$1 Billion Investment Expected from Japanese Economic Zone in Bangladesh

investment

The Japanese Economic Zone, built in cooperation between the government of Bangladesh and the Japan International Cooperation Agency (JICA), is just 32 kilometers away from the capital and 1,000 acres in size. After the competition in late 2022, the zone is expected to rake in $1 billion investment from around 100 companies, including big Japanese names in car manufacturing, motorcycle, mobile phone, motor parts, and electronic equipment, while creating an estimated 100,000 jobs. If successful, it is planned to extend zones to Chattogram and Cox’s Bazar. 

The $300 million economic zone runs on a 30-70 ratio of holding. The Japanese government has the majority share and is being developed by Sumitomo Corporation as per an agreement signed with BEZA back in 2019. Around 321 Japanese companies operate in Bangladesh, a 287% jump from 2010. In light of the statement by the Ambassador of Bangladesh to Japan, the interest in investment arose from;

–          Consistent economic growth

–          Strategic geographical location

–          Increasing interregional and global remittance

–          Young & skilled workforce

–          Competitive labor costs

–          Developments in infrastructure

–          Policy support (Such as fiscal and non-fiscal incentives to investors)

 

Source: SASEC

Related posts