New economic zones for FDI

WE are heartened to learn that the government plans to set up three new economic zones that will cater specifically for Japanese, Chinese and Indian firms intending to invest in Bangladesh. These plans are not new. In fact, the government declared back in 2010 that it had taken a decision to offer 22 economic zones to both local and foreign investors. Going by what has been printed in this paper on April 9, we are informed that Bangladesh Economic Zones Authority has acquired more than 500 acres of land in Gazipur for Japanese investors and a further 774 acres in Chittagong for Chinese companies. The zones for foreign investors will be operated on the basis of public-private partnership.

All this is very good news for Bangladesh. Yet, we cannot but wonder why the first foreign investors to come to Bangladesh to set up their export processing zone (KEPZ), the Koreans, have been treated so shoddily. That part of the 2,492 acres of land allotted to KEPZ is going to be reacquired by the government for apparent violations by Korean firms hardly garners confidence among prospective foreign investors. There are both arguments for and against KEPZ with regards to land usage, violation of rules, land lease agreement, and so on. But the point that should be kept in mind is we cannot have different playing fields for different sets of investors from different countries. That is not the way to build foreign investors' confidence. We urge that the KEPZ issue be solved expeditiously and fairly to send the right signals to the prospective investor countries and companies.