South Korean companies are keen to diversify their businesses and investments in Bangladesh’s garment industry besides information technology and pharmaceuticals.
Ahn Seong-doo, South Korean Ambassador to Dhaka said this after calling upon Bangladesh Commerce Minister Tofail Ahmed at his Secretariat Office in Dhaka on Tuesday.
“We are trying to increase the trade volume between our two countries. If Bangladesh promotes a business-friendly environment, more Korean investors will come to the country for setting up production units in the special economic zones that would help reduce trade gap,” Ahn Seong-doo reportedly said during his meeting with Tofail Ahmed.
The Commerce Minister on his part underlined that South Korea provides duty-free market access for nearly 500 Bangladeshi products including readymade garments but the country’s businesses are yet to tap the potential fully.
“More than 200 South Korean businesses have invested in garment and other businesses in Bangladesh and we have invited more investors in the proposed SEZs,” Ahmed said
The Minister further said that if the Korean investors set up production units in the SEZs, they will get all the facilities from the Government. Additionally, the companies will also enjoy duty-free market access for their products in the global market under the WTO rules.
According to Bangladesh Export Promotion Bureau (EPB) data, the trade volume between Bangladesh and South Korea stood at US $ 1.50 billion, which is largely one-sided in favour of South Korea.
The data also stated that South Korea was the largest investor in Bangladesh’s textile and garment industry in the fiscal year 2016-17.
Several South Korean apparel companies have invested over US $ 111.6 million, representing over 32% of the total FDI in the sector, followed by Hong Kong’s US $ 89.07 million.