BEPZA 2011-12(July, 12)

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BANGLADESH EXPORT PROCESSING ZONES AUTHORITY (BEPZA)

Investment Opportunities in the EPZs Of Bangladesh

Presentation By

Executive Chairman

Major General A T M Shahidul Islam, ndu, psc

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An export processing zone 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)

Definition of EPZ

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TO STRENGTHEN THE ECONOMIC BASE OF BANGLADESH BY:

PROMOTING INVESTMENT &

GENERATION OF EMPLOYMENT

Mission Of BEPZA

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PROMOTION OF FOREIGN (FDI) & LOCAL INVESTMENT

EMPLOYMENT GENERATION & POVERTY ALLEVIATION

TRANSFER OF TECHNOLOGY

DEV. OF BACKWARD & FORWARD LINKAGES

PROMOTION OF EXPORT

Objectives Of BEPZA

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BEPZA Act, 1980 & Foreign Private Investment Act, 1980

1st EPZ : Chittagong became Operational in 1983

2nd EPZ : Dhaka starts in 1993

Then 6 EPZs : Mongla, Comilla, Ishwardi, Uttara (Nilphamari),

Adamjee & Karnaphuli.

Background & Development Of BEPZA

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EXECUTIVE BOARD

EXECUTIVE CHAIRMAN, MEMBER (IP), MEMBER (ENG), MEMBER (F)

EPZ

HEADED BY GENERAL MANAGER

Management

BOARD OF GOVERNORSCHAIRED BY THE HON’BLE PRIME MINISTER

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INDIA

INDIA

MYANMAR

BAY OF BENGAL

INDIA

KARNAPHULI-EPZ

ADAMJEE-EPZADAMJEE-EPZ

UTTARA- EPZUTTARA- EPZ DHAKA- EPZDHAKA- EPZ

CHITTAGONG-CHITTAGONG-EPZEPZ

COMILLA-EPZCOMILLA-EPZ

MONGLA-EPZMONGLA-EPZ

ISHWARDI- EPZISHWARDI- EPZ

EPZs Of Bangladesh

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TYPES OF INVESTMENT (UPTO July, 2012)

Investors From 37 Countries

A 100% FOREIGN OWNERSHIP

230 57%

B JOINT VENTURE 62 15%

C 100% LOCAL VENTURE 115 28%

In Operation 407 100%

Under implementation (LA)

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Sanctioned Industry 77

Total 546

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BETTER LAW & ORDER SITUATION

GOOD INFRASTRUCTURE FACILITIES

REDUCTION OF LEAD TIME

LESS COST OF DOING BUSINESS

FRIENDLY POLICY OF THE GOVERNMENT

ATTRACTIVE INCENTIVES (FISCAL & NON-FISCAL)

WIN – WIN VENTURES

SUCCESS STORY

Why You Should Invest In EPZs

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Signatory of

☼ MIGA (Multilateral Investment Guarantee Agency)

☼ ICSID (International Centre for Settlement of Investment Dispute)

Member of

☼ WIPO (World Intellectual Property Organization)

☼ OPIC (Overseas Private Investment Corporation)

Legal Protection For The Investors

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► Fully Serviced Plots (Avg Size 2000 SQM)

► Factory Building Available on Rental Basis

► Business Support Services:Courier ,Banks, C & F Agent, Shipping Agent, etc.

► Administrative Support Services : Commissariat, Health Club, Investors Club, Medical Center, Sports Complex, etc.

Infrastructure Facilities

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1. INTRA & INTER ZONE EXPORT- IMPORT ALLOWED

2. DA BASIS IMPORT

3. SIMPLIFIED IMPORT EXPORT PROCEDURE

4. IP & EP ISSUED WITHIN THE SAME DAY

5. IMPORT OF RAW MATERIAL FROM DOMESTIC TARIFF AREA (DTA)

6. SUB-CONTRACTING ALLOWED BOTH INSIDE & OUTSIDE EPZ

Reduction Of Lead Time

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1. 100% FOREIGN OWNERSHIP PERMISSIBLE

2. ENJOY MFN (MOST FAVORED NATION) STATUS

3. NO CEILING ON FOREIGN INVESTMENT

4. FULL REPATRIATION OF CAPITAL & DIVIDEND

5. BEPZA ACCORDS RECOMMENDATION FOR

RESIDENTSHIP / CITIZENSHIP

Incentives (Non-Fiscal)

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1. TAX HOLIDAY

2. DUTY FREE EXPORT & IMPORT

3. EXEMPTION FROM DIVIDEND TAX

4. GSP FACILITY AVAILABLE

5. DUTY & QUOTA FREE ACCESS TO EU (EBA), CANADA, NORWAY, AUSTRALIA & USA UNDER PROCESS

Incentives (Fiscal)

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WORK PERMITS ISSUED BY BEPZA

IP & EP ISSUED WITHIN THE SAME DAY

NO UD (Utilization Declaration), IRC (Import Registration

Certificate), ERC (Export Registration Certificate) &

RENEWAL OF BOND LICENSE REQUIRED

IMPORT & 10% SALE TO DTA (LOCAL

MARKET) ALLOWED

CUSTOMS CLEARANCE AT FACTORY SITE

INTRA / INTER ZONE SUB-CONTRACTING &

TRANSFER OF GOODS ALLOWED

AVAILABLE WORKFORCE

Support Service Facilities

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Asia’s Most Competitive Production Base

Comparative Monthly Minimum Wages

$48

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ZONE LAND SFB (US$ / SQM / YEAR) (US$ / SQM /

MONTH) CHITTAGONG, DHAKA 2.20 2.75COMILLA, ADAMJEE,& KARNAPHULI EPZ

MONGLA, ISHWARDI & 1.25 1.60UTTARA EPZ

Service Charge - Rent

Ishwardi- EPZ

19*Tariffs are subject to change in future

Service Charge - Utilities COMILLA EPZ

ADAMJEE EPZ

KARNAPHULI EPZ

UTTARA EPZ

Name of the EPZ Electricity (Per KWH) Water (Per CUM) Gas (Per CUM)

Chittagong EPZ Taka 6.49 US$ 0.08(approx.)

Taka 22.43US$ 0.27 (approx.)


Dhaka EPZ Taka 6.49 US$ 0.08(approx.)



Comilla EPZ Taka 6.49 US$ 0.08(approx.)



Karnaphuli EPZ Taka 8.89 (peak)US$ 0.11 (approx.)Taka 5.68 (off peak)US$ 0.07(approx.)



Adamjee EPZ Taka 6.49 US$ 0.08(approx.)



Ishwardi EPZ Taka 6.49 US$ 0.08(approx.)



Mongla EPZ Taka 6.49 US$ 0.08(approx.)



Uttara EPZ Taka 6.49 US$ 0.08(approx.)



20TOTAL ACTUAL INVESTMENTTOTAL ACTUAL INVESTMENT= $ = $ 2,478.90 2,478.90 mm

InvestmentYEAR INV

($m)1994-1995 35.93

1995-1996 30.58

1996-1997 53.90

1997-1998 68.83

1998-1999 71.61

1999-2000 34.98

2000-2001 48.41

2001-2002 55.61

2002-2003 102.63

2003-2004 115.04

2004-2005 118.52

2005-2006 112.89

2006-2007 152.37

2007-2008 302.19

2008-2009 148.03

2009-2010

221.99

2010-2011 313.23

2011-2012 339.26

2012-2013(July,12)

21.95

21TOTAL EXPORT: US$30,000.78m

ExportYEAR EXP

($m)

1994-1995 228.26

1995-1996 337.02

1996-1997 462.77

1997-1998 636.05

1998-1999 711.69

1999-2000 890.81

2000-2001 1067.87

2001-2002 1077.02

2002-2003 1200.00

2003-2004 1354.00

2004-2005 1548.68

2005-2006 1836.18

2006-2007 2063.67

2007-2008 2429.58

2008-2009 2581.70

2009-2010 2822.54

2010-2011 3697.62

2011-2012 4210.80

2012-2013(July, 12)

433.05

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YEAR TOTAL EXPORT OF BANGLADESH

(US$m)

TOTAL EXPORT OF

EPZs (US$m)

BEPZA’s CONTRIBUTION

(%)

1995-1996

3882 337 8.68

1996-1997

4418 463 10.48

1997-1998

5161 636 12.32

1998-1999

5313 712 13.40

1999-2000

5752 891 15.49

2000-2001

6467 1068 16.51

2001-2002

5986 1077 18.00

2002-2003

6548 1200 18.33

2003-2004

7603 1354 17.80

2004-2005

8655 1549 17.90

2005-2006

10526 1836 17.44

2006-2007

12178 2064 17.00

2007-2008

14111 2429 17.22

2008-2009

15560 2582 16.60

2009-2010

16250 2822 17.36

2010-2011

22924 3698 16.13

2011-2012

24,41 0 4210 17.24

BEPZA’s Contribution To National Export

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YEAR No of EMPL

1994-1995 6,141

1995-1996 10,706

1996-1997 12,773

1997-1998 14,049

1998-1999 14,059

1999-2000 9,890

2000-2001 16,020

2001-2002 8,764

2002-2003 10,167

2003-2004 10,071

2004-2005 15,802

2005-2006 23,021

2006-2007 23,360

2007-2008 17,130

2008-2009 16,394

2009-2010 28,064

2010-2011 43,666

2011-2012 33,598

2012-2013(July, 12)

1,323

Female

Male

TOTAL EMPLOYMENT: 3,41,344nos.

Employment

Male -36%

1,22,884

Female -64%

2,18,460

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SL Country Enterprise

(Nos.)

Investment

(US$m)

Employment

(Nos.)

1 BANGLADESH 115 578.333 74,012

2 S. KOREA 69 526.815 84,204

3 CHINA * 45 315.799 55,959

4 JAPAN 26 223.497 9,445

5 TAIWAN, CHINA 25 191.016 14,303

6 INDIA 20 41.900 9,927

7 U.S.A 15 70.873 15,645

8 UK 15 71.912 18,263

9 MALAYSIA 11 121.964 4,884

10 PAKISTAN 7 9.860 2,563

11 GERMANY 6 20.736 5,345

12 CANADA 5 39.042 3,913

13 NETHERLAND 6 56.881 4,511

14 SRILANKA 8 50.671 13,109

15 BR. VERGIN IS. 4 39.940 6,641

16 ITALY 5 35.948 3,172

17 SWEDEN 1 13.303 4,668

18 INDONESIA 2 8.342 1,918

19 SWITZERLAND 1 6.546 81

*HONGKONG INCLUDING IN CHINA

Country Wise Enterprises (Upto July,12)

SL Country Enter.

(Nos.)

Invest.

(US$ m)

Emp.

(Nos.)

20 SINGAPORE 3 8.202 1,965

21 BELGIUM 2 5.041 452

22 UKRAINE 1 4.288 528

23 DENMARK 3 3.339 1,134

24 PANAMA 1 2.886 2,357

25 SPAIN 1 2.395 150

26 MARSHAL ISLAND 1 20.305 433

27 IRELAND 1 2.295 29

28 THAILAND 1 0.258 408

29 UAE 1 0.590 296

30 AUSTRALIA 1 0.026 62

31 OTHERS 1 5.900 967

TOTAL 407 2,478.90 3,41,344

OTHER COUNTRIES:-OTHER COUNTRIES:-31. PORTUGAL32. TURKEY33. KUWAIT34. MOURITIUS35. FRANCE36. RUMANIA37. MALTA

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Sl Product Enterprise (Nos.)

Investment

(US$ m)

Employment

(Nos.)

1 GARMENTS 101 816.800 1,94,489

2 GARMENTS ACCS. 70 297.533 16,784

3 KNIT & OTHER TEXTILE 44 212.840 38,512

4 TEXTILE 41 480.811 22,583

5 ELEC & ELECTRONICS 17 92.174 4,464

6 FOOTWARE & LEATHER 25 141.609 19,840

7 CAPS 5 50.031 7,826

8 TENT 8 50.850 8,260

9 TERRY TOWEL 18 62.727 7,063

10 METAL PRODUCT 13 28.726 1,283

11 PLASTIC GOODS 11 27.170 2,873

12 PAPER PRODUCT 2 1.316 100

13 FISHING REEL & GOLF 1 32.419 607

14 ROPE 2 6.476 565

15 SERVICE ORIENTED INDUSTRIES 6 32.950 916

16 AGRO PRODUCT 7 2.624 309

17 FURNITURE 3 28.560 1,613

18 POWER INDUSTRY 2 45.124 99

19 Chemical 5 3.367 73

20 Sports Goods 1 1.245 319

21 MISCELLANEOUS 25 63.061 12,566

Gr. Total 407 2,478.90 3,41,344

Product Wise Enterprises (Upto July, 12)

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EPZ Industry Investment (US$ m)

Export (US$ m)

Employment (No.)

In Op. (No.)

U/Impl. (No.)

CEPZ 167 12 968.421 15,272.73 1,76,993

DEPZ 102 09 866.063 12,729.37 84,503

AEPZ 36 31 168.945 580.41 21,381

COMEPZ 32 29 157.231 726.67 12,820

KEPZ 38 16 221.001 520.11 27,637

IEPZ 11 17 68.027 87.86 7,958

MEPZ 12 16 5.362 134.95 1,522

UEPZ 09 09 23.85 26.65 8,530

Total 407 139 2,478.90 30,078.74 3, 41,344

Zone Wise Statistics (upto July, 12)

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Global Ranking 2011-12 by FDI Magazine

TOP 10 FREE ZONES OF THE FUTURE 2012/13 OVERALL.

RANK NAME OF ZONE COUNTRY1 Dubai Airport Free Zone UAE

2 Dubai International Financial Centre UAE

3 Shanghai Waigaoqiao Free Trade Zone China

4 Iskandar Malaysia

5 DuBiotech UAE

6 Tanger Free Zone Morocco

7 Free port of Ventpils Latvia

8 The Clark Freeport Zone Philippines

9 Chittagong Export Processing Zone Bangladesh

10 Dubai Media City UAE

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TOP 10 BEST COST EFFECTIVENESS

RANK NAME OF ZONE COUNTRY1 Clark Freeport Philippines

2 Togo Export Processing Zone Togo


4 Free Port of Ventspils Latvia

5 International Media Production Zone UAE

6 Rezekne Special Economic Zone Lativa

7 San Luis Potosi Mexico

8 Mauritius Freeport Mauritius

9 Industrial Estate of Thailand Thailand

10 Starachowice Special Economic Zone Poland

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TOP 10 BEST ECONOMIC POTENTIAL

RANK NAME OF ZONE COUNTRY

1 San Luis Potosai Mexico

2 Industrial Estates of Thailand Thailand

3 Jebel Ali Free Zone UAE


5 Jubail Industrial City II Saudia Arabia

6 Amata Nakorn Industrial Estage Thailand

7 Clark Freeport Philippines

8 Aqaba Special Economic Zone Jordan

9 Jazan Economic City Saudia Arabia

10 Masan Free Trade Zone South Korea

11 Rakia Industrial Zone UAE

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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) KONIKA, MINOLTA, NIKON, FUJI, OLYMPUS.

GOLF SHAFTS ABU GARCIA

MOBILE PARTS SONY ERICSSON

AUTOMOBILE PARTS NISSAN, MITSUBISHI, HINO,TOYOTA.

Brand Products

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ASIA’S MOST COMPETITIVE PRODUCTION BASE

A BONANZA FOR INVESTMENT

Conclusion

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Documents

BEPZA 2011-12(July, 12)