Govt accepts Chinese proposal to set up EZ in Chittagong

Jasim Uddin Haroon | Published: February 15, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

The government has responded positively to a Chinese proposal for building an economic zone (EZ) in Chittagong.
The proposed zone will exclusively house units originating from China.
The Ministry of Finance (MoF) at a meeting last week agreed in principle on a proposal for setting up the Chinese economic zone in the port city, official sources said. But the location of the proposed zone is yet to be decided.
If implemented, the port city will have four economic zones with the country's first export processing zone (EPZ) at Chittagong in 1983.
Besides, the government also approved another private EPZ at Rangunia in Chittagong but it is yet to be started.
However, the Chinese government sent a letter to the Prime Minister's Office (PMO) more than a month back in this connection. Later, a meeting on the issue was held at the Economic Relations Division in January.
But, sources at the Bangladesh Economic Zones Authority (BEZA) said the issue of land is yet to be resolved.
The Chinese government wants at least 1,000 acres of land at the southern part of the Karnaphuli river, near the Korean EPZ, to build the economic zone with a tunnel under the river.
On the other hand, the BEZA said it has ready land in the Gohira area under the Anowara upazila.
Gohira under the same upazila is far from the KEPZ. It is just opposite Shah Amanat International Airport.
Md Moniruzaman, manager (investment promotion) at the BEZA said: "We've 611 acres of ready land in the Gohira area. We've already informed the ERD about it."
The BEZA official said the Chinese and the Bangladesh authorities might sign a contract on the lands shortly if the former agrees to build the economic zone in Gohira.
Sources in Chittagong said China wants to construct the economic zone near the KEPZ as there are many hilly lands in the area.
Besides, the PMO last year asked the KEPZ to develop industrial units only on 500 acres of lands, downsizing the original plan area to one-fifth. In 1998, the government approved the Korean Export Processing Zone (KEPZ) owned by the Youngone Group on 2,500 acres of lands.
But the Chinese entrepreneurs want to relocate their industrial entities in the port city as the cost of manufacturing different products has been rising in China.
Products manufactured in China are believed to be non-competitive in the global market following rise in its labour cost.
However, Mahbubul Alam, president of the Chittagong Chamber of Commerce and Industry (CCCI), said once the economic zone is finally implemented, it will help the port city boost its economic activities.
He said exports will also rise.China, the second largest economy in the world, became the world's largest trading nation in 2013, overtaking the US with annual trade in goods worth $4trllion.