Foreign investments brim over domestic EPZs

01 Apr '08

2 min read

Foreign investments have been pouring into the Bangladesh Export Processing Zones Authority (BEPZA) at a record high level. Credit for this can be attributed to weakening dollar, low domestic labor costs and easy access to Asian markets which have been attracting a large number of foreign manufacturers.

So far, agreements have been inked for foreign investments worth more than US $300 million in the first two months of 2008. This is in addition to the $130 million sanctioned in the last six months of 2007.

In contrast to this, foreign investments outside EPZs fell in the second half of 2007 to $368 million against $411 million of the previous year.

Moreover, the EPZ is receiving investment on a much larger scale than before and proposals have been coming from non-garment manufacturers as well.

Although the region did not receive orders with investments of over $100 million, this time it has bagged several contracts worth more than $100 million.

A furniture manufacturing company in Taiwan, Tri Max Global Company Ltd, signed an expression of interest (EoI) with the government last month to invest around $120 million. The company has already booked 54 plots at Chittagong Kharnafuli EPZ.

According to its proposal the company is planning to relocate its Malaysian plant in Bangladesh to reduce exorbitant production costs.

Besides, Paka Textile, a South Korean company has also expressed desire to set up a weaving mill to produce fashion fabrics for exporting or for garment manufacturers in Bangladesh.

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