BEPZA ready for more FDI in Bangladesh 2.0 despite headwinds

Bangladesh Export Processing Zones Authority (BEPZA) is readying itself for more foreign investment in Bangladesh 2.0 when the FDI scenario is sailing through headwinds despite some tailwinds.

Major General Abul Kalam Mohammad Ziaur Rahman, Executive Chairman of the BEPZA, emphasized Bangladesh's growing appeal as a relocation hub for Foreign Direct Investments, thanks to its investor-friendly policies and industrial support infrastructure.

Addressing a ‘Meet the Press’ at its Green Road head office in the capital on Monday, the BEPZA Chairman detailed various initiatives and challenges faced by the authority in managing the country's eight EPZs (Export Processing Zones). Highlighting the government's commitment to fostering industrial growth, he said, "When a company approaches us, we assess the factory's category—wet, dry, green, yellow, or red. Compliance with buyer standards, environmental treatment plants (ETP), and adherence to laws remain critical."

BEPZA is addressing infrastructure gaps, such as the water shortage in Mirersharai EPZ, by planning to dig a 45-acre lake to ensure adequate water supply. Gas lines are also being extended to EPZs in Jashore, Mirersharai, and Patuakhali, underscoring BEPZA's commitment to providing modern facilities. Rainwater harvesting conditions have been mandated for sustainable industrial operations.

On labor issues, Rahman acknowledged the complexities surrounding EPZ labor laws, which were amended in 1986, 2004, 2010, 2019, and 2021, to align with International Labour Organization (ILO) standards. While EPZ workers receive 30-40% more benefits compared to non-EPZ workers, concerns remain about their inability to liaise with external unions or NGOs. "BEPZA safeguards workers' interests," he said, citing examples such as the resolution of disputes at Adamjee EPZ.

BEPZA provides 200 services to investors, streamlining processes under the One-Stop Services Act, though occasional delays in timeline adherence persist. The Chairman also mentioned ongoing efforts to establish a unified platform to bring BEPZA, Bangladesh Investment Development Authority (BIDA), BEZA, and other agencies under a single umbrella for better coordination.

Rahman noted that 52% of companies in BEPZA are in the ready-made garment (RMG) sector, with the remaining 48% in non-RMG industries. The successful NARI project in the Northern Bangladesh, implemented between 2012 and 2020 under the World Bank, provided skill training for women, contributing to workforce empowerment.

While challenges such as energy security, port clearance, and access to raw materials remain, Rahman reaffirmed BEPZA's target to attract foreign investors. "No EPZ faced significant closures, except for brief interruptions during unforeseen events," added BEPZA Executive Director (Public Relations) ASM Anwar Pervez.

As part of its expansion, BEPZA plans to establish economic zones within the 33,000-acre land under the Bangladesh Economic Zones Authority (BEZA), aiming to further bolster industrial growth and attract global investments.

This strategic focus positions Bangladesh as a competitive destination for Japanese and other international investors, promising robust industrial development and economic growth.

During the meet, the BEPZA Executive Chairman answered various questions. Additionally, Member (Engineering) Md. Imtiaz Hossain, Member (Finance) A N M Foyzul Haque, and other senior officials of BEPZA were present at the event.

The programme was conducted by BEPZA Acting ED ASM Anwar Parvez.