Foreign investors visit Bangladesh Special Economic Zone in Narayanganj

Foreign investors visited the Bangladesh Special Economic Zone (BSEZ) in Araihazar, Narayanganj, this morning (8 April), on the second day of the four-day Bangladesh Investment Summit.

The visiting delegation examined the investment prospects, available facilities, and work environment at the zone, according to a post made on the verified Facebook page of Chief Adviser Muhammad Yunus.

BSEZ authorities presented an overview of current operations and future potential during the visit.

During the visit, Swedish company Nilorn's Bangladesh unit, Nilorn Bangladesh Limited, signed a memorandum of understanding (MoU) with BSEZ to establish a factory within the zone, according to another post made on the chief adviser's Facebook page.

The agreement was signed by Mohammad Abdul Quyum, managing director of Nilorn Bangladesh Limited, and Taro Kawachi, managing director of BSEZ.

Mohammad Quyum, Managing Director of Nilorn Bangladesh Limited, told journalists that the company plans to invest around $14 million within six months of signing the agreement. This investment is expected to create employment opportunities for about 300 people. The company will manufacture garment accessories at the new facility.  The Sweden-based company is already in production in Manikganj.

Taro Kawachi, Managing Director of Bangladesh SEZ Limited, told The Business Standard that policy inconsistency is a major challenge for investors in Bangladesh. He pointed out the frequent changes in the country's policies, especially tax policies. Referring to a specific change that occurred last year, he said the issue was eventually resolved through dialogue.

However, since the current interim government assumed power, he acknowledged that there have been many positive changes in addressing such concerns compared to the previous administration.

Representatives from China, Japan, Saudi Arabia, Abu Dhabi, the United States, India, and Non-Resident Bangladeshis (NRBs) were also present.

According to BEZA (Bangladesh Economic Zones Authority), Singer Bangladesh Limited is currently operating there and it produces 50,000 units of refrigerators and 20,000 units of televisions per month.

Singer Bangladesh Limited has invested approximately $74 million, and overall investment size in the zone already about $200 million.

Speaking to reporters, HM Fairoz, managing director of Singer Bangladesh Limited, emphasised the investment potential in Bangladesh. In response to a question about challenges in the country, he said, "There are various challenges everywhere in the world. However, we are witnessing positive developments in Bangladesh."

Other investors also echoed this sentiment, noting that Bangladesh is showing improvement in addressing investment challenges. They stated that "Bangladesh is a land of opportunity."

According to the Economic Zone Authority, around $200 million has already been invested in the Japanese Economic Zone located in Narayanganj. Development of 600 acres was completed out of 1,000 acres of land. Once the entire zone is operational, approximately 100,000 people are expected to be employed there.

However, the visiting delegation did not make any official statement to the media.

At that time, Abul Kalam Azad Majumder, deputy press secretary to the chief adviser, said that the investors expressed satisfaction after visiting several economic zones over the past two days. He added that the current interim government is actively working to remove barriers to investment, including the launch of a One Stop Service Center. He acknowledged that regulatory hurdles and a lack of good governance had previously discouraged investors, but the interim government is now addressing these issues.

An NRB (Non-Resident Bangladeshi) named Iftekhar Mahmud, who lives in the United States, highlighted the potential for medical equipment manufacturing in Bangladesh.

Speaking to The Business Standard, he said, "We have plans to establish a private general university in Bangladesh. There is a clear need for biomedical equipment in the country, and we see potential for manufacturing these products locally. We are seriously considering it."

The Bangladesh Investment Development Authority is organising the summit to showcase investment opportunities and the impact of economic reforms introduced after the July mass uprising.

The summit, which began yesterday (7 April), aims to attract foreign investment by highlighting the country's evolving economic landscape.