Record levels of foreign investment in EPZs

Foreign investment into the country's Export Processing Zones has hit record levels this year, with the weaker dollar, low labour costs and easy access to markets in Asia encouraging foreign manufacturers.

Agreements have been reached for more than US$300 million worth of foreign investment in the EPZs since the turn of the year. This is on top of the $130 million agreed in the last six months of 2007.

The surge is in marked contrast to foreign investment levels outside the EPZ which fell in the second half of 2007 to $368 million compared to $411 million in the same period a year earlier. The Bangladesh Export Processing Zone (Bepza) also said it is receiving much larger scale investment proposals, many from non-garment manufacturers.

The BEPZA Chairman said the international entrepreneurs are attaching top priority to Bangladesh because of the country's close proximity to the fast growing South and South Asian markets and the fact that it is within easy reach of the Middle East.

Another reason for Bangladesh's attraction for foreign investors has been the availability of an inexpensive and productive labor force.