Set up backward linkage for RMG units in EPZs

Govt issues new rule for foreign investmentForeign investors, willing to set up RMG factories inside EPZs, will have to set up at least one backward linkage industry. The decision was taken at a meeting of the committee on foreign investment in the garment industry inside export processing zones. Industries Minister MK Anwar presided over the meeting. New EPZs at Mongla, Ishurdi, Syedpur and Comilla have, however, been relieved from any condition for foreign investments in garment sector. The meeting stressed the need for ensuring equal facilities for investments in and outside the EPZs. Recommendations of the BEPZA-BGMEA joint meeting, which identified the disparities in government incentives for foreign and local investors, were also placed in the meeting. Local entrepreneurs often feel deprived of better incentives offered to investors inside EPZs, and allege that such disparities lead to uneven competition and frustrate industrial ventures outside EPZs. The meeting called for undertaking different promotional activities through BEPZA and Board of Investment aiming at attracting local and foreign investment in the newly set-up EPZs. It also stressed on ensuring different services, including gas and water, in these EPZs and emphasised on improving road and river communication networks. The meeting expressed satisfaction over the recent increase of foreign investment in various industrial sectors, including knitwear and garments. Industries Minister attached the government's importance on both local and foreign investments. He urged the entrepreneurs to be more active to make best use of duty-free market access of Bangladeshi goods in Canada and Japan. Among others, State Minister for Industries Mohammad Barkat Ulla Bulu, Executive Chairman of Investment Board Mahmudur Rahman, Industry Secretary AMM Sarwar Kamal, BGMEA President Kutubuddin Ahmed. Representatives of BEPZA and BGMEA and officials of concerned ministries and organisations were also present.