Yunus urges swift resolution of Korean EPZ land issue to boost FDI

Chief Adviser Professor Muhammad Yunus today directed authorities to resolve the land rights issue of the Korean Export Processing Zone (KEPZ) by early next month and consolidate all investment promotion agencies under one umbrella to enhance foreign investment in Bangladesh.

The instructions came during a meeting at the state guest house Jamuna in Dhaka, where Kihak Sung, Chairman of Youngone Corporation, along with other prominent foreign investors, discussed investment challenges with the chief adviser.

Kihak Sung, whose South Korean company is the largest exporter from Bangladesh, highlighted several barriers to foreign direct investment (FDI), urging improvements in conditions for large-scale investments.

Yunus assured Sung that the KEPZ land issue, a major deterrent to FDI, would be resolved by February 6.

“We want the KEPZ to be a model for Bangladesh, attracting significant investments and creating numerous jobs,” he said.

Sung welcomed the government’s expedited efforts to address the longstanding issues with the KEPZ, stating that more Korean investors would now be interested in investing in Bangladesh.

“It will open doors for other investors, making the KEPZ a model for investment,” he added.

The Youngone Corporation chairman also called for faster shipment processing through Chittagong Port, pointing out that slow turnaround times hinder high-end fashion orders from global brands. He cited Vietnam as an example of how expedited exports can boost the fashion industry.

Yunus acknowledged the need for efficient port operations and stated that Special Envoy Lutfey Siddiqi is working on plans to elevate Chittagong to a top regional port.

Both Kihak Sung and British investor Mohammed A Matin emphasised the need for a unified investment promotion body to provide efficient one-stop services for foreign investors.

In response, the chief adviser revealed that he had instructed the Bangladesh Investment Development Authority (BIDA) to consolidate all five investment agencies under a single office.

BIDA Chief Chowdhury Ashik Mahmud Bin Harun said that the fragmentation of investment agencies was a legacy of previous ineffective governments.

He confirmed that BIDA is moving towards integrating these agencies.

Sung also mentioned Youngone’s initiative to build one of the world’s largest textile institutes in Bangladesh, inviting Yunus to the opening ceremony in three months.

Matin highlighted the need for streamlined labour laws and a net metring system for solar panels in export processing zones, criticising the 26 percent tax on solar panel imports for EPZ investors as discriminatory.

Yunus assured that the interim government is addressing labour reforms, with Special Envoy Siddiqi spearheading the efforts.

He also mentioned potential green channels in Chattogram Port to facilitate faster exports.

Javier Carlos Santonja Olcina, the country head of Inditex, praised the government’s reform efforts, expressing optimism about the country’s export growth.

Paul Anthony Warren, Director of Dewhirst, which operates several garment factories in Bangladesh, also attended the meeting.