With stellar economic growth, business friendly environment and government’s business supporting policies, Bangladesh continues to enjoy the confidence of international investors. Chinese, Korean, Taiwanese, American, British, Japanese and European manufacturers are eager to relocate their industrial units to Bangladesh owing to their increasing production costs as well as pandemic fallout, global trade rivalry and political developments in Europe. Sectors with active FDI include agribusiness, garment/textiles, leather/leather goods, light manufacturing, power and energy, electronics, light engineering, ICT, plastic, healthcare, medical equipment, pharmaceutical, ship building, and infrastructure.
Some of the big global names having investment/assembly plants/factories in Bangladesh are Honda, Suzuki, Mitsubishi, Yamaha, Hino (Japan), Super Petrochemical, Samsung, HKD, Hyundai (South Korea), Chevron, Huntsman Corporation (US), Telenor (Norway), Proton Saga, Axiata (Malaysia), Tata, Ashok Leyland, Mahindra, Hero, Malabar (India) and Arcelik (Turkey).
Export Processing Zones (EPZs) have been an important facilitating factor for bringing FDI into the country. More than 450 factories in 8 different EPZs are currently contributing 20% of Bangladesh’s annual export earnings. These have received $5 billion+ investments.
Following a growing interest from foreign investors in choosing Bangladesh as their new investment destination and sensing their desire to go for immediate operation by avoiding construction related issues and delays, Bangladesh Export Processing Zones Authorities (BEPZA) has decided to offer the investors ready floor space in addition to plots. BEPZA will construct 8 six-story factory buildings in Chattogram, Ishurdi, Mongla and Uttara EPZs at a cost of US $47 million. Construction commenced in July 2022 and are expected to be completed in three years. The new buildings will add 127,000 square metre floor space and are expected to help bring in $35 million in new investments.
Following the success of EPZs (Export Processing Zones), Bangladesh is establishing a total of 100 EZs (Economic Zones)—both government and private, over the next 15 years across the country. By providing attractive fiscal and financial benefits and serviced industrial plots, these zones are already turning into lucrative investment destinations from both domestic and foreign sources. Out of the 100, two alone–Bangabandhu Sheikh Mujib Shilpa Nagar, Sreehatta and Moheshkhali EZs, are attracting around US$5.78 billion investment from companies in China, South Korea, Japan, India, Singapore, the UK, Australia, Malaysia, and the US. Over 60 local companies are also expected to invest US$12.13 billion in these EZs. Among the foreign ones, the highest investment proposal worth US$2.83 billion came for the power sector from two Chinese companies. South Korean entity Super Petrochemical showed interest to invest US$2.38 billion in petrochemicals, the second biggest amount. A Singaporean company stood third in the list with a fund of US$400 million for the food processing sector. There are dedicated EZs for Japan, India, China and South Korea too.
