Foreign investors ask about sustainability of govt promises, policies

Foreign investors toured three economic zones in Chattogram and Narayanganj to explore investment opportunities and inquire about the long-term sustainability of government promises and policy benefits. 

They also asked about the government's steps to resolve bureaucratic complications, according to government officials involved in organising the Bangladesh Investment Summit.

"They wanted to know what steps would be taken to eliminate red tape in investment and what benefits the government could provide them in terms of investment," said Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority (Bida) during a press conference today (8 April).

He said the visiting investors also enquired about the challenges existing investors are currently facing in the country and what steps the government is taking to resolve them.

Abdullah Al Mahmud Faruk, project director of the National Special Economic Zone in Mirsarai, Chattogram, told The Business Standard, "They wanted to know if the economic zone has all the necessary facilities and if the discussed policies will be effective in the long term."

Foreign investors visited the Bangladesh Special Economic Zone in Araihazar, Narayanganj, also known as the Japanese Economic Zone, to enquire about worker availability and transportation options.

Taro Kawachi, managing director of Bangladesh SEZ Limited, told TBS that policy inconsistency is a major challenge for investors in Bangladesh, particularly the frequent changes in tax policies. He cited a specific issue last year that was resolved through dialogue. 

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

Other investors also echoed this sentiment, noting improvements in addressing investment challenges.

Earlier, in response to reporters' questions on Monday, Ashik Chowdhury said, "When investors show interest, there is a process to land them. We must assure them that we can deliver on our promises. Many end up not investing in Bangladesh because we fail in this."

On Monday, visiting investors toured two economic zones in Chattogram to assess investment prospects, available facilities, and the work environment, according to a post on Chief Adviser Muhammad Yunus's verified Facebook page. 

The delegation, comprising 36 foreign company representatives from China, Japan, Saudi Arabia, Abu Dhabi, the US, India, and Non-Resident Bangladeshis, visited the Japanese Economic Zone.

Bida is organising the summit to showcase investment opportunities and the impact of economic reforms following the July mass uprising. The summit, which began on 7 April, aims to attract foreign investment by highlighting the country's evolving economic landscape.

MoU inked with Swedish firm eyeing investment

During the visit, Swedish company Nilorn Bangladesh signed an MoU with BSEZ to establish a factory. The agreement was signed by Mohammad Abdul Quyum, managing director of Nilorn Bangladesh, and the BSEZ managing director.

Quyum told journalists that the company plans to invest around $14 million within six months of signing the agreement, which is expected to create employment for about 300 people. The new facility will manufacture garment accessories, complementing the company's existing production in Manikganj.

Singer plans to invest more

According to Beza, Singer Bangladesh Limited, a multinational company, has been operating in the zone since 2024, producing 50,000 refrigerators and 20,000 televisions per month. The company has invested approximately $74 million, and the overall investment in the zone is around $200 million, as stated by Azad Majumder.

HM Fairoz, managing director of Singer Bangladesh, said, "There are challenges everywhere, and Bangladesh is no exception. This is just another phase we are going through."

He also expressed plans for further investment, calling Bangladesh "a land of opportunity."

During the visit, Non-Resident Bangladeshi Iftekhar Mahmood, based in the US, discussed the potential for manufacturing medical equipment in Bangladesh. 

He shared plans to establish a private general university and emphasised the need for locally produced biomedical equipment, saying, "We are seriously considering it."

Corruption had previously deterred investors

Azad Majumder, deputy press secretary to the chief adviser, said investors expressed satisfaction after visiting several economic zones over the past two days. He said the interim government is actively working to remove investment barriers, including the launch of a One-Stop Service Centre.

Majumder further said around $200 million has already been invested in the Japanese Economic Zone. Development of 600 acres out of the 1,000-acre zone has been completed, and once fully operational, the zone is expected to employ around 100,000 people.