100 Korean businesses want to move from Myanmar to Bangladesh: BEZA

As many as 100 South Korean firms want to relocate their businesses to Bangladesh from Myanmar due to a lack of 'suitable environment' for industries in that country, according to the Bangladesh Economic Zone Authority or BEZA.

The firms identified Bangladesh as an alternative destination in light of Myanmar's infrastructural backwardness, including shortages of power and water supplies, among other problems, BEZA said in a statement on Monday. 

South Korean investors are keen on investing in Bangladesh's economic zones, according to BEZA. The Korea Industrial Complex Co Ltd (KIC) is also interested in developing an industrial park in Bangladesh which will house 100 firms from the East Asian country.

KIC began work on two industrial parks in Myanmar's Bago and Mon states in 2013 but problems with infrastructure, electricity and water supplies prompted the Korean companies to consider uprooting.

KIC has accordingly drawn up plans to build an industrial complex in Bangladesh and selected 100 companies that will be allocated spaces there.

They are lining up an initial $500 million investment and have asked for 400 acres of land to establish factories to manufacture textiles, leather and jewellery products, BEZA said.

KIC's CEO Bae-Ho Cho said the Koreans will get to work immediately if the government and BEZA help them secure the land, according to the statement.

And BEZA's Executive Chairman Paban Chowdhury said the authority is committed to building sustainable and environmentally friendly industries while providing all necessary amenities. As a result, countries like China, Japan and India are all establishing economic zones in Bangladesh.

He added the investment from Korean companies will open up new horizons for Bangladesh and the project will be implemented soon after the submission of a final proposal.