BANGLADESH has made commendable progress in social, political, cultural and economic areas. A number of steps have been taken to attract foreign direct investment and facilitate further industrialization in the country. In pursuing such efforts, Bangladesh Export Processing Zones Authority (BEPZA) is responsible for the creation, operation and development of Export Processing Zones (EPZs) in the country.
Attractive and competitive packages of incentives, physical infrastructure facilities and abundance of skilled manpower at a competitive rate have placed Bangladesh’s EPZs in a comparative advantageous position over other competing EPZs of neighboring countries. Apart from the manufacturing sectors, EPZs are now inviting investment in infrastructure, power and utility.
Bangladesh is home to foreign investors from 33 countries, including Japan, South Korea, the US, the UK and China.
During the last 25 years, there have been 292 industrial projects in operation in the eight EPZs in Bangladesh. More than 200 projects are at different stages of implementation. Presently the EPZs alone contribute about 17 percent of the country’s total exports and also provide opportunities for a number of linkage and support-services industries adding value to the country’s economy. Absorption of huge unskilled and skilled workforce in the export-driven, labor-intensive manufacturing sector of EPZs have facilitated rapid industrialization process and accelerated the real economic growth in the country. Increasing foreign direct investment in manufacturing has an important bearing on the development of market access skill and transfer of technology. Vibrant economic activities of EPZs are inducing domestic economy through expansion of tertiary businesses, increased domestic consumption, outsourcing of goods and services from tariff area.
Apart from the prospective manufacturing sectors, like textiles, leather and leather goods, electrical and electronics, metal parts and molded products, pharmaceuticals, Bangladeshi EPZs have also opened up EPZ-based service-oriented sectors, like power generation, utility service projects, sewage treatment projects and water treatment projects for the competent foreign investors. Foreign entrepreneurship skills in such technology-oriented investment projects is well recognized and deserves due consideration from the business community.
The concept of EPZs worldwide has been undergoing rapid transformation with respect to its institutional framework, management pattern, and area of operation. The zones are no more traditional narrow enclaves but rather more integrated with the development process of the country. With the changing global business and investment scenario, Bangladesh has revised its expansion strategy to cater to the needs of the current trends. BEPZA has customized its investment incentives and facilities accordingly.
Located in strategic places, the zones are equipped with the state-of-the-art industrial facilities. The core competency areas of Bangladesh EPZs are its diversified and attractive package of incentives and physical facilities. BEPZA provides fully serviced, secured industrial plots and standard factory buildings with simplified licensing and permitting procedure. Onsite customs clearance, logistics, international couriers and offshore banking facilities have made EPZs an attractive investment destination.
BEPZA has been striving hard to upgrade its operational efficiency to a level, which would cater the diversified needs of the investors.
To achieve this objective challenges ahead for BEPZA would be:
• Development of improved physical infrastructures, integrated environment and water management, power generation, commercial complex on Public Private Partnership (PPP) basis.
• Development of a productive and sound industrial relation environment and compliant industrialization and full right of workers union as per international best practice benchmarking.
• Achieve organizational excellence by developing online capabilities and automation to ensure quality and expeditious delivery of services to the investors. Ensue full implementation of e-governance in all EPZs.
• Create more zones in the strategically located sites to accommodate the increasing demand of the existing investors. Attract relocating industries from Far East and CIS.
With the changing global business and investment scenario the EPZs of Bangladesh have revised its expansion strategy and in tune with the varied needs of the present day businesses BEPZA is customizing its investment incentives and facilities.
Opening up of new sectors of investment have provided an excellent opportunity to prospective investors.
New zones in strategically located places with state-of-the-art industrial facilities and pro-investment institutional framework providing the right kind of environment to grow. BEPZA believes that investors from all around the globe would find the EPZs of Bangladesh a truly attractive investment destination.
