Welcome

to
our presentation
Introduce to us

OUR GROUP NAME

GROUP-E
We are Seven member
Salman L. Rahman .............. ID: 103-0250-407

Jannat Islam ............... ID: 103-0231-407

Shima Aktar...........................ID: 103-0102-407

Rabeya Siddiqua...........ID: 111-0150-407

Mahmudul Hasan.ID: 112-0114-407

Tabassum-E- Alam.......ID: 131-0086-407

Naznin Akhter Bristy..ID: 131-0219-407




Our Topics

THE HI STORY OF EPZ I N BANGLADESH

AND

THEI R ROLE I N THE ECONOMI C DEVELOPMENT










ABOUT BEPZA
The Bangladesh Export Processing Zone Authority
(BEPZA) is an agency of the Government of
Bangladesh and is administered out of Prime
Ministers Office. The Government provides numerous
incentives for investors for opening factories in EPZs.
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.

Continued
ABOUT BEPZA
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.

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 or minimal intervention by custom
officials (World Bank 1999).

Continued..





Objects of EPZ in Bangladesh
The main objectives of EPZ are given below:
Promotion of foreign (FDI) & local investment.
Diversifications of export.
Development of backward & forward linkages.
Generation of employment.
Transfer of technology.
Up gradation of skill.
Development of management Plots/factory BLDG in
custom bonded area.
Infrastructural facilities.
Administrative facilities.
Fiscal & non-fiscal incentives.
History of EPZ in Bangladesh
History of EPZ
After the independence the stagnant economy of the war ravaged country
was desperately seeking private capital, technical knowhow to facilitate
the industrialization process to achieve economic growth. During the
initial years it could not happen. However, a visit by the than World Bank
Vice President Mr. Robert McNamara in the early eighties to Bangladesh
transmitted the concept of EPZs to us. Since then EPZs, in tune with the
liberal industrial policy of the government along with investment friendly
legal & institutional framework like Foreign Private Investment
(Promotion and Protection) Act1980, have made significant progress.
Continued
Pioneer EPZ of the country Chittagong EPZ started
functioning in the year 1983 in the Port city of
Chittagong, seeing its unprecedented success the second
one came into being in 1991inDhaka. Presently there
are as many as eight operational EPZs and two
proposed EPZs indifferent locations of the country
contributing to the overall economic development
process of Bangladesh through promotion of export and
FDI (Foreign Direct Investment), generation
of employment, transfer of technology, and
development of forward and backward linkage
industries and so on.
Continued
In continuing to that policy, EPZ is playing as a prime
role as an economic instruments for attracting foreign
direct investment, employment, foreign exchange
earning and technology transfer. In the age of
globalization the concept of EPZ has become more
significance for economic growth. Result reveals that
EPZ in all over the country has a dramatic increasing
trend from 1975 with 25 countries and the numbers of
EPZs were 79, now 2003 it has covered 116 countries
that covered more than 3000 zones.
Continued
As a result 42.0 million are employed within those
zones (Agarwal, 2005). Geographically, politically and
economically, in 1971 Bangladesh has got an
independent and it covers 144,000 square kilometers
and has a population of about 150 million with a
density of 953 persons per square kilometer (HDI,
UNDP Report, 2008). Bangladesh had to face the
challenges, as a result, its economy has been diversified
with limited resource and rapidly growing population.

Continued
Bangladesh is late starter in the process of liberalization, particularly after 1990s, its
opening up the economy with attendant liberalization of the trade regime (GOB, the fifth
five year plan, 1997-2002). This trade liberalization geared up the countrys economic
condition like as export, employment, investment and boomed the private sector for
economic development. Apart from welcoming private sector, Government had taken
initiative to welcome foreign investor with incentive. Finally, Government had taken a
decision to emerged capital investment in Export Processing Zone in the name of
industrial development. After reviewing the tremendous success of that zone,
Government had decided to establish the second one at Dhaka in 1993. Then the zone
has increased in number 8 including Chittagong and Dhaka.

EPZ IN BANGLADESH
EPZ IN BANGLADESH
NAME OF ZONE YEAR OF
ESTABLISHMENT
NO. OF PLOT
CHITTAGONG 1983 454
DHAKA 1993 388
MONGLA 2000 162
COMILLA 2001 208
ISHWARDI 2001 166
UTTARA 2001 155
ADAMJEE 2005 200
KARNAFULI 2005 100
RELATED ORGANIZATION
Prime Ministers 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.
Janata Bank Ltd.
BRAND PRODUCT MADE IN BANGLADESH EPZs
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, etc.
LIST OF COUNTRIES SO FAR INVESTMEN
1. Australia 16. Malaysia
2. Bangladesh 17. Marshal Island
3. Belgium 18. Mauritius
4. BR. Virgin Is. 19. Nepal
5. Canada 20. Netherland
6. China 21. Pakistan
7. Denmark 22. Panama
8. France 23. Portugal
9. Germany 24. S. Korea
10. India 25. Singapore
11. Indonesia 26. Sri Lanka
12. Ireland 27. Sweden
13. Italy 28. Switzerland
14. Japan 29. Taiwan
15. Kuwait 30. Thailand etc.

TYPES OF INVESTOR
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
HOW TO APPLY

Collect Prescribed Project Proposal Format from
BEPZA on payment of Tk. 3000.00.

Submit the proposal along with the required
documents mentioned in the project proposal format.

For executive of lease agreement pay one year rental
for land and four months rental for Standard Factory
Building, as security deposit.
Labor Issues
Ensure the congenial production climate.
Establish the franchise of the workers.
Competitive wages in respect of semi skilled, skilled and
high skilled.
The average monthly wages has been practiced as follow:
Unskilled US$ 39.00-48.00
Semi-skilled US$ 55.00
Skilled US$ 61.00-109.00
Other benefits include Conveyance Allowance, House Rent,
Medical Allowance, Maternity Benefit, Festival Bonus,
Provident Fund and Overtime.
The parliament passed the EPZ Workers Association and
Industrial Relations Act 2004.(up to October 2010).
YEAR WISE TOTAL EMPLOYER
YEAR LOCAL EMPLOYMENT
CURRENT CUMULATIVE
2007-2008 17130 218299
2008-2009 16394 234693
2009-2010 28064 262757
2010-2011 43666 306423
2011-2012 33598 340021
2012-2013 (December
2012)
10242 350263
YEAR WISE EXPORT
YEAR EXPORT IN (MILLION US$)
EXPORT (MUS$)
CURRENT CUMULATIVE
2007-08 2429.58 16333.04
2008-09 2581.70 18914.74
2009-10 2822.54 21737.28
2010-11 3697.62 25434.89
2011-12 4210.80 29645.69
2012-13 (December 2012) 2240.87 31886.56
YEAR WISE INVESTMENT
YEAR Investment (million us$)
TOTAL
CURRENT CUMULATIVE
2008-09 148.03 1582.47
2009-10 221.99 1804.46
2010-11 313.23 2117.69
2011-12 339.26 2456.95
2012-13 (December, 2012) 150.37 2607.33
Export Performance:
During 2004-05 export performance of Bangladesh
raised upto US$ 8654.52 million (13.83% growth).

Most contributors to the exportable items are RMG
(Woven Garments and Knitwear), Frozen food, Home
textile, Computer Service, bicycle and ceramic.

Bangladesh Export by Major Products
WOVEN GARMENTS
KNITWEAR
FROZEN FOOD
JUTE GOODS
LEATHER
CHEMICAL
PRODUCTS
RAW JUTE
TEA
OTHERS
Incentives
Fiscal Incentives
10 years tax holiday for the Industries to be established
before 1
st
January, 2012 and Industries to set up after
31
st
December, 2011 tax holiday period will be:
TAX EXEMPTION PERIOD RATE OF TAX EXEMPTION
FIRST 2 YEARS (1
st
& 2
nd
yrs) 100%
NEXT 2 YEARS (3
rd
& 4
th
yrs) 50%
NEXT 1 YEARS (5
th
years) 25%
Non Fiscal Incentives
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.

THE ECONOMI C DEVELOPMENT OF EPZ I N
BANGLADESH
As an economic enclave acceleration of EPZ
contribution to GDP in terms of employment, export and
investment are significantly positive by measuring EPZ
percent of those factors. As we have seen in employment
data table and graph, it reveals that 22% sharing in
employment as a national contribution. Only EPZs have
the lion contribution 22% in employment generation all
over the country. And women participation is 64% where
men were 36%. Apart from this, in the light of export
performance, EPZ contribution is gradually increased
and the EPZ share more than 17% of total export during
FY 2006-2007.

Continued
The rate of investment from EPZ is increasing day by day.
In the fiscal year 2005-2006 the volume of investment was
112.83 million US$, 152.34 million was 2006-2007 and
154.34 million US$ in 2007-2008. And in the year of 2011-
2012 it become US$ 2456.95 and in 2012-2013 it become
US$ 2607.33 million. In the age of globalization the concept
of EPZ has become more significance for economic growth.

The garment industry has played a pioneering role in the
development of industrial sector of Bangladesh. Resultantly
garment is now one of the main export items of the country.
At present there are more than 2100 garment factories in the
country employing more than 12 lack labors.
Continued
Economic Profile
It reveals from the Economic Profile of Bangladesh that
last years GDP was recorded at US$61.41 billion with
5.40% annual growth.
Industry:
GDP growth of broad Industry sector was 8.43% in the
last year compared to 7.10% in the preceding year. The
performance of the industrial sector was mainly based on
the growth in textile and wearing apparel, drugs and
pharmaceuticals, fertilizer, petroleum products, glass
products, cement, electronics, footwear and food and
beverage industries. In the last year the contribution of
this sector in national income is 28.44%.

Continued
Agriculture
Agriculture still holds an important position in our
national economy in creating employment and
increasing national income. In the last year the
contribution of this sector in national income is about
21.91%. Growth in agriculture has increased to
2.41%. Growth during the year preceding year was
3.29%. Fish production in the last year has increased
by 5.03%. Growth in the sector during the preceding
year was 3.6%. Food production during the last year
was about 30.05 million tons compared to 27.90
million tons in the year preceding year
Continued
Services
The service sector continued to the largest contributor
to the countrys real GDP growth in 2004-2005. The
sector grew by 5.7% during the year, compared to
5.4% in 2003-2004 and contributed 49.65% to GDP
growth. All sub-sectors shared in the overall growth of
the services sector activities, but relatively higher
growth rates were registered by education (7.66%),
transport, storage and communication (6.64%), hotel
and restaurant (7.29%), financial services (6.77%),
public administration and defense (5.75%).
Service, 49.65%Agriculture, 21.91%Industry, 28.44%.

Continue
Investment and savings
Gross national savings during the year 2004-05 was
26.50% of GDP compared to 25.40% during the
previous year. In the FY 2004-05 the rate of total
investment was 23.14% of GDP in which the shares of
public and private sector were 5.90% and 18.50%
respectively. Total investment registered by BOI was
US$ 19,992 million out of which US$ 8763 million
was foreign investment. Investment made by in the
EPZs was US$ 987 million.
Continue
Use of Foreign Currency
The exporters can deposit a certain amount of their export
earning in foreign currency under a retention quota in
their foreign currency account in the form of US dollar,
Pound, Sterling, Japanese yen or Euro.
This foreign currency can be used to fulfill real business
needs like business trips abroad, participation in export
fair or seminars in foreign countries, import of raw
materials and spare parts and setting up office abroad.
Presently 10% has been fixed for lower value added
products (like RMG, petroleum by products, Naphtha,
furnace oil etc.)and 50% for high value added products
(like Computer software and data entry/processing service
etc.)
Continued
GSP
Generalized System of Preferences (GSP) is a
preferential treatment of tariff facilities (by way of
reduced or duty free tariff rates) which is granted by the
industrially Developed countries to the eligible products
imported from Developing or Least Developed
Countries. The scheme is non-reciprocal and non-
discriminatory system of preferences. The objectives of
the GSP scheme are:

a. To increase export earnings of the preference receiving
countries;
b. To promote their industrialization and
c. To accelerate their economic growth.

Continued
New GSP Scheme of EU
With a view to encourage greater co-operation, EU
member-states have recently adopted the new
preferential market access system, which is the new
GSP scheme.
The reform of the GSP scheme will make the EUs
system of preferential market access simpler and fairer
then before. The new GSP scheme as a whole will be
in operation from 1
st
January, 2006.

Continued
Textile
Ready Made Garments, Textiles and Composite Textiles
a. Sector Highlights
The Ready Made Garment industry in Bangladesh accounts for
more than 75% of total exports. Government incentives for the
spinning and weaving industries include a 15% cash subsidy of
the fabric cost to exporters sourcing fabrics locally.
b. I ndustry Background and Status
The phenomenal growth in RMG was experienced in the last
decade. With about 2,600 factories and a workforce of 1.4
million, RMG jointly with knitwear accounted for more than
70% of total investments in the manufacturing sector during the
first half of the 1990s. At present, number of RMG factories
exceeded 3,000, employing over 50% of the industrial workforce
and having 75% of the total exports earning of the country.

Continue
c. I ndustry Outlook
Multi-Fiber Agreement (MFA) and Generalized System
of Preference (GSP) of the EU are the main actors
behind acquainting Bangladesh RMG products to
global market ensuring assured market access.
Bangladesh is now a significant RMG supplier to North
America and Europe. Till today, Bangladesh RMG
industry largely depends on the imported yarns and
fabrics. Bangladesh produces only 10% of export-
quality cloth used by the garments industry. There are
enormous opportunities in setting up composite textiles
industry combining textile, yarn and garments.


Continue
d. I nvestment Opportunities
RMG and textile sectors have enormous investment
opportunities. Government provides highly favorable
policy framework for investment in these sectors.
Investors have the following choices:
Establishment of new textile/RMG mill in the private
sector.
Joint ventures with the existing textile / RMG mill.
Acquisition of public sector textile mills that are being
privatized.
Indirect investment through financial services and /or
leasing.
Continued
Frozen Foods
Frozen Shrimp, Frozen Fish, Other Items
a. Sector Highlights
Government is promoting semi-intensive shrimp
farming.
Fish and prawn exports registered a modest growth in
past decade.
Shrimp processing and export industry is largely
dominated by the smaller unorganized sector.
15% cash incentive is given to shrimp export amount.


Continued
b. I ndustry Situation
The frozen foods export is the second largest export
sector of the country. After some initial difficulties
in terms of quality achievement, exporters have
earned credibility and trustworthiness in the global
market. Assurance of reliable and continued product
quality is a major challenge in this sector.
Technology orientation, marketing perceptions, and
quality improvement aspects invite foreign
investment in this sector.
Continued
Information Technology
Data Processing, Software Development, Hardware
Manufacturing
a. Sector Highlights
To instigate the IT industry robustly, deregulation of
the telephone has been decided and executed by mid
2003.
The extensive growth of mobile telephony resulted in
significant opportunities.
The industry is at its introductory stage and has
opportunity of capitalizing the potential.
Bangladesh has a well-educated, skilled, dedicated and
growing IT workforce. Continued.
Continued
There is a fast growing domestic market and export
demand.
Strong research assistance from the universities and
research institutions are available.
Government is keen in establishing IT related
infrastructure for the development of the industry.
Connectivity with the information highway through
submarine cable.
b. I ndustry Status
IT Hardware Import Policy
Export of Software, data processing, transcription etc.


Continued
Ceramic
Tableware, Sanitary ware, Insulator
Sector Highlights
Global market of ceramic tableware is about US$10 billion.
Bangladesh Ceramic tableware has a good reputation to the
international market like North America and EU countries.
Bangladesh has achieved technical expertise on ceramic
tableware manufacturing.
Sanitary ware and insulator has also a domestic and
international market demand.
The clean gas reserve required for firing is a great
competitive advantage for Bangladesh.

Continued
b. I ndustry Status
A few ceramic table ware manufacturers dominate the
industry producing high quality products for the
international brands. A pool of skilled manpower has
been developed. The latest technological
advancements in ceramic are also acquainted.
Bangladesh produces high quality Bone China
transferring the technology from Japan. The domestic
market is also attractive. Some low-quality tableware
are imported from mainly China to cater the demand
of lower segment of the domestic market.
Conclusion
Bangladesh Export Processing Zone has a vital
role to the total economy of the country.

Foreign investment comes through this process
which makes Bangladesh to prosperous
industrialization.