What is your future plan?

First, we will try to attract FDI in our economic zone. Secondly, we’ll provide global-standard infrastructure and service. Thirdly, we’ll also provide platform services to skilled workers in surrounding areas aiming to improve their living standard.