The New Nation - Internet Edition

Mashiur Rahaman

South Korea is reported to be the single largest foreign investor country in Bangladesh in terms of number of investments. The country alone operates 57 industries with 100 per cent ownerships in 10 different Export Processing Zones (EPZs) across the country.

S Korean companies have also established three companies under joint venture agreements with local companies, information revealed by the Bangladesh Export Processing Zones Authority (BEPZA).

According to their statistics, total 156 foreign companies with 100 per cent ownership have set-up their industries in different EPZs. Among them, S Korea alone is the largest investor in terms of number. Investment of Japan comes second with 22 complete Japanese ownership and two others in joint venture.

In S Korean investments, RMG and garment accessories production sector were on the top. Total 40 S Korean companies are involved in it. Beside that, production of plastic goods is the second largest S Korean investment sector, the report informed.

Other investment sectors are the footwear, leather goods, metal industry, electronic items and many others, the BEPZA statistics revealed.

Production of electronics and electrical items are the main attention for Japanese investment. Japanese targets total 11 out of 22 complete ownership and one out of two joint venture investments in this particular sector. Plastic goods, metal items and RMG industries attracted remaining Japanese investment, the statistics stated.

Among other major investors in Bangladesh, Hong Kong, Taiwan and China stands in the first row. Individually China has set up three complete ownership and six joint venture companies in EPZ areas.

But joint ventures companies by China, Taiwan and Hong Kong have established 23 absolute ownership industries.

In Joint venture agreements with Bangladeshi companies, this triangular alliance has invested to establish seven industries in Bangladesh.

Among the SAARC members, India alone is the largest investor country, holds 11 complete ownership industries and five joint venture industries in BEPZA areas.

Second position goes to Pakistan. The country has established two industries with 100 per cent ownership and also has four others in joint ventures with local companies.

USA and UK operates eight industries each with complete ownership where as Germany operates four, Canada three, Malaysia seven, the statistics further mentioned.

In sector wise investment in different EPZs in Bangladesh, RGM and garment sector have attracted maximum investments. Total 49 RMG and garments accessories producing industries are completely owned and operated by foreign investors. Textile industries are in the second position to attract foreign investment in Bangladesh, where the number is 38 with complete foreign ownership.

Other 10 plastic goods production industries, six agro processing, eight metal industries and 13 electrical items manufacturing companies are absolutely owned by foreign investments, which has been set up in Bangladesh.

According to the Executive Chairman BEPZA Brig. Gen. Ashraf Abdullah Yussuf, this rapidly growing foreign investment in Bangladesh is no longer a matter of surprise in the present global scenario.

"We have stopped issuing plots allocation to garments industries in all our EPZs. Still now, the number of applications we are receiving from foreign investors, we would need to establish another 10 EPZs to accommodate these companies," he said while addressing a press conference at his BEPZA office earlier.

According to him, the BEPZA has earned total US$451.82 million during the first half of 2007-08 FY from investment accords. It was net 36 percent growth against the previous years earning of US$333.72 million.

Moreover, export from the BEPZA during the first half of 2007-08 FY also grew to US$1076.96 million against US$1015million in the same period of the previous fiscal," he additionally added.

"Now what we need is to establish more EPZs as early as possible. Because the investors are showing their interest on Bangladesh for some geopolitical advantages," he said.

If we can't provide land for establishing these industries, our competitors like India, China, Thailand, Vietnam would avail the opportunity, he ended.