The Korean Export Processing Zone (KEPZ) has finally received its long-awaited mutation documents from the Bangladesh Government, removing a major hurdle for increased foreign investment and boosting the country’s Ready-Made Garments (RMG) sector.
The documents, which had been pending for an extended period, were issued on 6th February 2025. KEPZ, the largest private export processing zone in Bangladesh, plays a crucial role in the nation’s garment industry, housing major RMG manufacturers. The Government has been working to expedite the mutation process to create a more favorable investment climate for foreign enterprises.
According to Shafiqul Alam, press secretary to Chief Adviser Professor Muhammad Yunus, several foreign direct investment proposals, including one from Samsung, were withdrawn due to delays in obtaining the necessary land mutation documents for KEPZ. Alam shared this information during a press briefing in Dhaka on Sunday.
Korean entrepreneur Kihak Sung, the country’s top merchandise exporter through his company Youngone Corporation, was significantly impacted by the delay. Youngone, a major player in Bangladesh’s RMG industry, was forced to shift some of its investments from Bangladesh to Vietnam due to bureaucratic obstacles.
Sung initially acquired the land in Chittagong in 1999 and began developing the export processing zone on 2,500 acres. The recent resolution of the mutation issue is expected to accelerate new investments in the textile and apparel sector, further strengthening Bangladesh’s position as a global RMG powerhouse.
Industry insiders believe the resolution will not only restore investor confidence but also create more employment opportunities within the RMG sector, enhancing Bangladesh’s export earnings in the long run.
