Adamjee EPZ misses FDI target
Adamjee Export Processing Zone has received only $45 million foreign direct investment (FDI) in four years against the government projection of $400 million.
Responses from overseas entrepreneurs have been lukewarm. A Canadian company, Hy-Lan Sweater International Ltd, went into operation at Adamjee in March 2006, which was the first significant investment after the launch of the EPZ.
In 2004, the Bangladesh Export Processing Zones Authority (Bepza) took over the total area and assets of Adamjee Jute Mills after its closure on June 30, 2002 and established the EPZ.
Bepza expected $400 million to come in foreign investment within 18 months after Hy-Lan's set-in, but some factors dashed the high expectations.
The factors, according to an official, include the delay in project implementation, pattern of investment and a sudden rise in the prices of construction materials.
“We could not develop the road, plots and other infrastructure within the stipulated time due to an abnormal rise in the prices of construction materials,” said Ashraful Kabir, project director of Adamjee EPZ.
Although 156 plots, out of 200, have been handed over to the investors, only five companies started full-fledged production, Kabir added.
The companies are Hong Kong-based Kwun Tong Apparels Ltd, Hy-Lan Sweater International, local DNV Clothing Ltd, Epic Garments and Protective Shoes Ltd.
According to the Bepza website, total investment of the firms stands at $45.39 million, with their export earnings reaching $24.80 million. About 6,000 workers have been employed in the factories.
Kabir hopes more investment would pour in soon.
Contacted, another high official of the EPZ said the pattern of EPZ investment was different.
As most factories at the Adamjee EPZ trade in readymade garments and accessories, they need comparatively low investment and are labour-intensive.
The country has now eight EPZs: Chittagong, Dhaka, Mongla, Ishwardi, Comilla, Uttara, Adamjee and Karnaphuli, where about 250 industrial units invested around $1.4 billion.
With 2.24 lakh employees, the EPZs have fetched $2.42 billion from exports in fiscal 2007-08.
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