Dhaka: Chief Adviser Professor Muhammad Yunus today urged authorities to resolve the land rights issue of the Korean Export Processing Zone (KEPZ) by early next month and consolidate all investment promotion agencies to attract more foreign investment in the country. He issued these directives during a meeting with Kihak Sung, chairman of Youngone Corporation, and other top foreign investors at the State Guest House Jamuna.
According to Bangladesh Sangbad Sangstha, Kihak Sung, whose South Korean company is the largest exporter from Bangladesh, highlighted several challenges discouraging foreign direct investment (FDI) in Bangladesh and requested improvements in conditions for large-scale investment. In response, the chief adviser assured Sung that the land issue of KEPZ, a major barrier to FDI, would be resolved by February 6, expressing hope that KEPZ would become a model for investment and job creation in Bangladesh.
Kihak Sung commended the Interim Government's swift action to address long-standing issues related to KEPZ, stating that more Korean investors would be encouraged to invest in Bangladesh. He emphasized that resolving these issues would pave the way for other investors, positioning KEPZ as a model investment zone.
Additionally, the Youngone Corporation chairman urged the government to accelerate shipments through Chittagong Port, noting that slow turnaround times hinder high-end and fashion clothing orders from global brands. He pointed out the need for quick exports, typically within 10-15 days, contrasting this with Vietnam's expedited export processes, which have attracted significant investment.
Prof Yunus indicated that he has instructed authorities to enhance port operations, with Special Envoy Lutfey Siddiqi spearheading plans to elevate Chittagong to a leading regional port. Kihak Sung and British investor Mohammed A Matin advocated for unifying investment promotion agencies to provide efficient one-stop services for foreign investors. In response, the chief adviser tasked Bangladesh Investment Development Authority (BIDA) chief, Chowdhury Ashik Mahmud Bin Harun, with consolidating the five investment agencies into a single entity.
Chowdhury Ashik acknowledged the inefficiencies of the existing fragmented system, attributing it to past inept and corrupt governments, and confirmed BIDA's efforts to streamline investment promotion.
Sung also announced Youngone's initiative to establish one of the world's largest textile institutes in Bangladesh, expected to train thousands annually. He invited Prof Yunus to the opening ceremony scheduled in three months.
Matin called for labor law reforms and the introduction of a net metering system for solar panels in export processing zones. He criticized the discriminatory policy imposing a 26 percent tax on solar panel imports for EPZ investors. The chief adviser confirmed ongoing government efforts to implement vital labor reforms and hinted at the introduction of green channels at Chittagong Port to expedite exports.
Javier Carlos Santonja Olcina, country head of clothing giant Inditex, praised the Interim Government's business reforms, expressing optimism about a substantial increase in Bangladesh's exports this year. Paul Anthony Warren, Director of Dewhirst, also attended the meeting.