EPZs in Bangladesh play a significant role in attracting foreign direct investment as well as in involving local investment, which jointly contribute to an overall increase in the country's volume of exports and in its earnings of foreign exchange. Foreign exchange earned through exports by EPZ enterprises reduces deficits in the country's balance of payments. A part of it is converted into local currency to be spent on procurement of goods and services from the local economy.
More than 30 countries including Japan, South Korea, Hong Kong, Thailand, Sri Lanka, China, Taiwan, Malaysia, Indonesia, Singapore, USA, UK, Australia, Canada, Germany, France, Italy, Sweden, Netherlands, Switzerland, India, and Pakistan have so far invested in different projects in the EPZs in Bangladesh. Readymade garments manufacturing units account for the largest number of units in the country's EPZs.
In order to stimulate rapid economic growth of the country, particularly throughindustrialization, 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 objective of an EPZ is to provide special areas where potential investors would find a congenial investment climate, free from cumbersome procedures.
EPZs set up in Bangladesh due to various reasons Major reason among them is expedites export activities and stimulates rapid economic growth.
Some others are :
Objective of BEPZA
Why Invest in EPZs of Bangladesh
EPZ Incentives (Fiscal)
EPZ Incentives (Non Fiscal)
There are currently eight Export Processing Zones in Bangladesh run by Bangladesh Export Processing Zone Authority (BEPZA):
If you are interested in setting up your business in an EPZ, the Bangladesh Investment Development Authority (BIDA) will be pleased to advise you and introduce you to BEPZA.
Govt. pursues an open door policy in matters of foreign investment in its EPZs. BEPZA is a statutory body but very different from other autonomous organization. It enjoys complete freedom of action in its decision making process. There are 3 types of investments in EPZ.
According to Bangladesh Export Processing Zone Authority (BEPZA), 60% of investment with type-A, 25% with Type-B and remaining 15% investment is with Type-C in EPZs in Bangladesh.
The manifested target to set up EPZ has been fixed up at rapid industrialization, employment of human resources, transfer of technology and foreign exchange earnings by boosting up export. With this end in view, some targeted efforts have been taken to attract foreign investment and promotion of exports through creation of special infrastructures and support service facilities, giving fiscal and non-fiscal incentives and ensure free trade environment with the EPZ.
EPZs are special enclaves, separated from the Domestic Tariff Area (DTA) by fiscal barriers and are intended to provide an internationally competitive duty free environment for export production at low cost.