Economic zones helping product diversification, tech transformation

Highlights

• All of the 100 EZs expected to be open by 2030
• One crore employments to be generated in the zones
• 97 already got nod, being constructed on 61,000 acres of land
• Investors set up factories at Jamalpur EZ, Japanese EZ, Bepza EZ, Maheshkhall-3 EZ, and Naf Tourism Park
• Tax holiday, duties-free raw materials and machinery import are key facilities

The economic zones (EZ) and export processing zones (EPZ) in the country have been contributing to product diversification and technology transformation, Mercy Miyang Tembon, World Bank Country Director for Bangladesh and Bhutan, has said.

These zones are also branding Bangladesh worldwide, she said on Sunday, while addressing an event at International Investment Summit 2021 organised by the Bangladesh Investment Development Authority (BIDA). 

Mercy believes that Bangladesh could show a good performance in ramping up production and exports thanks to the zones, as the government provided investors with some lucrative facilities there.

"The zones could woo large investment as they had available electricity, gas and good transportation facility," said Yuho Hayakawa, chief representative of JICA in Bangladesh. 

He, however, warned the government of neighbouring competitors who are also developing economic zones and providing tax and other facilities to draw FDI.

The event titled 'Economic Zones: Exceeding All Expectation' that took place at Radisson Blu Water Garden in the capital also discussed different aspects of the economic zones which the government is developing in different parts of the country. 

Speakers at the programme urged local and foreign investors to grab opportunities the zones offer.  

"The government is developing 100 economic zones, all of which are scheduled to be open by 2030, and expected to generate more than one crore employment. Besides, factories there are believed to produce and export products worth $40 billion," said M Erfan Sharif, an executive member at the Bangladesh Economic Zones Authority, who also presented the keynote paper at the event.

Already 97 economic zones received approval and are now being constructed on 61,000 acres of land. Besides, the government is allotting more land for the EZs.

He said they were now providing one-stop services to the investors, and informed that investors already set up factories at Jamalpur Economic Zone, Japanese Economic Zone, Bangabandhu Sheikh Mujib Shilpa Nagar, Maheshkhall-3 Economic Zone, and Naf Tourism Park.

Sharif further added that the government is also establishing some special economic zones under the government to government (G2G) model. 

"We are offering investors tax holiday, duties-free raw material and machinery imports and many other facilities," the official said.  

Bangladesh Export Processing Zones Authority Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman the Bepza showed success in attracting FDI.

Currently, a total of 8 EPZs are in operation, having 4.59 lakh workers, and 459 factories run by companies from 38 countries. 

He informed that the government is developing three more EPZs in Patuakhali, Jashore and Gaibandha. 

"These EPZs and EZs are the outcomes of our long experience and plans. Therefore, I assure you (investors) that the zones will be the right destinations for the investment," he suggested. 

As session chair, Land Minister Saifuzzaman Chowdhury told the event that his government was willing to allocate more land for economic zones.

"We need more FDI for achieving inclusive growth and building an industrialised Bangladesh"

Nitol Niloy Group Chairman  Abdul Matlub Ahmad moderated the event. The Business Standard is the media partner of the summit to end Monday.