A new window of opportunity for investment, employment and product diversification is opening for Bangladesh as 40 internationally renowned companies are keen on investing in the Japanese Economic Zone, located at Narayanganj’s Araihazar area.

With a goal of around $1.5 billion in investments and 1 lakh employment opportunities, the economic zone will be launched this Tuesday. Prime Minister Sheikh Hasina is set to inaugurate this zone, set up on around 1,000 acres of land in the district, in the outskirts of Dhaka.

Agro-food, light engineering, chemical, automobile assembly, garments, pharmaceutical industries will get priority in this zone, ushering in a new horizon in attracting Japanese investment alongside FDI, Bangladesh Economic Zones Authority (BEZA) sources say.

BEZA Executive Chairman Shaikh Yusuf Harun told the media, “Forty companies have already shown their interest to invest in the economic zone. Among them, thirty are Japanese entities.

“We have already signed up with famous companies such as Singer and Rudolph who will invest in our economic zone in Narayanganj. Ten other companies will invest from different countries. Now the zone is ready for investors. Our prime minister will inaugurate it on Tuesday.”

He added that Singer will make an initial investment of $79 million and German chemical company Rudolph will initially invest $7 million.

Harun made the disclosure on Sunday at a view-exchange with the members of Development Journalist Forum of Bangladesh (DJFB) at the BEZA office of Agargaon in Dhaka.

Bangladesh Special Economic Zone Managing Director Taro Kawachi, Project Director of the Japanese Economic Zone Development Project Saleh Ahmed, and BEZA Executive Member (Planning and Development) Irfan Sarif were present at the event among others.

Harun pointed out, “An agreement with two Japanese companies is also scheduled on the inaugural day.  I cannot share their names now. However, after the EZ’s formal inauguration, the companies can set up factories, and go into production within next year.”

BEZA sources say these two companies are Onda Corporation and NICCA Chemical of Japan, who will manufacture gas meters and produce chemicals respectively in this economic zone.

The BEZA holds 24 per cent share of the Japanese Economic Zone, while Japan International Cooperation Agency (JICA) holds 15 per cent and Sumitomo Corporation (SC) 61 per cent, insiders say.

Providing more details, Harun said, “No industry or company under the ‘Red Category’ would be allowed to establish their industries at any of the economic zones. Each industry would have to install an Effluent Treatment Plant (ETP) in the economic zone.

“The concerned authorities will set up a central ETP.”

He added, “Another special economic zone dedicated to Chinese investors will be set up in the coming days. In this regard, a proposal is also awaiting a nod from the Cabinet Committee on Economic Affairs (CCEA).

“We have already requested JICA to set up skill development centres at Araihazar in Narayanganj and at Mirsarai in Chattogram. A separate One Stop Service (OSS) Centre will also be installed at the Japanese Economic Zone.”

Inception and execution
The process of setting up the Japanese Economic Zone in Bangladesh began with Prime Minister Sheikh Hasina’s visit to Japan in 2014. Later, the then Japanese prime minister Shinzo Abe discussed the issue when he came to Bangladesh in 2015.

In 2016, JICA undertook a feasibility study to establish a Japanese Economic Zone in Bangladesh. The same year, the Japanese government recommended the appointment of internationally renowned Sumitomo Corporation as the developer.

After a feasibility study in 2018, JICA gave its nod to set up the zone at Araihazar in Narayanganj.

Afterward, an agreement was signed between BEZA and Sumitomo Corporation to establish a joint venture Japanese Economic Zone. BEZA started land acquisition and development in the project area in 2019.

The zone is offering all relevant facilities to the investors, such as a connecting and internal road system, retention pond, gas, electricity, and water. Different companies are set to go into production in 2023.

177 investors made proposals in 5 EZs
According to BEZA data, 177 investors made an overall investment proposal of $22,173.177 million with the goal to create employment opportunities for some 8,16,541 people in Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) at Mirsarai, Jamalpur Economic Zone, Sabrang Tourism Park, Moheshkhali Economic Zone-3 (Dhalghata) and Srihotto Economic Zone.

Besides, around $4 billion has already been invested in those private economic zones, creating job opportunities for around 35,000 people, show BEZA data.