Assignment On EPZ

COURSE TITLE: Introduction To Business
COURSE CODE: MKT 111
TOPIC
Export Processing Zone (EPZ)
Submitted to Submitted by
Md. Mehedi Hassan Group Name: VIVID
Lecturer BBA (4th batch, 1st semester)
Department Of Marketing Department Of Marketing
University Of Barisal University Of Barisal
DATE OF SUBMISSION: 30 Mar, 2015

Group name : VIVID
Group logo :
Group slogan : SHOW YOUR DYNAMISM
Group Members :
Sl. Name Id No. Remarks

No
1. Israt Jahan 14MKT049

2. Bakul Nesa 14MKT058
3. Maniza Armin 14MKT080
4. Sangita Paul 14MKT040
5. Rakib Hasan 14MKT08
6. Mehedi Hasan 14MKT03
7. MD. Rajib Howlader 14MKT060
8. Soeb Ahmed 14MKT017
GROUP LEADER:
Rakib Hasan
ID No. – 14MKT08
BBA (4th batch, 1st semester)
Department Of Marketing
University Of Barisal
ACKNOWLEDGEMENTS
Our greatest Gratitude is given to our honorable teacher Md.

Mehedi Hassan, for giving the chance to prepare the assignment on
EPZ (Export processing Zone). His deep insight helped us to
accomplish the assignment. His dedication towards teaching,
motivating and supervising influenced us greatly to prepare our
assignment carefully and seriously.
On Behalf of
“VIVID” group members
Md. Rakib Hasan

ID No. – 14MKT08
BBA (4th batch, 1st semester)
Department Of Marketing
University Of Barisal
Brief Content
About EPZ (page 1-6) Overview of EPZs of

Bangladesh (Page 29-32)
Introduction
What is EPZ Year wise total investment & export in epzs
Internationally Used Definitions Total employment in epzs
History of EPZ Types of investment (up to july, 2014)
Modern EPZ Revival and Expansion: 1960s and Major investors
Beyond Brand products made in bangladesh epzs
Export Processing Zone Concept Global ranking 2010-11 by fdi magazine
EPZ Terminology
EPZ Incentives Why Should Invest in EPZs
Potential Benefits from EPZ
Potential Caveats to Potential Benefits from EPZ of Bangladesh (page 32-33)
Employment
EPZ Potential Dynamic Benefits Strategic location
Attractive business & investment climate
EPZs in Bangladesh (Page 7- Friendly Policy of the Government:
Legal Protection for the Investors:
14) Advantageous trade agreements
Legislations Framework Of Epzs Youth and ambition

Major Role and Function Of Bepza
Management Conclusion (page 34)
Bepza Policy
Setting-Up Firms In Epzs
How To Apply REFERENCES (page 34)
Vision Of Bepza
Mission Of Bepza
Epz Provides
Fiscal Incentives
Non-Fiscal Incentives
Facility (Infrastructure)
Support Services
Eco Friendly Service Oriented Industries
Power Plant
Central Eggluent Treatment Plant (Cetp)
Water Treatment Plant (Wtp)
One Stop Facilities
Bangladesh EPZS at a glance
(Page 14-28)
Profile of Chittagong EPZ
Profile of Adamjee EPZ
Profile of Dhaka EPZ
Profile of Comilla EPZ
Profile of Ishwardi EPZ
Profile of Karnaphuli EPZ
Profile of Mongla EPZ
Profile of Uttara EPZ
Profile of Korean Export Processing Zone
Profile of Rangunia EPZ
INTRODUCTION
Export Processing Zones (EPZs) have become an important factor for economic enclaves particularly
in employment generation, export diversification and investment creation. One of the important
objectives of Industrial Policy is to employment creation and to expand investment in export-
oriented industries. In continuing to that policy, EPZ is playing as a prime role as an economic
instruments for attracting foreign direct investment, employment, foreign exchange earnings and
technology transfer. EPZs have been called the “vehicles of globalization”. In the age of
globalization the concept of EPZ has become more significance for economic growth.
What is EPZ
An Export Processing Zone (EPZ) is a customs area where one is allowed to import plant machinery
equipment and material for the manufacture of export goods under security, without payment of
duty. The imported goods are subject to customs control at importation, through the manufacturing
process, to the time of sell/export or duty payment for home consumption.
Internationally Used Definitions
 An EPZ is a relatively small, geographically separated area within a country, the purpose of
which is to attract export-oriented industries, by offering them especially favorable
investment and trade conditions as compared with the remainder of the host country. In
particular, the EPZ provide for the importation of goods to be used in the production of
exports on a bonded duty free basis .(UNIDO, 1980)
 An EPZ could be defined here as a clearly delineated industrial estate which constitutes a free
trade enclave in the customs and trade regime of a country, and where foreign manufacturing
firms producing mainly for export benefit from a certain number of fiscal and financial
incentives (ILO/UNCTC, 1988: 4).
 An EPZ is an industrial estate, usually a fenced-in area of 10 to 300 hectares that specializes
in manufacturing for export. It offers firms free trade conditions and a liberal regulatory
environment (World Bank 1992: 7).
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 EPZ are all government authorized areas such as free ports, free trade zones, custom free
zones, industrial free zones or foreign trade or any other type of zone, as the Council may
th
from time to time decide to include (Statutes of the WEPZA, ID/W.6/266/6, 28 February
1978).
History of EPZ
EPZ Post 1960s
EPZ have grown considerably in size and number over the last few decades, but the model is not a
new one. They are at least as old as western civilizations, having existed in the Phoenician city of
Tyre and at three hundred (300) BC in the Greek Island of Delos, which as a result became one of
the wealthiest islands in the world for nearly a century (Haywood, 2000).
Under the Roman Empire free trade zones were set up along commercial routes. Used for storing
duty-free goods before re-exporting them, they were a marginal element in a mercantile economy.
The free towns of the Middle Ages and the duty free ports of the British Empire (Singapore,
Gibraltar, and Hong Kong) continued the tradition. (Marhoz and Szymanski, 1996)
Modern EPZ Revival and Expansion: 1960s and Beyond
At the end of the 20th century, free trade zones, used not only for trade but also for production, were
emerging in the wake of the industrial revolution, colonial expansion and the internationalization of
liberal economics.
The modern phenomenon of EPZ was born in 1958 in Ireland. The government’s primary objective
in establishing the Shannon Free Zone was to save the jobs of the 1,500 people employed at the
Shannon Airport. These jobs were at risk because of advances in aviation technology which made it
unnecessary for transatlantic flights to refuel at Shannon (Shoesmith, 1986). With its future
threatened by the advent of the transatlantic jet, the airport was turned into a duty free production
zone for goods with a high value added. Its success surpassed all expectations: in the first year,
nearly 440 jobs were created. Ten years later, the zone employed 4,750 people, giving a new lease of
life to the airport, whose staff grew from 1,250 in 1960 to 2,200 in 1975.
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By 1970, less than ten countries had set up EPZ. In Asia, the first zone was created in Kandla, near
Bombay. Sixteen years later, 1986, there were nearly 175 spread across fifty countries. Since then
EPZ have been created in nearly half the world's countries, mainly in the Third World. (Marhoz and
Szymanski, 1996)
Export Processing Zone Concept
EPZ are useful instruments for economic development but are only transitory as policy instruments
during the first phases of industrialization and implementation of export-led growth strategies. As
countries achieve higher levels of economic development and income, the relative significance of
EPZ in economic terms can be expected to decline. Thus, developing nations embarked on export-led
growth strategies cannot rely solely on EPZ to achieve higher levels of income and economic growth
in the long-term. They should acknowledge the transitional aspect of EPZ, and manage wisely the
opportunities they may bring to upgrade labor and managerial skills, acquire superior technology and
access foreign markets. EPZ should be apart of a
more extensive package of polices aimed at improving the international competitiveness of a host
nation
EPZ Terminology
There are many terms used that are synonymous to EPZ. The diversity in name reflects the evolving
nature and distinct purpose of each zone and while the stated objective of the government is reflected
in its terminology, the actual
Operation of the zone can be quite different. Among the most commonly used are Special Economic
Zones (China), Industrial Free Zones, Export Processing Free Zones and Free Trade Zones
The Evolution of Terminology Term Main users and date of first use
Free trade zone Traditional term since nineteenth century;

ILO (1982)
Foreign trade zone Individual authors (R.S.Toman, 1956;

W.Dymsza, 1964),
India (1983)
Industrial free zone Ireland (pre-1970), UNIDO (1971), Liberia

(1975)
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Free zone UNCTAD (1973), USAID (1982), United
Arab Emirates
(1983)
Maquiladoras Mexico (early 1970s)
Export free zone Ireland (1975), UNIDO (1976)
Duty free export processing zone Republic of Korea (1975)
Export processing free zone UNIDO (1976), UNCTAD (1983)
Free production zone Starnberg Institute (1977)
Export processing zone Philippines (1977), Harvard University

(1977), APO
(1977), WEPZA (1978), UNIDO (1979),
Malaysia
(1980), Pakistan (1980), Singapore (1982),
UNCTC
(1982), ILO (1983), The Economist (1979)
Special economic zone China (1979)
Tax free zone Individual authors (W.H. and D.B.

Diamond, 1980)
Investment promotion zone Sri Lanka (1981)
Free economic zone Individual author (H.Grubel, 1982)
Free export zone Republic of Korea (1983
Free export processing zone OECD (1984)
Privileged export zone Individual author (N.N. Sachitanand, 1984)
Industrial export processing zone Individual author (P.Ryan, 1985)
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APO Asian Productivity Organization
ILO International Labor Office
OECD Organization for Economic Co-operation and Development
UNCTAD United Nations Conference on Trade and Development
UNCTC United Nations Centre on Transnational Corporations
UNIDO United Nations Industrial Development Organization
USAID United States Agency for International Development
WEPZA World Export Processing Zone Association
Source: Kusago and Tzannatos (1998)
EPZ Incentives
Incentive packages are usually divided into “hard” and “soft” ones. (Kusago and Tzannatos, 1998)
Hard incentives include the provision of physical infrastructure and services necessary for
manufacturing: roads, power supplies, transport facilities and so on. (Kusago and Tzannatos, 1998)
Soft incentives include tax allowances and special trade concessions. (Kusago and Tzannatos, 1998)
Potential Benefits from EPZ
The potential gains from EPZ are increased foreign exchange earnings, greater utilization of local
materials, additional capital equipment, additional tax revenue collects, increased gross exports, job
creation and income creation, average wage in EPZ higher than average wage outside the zone, good
source of labor training and learning by doing, management and supervisory training, catalyst effect
and provides efficient industrial structure in countries that may not possess one (Mandani, 1999).
Potential Caveats to Potential Benefits from EPZ

The potential caveats to the potential gains from EPZ are that the foreign exchange earnings may be
overstated, net imports not as impressive because of high import content of exports, lack of job
security, prone to demand shocks, skills are generally low tech, forgone taxes, tariff revenues and
opportunity costs of public investments related to the zone may be high and environmental damage
and labor and work safety issues due to lax laws or governmental supervision (Mandani 1999)
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Employment
The most direct impact of EPZ on the societies which host them is on the workers who find jobs in
them (Shoesmith, 1986) Kusago and Tzannatos, 1998, clarified that during the course of industrial
development and economic growth, the resulting ability of the economy to absorb surplus labor in
more general ways reduces the effects of EPZ. Thus, whether the creation or expansion of an EPZ
would lead to substantial employment gains would depend on the stage of economic development of
the host country. The World Bank (2008) estimates that today there are 3,000 zones in 135 countries,
accounting for over 68 million direct jobs and over $500 Billions of direct trade-related value added
within zones
EPZ Potential Dynamic Benefits: Technology Transfer, Knowledge Spill-over

and Backward Linkages
As a part of their rationale, EPZ are intended to facilitate the transfer of technology on the host
economies. Mandani, 1999, contemplates that technology transfer and knowledge spill-over would
foster industrial development in nontraditional goods and efficiency gains in production processes of
the traditional ones. Such a transfer would also foster a backward linkage to the country’s firms,
which would allow them to step in as suppliers to the EPZ firms in the medium to long run.
Mandani, 1999, explains that this process would integrate the zone into the regional and national
economy and promote regional development beyond the immediate and limited servicing of the
enclave structure.
Eventually, it was hoped, these domestic supplier firms would mature to compete in the international
market. Workers in the zone are exposed to ‘new’ technology, entrepreneurial and organizational
skills that are transferred to the host country and hence the worker in the EPZ may be indirectly
contributing to the adoption sector (Sinclair, 2001) This describes the EPZ as an institution of
learning from which the host country can adopt technology without suffering the necessary fixed
costs. The two main types of backward linkages are the utilization of domestic raw material inputs
and subcontracting arrangements with domestic firms, which will accelerate industrial growth in the
host country (Kusago and Tzannatos, 1998)
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EPZs IN BANGLADESH
In this circumstances, Bangladesh is late starter in the process of liberalization, particularly after
1990s, it‟s 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 country’s 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. The first zone in Bangladesh was set up in
Southern part of Bangladesh in Chittagong in 1983. After reviewing the tremendous success of that
zone, Government had decided to establish the second one at Dhaka in 1993. Significant promotional
investments were made through these two zones by setting up a large number of small and medium
sizes of industrial units. The zone has increased in number 8 including Chittagong and Dhaka.
EPZs in Bangladesh Name Of Zone Year Of Establishment No. Of Plot

Chittagong 1983 454
Dhaka 1993 388
Mogla 2000 162
Comilla 2001 208
Ishwardi 2001 166
Uttara 2001 155
Adamjee 2005 200
Karnaphuli 2005 100
Feni EPZ - -
Meghna EPZ - -
Source: BEPZA, and had a telephonic information from Manager, Paddocks Jeans, 17 June, 2009.
LEGISLATIONS FRAMEWORK OF EPZS
Basically the idea of establishing EPZ in Bangladesh has started in 1976 by an inter-ministerial
committee, in continuation of this meeting probable locations consulted and visited in 1978 and
finally Government of Bangladesh (GOB) decided to set up the first EPZ in northern part
(Chittagong) of Bangladesh (Eusuf M.A., et al.,2007). After that many questions were arisen for
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looking after the matter related to foreign investors, administration, land acquisition, operation and
so on. After a thread bare discussion and consultation, GOB established the Bangladesh Export
Processing Zone Authority (BEPZA), as an autonomous body (Act 1980), under the direct
supervision of Prime Minister’s Office (PMO). The objectives of Zones Authority were: to foster and
generate economic development of Bangladesh by encouraging and promoting foreign investment
in the Zones; to diversify the sources of foreign exchange earnings by increasing zones; to foster the
establishment and development of industries and commercial enterprises in zones in order to
strengthen the Bangladesh economy and to generate employment opportunity and to update labor
management skills through advanced technology (APO, 2000).
Major Role and Function of BEPZA
Bangladesh Government has adopted an “Open Door Policy” to attract foreign direct investment
through industrialization in order to stimulate country’s economic growth. To understand the
potential investors and find out a congenial atmosphere for investment and to monitor them for
ensuring economic and management performance by which promotion of FDI and local investment;
export diversification; developing forward-backward linkages; employment generation; transferring
technology; skill up-gradation and management development. To make sure all those role and
responsibility, BEPZA has given a functional authority and formal organ-structure. The major
functions (Eusuf et al., 2007) of BEPZA are: (i) Function related to infrastructure, basic services
(electricity, gas, water, telephone, banking etc.) and customer related support; (ii) Assistance in
performing the procedures for setting up industries and also the setting up of principles for
preferential industries; (iii) Undertaking promotional steps to attract foreign, as well as local
investment; and (iv) Working with companies to reform and readjust the services as necessary.
Management:
BEPZA managed by two-tier of administration. One is Board of Governs that is consists of 19
members Headed by Prime Minister/Chief Advisor along with Finance, Commerce, Shipping,
Industries, Energy and Home Secretary, Governor Bangladesh Bank (Central Bank), Principal
Secretary of Prime Minister Office, Secretary to Prime Minister/Chief Advisor, Executive Chairman
Board of Investment, Chairman National Board of Revenue and concern Secretaries are the
members; BEPZA Executive Chairman is the Member Secretary of the Board of Governors. The
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Board of Governors are the authority for policy making at national level required for setting up,
development and operation of Export Processing Zones in the country.
On the other hand, second tier is the Executive Board. The Executive Board consists of three
members. BEPZA Executive Chairman is the Chairman, and three members are: (1) Member
Investment and Promotion (IP); (2) Member (Finance) and (3) Member (Engineering). This body is
responsible for execute the order taken through Board of Governors. Apart from this, the Executive
Board takes the decisions as required for day-to-day operation by the authority. Moreover, Every
Zone is headed by General Manager/Project Director who is responsible for managing and providing
all kind of cooperation and support to the investors of the concern zone.
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BEPZA Policy:
BEPZA policy is a foremost inconsistency with Bangladesh industrial policy. Industrial policy
encourages agro-based industry, where as BEPZA policy does not given the priority of that kind of
industry. Still, Bangladesh economy is concern with agriculture, agricultural sector is playing
principle role in socio-economic activities. In FY 2004-2005 (the contribution of agricultural sector
to GDP was about 21.91% (Economic Review, 2005) and 51.7% labor force are engaged in
agricultural sector. whilst under the industrial policy the investors are not getting incentive like tax
holiday, duty free import construction materials and machines, relief from double taxation and
exempted from dividend tax are getting privilege those enterprises under the umbrella of BEPZA
policy. EPZ are not having labor unionization welfare culture within the zones, as a result labor are
depriving from their bargaining right, that creates to some extend unrest and unsteady climate in the
enterprises (Hossain, 2002; Zohir, 2001; Eusuf, 2007). At the long run it affect on foreign direct
investment. For example, the UNCTAD, 2007 reported that Bangladesh has decreased/lost 16% FDI
compare to previous year. UNCTAD report has also reported that it has happened because of
instability political situation (The Daily Stat, 25 September, 2008, Dhaka, Bangladesh, UNCTAD,
2007).
SETTING-UP FIRMS IN EPZs
Bangladesh allows foreign investment in EPZs in convertible foreign currencies with the option of
establishing public or private limited companies, or sole proprietorship or partnership undertakings.
Industries allowed to be established in EPZs are classified as follows:
(a) Type A: 100 per cent foreign-owned firms, including investment by Bangladeshi nationals
ordinarily resident abroad. Such as NIKE, REEBOK, ADIDAS.
(b) Type B: Joint venture projects between foreign and Bangladeshi entrepreneurs resident in
Bangladesh. Such as Brooks, JC Penny, Falcon.
(c) Type C: 100 per cent Bangladeshi entrepreneurs resident in Bangladesh. Such as EMMILEE,
Konka, Walton.
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How to Apply
1. Collect BEPZA project Proposal Form on payment of Taka 3000.00
2. Submit the filled in BEPZA Project proposal form along with some required documents
mentioned in the project proposal with a forwarding letter addressing to the Executive chairman
BEPZA
Vision of BEPZA
To build a stronger and economically prosperous Bangladesh.
Mission of BEPZA
 Promotion of Investment
 Diversification of Export
 Generation of Employment
EPZ Provides:
 Plots/factory buildings in custom bonded area

 Infrastructural facilities
 Administrative facilities
 Fiscal & non-fiscal incentives
 EPZ attracts : foreign & local investment
 Eco friendly environment
Incentives and other facilities for investors:
Fiscal incentives
(a) Tax holidays for 10 years along with reduced rate for next 5 years.
(b) Constructions material, machinery, spare parts, equipment import are duty free.
(c) Duty free export and import.
(d) Subject to bilateral agreement double taxation is relief.
(e) Foreign nationals are exemption from dividend tax on holiday.
(f) Available of GSP facility.
(g) Duty free import of 3 vehicles for using enterprises.
(h) Expatriates exempted from income tax on salary for 3 years.
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(i) Accelerating depreciation on machineries or plants are allowed.
(j) Remittance of royalty, technical and consultancy fees are allowed.
(k) Duty and quota free access to EU Canada, Norway, Australia, USA and etc. is under
process.
(l) Exemption of income tax on interest on borrowed capital.
Non-fiscal incentives:
(a) Investment is protected under Foreign Private Investment Act, 1980.

(b) 100% foreign ownership is permissible.
(c) Enjoy Most Favored Nation (MFN) status to USA.
(d) There is no ceiling for foreign or local investment.
(e) Non-resident foreign Currency Deposit Account is permitted.
(f) Foreign currency loan from abroad having under direct automatic route.
(g) FC account for „B‟ and „C‟ type industries is allowed.
Facility (infrastructure)
(a) Ensure basis infrastructure like: electricity, Gas, Water, Road, Telecommunication and
Internet.
(b) Plots with 2000 sqm are available.
(c) Rental basis factory buildings are available.
(d) Day care center and workers dormitory are enclave.
(e) Warehouses are available.
(f) Business communication support service like: Courier, offshore Bank, Police Station, Fire
Station, Post Office, customs office, Shipping Agent etc. are having around zones.
(g) Administrative support service: Health club, Investors club, Medical centre, Shopping
centre, Green area, Sports complex, School & College, Expatriate accommodation are
available.
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Support services
(a) One window service.

(b) Import-Export permit issued within the same day on zone premises.
(c) No Renewal of Bond license is required.
(d) Work permit issued by BEPZA.
(e) Secured & protected bonded area.
(f) Back to Back L/C.
(g) 10% sale to DTA (Domestic Tariff Area).
(h) Custom clearance at factory gate.
(i) Relocation of foreign industries allowed.
(j) Sub-contracting with export oriented industries inside and outside EPZ allowed.
(k) Resident ship and citizenship for the foreign investors.
(l) Simplified and hassle-free sanction procedure.
(m) Import form DTA is allowed.
(n) Import on Documentary Acceptance (DA) is allowed.
(o) Easily available & trainable workforce.
(p) Recreational facilities.
Source: BEPZA, New Horizon for Investors.
Eco friendly service oriented industries:
Bepza has allowed to setting up Hi-Tech Eco-friendly service oriented industries in order to ensure
maximum protection for the environment.These are:
POWER PLANT
06 power plant in EPZs for producing 290 Megawatts electricity for enterprises in EPZs.
Central Eggluent Treatment Plant(CETP) :
03 centrsl Effluent Treatment Plants(CETP)are in Dhaka,Chittagong and Comilla.
Water Treatment Plant(WTP):
Water treatment plants has been established in Adamjee, Comillla, Chittagong and Karnaphuli EPZ.
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One Stop facilities:
 Bepza offers one window same day service.

 Simplified Project Approval procedure.
 Work Permit issued by BEPZA.
 Import &Export permits issued by BEPZA within the same day through automation system.
 Customs clearance at the factory site.
 Investors are required to deal only with BEPZA for Investment and all other operational
needs.
Bangladesh EPZ's at a glance:
Profile of Chittagong EPZ
Established: 1983
Location: Shouth Halishahar. 3.10 kms from the sea port, 5.50 kms from the main business
center,11.30 kms from Shah Amanat International Airport, Chittagong.
Zone area : 183.37 hectares (453 acres)

Number of industrial plots : 501
Industries : 167 in Operation
12 under Implementation
Key Sectors : Garments, Garments accessories, Knitting and Textile, Automobile parts, Metal
products, camera lens, mobile parts, terry towel ,footwear ,bi-cycle, ropes, tent
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Year Wise Employment, Export &Investment
Year wise Employment

183519
182621
185006
176274
166452
empolyment( No. ) 104155
68556
30986
9364
2512
624
0 20000 40000 60000 80000 100000 120000 140000 160000 180000 200000
2014-15(Dec,14) 2013-14 2012-13 2011-12

2010-11 2005-06 2000-01 1995-96
1990-91 1985-86 1983-84
Year Wise Investment & Export(Million$)
1276.51
1203.52
1094.06
960.23
Investment ( Million US $ ) 541.44
307.61
166.54
47.85
6.07
0.87
20610.82
19419.342
17157.72
15062.6
Export ( Million US $ ) 7873.07
3327.13
934.84
139.67
12.21
0.16
0 5000 10000 15000 20000 25000
2014-15(Dec,14) 2013-14 2012-13 2011-12

2010-11 2005-06 2000-01 1995-96
1990-91 1985-86 1983-84
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Profile of Adamjee EPZ
Eshtablished: 2006
Location : Adamjee Nagar,
Shiddirgonj, Narayanganj, 15 Kms form Dhaka city centers

40 Kms from Hazard Shah Jalal (R) Airport, 255 Kms from chittagong Port
Zone area: 245.12 Acres
Number of industrial plots: 229.
Industries: 36 in operation
09 under implementation
Key Sectors: Textile, Garments, Garments Accessories, Chemical, Footwear & Leather, Metal
Products, Knitting Product.
Year Wise Employment, Export &Investment
45000
Year Wise Employment( No. )
39821
40000 36007
35000 30874
30000
25000 21017
20000 16156
15000 11789
10000 7772
5989
5000 1625 1816
0
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Investment & Export(Million$)
2014-15(Dec,14) 2013-2014 2012-13 2011-12 2010-11
2009-10 2008-09 2007-08 2006-07 2005-06
1440.17
1220.9
834.67
560.57
353.25
Export ( Million US $ )
188.57
84.92
24.8
9.69
0.23
300.13
267.96
194.22
164.23
129.68
Investment ( Million US $ )
92.63
66.47
45.39
11.68
4
0 200 400 600 800 1000 1200 1400 1600
Profile of Dhaka EPZ
Established: 1993
Location : Savar. 35 kms from Dhaka city centre, 25

kms from Hazrat Shahjalal (R) Airport.
304 Kms from Chittagong Sea Port.
Zone area: 356.22 acres

Number of industrial plots: 451
Total Standard Factory Building: 17 (Measuring 113422.00 sqm)
Size of each plot : 2000 sqm Avg.
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Industries : 102 in Operation
Key Sectors: Plastic products, Cap, Garments, Garments accessories, knitting and Textile,
Automobile parts, Metal products, camera lens, footwear, protective cloth.
Year Wise Employment, Investment & Export

2014-15(Dec,14) 2013-2014 2012-13 2011-12 2010-11 2005-06 2000-01 1995-96 1993-94
17231.37
16302.69
14365.17
12584.44
4861.83
1496.66
119.75
5.26
1106.13
1057.34
931.55
863.09
420.98
167.55
30.94
8.22
0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000
YEAR WISE EMPLOYMENT(NO.)

1993-94 1995-96 2000-01 2005-06 2010-11 2011-12 2012-13 2013-14 2014-15(Dec,14)
100000
85490 88033 88521 86972
90000 82895
80000
70000 64636
60000
50000 41418
40000
30000
20000 12197
10000 5522
0
Employment ( No. )
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Profile of Comilla EPZ
Established: 2000
Zone area : 108.28 hectares (267.46 acres)

Number of industrial plots : 238Plot
Size: 2000 sqm Avg.
Industries: 32 in Operation
Key Sectors: Garments, Garments accessories, knitting and Textile, Metal products, footwear,
Sweater.
1224.17
1098.66
889.24
712.3
563.95
201.09211.26 227.29
156.64 177.7
0.64 40.93 71.67 136.57 0.01 49.9
INVESTMENT ( MILLION US $ ) EXPORT( MILLION US $ )
2001-02 2005-06 2007-08 2010-11 2011-12 2012-13 2013-2014 2014-15(Dec,14)
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Year wise Employment(No.)
25000
20000 19132
16474
14713
15000
12776
10841
10000
7777
5787
5000
442
0
Employment ( No. )
2001-02 2005-06 2007-08 2010-11 2011-12 2012-13 2013-14 2014-15(Dec,14)
Profile of Ishwardi EPZ
Established: 2001
Zone area : 309 Acres
Plot Size : 2000 sqm Avg.
Key Sectors: Battery, Sweater, Plastic Products, Garments, Garments Accessories, Chemical
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283.55
231.76
138.59
82.88
76 80.46
67.7372.85
49.89
41.35
0.05 0.81 0.81 2.24 16.2728.49 1.09 3.63 5.86 7.07 7.86 15.39
CUMULATIVE ( MILLION US $ ) CUMULATIVE ( MILLION US $ )
2004-05 2005-06 2006-07 2007-08

2008-09 2009-10 2010-11 2011-12
2012-13 2013-2014 2014-15(Dec,14)
Year Wise Employment(no.)

9000
7653 7894
8000 7194
7000
6071
6000
5060
5000
4000
3028
3000
2000 1537
1000
20 56 47 76
0
Employment( No. )
2004-05 2005-06 2006-07 2007-08

2008-09 2009-10 2010-11 2011-12
2012-13 2013-14 2014-15(Dec,14)
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Profile of Karnaphuli EPZ
Established: 2006
Zone area : 209.06 acres
Plot Size : 2000 sqm.
Key Sectors: Garments, Garments Accessories, Footwear & Leather, Camping Furniture, Knitting
Textile, Paper Products, Camera Lens, Sleeping Bag, Furniture, Luggage, Tent.
Year Wise Employment

Employent ( No. )
52623
45645
39070
26830
19781
174 2990 5403 11674
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YEAR WISE INVESTMENT & EXPORT
1704.91
1395.48
868.62
243.96
105.8
48.99
9.86
338.69
307.72
263.05
217.12
87.73
48.15
20.25
1.91
0 200 400 600 800 1000 1200 1400 1600 1800
2014-15(Dec,14) 2013-2014 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07
Profile of Mongla EPZ
Established: 1999
Plot Size: 2000 sqm Avg.
15under
Implementation
Key Sectors: Garments, Metal products, Agro products, Light Engineering, Miscellaneous
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Investment & Export(Million$)

350
324.44
300 280.15
250
202.86
200
150 128.76
100
50
17.25 23.98
8.74 13.83
0.05 2.87 5.14 5.22 1.55
0
Invest ( Million US $ ) Export ( Million US $ )
2000-01 2005-06 2010-11 2011-12 2012-13 2013-2014 2014-15(Dec,14)
YEAR WISE EMPLOYMENT

1800
1562 1593
1600 1471
1416
1400
1200
1000
800
600 523
400 300
200
10
0
Employment ( No. )
2000-01 2005-06 2010-11 2011-12 2012-13 2013-14 2014-15(Dec,14)
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Profile of Uttara EPZ
Established: 2001
Number of industrial plots: 180
Plot Size: 2000 sqm. avg.
Key Sectors: Garments, Garments
accessories, knitting and Textile Wig and Hair related products, Miscellaneous.

120
110.92
100
80
78.71
71.3
60
60.59
40 43.32 45.48
20 25.1
22.7
16.73
0.16 1.5 2.74 2.89 3.06 4.75 0.080.1750.41 2.31 9.08
0
Investment ( Million US $ ) Export ( Million US $ )
2001-02 2005-06 2006-07 2007-08

2008-09 2009-10 2010-11 2011-12
2012-13 2013-2014 2014-15(Dec,14)
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Year wise Employment
13612
11139
8510 8679
4715
3543
1785 1945
644 1250 1397
EMPLOYMENT ( NO. )
2001-02 2005-06 2006-07 2007-08
2008-09 2009-10 2010-11 2011-12
2012-13 2013-14 2014-15(Dec,14)
Profile of Korean Export Processing Zone
Head of Government of Bangladesh and the Republic of Korea agreed on setting up of EPZs
in the Private sector as one of the means to attract foreign investments. In pursuance of this
decision, Youngone Corporation, a Seoul based
company, applied formally to the Government of
Bangladesh to set up an EPZ in the Private sector
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in the name of Korean EPZ (KEPZ) Corporation (BD) Ltd.
Following this, Act No. XX of 1996, namely, the Bangladesh Private Export Processing
Zones Act, 1996 was passed to provide a legal framework. Under the said Act the company
was allowed to set up the Korean EPZ.
Location: KEPZ is located on the south bank of the river Karnaphuli opposite to the
Chittagong International Airport and close to the country’s major sea port at Chittagong. The
second largest city of Bangladesh with a population of about 4.5 million is the home of a very
sizeable number of diverse industries. The zone is 20KM away from the city.
Profile of Rangunia EPZ
The government approved the Rangunia Export Processing Zone (REPZ) in Chittagong.
The approval was given at the 17th meeting of the Board of Governors of Bangladesh Private
Export Processing Zone Authority (BEPZA) held at the Prime Minister’s office (PMO) with
Prime Minister Sheikh Hasina in the chair.
PM’s Press Secretary Abul Kalam Azad briefed reporters after the meeting.
He said Sheikh Hasina directed the authorities concerned to give 500 acres of land to Korean
Export Processing Zone (KEPZ) authorities so that they could expedite investment.
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Overview of EPZs of Bangladesh
Year Wise Total Investment & Export in EPZs
Year Wise Total Investment & Export($Million)

Dec, 2014
2014-2015 2902.68
213.39
2013-2014 5525.31
402.58
2012-2013 4856.68
328.53
2011-2012 4210.8
339.26
2010-2011 3697.62
313.23
2009-2010 2822.54
221.99
2008-2009 2581.7
148.03
2007-2008 2429.58
302.19
2006-2007 2063.67
152.37
2005-2006 1836.18
112.89
2004-2005 1548.68
118.52
2003-2004 1354
115.04
2002-2003 1200
102.63
2001-2002 1077.02
55.61
2000-2001 1067.87
48.41
1999-2000 890.81
34.98
1998-1999 711.69
71.61
1997-1998 636.05
68.83
1996-1997 462.77
53.9
1995-1996 337.02
30.58
0 1000 2000 3000 4000 5000 6000
Export ($m) Investment($Million)
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Total employment in EPZs
(Dec, 2014)
16,149
2013-2014 15,009
33,987
2011-2012 33,598
43,666
2009-2010 28,064
16,394
2007-2008 17,130
23,360
2005-2006 23,021
15,802
2003-2004 10,071
10,167
2001-2002 8,764
16,020
1999-2000 9,890
14,059
1997-1998 14,049
12,773
1995-1996 10,706
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000
No of EMPL
TYPES OF INVESTMENT (Up To July, 2014)
A Foreign Ownership 245 56%

(100%)
B Joint Venture 65 15%
C Local Venture 127 29%

(100%)
In Operation 437 100%
Under Implementation 91 -
Sanctioned Industry 32 -
Total 560 -
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Major Investors
Bangladesh, South Korea, China, Japan, Taiwan, India, U.S.A,

U.K, Malaysia, Sri Lanka, Pakistan, Germany, The
Netherland, Italy, Canada, British Virgin Islands, Sweden,
Singapore, Panama, Switzerland, Belgium, Denmark, France,
Thailand, Indonesia, Australia, Portugal, Mauritius, Ireland,
U.A.E, Turkey, Ukraine, Marshall Islands, Kuwait, Rumania.
Brand Products made in Bangladesh EPZs
๏ NIKE ๏ ADIDAS
๏ REEBOK ๏ FALCON(USA)
๏ LAFUMA ๏ EDIE BAUYER
๏ GAP ๏ EAGLE
๏ BROUKS ๏ RELEIGH (UK)
๏ J.C. PENNY ๏ EMMILEE
๏ WALMART ๏ FREE SPIRIL (UK)
๏ KMART ๏ MILES (GERMANY)
๏ WRANGLER ๏ AMERICAN EAGLE
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Global Ranking 2010-11 by FDI Magazine
Top 10 Best Cost Effectiveness
RANK NAME OF ZONE COUNTRY
1 Clark Freeport Philippines

2 Togo Export Processing Zone Togo
3 Chittagong Export Processing Zone Bangladesh
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
Why Should Invest In EPZs Of BANGLADESH
 Strategic location
With access to international sea and air routes the location of the country is ideal for global trade..
 Attractive business & investment climate
Bangladesh has a rapidly growing domestic market and, with nearly 160 million people, there is
obvious potential for a further increase in domestic consumption.
 Friendly Policy of the Government:
Government make a very friendly & open door policy for Foreign Investor to attract them to invest
in EPZs
 Legal Protection For The Investors:
The World Bank has ranked Bangladesh 20th out of 187 countries for Investors protection, making
it the best in south asia region (doing business, 2010-published by IFC)
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 MIGA
Multilateral investment gurantee agency(MIGA)provides security under international law
 ICSID
International center for the settlement of investment dispute(ICSID)provides arbitration facility.
 WIPO
World intellectual property organization (WIPO) safeguards copyright interest.
 Advantageous trade agreements
Most Bangladeshi products enjoy complete duty and quota-free access in EU, Japan, USA, Australia,
and most of the developed countries.
 Low Labor cost:
In Bangladesh labor cost is lower than any other country in Asia. The labors of Bangladesh is
hardworking and skilled. There is a chart of labor wages of Asian countries
Asia’s Most Competitive Production Base

Comparative Monthly Minimum Wages ($)
BANGLADESH 70
SRI LANKA 72
PAKISTAN 87
VIETNAM 96
INDONISIA 142
INDIA 163
MALAYSIA 191
JORDAN 211
PHILIPPINES 212
THAILAND 294
CHINA 432
0 50 100 150 200 250 300 350 400 450 500
 Youth and ambition:
Bangladesh has a vast and skilled workforce. There is an abundant supply of disciplined, easily
trainable and low-cost workers suitable for any labor-intensive industry.
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Conclusion
At last we can say that EPZs are a major part of globalization. In this globalization world Business
are expanded very quickly for EPZs. It increase export & import in a large amount. By this, a
country can improve its economic sector rapidly. A country can nursing its industries as well as help
to develop them. As international companies invest in different EPZs, technology is exchanging
among countries and workers become skilled.
Bangladesh has several EPZs, they provides high facilities for the investor. For global position and
transport facilities, lower wages facilities EPZs of Bangladesh are recognized to the world. Worldly
recognized brands have invested in EPZs of Bangladesh have achieved much profit.So we can say
EPZs of Bangladesh are very suitable for foreign investor.
REFERENCES
 Annual Report 2011-12 of BEPZA

 BEPZA Bulletin (April-June,2014)
 Business and Management Review Vol. 1(7) pp. 86 – 102 September, 2011 ISSN: 2047 -
0398 Available online at http://www.businessjournalz.org/bmr
 BEPZA official website www.epzbangladesh.org.bd

 http://www.bangladesh.gov.bd/indexd949.html?q=>en/foreign-investment-opportunities
 Kusago and Tzannatos (1998)
 (Mandani, 1999).
 ILO official website www.ilo.org/publns
 Jayanthakumaran, K. (2002). An Overview of Export Processing Zones: Selected Asian
Countries. University of Wollongong, Working Paper Series, 2002.
 Statutes of the WEPZA, ID/W.6/266/6, 28th February 1978).

 Board of Investment(BOI ) http://www.boi.gov.bd
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COURSE TITLE: Introduction To Business

COURSE CODE: MKT 111

Md. Mehedi Hassan Group Name: VIVID

Lecturer BBA (4th batch, 1st semester)

Department Of Marketing Department Of Marketing

University Of Barisal University Of Barisal

DATE OF SUBMISSION: 30 Mar, 2015

Group slogan : SHOW YOUR DYNAMISM

Sl. Name Id No. Remarks

1. Israt Jahan 14MKT049

Our greatest Gratitude is given to our honorable teacher Md.

Md. Rakib Hasan

About EPZ (page 1-6) Overview of EPZs of

Legislations Framework Of Epzs Youth and ambition

Internationally Used Definitions

EPZ Post 1960s

Modern EPZ Revival and Expansion: 1960s and Beyond

Export Processing Zone Concept

Free trade zone Traditional term since nineteenth century;

Foreign trade zone Individual authors (R.S.Toman, 1956;

Industrial free zone Ireland (pre-1970), UNIDO (1971), Liberia

Maquiladoras Mexico (early 1970s)

Export free zone Ireland (1975), UNIDO (1976)

Duty free export processing zone Republic of Korea (1975)

Export processing free zone UNIDO (1976), UNCTAD (1983)

Free production zone Starnberg Institute (1977)

Export processing zone Philippines (1977), Harvard University

Special economic zone China (1979)

Tax free zone Individual authors (W.H. and D.B.

Investment promotion zone Sri Lanka (1981)

Free economic zone Individual author (H.Grubel, 1982)

Free export zone Republic of Korea (1983

Free export processing zone OECD (1984)

Privileged export zone Individual author (N.N. Sachitanand, 1984)

Industrial export processing zone Individual author (P.Ryan, 1985)

ILO International Labor Office

OECD Organization for Economic Co-operation and Development

UNCTAD United Nations Conference on Trade and Development

UNCTC United Nations Centre on Transnational Corporations

UNIDO United Nations Industrial Development Organization

USAID United States Agency for International Development

WEPZA World Export Processing Zone Association

Source: Kusago and Tzannatos (1998)

Potential Benefits from EPZ

Potential Caveats to Potential Benefits from EPZ

EPZ Potential Dynamic Benefits: Technology Transfer, Knowledge Spill-over

EPZs in Bangladesh Name Of Zone Year Of Establishment No. Of Plot

LEGISLATIONS FRAMEWORK OF EPZS

Major Role and Function of BEPZA

SETTING-UP FIRMS IN EPZs

1. Collect BEPZA project Proposal Form on payment of Taka 3000.00

To build a stronger and economically prosperous Bangladesh.

 Plots/factory buildings in custom bonded area

Incentives and other facilities for investors:

(a) Investment is protected under Foreign Private Investment Act, 1980.

(a) One window service.

Source: BEPZA, New Horizon for Investors.

Eco friendly service oriented industries:

Central Eggluent Treatment Plant(CETP) :

03 centrsl Effluent Treatment Plants(CETP)are in Dhaka,Chittagong and Comilla.

Water Treatment Plant(WTP):

 Bepza offers one window same day service.

Bangladesh EPZ's at a glance: