Bay Economic Zone wooing local, foreign investors
The EZ has received $175m investments so far
Bay Economic Zone, set up by Bay Group on 65 acres of land in Konabari, Gazipur with modern facilities, is now fully ready to woo local and foreign investments with 40% of the land already leased out to potential investors.
A number of foreign companies seeking to shift factories outside China and investors from Taiwan, South Korea and some European countries are keen on investing in the economic zone developed in the private sector.
Chinese toymaker Meigo (Bangladesh) and Bay's own sportswear factory have already gone into production there, according to high officials of Bay Group.
"Some 40% of the 65 acres of land have already been leased out to the investors. A number of companies from South Korea, Europe and Taiwan have shown investment interest," Bay Group Managing Director Ziaur Rahman told The Business Standard.
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"It is mainly the companies that seek to transfer their production facilities from China to other countries who are coming. We're talking to their representatives. Hopefully, some foreign investments will come here soon," he added.
He stated that the Bay Economic Zone has roped in more than $100 million in foreign investment apart from Bay's own investment of nearly $75 million, including cost of infrastructure development.
Meigo (Bangladesh), which exports toys to Japanese and European markets, started its operations in the first economic zone in Gazipur in 2018 with $15.8 million investment – a year after the zone secured a licence from the Bangladesh Economic Zones Authority (Beza) in 2017.
Additionally, the Taiwanese apparel maker Makalot, under its registered name in Bangladesh – Makalot (BD) Ltd – will invest $17 million to set up a factory here, according to Bay officials.
With the setting up of a factory in a six-storey building, Makalot (BD) will create employment opportunities for around 1,500 people to produce sportswear, readymade garment, sleepwear, leisure clothing and outdoor garment.
In January 2023, the zone authorities signed an agreement with the Taiwanese investor for allotting 10,119 square metres of space. Currently, Makalot has over 33,000 employees in factories in Indonesia, Vietnam, Cambodia, China and the Philippines.
The Bay Group MD said the construction work of Makalot's factory in Bangladesh is now underway and the factory is likely to go into production by April this year.
Ziaur said their own factory in the economic zone – Bay Sports Wear Limited – manufactures export quality shoes in collaboration with international shoe-maker Stella.
Other factories awaiting the start of production at the economic zone include Formoza Mold and Lasting Ltd producing plastic items; Bay Box Limited manufacturing packaging and accessories items; Essential Dyeing Ltd producing composite knit garments; and Bay Cargo Centre Ltd producing logistic items.
"We'll now selectively allocate land to companies producing high-end value products. Some textile companies, which will manufacture man-made fibres, are talking to foreign companies to acquire land. We are ready to serve these investors," Ziaur Rahman told TBS.
Some 10,000 new direct employment will be created in the economic zone. Another 50% more indirect employment would be generated there through the supporting businesses.
There is a plan to expand the economic zone to 100 acres of land given the increased demand from the investors, both from home and abroad, Ziaur said while sharing his Bay's future expansion plan.
Currently, a total of eight private economic zones are in commercial operation. The Beza has set a target of setting up 100 economic zones across the country by 2041 to create some 10 million jobs.
The economic zone authority has set a target for $40 billion additional export earnings from those economic zones by that time frame.
Investors enjoy tax holidays, duty-free imports of raw materials and machinery, exemption from dividend tax, VAT-free electricity, gas and water and other financial facilities in the economic zones.
Besides, they also enjoy some other non-financial advantages such as bond facility, One Stop Service (OSS), repatriation of disinvestment, unlimited telephone transfers and separate customs procedures.
