Nine foreign companies have expressed interest in investing Tk 6,250 crore in Bangladesh to modernize agriculture and spur economic growth. They have submitted their investment proposals to BIDA and applied for permission to commence operations from RJSC.
These companies have already taken proactive steps by submitting their investment proposals to the Bangladesh Investment Development Authority (BIDA) and seeking approval from the Office of the Registrar of Joint Stock Companies and Firms (RJSC) to commence their operations in Bangladesh.
Sources at the RJSC have revealed that among these foreign companies, four Chinese firms have shown their readiness to invest Tk 700 crore, Tk 1,200 crore, Tk 1,000 crore, and Tk 600 crore, respectively. Additionally, two Japanese companies have expressed their intent to invest Tk 800 crore and Tk 350 crore, while two Korean companies are eyeing investments of Tk 550 crore and Tk 650 crore each. Furthermore, a Taiwanese company is exploring investment opportunities worth Tk 400 crore.
Sheikh Shoebul Alam, the registrar of the RJSC office, has confirmed that the applications of these foreign companies were submitted earlier this year and are currently undergoing a meticulous review process. While approval is expected, it may take some time to complete the necessary procedures.
“The growing agricultural economy is attracting foreign companies willing to invest in the manufacture of farm machinery and equipment,” Sheikh Shoebul Alam stated, highlighting the positive sentiment surrounding agricultural investments in Bangladesh.
Among the nine companies, one Chinese firm called Juhachun Ltd., as per documents obtained from the RJSC office, plans to invest around Tk 1,200 crore. Foysal Shaheed Sumon, the Bangladesh coordinator of Juhachun, disclosed that the company specializes in the manufacturing of eight different types of agricultural machinery and machine parts. Juhachun has expressed its interest in acquiring a three-acre site within an economic zone near Dhaka. If all the necessary procedures progress smoothly, the construction of the factory could begin in early 2024, with production anticipated to commence by the end of the same year or early 2025, creating employment opportunities for approximately 500 individuals.
Furthermore, Foysal shared that Juhachun aims not only to cater to the domestic market but also to export its products to countries like India, Pakistan, Vietnam, Nepal, Sri Lanka, and others. The company’s manufacturing portfolio encompasses a wide range of machinery and equipment, including farming vehicles, tractors, combine harvesters, tractor attachments, ploughs, harrows, fertilizer spreaders, seeders, balers, and wagon trailers.
An official source from the RJSC office divulged that eight out of the nine companies have plans to supply machinery and components both within Bangladesh and to various international markets. BIDA officials have revealed that five of these companies have already requested space in different economic zones to establish their factories, while the remaining four are eyeing locations adjacent to the capital. However, the full list of these companies has not been disclosed at this time.
The annual market for agricultural machinery and parts in Bangladesh is valued at Tk 11,000 crore, with foreign companies controlling the majority share. This puts a strain on the country’s foreign currency reserves, but some local companies do manufacture limited quantities.
Khandoker Moynur Rahman, the president of the Bangladesh Agricultural Machinery Merchants Association, expressed his optimism about foreign companies investing in the local agricultural machinery industry. He believes that such investments will not only create job opportunities for the local population but also help in improving the quality of locally manufactured products. However, he emphasized the need for the government to provide necessary support and incentives to encourage more local companies to enter the market.
