Bangladesh Enrolls Japan To Set Up Dedicated RMG SEZs In The Country

Economy

Bangladesh Enrolls Japan To Set Up Dedicated RMG SEZs In The Country

The Bangladesh government has opened the floodgates to Japanese investors for creating a Special Economic Zone (SEZ) that will be dedicated for manufacture of ready-made garments (RMG) to be exported globally announced an official from the Commerce ministry.

The ministry spokesperson further said, “Japan at present assumes the role of a single largest investor in Bangladesh. The SEZ will further enhance this status and investments will increase manifold.”

According to the ministry official, “This will enable the setting up of RMG factories in a big way. Currently, the number of Japanese companies in the fray total to 350 and these companies cover the RMG sector and also backward linkage units.”

The announcement was preceded by a bilateral meeting between the Prime Ministers of both the countries in which it was agreed upon that Japan will invest a total sum of USD 6 billion in Bangladesh.

Touching on details, the ministry official revealed, “Currently we are working closely with Japan to establish a SEZ in Bangladesh for the Japanese investors. The key players at the ground level to achieve this are the Japan International Cooperation Agency (JICA) and Bangladesh Economic Zone Authority (BEZA).”

When queried for a time frame, the ministry said, it will be established soon. It may be recalled that Bangladesh was in the eye of a storm because of a recent boiler explosion and lack of safety norms in their textile industry.

On face of mounting pressure to tighten safety norms and improve working conditions, the Bangladesh government has taken several proactive steps including move to decongest the port facilities and encouraging foreign direct investment in the sector with favorable textile policy regulations. Currently, Bangladesh is the second largest exporter of apparel in the world with China assuming the lead position for this sector. However, Bangladesh is also facing stiff competition from Vietnam with the gap between the export figures for both the countries narrowing down. However, with the special RMG bonanza from Japan, things are expected to propel the country far ahead of competitors.