Korean firm seeks 700 acres urgently As its Myanmar investment plan unravels

[Black_cats]

Published on 12:00 AM, January 30, 2020
Korean firm seeks 700 acres urgently
As its Myanmar investment plan unravels

Jagaran Chakma
Korea Industrial Complex Corporation (KICC) is urgently seeking 700 acres of land in Bangabandhu Sheikh Mujib Shilpa Nagar that it intends to start developing from June.

It aims to bring in South Korean textile, leather and jewellery manufacturers with an initial investment of $500 million.

Bae-Ho Cho, chief executive officer of the South Korean industrial infrastructure developer, also sought to know by February 15 if the land in Mirsarai can be leased out to them at a lower price.

The KICC has already conducted feasibility studies on the land they expect and is ready to make advance payments if necessary to expedite the allotment.

“We will provide land but are not sure how much we will be able to provide,” said Paban Chowdhury, executive chairman of the Bangladesh Economic Zones Authority (BEZA), after the CEO met him for a third time on January 20.

The CEO showed keen interest for investment and does not want to waste time, Chowdhury told The Daily Star.

The KICC earlier informed that it was focusing on Bangladesh after facing setback in developing two industrial parks at Bago and Mun states in Myanmar since 2013 for a scarcity of power and water.

South Korean companies want to shift factories to Bangladesh to gain a competitive edge in context to prices in the global market while availing better utility services and infrastructure, Chowdhury said.

He further said many South Korean companies including Saumsung and LG were already present in Bangladesh and they too were looking for separate industrial parks to expand.

The BEZA has already allocated separate industrial zones for investors of Japan, India and China and development work of those have already started, he said.

During a visit to Bangladesh in July last year, South Korean Prime Minister Lee Nak-yon also expressed eagerness to invest in infrastructure, power, ICT, construction, shipbuilding and energy sectors of Bangladesh.

Over 150 South Korean companies have invested a total of $1.15 billion in Bangladesh, making the East Asian country the fifth highest investor, according to the Bangladesh embassy in Seoul.

While most of the South Korean investments are in the labour-intensive garment manufacturing sector, new funds are flowing in to power, shipbuilding, housing and banking.

According to the embassy, more than 20 big Korean companies showed interest in Bangladesh last year as the investment climate was improving very fast.

Bangladesh’s exports to South Korea is on the rise but the trade gap is still heavily tilted towards the Asian economic giant.

In fiscal 2018-19, Bangladesh’s exports stood at $370 million, according to data from the Export Promotion Bureau.

South Korea’s exports to Bangladesh in fiscal 2017-18 stood at $1.2 billion. Last year’s export data is not available with the Bangladesh Bank yet.

www.thedailystar.net/business/news/korean-firm-seeks-700-acres-urgently-1861036%3Famp

 

[bd_4_ever]

They should be given the land asap. This CEO is serious and his request should be entertained without delay.

 

[Bilal9]

They should be given the land asap. This CEO is serious and his request should be entertained without delay.

I believe these folks have sensed that Myanmar is going to fall out of favor and may face eventual sanctions with both EU and US authorities because of the Rohingya issue.

They are businessmen and want to find safe haven to produce goods profitably and export them keeping a good margin for themselves. Our workers meanwhile get living wages in good jobs and get to increase their skillsets. Win-win for everyone. I see no problem in this arrangement.

Koreans are generally savvy business folks who are adaptable to harsh infra conditions like that in say Myanmar. But the International court ruling recently against the Tatmadaw and its generals was a final straw and red flag. They got the message.

Plus banning US visas for Minh Hlaing, the head Tatmadaw guy, was a sign as well.

 

[UKBengali]

I believe these folks have sensed that Myanmar is going to fall out of favor and may face eventual sanctions with both EU and US authorities because of the Rohingya issue.

They are businessmen and want to find safe haven to produce goods profitably and export them keeping a good margin for themselves. Our workers meanwhile get living wages in good jobs and get to increase their skillsets. Win-win for everyone. I see no problem in this arrangement.

Koreans are generally savvy business folks who are adaptable to harsh infra conditions like that in say Myanmar. But the International court ruling recently against the Tatmadaw and its generals was a final straw and red flag. They got the message.

Plus banning US visas for Minh Hlaing, the head Tatmadaw guy, was a sign as well.

Just like we all predicted that investment will desert Myanmar and they will become China's total bitch.
Growth forecasts for Myanmar have dropped by 1-2% a year over the next 5 years for IMF to take this into account.


"South Korean companies want to shift factories to Bangladesh to gain a competitive edge in context to prices in the global market while availing better utility services and infrastructure"


@bluesky - As BD gets better infrastructure FDI is pouring in as predicted.

 

[bluesky]

Korea Industrial Complex Corporation (KICC) is urgently seeking 700 acres of land in Bangabandhu Sheikh Mujib Shilpa Nagar that it intends to start developing from June.

It aims to bring in South Korean textile, leather and jewellery manufacturers with an initial investment of $500 million.

So, finally, with the Korean investment, a new FDI chapter begins. I believe there will be other investments in the near future from other countries including Japan. Korean and Japnese labor costs are very high making its products expensive in the world market.

And both are probably targeting African markets that have been snatched away by China with cheaper labor costs in its home. Investment in BD will cause the distance to Africa reduced by 50% and labor cost less than one-fourth. On the other hand, the distance from Shanghai and the labor cost of Chinese products will remain as usual. Even if China invests in BD it will not make any real difference.

All these three countries are competing for natural resources/minerals in Africa. This is the reason I see many African people have been admitted to the workforce in Japan. It helps Japan to create its own people in African countries.

 

[bd_4_ever]

I believe these folks have sensed that Myanmar is going to fall out of favor and may face eventual sanctions with both EU and US authorities because of the Rohingya issue.

They are businessmen and want to find safe haven to produce goods profitably and export them keeping a good margin for themselves. Our workers meanwhile get living wages in good jobs and get to increase their skillsets. Win-win for everyone. I see no problem in this arrangement.

Koreans are generally savvy business folks who are adaptable to harsh infra conditions like that in say Myanmar. But the International court ruling recently against the Tatmadaw and its generals was a final straw and red flag. They got the message.

Plus banning US visas for Minh Hlaing, the head Tatmadaw guy, was a sign as well.

Eh really? But I thought Myanmar is the land of honey and opportunities. Atleast, that's the impression PDF gives me. My oh my..what went wrong?

Published on 12:00 AM, January 30, 2020
Korean firm seeks 700 acres urgently
As its Myanmar investment plan unravels

Jagaran Chakma
Korea Industrial Complex Corporation (KICC) is urgently seeking 700 acres of land in Bangabandhu Sheikh Mujib Shilpa Nagar that it intends to start developing from June.

It aims to bring in South Korean textile, leather and jewellery manufacturers with an initial investment of $500 million.

Bae-Ho Cho, chief executive officer of the South Korean industrial infrastructure developer, also sought to know by February 15 if the land in Mirsarai can be leased out to them at a lower price.

The KICC has already conducted feasibility studies on the land they expect and is ready to make advance payments if necessary to expedite the allotment.

“We will provide land but are not sure how much we will be able to provide,” said Paban Chowdhury, executive chairman of the Bangladesh Economic Zones Authority (BEZA), after the CEO met him for a third time on January 20.

The CEO showed keen interest for investment and does not want to waste time, Chowdhury told The Daily Star.

The KICC earlier informed that it was focusing on Bangladesh after facing setback in developing two industrial parks at Bago and Mun states in Myanmar since 2013 for a scarcity of power and water.

South Korean companies want to shift factories to Bangladesh to gain a competitive edge in context to prices in the global market while availing better utility services and infrastructure, Chowdhury said.

He further said many South Korean companies including Saumsung and LG were already present in Bangladesh and they too were looking for separate industrial parks to expand.

The BEZA has already allocated separate industrial zones for investors of Japan, India and China and development work of those have already started, he said.

During a visit to Bangladesh in July last year, South Korean Prime Minister Lee Nak-yon also expressed eagerness to invest in infrastructure, power, ICT, construction, shipbuilding and energy sectors of Bangladesh.

Over 150 South Korean companies have invested a total of $1.15 billion in Bangladesh, making the East Asian country the fifth highest investor, according to the Bangladesh embassy in Seoul.

While most of the South Korean investments are in the labour-intensive garment manufacturing sector, new funds are flowing in to power, shipbuilding, housing and banking.

According to the embassy, more than 20 big Korean companies showed interest in Bangladesh last year as the investment climate was improving very fast.

Bangladesh’s exports to South Korea is on the rise but the trade gap is still heavily tilted towards the Asian economic giant.

In fiscal 2018-19, Bangladesh’s exports stood at $370 million, according to data from the Export Promotion Bureau.

South Korea’s exports to Bangladesh in fiscal 2017-18 stood at $1.2 billion. Last year’s export data is not available with the Bangladesh Bank yet.

www.thedailystar.net/business/news/korean-firm-seeks-700-acres-urgently-1861036%3Famp

Also, tell the CEO we like the movie 'Train to Busan'.

 

[UKBengali]

@Aung Zaya

Screw is just tightening further.

Your loss is our gain.

 

[mmr]

USA is about to ban Myanmar national entering. Who will do business with them in future? EBA under review..EU will screw them too...international criminal court verdict also happened...so many internal fights also going on within Myanmar...list goes on.

 

[UKBengali]

USA is about to ban Myanmar national entering. Who will do business with them in future? EBA under review..EU will screw them too...international criminal court verdict also happened...so many internal fights also going on within Myanmar...list goes on.

Bit by bit everyone apart from China will abandon them.

They will soon be China's total bitch.

 

[Aung Zaya]

@Aung Zaya

Screw is just tightening further.

Your loss is our gain.

lol we dont lose any as they did not make any investments till now. They just submitted letter of interest and just made some inquiries. Then they compete and they lose. that's all.

Check this.

Agreement to implement Yangon Amata Smart and Eco City signed

Yangon Amata Smart and Eco City Limited will implement a Smart and Eco City project with an investment of US$ 1 billion on 2,000 acres of land.

https://elevenmyanmar.com/news/agreement-to-implement-yangon-amata-smart-and-eco-city-signed

 

[UKBengali]

lol we dont lose any as they did not make any investments till now. They just submitted letter of interest and just made some inquiries. Then they compete and they lose. that's all.

Check this.

Agreement to implement Yangon Amata Smart and Eco City signed

Yangon Amata Smart and Eco City Limited will implement a Smart and Eco City project with an investment of US$ 1 billion on 2,000 acres of land.

https://elevenmyanmar.com/news/agreement-to-implement-yangon-amata-smart-and-eco-city-signed

They came and left as soon as they saw your infrastructure was a shambles and Western sanctions are coming.

Good luck getting any companies that hope to export to West investing in your "Smart and Eco City".

 

[bluesky]

Yangon Amata Smart and Eco City Limited will implement a Smart and Eco City project with an investment of US$ 1 billion on 2,000 acres of land.

However, Korean companies alone want 700 acres of land. There are so many shortages in your planning and implementation that international companies will leave your country one after another, especially when the international community will put sanctions on receiving imports from your Rohingya-bashing Myanmar.

You guys should reflect your savage actions and reverse the process. However, it is already 20 years too late.

 

[UKBengali]

However, Korean companies alone want 700 acres of land. There are so many shortages in your planning and implementation that international companies will leave your country one after another, especially when the international community will put sanctions on receiving imports from your Rohingya-bashing Myanmar.

You guys should reflect your savage actions and reverse the process. However, it is already 20 years too late.

No respectable company wants to be associated with such savages.

 

[bluesky]

@Aung Zaya

Screw is just tightening further.

Your loss is our gain.

You must be a naughty boy. @Aung Zaya of Burma has already lost his night sleep and nowadays he naps at daytime. He may lose his job. Yet, you are making him cry. He should save his tear now because he will need more of it within this year when most others will also leave Burma.

 

[UKBengali]

You must be a naughty boy. @Aung Zaya of Burma has already lost his night sleep and nowadays he naps at daytime. He may lose his job. Yet, you are making him cry. He should save his tear now because he will need more of it within this year when most others will also leave Burma.

If the EU imposes textile sanctions, that would devastate Myanmar economy.No need for anything else.

I find it hard to believe that there is a country that committed such evil in 2017.