A proposal by the Government to combine the Bangladesh Export Processing Zones Authority (Bepza) with other investment promotion organisations under a single administrative body has been met with strong criticism from investors operating in Bangladesh’s Export Processing Zones (EPZs).
In separate letters addressed to the Chief Adviser’s Office, industry stakeholders emphasized that Bepza’s current performance and supportive ecosystem should remain intact to preserve investor confidence. They expressed concerns that a merger could disrupt the established efficiency and expertise of Bepza’s operations.
Shams Mahmud, managing director of Shasha Denims and director of the Bangladesh EPZ Investors’ Association (Bepzia), stated, “The Government’s initiative to provide digital One Stop Service is commendable. However, Bepza’s services are currently highly satisfactory. Since it is functioning well, it should remain independent.” He added that while underperforming agencies might be consolidated, Bepza’s independence is crucial for maintaining its effectiveness. Mahmud warned that a forced merger could lead to changes in staffing and management structure, potentially creating unnecessary complications.
Similarly, Chang Yoe Chong Felix, Chairman of Evergreen Products Factory BD and the largest investor in Uttara EPZ, expressed concerns over the speed of the merger process. “The merger is moving too quickly, and investors were not consulted. There should be more stakeholder discussions before any final decision is taken,” he said. Felix also mentioned that he had relayed his concerns to the Chinese Ambassador in Dhaka.
The Government’s initiative aims to unify several agencies, including Bepza, Bida, Beza, BSCIC, PPP Authority, and Hi-Tech Park Authority, into a central entity to streamline investment services through a single-window system. The proposal was discussed during the third Bida Governing Board meeting on 13th April, chaired by Chief Adviser Muhammad Yunus.
A high-level eight-member committee, led by Industry Adviser Adilur Rahman Khan and comprising top officials from various ministries and agencies, including Bangladesh Bank and the Ministry of Finance, was formed on April 30 to review the plan and recommend a course of action. Bida and Beza Executive Chairman Chowdhury Ashik Mahmud Bin Harun serves as the committee’s secretary.
Responding to investor concerns, Ashik Chowdhury, who currently oversees both Bida and Beza, said, “We are working to identify the best possible solution that balances efficiency and investor confidence. I hope we will reach a decision that benefits all stakeholders.”
Adding to the concerns, Queen South Textile Mills Managing Director Wong Jammy Kwok Chan, in a letter dated 27th April, urged the Government to reconsider the merger. “Having operated under Bepza for nearly three decades, we have created around 5,000 jobs and contributed significantly to the economy thanks to Bepza’s investor-friendly environment,” he wrote. Chan emphasised the importance of informing investors about potential risks and implications of any structural changes to long-term agreements.
As discussions continue, stakeholders remain cautious, emphasising the need for careful consultation to safeguard Bangladesh’s investment climate and the operational stability of its export zones.
