A Chinese economic and industrial zone in Chittagong and two garment industrial parks will be the focus of the discussions at the Bangladesh-China Joint Economic Commission (JEC) meeting to be held today, well-placed sources in the government have said. According to these sources, China is keen to invest roughly USD 4.5 billion in two industrial parks to meet the growing domestic and global demand for Bangladeshi products. The industrial parks, one on 774 acres in Chittagong and the other on 500 acres in Dhaka, will be situated in two designated special economic zones (SEZs). Earlier, the Chinese ambassador in Dhaka, Ma Mingqiang, had said that many Chinese investors were quite keen to get a place in the special economic zone. Bangladesh still ranks among the most competitive in the world in terms of labour costs, and investors want their share of the growing market.Currently, some Bangladeshi products benefit from duty-free privileges under the Asia-Pacific Agreement, formally called the Bangkok Agreement, which also includes India, Laos, Korea, and Sri Lanka.Bangladesh can export foodstuffs and some machinery to China with tariff concessions. But as far as textiles are concerned, only finishing agents, yarn from animal hair, some knits, and sewing machines are among the handful of goods that benefit from it.Sources in the finance ministry said till June 2016, China had provided Bangladesh with USD 330 million as a grant, RMB 1,550.10 million as an interest-free loan, USD 1,879.20 million as a concessional loan, including preferential buyer’s credit, and USD 974.18 million as supplier’s credit.Chinese investors may be persuaded to set up joint-venture units in the field of leather goods, IT, light engineering, agro-processing, shipbuilding, and high-value-added textiles products. Besides, the Chinese authorities may also set up a design institute in the leather sector.The Executive Committee of the National Economic Council (ECNEC) on Tuesday approved the proposed Chinese Economic and Industrial Zone, to be set up on 774.25 acres at Anwara, Chittagong, involving Tk. 420.37 crore, exclusively for Chinese investors.The move comes after Prime Minister Sheikh Hasina proposed such a facility during her visit to China on June 6–11, 2014. The Bangladesh Economic Zones Authority (BEZA) also signed an agreement with the commerce ministry of China during the visit.BEZA, under the Prime Minister’s Office (PMO), will implement the project by June 2016. The planning minister said 119 countries across the world have such special economic zones, of which 2,031 are in operation. Of those, 436 are in India, 460 in China, and around 200 in the Philippines.According to the deal signed with the Chinese commerce ministry, Bangladesh will provide land to Chinese investors on a long-term lease basis and a firm nominated by China will set up the economic zone.
