What's new

China top investor in Bangladesh's economic zones

Homo Sapiens

ELITE MEMBER
Feb 3, 2015
8,261
-3
19,261
Country
Bangladesh
Location
Bangladesh


China top investor in Bangladesh's economic zones
DOULOT AKTER MALA | Published: January 13, 2021 08:58:00
China top investor in Bangladesh's economic zones



China is top foreign investor in the country's economic zones (EZ) as the number of its formal proposals outstrips 13 other nations.

Between fiscal year 2018 and December of 2020, China grabbed more than one-third of the proposals made in the zones, according to the data of the Bangladesh Economic Zones Authority (BEZA).

Economists said the US-China trade conflicts are forcing Chinese manufacturers to relocate their production facilitates to alternative locations and Bangladeshi zones will be able to attract those investors.

In FY 2019, China was the largest source of FDI in Bangladesh.

Talking to the FE, executive chairman of the BEZA Paban Chowdhury said investment from China will increase further while investors from Japan will also come in a big way by the next year.

He said the signing Free Trade Agreements (FTAs) with other countries is necessary to ensure market access to the investors.

Though the BEZA is encouraging environment-friendly investment, most of the Chinese investors are showing interest to invest in the chemical sector and coal-fired power generation.

He said the government has developed all utility services, including a 400 KV electricity plant at the Bangabandhu Sheikh Mujib Shilpanagar (BSMS).

The mega zone on 30,000 acres of land, equivalent to 79 such industrial parks, would be able to attract FDI in the coming years, he said.

Al Mamun Mridha, joint secretary general of the Bangladesh China Chamber of Commerce and Industry (BCCCI), said some factors, including the dissemination of information, repatriation of profits and currency issues need to be addressed to woo more Chinese investors.

"We are going to hold a road-show in China this year for promoting our investment opportunities," he said, adding that a meeting on it was held on Tuesday at the Bangladesh Investment Development Authority (BIDA).

Bangladesh has geographical advantages to attract FDI compared to Hong Kong and Singapore, he said.

He, however, suggested reducing hassle of investors while commuting to the destinations from airports, cut the requirement of documentation, improving One-Stop Services (OSS), resolving land disputes, etc.

He said only two companies relocated to Bangladesh from China, which can be increased further by addressing those issues.

Mr Mamun expressed his optimism over the zone development activities and pledged to support the Chinese investors through the BCCCI.

Dr Mohammad Abdur Razzaque, research director of the Policy Research Institute (PRI), said China is investing massively under its Belt and Road Initiative and it has pledged to invest more than $27 billion.

"Many Chinese investors want to relocate their less technology-intensive
manufacturing units outside China as its government is now pushing for more capital and technology-intensive industrial transformation for China," he texted on WhatsApp.
However, Chinese investors in traditional sectors are looking for a country with proven supply side capacity and low wages, he said.

Bangladesh has duty-free access to the Chinese market to attract its investors, he added.

"There are other investors from different countries who don't want to invest in China due to geopolitical pressure, but want to get market access to China. They are also looking for a third country to relocate their investment," he said.

Although geopolitical rivalry between India and China is making it difficult to materialise more Chinese investment into that country, Myanmar is reaping benefit of it, he said.

With new investment prospects arising from China, Bangladesh needs to delicately manage bilateral relations both with China and India, he said.

According to an FE analysis based on BEZA's data, 10 Chinese companies have placed FDI proposals worth US$ 3,215 million out of $ 9,126.661 million proposals submitted to the BEZA from 13 countries.

The BEZA has so far completed the allotment of lands to some 38 foreign companies of different countries at BSMS, Moheshkhali Economic Zone-3, Sreehatta EZ, Sabrang Tourism Park and some private EZs.

Except for China, the country's zones have received investment proposals from India, the UK, the USA, the Netherlands, Thailand, Japan, Singapore, Australia, South Korea, Malaysia, Norway, and Germany from fiscal year 2017-18 to December of the current fiscal.

BSMS at Mirsarai, Feni and Sitakundo attracted the highest FDI proposals worth US$ 6.38 billion among the EZs under operation including private ones.

Of the FDI proposals, the BEZA has got highest investment proposals worth US$ 2,529.47 million from the Chinese Hangzhou Jinjiang Group Co. Ltd.

Already, the allotment of around 500 acres of land has been made to the company that proposed to invest in 1,320 MW coal-fired power plant.

Among other Chinese companies, Beijing Zhenyuan Henghui Engineering consulting Co. Ltd placed investment proposals worth $ 304 million, followed by Jiangsu Yabang Dyestuff Co. Ltd $ 300 million and Zhuzhou Jinyuan Chemical Industry Co. Ltd $ 28 million.
doulot_akter@yahoo.com


Share if you like
 

fallstuff

SENIOR MEMBER
Nov 20, 2009
7,782
0
5,528
Country
Bangladesh
Location
United States


China top investor in Bangladesh's economic zones
DOULOT AKTER MALA | Published: January 13, 2021 08:58:00
China top investor in Bangladesh's economic zones's economic zones



China is top foreign investor in the country's economic zones (EZ) as the number of its formal proposals outstrips 13 other nations.

Between fiscal year 2018 and December of 2020, China grabbed more than one-third of the proposals made in the zones, according to the data of the Bangladesh Economic Zones Authority (BEZA).

Economists said the US-China trade conflicts are forcing Chinese manufacturers to relocate their production facilitates to alternative locations and Bangladeshi zones will be able to attract those investors.

In FY 2019, China was the largest source of FDI in Bangladesh.

Talking to the FE, executive chairman of the BEZA Paban Chowdhury said investment from China will increase further while investors from Japan will also come in a big way by the next year.

He said the signing Free Trade Agreements (FTAs) with other countries is necessary to ensure market access to the investors.

Though the BEZA is encouraging environment-friendly investment, most of the Chinese investors are showing interest to invest in the chemical sector and coal-fired power generation.

He said the government has developed all utility services, including a 400 KV electricity plant at the Bangabandhu Sheikh Mujib Shilpanagar (BSMS).

The mega zone on 30,000 acres of land, equivalent to 79 such industrial parks, would be able to attract FDI in the coming years, he said.

Al Mamun Mridha, joint secretary general of the Bangladesh China Chamber of Commerce and Industry (BCCCI), said some factors, including the dissemination of information, repatriation of profits and currency issues need to be addressed to woo more Chinese investors.

"We are going to hold a road-show in China this year for promoting our investment opportunities," he said, adding that a meeting on it was held on Tuesday at the Bangladesh Investment Development Authority (BIDA).

Bangladesh has geographical advantages to attract FDI compared to Hong Kong and Singapore, he said.

He, however, suggested reducing hassle of investors while commuting to the destinations from airports, cut the requirement of documentation, improving One-Stop Services (OSS), resolving land disputes, etc.

He said only two companies relocated to Bangladesh from China, which can be increased further by addressing those issues.

Mr Mamun expressed his optimism over the zone development activities and pledged to support the Chinese investors through the BCCCI.

Dr Mohammad Abdur Razzaque, research director of the Policy Research Institute (PRI), said China is investing massively under its Belt and Road Initiative and it has pledged to invest more than $27 billion.

"Many Chinese investors want to relocate their less technology-intensive
manufacturing units outside China as its government is now pushing for more capital and technology-intensive industrial transformation for China," he texted on WhatsApp.
However, Chinese investors in traditional sectors are looking for a country with proven supply side capacity and low wages, he said.

Bangladesh has duty-free access to the Chinese market to attract its investors, he added.

"There are other investors from different countries who don't want to invest in China due to geopolitical pressure, but want to get market access to China. They are also looking for a third country to relocate their investment," he said.

Although geopolitical rivalry between India and China is making it difficult to materialise more Chinese investment into that country, Myanmar is reaping benefit of it, he said.

With new investment prospects arising from China, Bangladesh needs to delicately manage bilateral relations both with China and India, he said.

According to an FE analysis based on BEZA's data, 10 Chinese companies have placed FDI proposals worth US$ 3,215 million out of $ 9,126.661 million proposals submitted to the BEZA from 13 countries.

The BEZA has so far completed the allotment of lands to some 38 foreign companies of different countries at BSMS, Moheshkhali Economic Zone-3, Sreehatta EZ, Sabrang Tourism Park and some private EZs.

Except for China, the country's zones have received investment proposals from India, the UK, the USA, the Netherlands, Thailand, Japan, Singapore, Australia, South Korea, Malaysia, Norway, and Germany from fiscal year 2017-18 to December of the current fiscal.

BSMS at Mirsarai, Feni and Sitakundo attracted the highest FDI proposals worth US$ 6.38 billion among the EZs under operation including private ones.

Of the FDI proposals, the BEZA has got highest investment proposals worth US$ 2,529.47 million from the Chinese Hangzhou Jinjiang Group Co. Ltd.

Already, the allotment of around 500 acres of land has been made to the company that proposed to invest in 1,320 MW coal-fired power plant.

Among other Chinese companies, Beijing Zhenyuan Henghui Engineering consulting Co. Ltd placed investment proposals worth $ 304 million, followed by Jiangsu Yabang Dyestuff Co. Ltd $ 300 million and Zhuzhou Jinyuan Chemical Industry Co. Ltd $ 28 million.
doulot_akter@yahoo.com


Share if you like
Keep them going people !!
 

bluesky

ELITE MEMBER
Jun 14, 2016
10,183
0
11,471
Country
Bangladesh
Location
Japan
Al Mamun Mridha, joint secretary general of the Bangladesh China Chamber of Commerce and Industry (BCCCI), said some factors, including the dissemination of information, repatriation of profits and currency issues need to be addressed to woo more Chinese investors.
FDI companies must be allowed to freely repatriate their capitals and profits whenever and wherever they want. Vietnam, Malaysia and Cambodia all follow this policy.

As a result, FDI companies become more interested to invest and in reality, when their profits are allowed to take out after the payment of taxes, usually, they prefer to re-invest in that country.

We have to understand the psychology of FDI people. While freedom to repatriate money works positively, any compulsion to keep the money works negatively.

However, after saying all these above, I have a feeling that BD corporate taxation system may be almost non-existent or it is not functional. If so, no FDI will bring their money to oil the palm of our greedy bureaucrats and politicians who love to run the country not by laws but by the thumbs.
 
Last edited:

Bilal9

ELITE MEMBER
Feb 4, 2014
14,472
2
22,724
Country
Bangladesh
Location
United States
Is this CHina's marshall plan to do in the hindu haters?
I think they are in it mainly for the money.

Labor rates in China for skilled labor (even semi-skilled) is going through the roof now...

Bangladesh has ready-pool of both types of talent...
 

fallstuff

SENIOR MEMBER
Nov 20, 2009
7,782
0
5,528
Country
Bangladesh
Location
United States
FDI companies must be allowed to freely repatriate their capitals and profits whenever and wherever they want. Vietnam, Malaysia and Cambodia all follow this policy.

As a result, FDI companies become more interested to invest and in reality, when their profits are allowed to take out after the payment of taxes, usually, they prefer to re-invest in that country.

We have to understand the psychology of FDI people. While freedom to repatriate works positively, any compulsion works negatively.

However, after saying all these above, I have a feeling that BD corporate taxation system may be almost non-existent or it is not functional. If so, no FDI will bring their money to oil the palm of our greedy bureaucrats and politicians who love to run the country not by laws but by the thumbs.
I think all the export oriented companies are allowed to take get their profits abroad. i am not sure FDI invested for domestic consumption.
 

bluesky

ELITE MEMBER
Jun 14, 2016
10,183
0
11,471
Country
Bangladesh
Location
Japan
Economists said the US-China trade conflicts are forcing Chinese manufacturers to relocate their production facilitates to alternative locations and Bangladeshi zones will be able to attract those investors.
This is the main point. America is playing anti-China rhetoric tat will not go away with Biden as the new US President. This may be one reason why China is seeking some other countries for investment.

Made in Bangladesh by Chinese companies is not same as made in China by the Chinese companies.
 

Tom-tom

FULL MEMBER
Dec 10, 2019
595
-4
356
Country
United Kingdom
Location
United Kingdom
This is the main point. America is playing anti-China rhetoric tat will not go away with Biden as the new US President. This may be one reason why China is seeking some other countries for investment.

Made in Bangladesh by Chinese companies is not same as made in China by the Chinese companies.

Inshallah bdeshis learn from them from joint ventures.
 

bluesky

ELITE MEMBER
Jun 14, 2016
10,183
0
11,471
Country
Bangladesh
Location
Japan
Inshallah bdeshis learn from them from joint ventures.
Are the people of Bangladesh capable to learn from others? Did they learn also how to build a bridge after the Koreans built Jamuna bridge and the Chinese are building the Padma bridge?

When it is industries, there are millions of tiny, small, medium and large technologies that are used in the factories. Do you guys really think a student who has not even entered kindergarten can learn how to write Ph. D thesis?
 

fallstuff

SENIOR MEMBER
Nov 20, 2009
7,782
0
5,528
Country
Bangladesh
Location
United States
This is the main point. America is playing anti-China rhetoric tat will not go away with Biden as the new US President. This may be one reason why China is seeking some other countries for investment.

Made in Bangladesh by Chinese companies is not same as made in China by the Chinese companies.
This is what they do in Vietnam. Vietnam export is through the roof because of near and semi finish product entering from china.
 

Users Who Are Viewing This Thread (Total: 1, Members: 0, Guests: 1)


Top Bottom