Investors are flocking to the private economic zone | Rare Techy

Twelve private economic zones in Bangladesh have received good response from investors drawing investment proposals involving $4.27 billion from local and foreign entrepreneurs in the past six years.

At least 70 percent of the amount has been invested in the zone, set up as part of the government’s initiative to establish 100 economic zones across the country as it is expected to accelerate industrialization, create jobs and reduce poverty.

Commercial production in more than 20 industrial units in private economic zones, including Meghna, Kota, Abdul Monem, and Bay have started and they are exporting goods, according to sources at the Bangladesh Economic Zone Authority (Beza).

Another 35 industrial units are under construction and are expected to be in production in one and a half years.

Automobiles, chemicals, pharmaceuticals, light engineering, hospitals, plastics, edible oils and food processing are sectors that attract investment proposals.

The three zones of Meghna Group of Industries (MGI) located in Narayanganj and Cumilla have wooed investment proposals worth $1.48 billion. Most of the amount has been invested.

MGI itself has invested $550 million to set up seven factories and develop infrastructure in Narayanganj and Cumilla. The industry was inaugurated yesterday.

Of the seven, Meghna PVC Ltd, Meghna Foil Packaging Ltd, Sonargaon Solar Energy Ltd, and Meghna Bulk Bag Industries Ltd are already operational.

The foundation stone laying ceremony for the remaining three – Cumilla Economic Zone Ltd, Meghna Glass Industries Ltd, and Meghna Re-rolling and Steel Mills Ltd – took place yesterday.

“We are working for the people of the country to create new jobs and the prosperity of Bangladesh,” said Mostafa Kamal, chairman and director of MGI, one of the conglomerates in Bangladesh, at the ceremony.

“As our commitment, we have generated about 3,000 jobs in seven plants and infrastructure.”

According to Beza, 36,602 jobs were created in the private economic zone.

The City Economic Zone, owned by City Group, has attracted investments worth $1.6 billion, Beza sources said. A total of 14 factories will be set up in the zone located in Rupganj of Narayanganj.

In the zone, four plants are operating and three are conducting trials.

“The City’s Economic Zone has been colonized,” said Paban Chowdhury, an adviser to the City Group.

The group’s other Hoshendi Economic Zone, located in Munshiganj, received an investment proposal of $452.79 million.

“We are also going to confirm huge investment from Korea in the readymade garments sector,” said Chowdhury, also a former chairman of Beza.

In the economic zone, City Seed Crushing Industries will produce edible oil and soymeal, raw materials used for animal feed. City Polymers will produce 10 lakh polybags daily.

Abdul Monem Economic Zone Ltd, located in Gazaria of Munshiganj, has targeted to set up environmentally friendly garments and textiles, electronics, ICT, food processing, plastics, furniture, pharmaceuticals, and light engineering industries.

Bangladesh Honda Private Limited, a joint venture between Japan’s Honda Motor Company Limited and Bangladesh Steel and Engineering Corporation, has invested in the zone and started marketing bikes made at the factory.

The AK Khan Economic Zone in Narsingdi is setting up an industrial enclave on the banks of the Shitalakshya with an inland container terminal. The goal is to bring port facilities to the entrance of the industry.

The development of Sirajganj Economic Zone is in full swing.

A consortium of 11 companies developed the zone on 1,041 hectares of land in the northern district. Once completed, it will be the largest private economic zone in the country and is expected to generate around five lakh jobs.

The zone authority has provided land to 18 investors, said Sheikh Monowar Hossain, the zone’s project director.

Companies include Apex Footwear, Continental Garments Industries (Private), Dynamic Dredging, MK Chemical Industries, Ratul Fabric, Active Composite Mills, Rising Holdings, Rising Spinning Mills, Jessore Feed, Square Accessories, and Square Electronics.

Nitol Niloy Group is developing Kishoreganj Economic zone on 91.63 hectares of land in Pakundia upazila of Kishoreganj. This zone is near the Bhairab-Kishoreganj highway.

Once established, the group hopes to provide employment to 2,000 people initially. The number of jobs created will reach 20,000 within five years.

“India’s Tata Group is interested in setting up a car manufacturing plant to meet the demand for cars in Bangladesh,” said Abdul Matlub Ahmad, chairman of the group.

Designing the site and demarcation has been completed and the investment will soon start pouring in, he said.

Nitol Niloy Group, Tata’s local partner, has a target of producing 2,000 pickup vans a year in a factory built at a cost of Tk 800 crore.

“Some investments are coming in lighting engineering and other sectors. In all, the economic zone is expected to get investment of Tk 2,000 crore,” said Ahmad.

A hospital and a shoe factory were to be built in the area.

“Private investors are very smart and understand the value of investing,” says Paban Chowdhury.

He suggested not distinguishing between private and public economic zones because both would contribute to the economic development of the country, reduce poverty and create jobs.

Like the general economic zone, investors in the private zone enjoy duty-free import of raw materials, construction materials, capital machinery and finished goods and tax holidays for 10 years.

Five government-owned economic zones received investment proposals totaling $22.17 billion against 177 projects.