In order to stimulate rapid economic growth of the country, particularly through industrialization, the government has adopted an 'Open Door Policy' to attract foreign investment to Bangladesh. The Bangladesh Export Processing Zones Authority (BEPZA) is the official organ of the government to promote, attract and facilitate foreign investment in the Export Processing Zones. The primary objectives of an EPZ is to provide special areas where potential investors would find a congenial investment climate, free from cumbersome procedures. Objective Promotion of foreign (FDI) & local investment Diversifiaction of export Dev. OF backward & forward linkages Generation of employment Transfer of technology Upgradation of skill Development of management
About EPZ An export processing zone (EPZ) is defined as a territorial or economic enclave in which goods may be imported and manufactured and reshipped with a reduction in duties / and/or minimal intervention by custom officials (World Bank 1999). EPZ Provides: Plots/factory BLDG in custom bonded area Infrastructural facilities Administrative facilities Fiscal & non-fiscal incentives EPZ attracts : foreign & local investment
Type: A - 100% foreign ownership 205 (58%) B - joint venture 49 (14%) C - 100% local venture 98 (28%)
List
of
Countries so
far Invested
1. 2. 3. 4. 5.
6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23 24. 25. 26. 27. 28. 29. 30.
China Denmark France Germany India Indonesia Ireland Italy Japan Kuwait Malaysia Marshal Island Mauritius Nepal Netherland Pakistan Panama Portugal S. Korea Singapore Sri Lanka Sweden Switzerland Taiwan Thailand
GM (Investment Promotion) 8650061 Chief Accounts and Finance 8650065 Officer Chief Engineer GM (MIS)-Add. Charge GM (Public Relation)-Add. Charge GM (Audit) GM (Enterprise Service)-In Charge GM (Maintenance) PS to Chairman 8650069 8650061 8650061 8628132 8650073 8620282 9671417, 01715145706
Textile
Agro-based Industries Chemicals Backward and forward linkage Industries Electrical Equipment and Components Electronic Products Software Optical Goods Garments and Garments Accessories Woven and Knitted Fabrics Engineering Products Leather Products and Foot-Wear Toys Medical and Biological Instruments Pharmaceutical Products Plastic Moulded products Industries based on new uses of Jute Cutting/Polishing of Precious and Semi Precious stones Household Fittings and Equipment Head-Wear Jewellery Horological Instruments Scientific Measuring Instruments Aircraft Instruments Laboratory Ware Printing and Publishing Printing and Copying Equipment & Accessories Do-it-yourself Tools and Equipment Musical instruments
Related Organization
Prime Minister's Office Board of Investment National Board of Revenue Bangladesh Bank Ministry of Commerce Ministry of Home Affairs Export Promotion Bureau Register of Joint Stock Company Chittagong Port Mongla Port
Hazrat Shahjalal (R) Airport, Dhaka Shah Amanat Airport, Chittagong Pan Pacific Hotel Sonargoan Ltd., Dhaka. Janata Bank Limited
Name of The EPZs Land (US$/SQM/YEAR) Readymade Factory Building Space (US$/SQM/MONTH) Chittagong, Dhaka, Comilla, Adamjee, Karnaphuli 2.20 2.75 Mongla, Ishwardi, Uttara 1.00 1.25 # 01 Square Meter= 10.76 Square Feet #
LAW & ORDER SITUATION INFRASTRUCTURE FACILITIES REDUCTION OF LEAD TIME COST OF DOING BUSINESS FRIENDLY POLICY OF GOVT INCENTIVES WIN WIN VENTURES SUCCESS STORY SIGNATORY OF MIGA (Multilateral Investment Guarantee Agency) SIGNATORY OF ICSID (International Centre for Settlement of Investment Dispute) MEMBER OF WIPO (World Intellectual Property Organization) MEMBER OF OPIC (Overseas Private Investment Corporation) ASIA'S LOW COST PRODUCTION BASE
Chittagong EPZ
YEAR
EXPORT IN (MILLION US$) Chittagong EPZ CURRENT CUMULATIVE 0.16 4.61 12.21 27.47 41.40 57.48 91.69 139.67 216.67 343.71 484.07 671.05 934.84 1278.15 1728.15 2180.68 2706.77
1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00
0.16 4.45 7.59 15.27 13.93 16.08 34.21 47.99 76.99 127.05 140.35 186.98 263.80 343.31 450.41 452.12 526.09
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (March, 2011)
Chittagong EPZ
YEAR EXPORT IN (MILLION US$) Chittagong EPZ CURRENT 1983-84 1984-85 1985-86 0.16 4.45 7.59 CUMULATIVE 0.16 4.61 12.21
1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (March, 2011)
15.27 13.93 16.08 34.21 47.99 76.99 127.05 140.35 186.98 263.80 343.31 450.41 452.12 526.09 620.36 608.70 641.28 679.01 772.39 873.03 971.54 1117.17
27.47 41.40 57.48 91.69 139.67 216.67 343.71 484.07 671.05 934.84 1278.15 1728.15 2180.68 2706.77 3327.13 3935.83 4577.11 5256.11 6028.50 6901.53 7873.07 8990.24
Dhaka EPZ
YEAR
EXPORT IN (MILLION US$) Dhaka EPZ CURRENT CUMULATIVE 5.26 46.53 119.75 239.21 424.85 684.42 1049.14 1496.66 1963.42 2518.21
1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03
5.26 41.28 73.22 119.45 185.64 259.57 364.73 447.51 466.76 554.79
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (March, 2011)
Chittagong EPZ
YEAR
1983-84
0.87
1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
1.60 3.60 6.63 1.79 2.72 8.58 22.05 23.66 22.05 29.18 27.67 16.13 22.89 42.59 36.11 15.18 24.30 22.37 42.14 55.43 45.31 35.95 32.62 126.46
2.47 6.07 12.71 14.50 17.22 25.80 47.85 71.51 93.56 122.74 150.41 166.54 189.42 232.02 268.12 283.30 307.61 329.98 372.12 427.55 472.86 508.82 541.44 667.90 715.12 772.64
47.22 57.52
38.39
811.03
NIKE, REEBOK, LAFUMA, H & M (SWEDEN),GAP, BROUKS, J.C. PENNY, WALMART, KMART, OSPIG (GERMANY), MOTHER CARE (UK), LEE, WRANGLER, DOCKERS, NBA, TOMMY HILFIGER, ADIDAS, FALCON(USA), EDIE BAUYER, EAGLE, RELEIGH (UK), EMMILEE, FREE SPIRIL (UK), MILES (GERMANY), AMERICAN EAGLE, HI-TECH (UK), PHILLIP-MAURICE (UK), WINS MORE, DECATHLON. LL CAMERA LENS (IO PARTS) GOLF SHAFTS MOBILE PARTS KONIKA, MINOLTA, NIKON, FUJI, OLYMPUS. ABU GARCIA SONY
AUTOMOBILE PARTS
Classification of Investors
Type - A 100% foreign owned including Bangladesh nationals ordinarily resident abroad. Type - B Join venture between foreign and Bangladesh entrepreneurs resident in Bangladesh. Type - C 100% Bangladesh entrepreneurs resident in Bangladesh.
Fiscal Incentives 1. 10 years tax holiday 2. Duty free import of construction materials 3. Duty free import of machineries, office equipment & spare parts etc. 4. Duty free import and export of raw materials and finished goods 5. Relief from double taxation 6. Exemption from divident tax 7. GSP facility available 8. Accelerated depreciation on machinery or plant allowed 9. Remittance of royalty, technical and consultancy fees allowed 10. Duty & quota free access to EU, Canada, Norway, Australia etc. Non Fiscal Incentives 1. 2. 3. 4. 5. 6. 7. 100% foreign ownership permissible Enjoy MFN (most favored nation) status No ceiling on foreign and local investment Full repatriation of capital & dividend Foreign Currency loan from abroad under direct automatic route Non-resident Foreign Currency Deposit (NFCD) Account permitted Operation of FC account by 'B' and 'C' type Industries allowed.
Facilities 1. No UD, IRC, ERC and renewal of Bond license 2. Work permits issued by BEPZA 3. Secured and protected bonded area 4. Off-Shore banking available 5. Import on Documentary Acceptance (DA) basic allowed 6. Bank of Back L/C 7. Import and Export on CM basis allowed 8. Import from DTA (Domestic Tariff Area) 9. 10% sale to DTA (Domestic Tariff Area) 10. Customs clearance at factory site 11. Simplified sanction procedure 12. Sub-contracting with export oriented Industries inside and outside EPZ allowed 13. Relocation of foreign industries allowed 14. Accords Residentship and Cityzenship 15. One Window same day service and simplified procedure.
Support Services Business : Bank, Courier, Post office, C&F Agent, Shipping Agent, MTO etc. Administrative : Customs Office, Police Station, In-house Security, Fire Station, Public Transport, Medical Centre etc. Others : Restaurant, Health Club, Investors Club, Recreation Centre, School and College, Sports Complex, Exclusive Telephone Exchange, Electricity Sub Station, Business Centre, Anglers Club etc.
Investment Guarrantee
Foreign Private Investment (Promotion and Protection) Act, 1980 secures all foreign investment in Bangladesh. OPIC's (Overseas Investment Corporation, USA) insurance and finance programmes operable. Security and safeguards available under Multilateral Investment Guarantee Agency (MIGA) of which Bangladesh is a member. Arbitration facility of the International Center for the Settlement of Investment Dispute (ICSID) available.
Labour Issues
Ensure the congenial production climate. Establish the franchise of the workers. BEPZA Instruction No. 1 & 2 The parliament passed the EPZ Workers Association and Industrial Relations Act 2004(Ammended up to October 2010). Re-Fixation of minimum wages and benefits for the workers of the enterprises of EPZs Counsellors monthly compliance report. The parliament passed the EPZ Workers Association and Industrial Relations Act 2004(Ammended up to October 2010). Competitive wages in respect of semi skilled, skilled and high skilled. The average monthly wages has been practiced as follow: Unskilled US$ 30.00-38.00 Semi-skilled US$ 45.00 Skilled US$ 58.00-60.00
Other benefits include Conveyance Allowance, House Rent, Medical Allowance, Maternity Benefit, Festival Bonus, Provident Fund and Overtime.
Considering the production cost investor are being deemed to be satisfied with the overall productivity of the labours.
Mode of Investment
Bangladesh adopted pragmatic strategy in order to attract more Foreign Direct Investment (FDI) by strictly maintaining win-win policy. Maintain open door policy through active negotiation in the process of globalization to achieve due targeted share from the overseas potential investment surplus market.
Dynamics of Foreign Direct Investment (FDI) should be reasonably proactive to fill the resource gap, foreign exchange gap, efficiency gap and technical and management know how gap.
Apart from that local bank of Bangladesh also provide off-shore banking like:
11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22.
BRAC Bank Ltd. AB Bank Limited Mutual Trust Bank Ltd. Jamuna Bank Ltd. One Bank Ltd. Pubali Bank Ltd. Standard Bank Ltd. National Credit and Commerce Bank Ltd. Islami Bank Bangladesh Ltd. Trust Bank Limited Mercantile Bank Ltd. United Commercial Bank Ltd.
More local Bank in the pipe-line to have off-shore Banking license from Bangladesh Bank (Central Bank). Schedule of standard charges are being practiced among the off-shore Banking units of DFI (Different Financial Institutions) of Bangladesh.
Location : Shouth Halishahar. 3.10 kms from the sea port, 5.50 kms from the main business center, 7.21 kms from the Chittagong International Airport.
Profile Of Zone : Zone area : 183.37 hectares (453 acres) Number of industrial plots : 454 Size of each plot : 2000 sqm. Tariff : US $ 2.20 / sqm / year. Space of Standard Factory Building : 60912.77 sqm. Tariff : US $ 2.75 / sqm / month.
Space of Warehouse : 2667.79 sqm. Tariff : US $ 2.75 / sqm / month. Utility Services : Water Supply: From Chittagong WASA. Storage Capacity 7.26 million liters / day. Tariff : Tk. 19.40 / cum. Gas Supply: From Bakhrabad Gas System Ltd. Tariff : Tk. 5.76 / cum. Power Supply : 11 kv, 3 phase, 50 cycles / sec. Tariff : Tk. 4.18 / kwh. (Utilities will be charged at the current rate of US $) Contact Person : General Manager Email: cpz@ctg-bd.net Contract Address : Chittagong Export Processing Zone , South Halishahar, Chittagong Phone : +880 31 741446, +880 31 740919 Fax : +880 31 740031
Location : Savar. 35 kms from Dhaka city centre, 25 kms from Hazrat Shahjalal (R) Airport. 304 Kms from Chittagong Sea Port.
Profile Of Zone : Zone area : 143.84 hectares (346.51 acres) Number of industrial plots : 388 Size of each plot : 2000 sqm. Tariff : US $ 2.20 /sqm /year. Space of Standard Factory Building : 79843.19 sqm. Tariff : US $ 2.75 /sqm /month. Space of Warehouse : 2356 sqm. Tariff : US $ 2.75 /sqm /month. Utility Services : Supply: Own water supply system. Tariff : Tk. 18.47 / cu-m. Gas Supply: From Titas Gas Transmission & Distribution Co. Ltd. Tariff : Tk. 5.76 / cu-m. Power Supply : 11 kv, 3 phase, 50 cycles / sec. Tariff : Tk. 4.18 / kwh. (Utilities will be charged at the current rate of US $) Contact Person : General Manager Contract Address : Dhaka Export Processing Zone , Ganakbari, Savar, Dhaka Phone : +880 2 7789002, +880 2 7789411 Fax : +880 2 7789003
Profile Of Zone : Zone area : 108.64 hectares (268.32 acres) Number of industrial plots : 260 (100 in first phase) Size of each plot : 2000 sqm. Tariff : US $ 2.20 / sqm / year.
Space of Standard Factory Building : 59278.82 sqm. Tariff US $ 2.75 /sqm /month. Utility Services : Water Supply : From Chittogong WASA & through Own water treatment plant. Tariff : Tk. 18.47 / cu-m. Gas Supply : From Bakhrabad Gas System Ltd. Tariff : Tk. 5.76 / cu-m. Power Supply : 11 kv, 3 phase, 50 cycles / sec. Tariff : Tk. 4.18 / kwh. (Utilities will be charged at the current rate of US $) Contact Person :
Project Director Contract Address : Karnaphuli Export Processing Zone , Karnaphuli, Chittagong Phone : +880 31 801069 Fax : +880 31 801069