KEPZ in trouble as potential investors turn to other states

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Jasim Uddin Haroon
The Korean Export Processing Zone (KEPZ) authority is facing a major setback as the investors, who had pledged to establish industries in the KEPZ, have already diverted their investment proposals to other countries.
"We are in real trouble now to trace the investors who had commitments of investments in the KEPZ in Chittagong. They might have changed their minds due to procedural delays," one senior official at the KEPZ told the FE.
The official also said they now require more time to invite new investors from Korea to invest in the KEPZ.
Officials at the KEPZ authority said delay in issuance of operating licence by the Bangladesh government was the main reason behind the flight of investment proposals to other countries.
However, the interim government, following a fresh decision taken late last month, handed over the operating licence of the KEPZ to Youngone Group.
This ended a long wait for the South Korean Youngone Group to start inviting investors at the country's largest private export processing zone.
While talking exclusively with the FE, Suk-Bum Park, Ambassador of the Republic of Korea said a large investment was already made in North Korea, an arch rival of South Korea, and other parts of the world when the KEPZ status remained unclear.
"Once the favourable investment conditions and environment are met, the KEPZ can see investments being made sooner rather than later," Korean Ambassador added.
He also said in order to transform the potentials of KEPZ into reality, enormous effort has to be made by Bangladesh government as well, he pointed out.
"The single most important thing is to ensure that the relevant investment inducing policy should be made and applied in a consistent manner. Such consistency in policies would enable potential investors to have reasonable security and predictability of their investment's future," Korean Embassy chief added.
He also said Bangladesh has the potential to attract other investments by taking advantage of competitiveness in terms of productivity, skilled manpower, duty-free market access to European Union and US, due to strategic location.
The KEPZ has been set up on 2500 acres of land by the Karnaphuli river in Chittagong and the group has invested Tk 1.0 billion to procure the land at Anowara in Chittagong.
The KEPZ authority is planning to invite investment in wide ranging sectors including textiles, leather, shoes, ship-building, steel mills, power generation, high tech industries such as ICT, electronics.
The Ministry of Shipping, In the meantime, decided to allow the KEPZ to construct a dedicated jetty in the river Karnaphuli.
Earlier, a vested quarter opposed allowing dedicated jetty for the KEPZ.
The government might issue a gazette notification in this connection and statutory regulatory order to allow investment materials to enter Bangladesh under KEPZ framework.
It was expected that the KEPZ would have around 500 industrial units with an investment of US$ 1.0 billion and employ around 100,000 people.