UNB, Dhaka :
Bangladesh Ambassador to South Korea Abida Islam has said an enhanced inflow of Korean Foreign Direct Investment (FDI) could be a game-changer for Bangladesh’s industrial development.
“South Korea is one of the largest sources of FDI in Bangladesh and the largest foreign investor in the Export Processing Zones (EPZs). This is not all. We can receive more FDI from Korea,” she told UNB in an interview.
Korean Tech-giant Samsung and LG, the Ambassador said, are going to manufacture its products in Bangladesh under a joint venture company within a short time which may reduce the trade deficit between the two countries. Ambassador Abida said huge Korean investment in China is being relocated to South East Asian countries like Vietnam, Cambodia and Laos. “This Mission is actively engaging with the authorities concerned in Korea to encourage them to invest in different sectors of our economy.” Bangladesh is offering hundreds of acres of lands to the South Korean investors for setting up a South Korean EPZ in Mirsarai, Chittagong or Moheshkhali, Cox’s Bazar. Some Korean companies have expressed their interest to invest in Special Economic Zones in Bangladesh, while many others have expressed interest to invest in the country. “I believe these initiatives will definitely enhance engagements between the business houses of our two countries and further increase our trade and commerce relationship,” said the Ambassador. She said Bangladesh government is now setting up of 100 Special Economic Zones across the country. Therefore, Abida said, if any Korean investor sets up production units in the SEZs, it will get all the facilities from the government and at the same time it will get duty-free market access of its products to the global market under WTO rules. Responding to a question, she said the bilateral trade is increasing gradually and it has reached over US$1.5 billion in 2016-17 from US$22.86 million, only in a little over one decade (2005). The Ambassador, however, acknowledged that the balance of trade is heavily inclined to Korea as Bangladesh’s export amounts to only US $238.23 million (2016-17) comprising predominantly industrial components and raw materials. Abida said Korea is one of the largest foreign investors in the Export Processing Zones (EPZs) in Bangladesh. It is the pioneering country to invest in the RMG sector of Bangladesh in the 70s and it was followed by the investment of almost USD $1 billion in the late 90s, she mentioned.
The Ambassador said Korea has substantial investment in textiles, tanning and footwear factories employing over 80,000 Bangladeshi workers in Chittagong and Dhaka. Its leading conglomerate SK Group has invested in a joint venture with TK Group of Bangladesh for setting up a petrochemical refinery, Liquefied Petroleum Gas (LPG) terminal and a power plant in Moheshkhali Economic Zone in Cox’s Bazar. The two countries already have agreements/MoUs in a wide range of areas, including trade and investments, air services, visa waiver, culture, science and technology, power, energy and mineral resources, environment, and also on export of manpower. “Some of these MoUs need revision and update which will indeed further enhance our existing level of cooperation,” she said. Korea offers duty-free and quota-free access to nearly 5,000 products but still there are potential areas for Bangladesh which are yet to be explored by the businessmen and investors of the Republic of Korea, said the diplomat. “I believe our current level of trade will improve if the Republic of Korea imports pharmaceutical products, leather, more jute and jute products from Bangladesh,” she said.
Bangladesh Ambassador to South Korea Abida Islam has said an enhanced inflow of Korean Foreign Direct Investment (FDI) could be a game-changer for Bangladesh’s industrial development.
“South Korea is one of the largest sources of FDI in Bangladesh and the largest foreign investor in the Export Processing Zones (EPZs). This is not all. We can receive more FDI from Korea,” she told UNB in an interview.
Korean Tech-giant Samsung and LG, the Ambassador said, are going to manufacture its products in Bangladesh under a joint venture company within a short time which may reduce the trade deficit between the two countries. Ambassador Abida said huge Korean investment in China is being relocated to South East Asian countries like Vietnam, Cambodia and Laos. “This Mission is actively engaging with the authorities concerned in Korea to encourage them to invest in different sectors of our economy.” Bangladesh is offering hundreds of acres of lands to the South Korean investors for setting up a South Korean EPZ in Mirsarai, Chittagong or Moheshkhali, Cox’s Bazar. Some Korean companies have expressed their interest to invest in Special Economic Zones in Bangladesh, while many others have expressed interest to invest in the country. “I believe these initiatives will definitely enhance engagements between the business houses of our two countries and further increase our trade and commerce relationship,” said the Ambassador. She said Bangladesh government is now setting up of 100 Special Economic Zones across the country. Therefore, Abida said, if any Korean investor sets up production units in the SEZs, it will get all the facilities from the government and at the same time it will get duty-free market access of its products to the global market under WTO rules. Responding to a question, she said the bilateral trade is increasing gradually and it has reached over US$1.5 billion in 2016-17 from US$22.86 million, only in a little over one decade (2005). The Ambassador, however, acknowledged that the balance of trade is heavily inclined to Korea as Bangladesh’s export amounts to only US $238.23 million (2016-17) comprising predominantly industrial components and raw materials. Abida said Korea is one of the largest foreign investors in the Export Processing Zones (EPZs) in Bangladesh. It is the pioneering country to invest in the RMG sector of Bangladesh in the 70s and it was followed by the investment of almost USD $1 billion in the late 90s, she mentioned.
The Ambassador said Korea has substantial investment in textiles, tanning and footwear factories employing over 80,000 Bangladeshi workers in Chittagong and Dhaka. Its leading conglomerate SK Group has invested in a joint venture with TK Group of Bangladesh for setting up a petrochemical refinery, Liquefied Petroleum Gas (LPG) terminal and a power plant in Moheshkhali Economic Zone in Cox’s Bazar. The two countries already have agreements/MoUs in a wide range of areas, including trade and investments, air services, visa waiver, culture, science and technology, power, energy and mineral resources, environment, and also on export of manpower. “Some of these MoUs need revision and update which will indeed further enhance our existing level of cooperation,” she said. Korea offers duty-free and quota-free access to nearly 5,000 products but still there are potential areas for Bangladesh which are yet to be explored by the businessmen and investors of the Republic of Korea, said the diplomat. “I believe our current level of trade will improve if the Republic of Korea imports pharmaceutical products, leather, more jute and jute products from Bangladesh,” she said.
