Contents

1. BEPZA
2. EPZ
3. Reason for setting EPZ in Bangladesh
4. Performance of the EPZ in Bangladesh
About BEPZA
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.
The BEPZA is the official organ of the government to promote, attract and facilitate foreign
investment in the EPZs. Besides, BEPZA as the competent Authority performs inspection &
supervision of the compliances of the enterprises related to social & environmental issues, safety
& security at work place in order to maintain harmonious labour-management & industrial
relations in EPZs. The primary objective of an EPZ is to provide special areas where potential
investors would find a congenial investment climate free from cumbersome procedures.
 Executive Chairman
BEPZA

Major General Mohd Habibur Rahman Khan, ndc, psc

Mission
•Promotion of Investment
•Diversification of Export
•Generation of Employment
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 / and/or minimal intervention by
custom officials (World Bank 1999).
EPZ Provides:
•Plots/factory buildings in custom bonded area
•Infrastructural facilities
•Administrative facilities
•Fiscal & non-fiscal incentives
•EPZ attracts : foreign & local investment
History of EPZ in Bangladesh:
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 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)
Act’1980, have made significant progress.
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.
EPZ can be three types. They are given below;

1.Manufacturing
2.Warehousing
3.Combination of both.
EPZs of Bangladesh are of manufacturing type. Currently around 900
Export Processing Zones throughout the world enable manufacturers,
assemblers, importers or exporters to benefit from a variety of
privileged facilities
Type:
•A - 100% foreign ownership 58%
•B - joint venture 14%
•C - 100% local venture 28%
Bangladesh EPZ's at a glance:
1.Chittagong EPZ
2.Dhaka EPZ
3.Mongla EPZ
4.Ishwardi EPZ
5.Comilla EPZ
6.Uttara EPZ
7.Adamjee EPZ
8.Karnaphuli EPZ
View EPZ's location in map
Minimum wage structure-2013 are as follows:
• Apprentice-US$ 56.00
• Helper-US$ 70.00
• Jr. Operator-US$ 80.50
• Operator-US$ 85.75
• Sr. Operator-US$ 91.00
• High Skilled-US$ 140.00
The gross wage has been calculated as Basic wage+House rent 40% on
Basic+Medical allowance Tk. 560 (Fixed)
In addition of the above gross wage, Food or Food allowance and
Transport or Transport allowance shall be provided by the enterprises.
Considering the production cost investor are being deemed to be
satisfied with the overall productivity of the labours.
Why Invest in Bangladesh EPZ ???
• Low & order situation
• Infrastructure Facilities
• Reduction of Lead Time
• Cost of Doing Business
• Friendly Policy of Gov’t
• Incentives
• Win-Win Ventures
• Success Story
• Signatory of MIGA (Multilateral Investment Guarantee Agency)
• Signatory of ICSID (International Centre for Settlement of Investment Dispute)
• Member of WIPO (World Intellectual Property Organization)
• Member of OPIC (Overseas Private Investment Corporation)
• Asia’s Low Cost Production Base
 Objective of BEPZA
➢Boost up Foreign & Local Investment
➢Accelerate Volume of Export
➢Create Job Opportunity
➢Poverty Alleviation
➢Transfer of Technology & Skill Development
➢Development of Backward & Forward Linkage
Industries
➢Promote Accessories & Supportive Service
Enterprises
 EPZs Contribution to the national Economy:

Apart from export earning objectives employment pattern shows that EPZs have been making
significant contribution to the gradual empowerment of women which supports the objective
of Millennium Development Goal (MDG).This financial and social empowerment of women has
far reaching effect on the country’s poverty reduction initiatives as the increasing number of
young girls and woman are joining the productive workforce of EPZs migrating from
poverty prone remote rural areas of Bangladesh linking the rural economy with industrialization
process. BEPZA has also accelerated the privatization effort of the government successfully by
converting two loss making State Own Enterprises (SOEs) of the country namely Chittagong Steel
Mills and Adamjee Jute Mills Ltd in to EPZs. Once abandoned projects are now vibratin gwith
activities. Mention may also be made that investors from thirty three countries have already
invested in the EPZs of Bangladesh. The leading nations among them include South Korea, Japan,
China and the host Bangladesh
Challenges of EPZ of Bangladesh:
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:
a. Development of improved physical infrastructures, integrated environment and
water management, power generation, commercial complex on Public Private Partnership (PPP)
basis.
b. Development of a productive and sound industrial relation environment. Compliant
industrialization and full right of workers union as per international best practice benchmarking.
c. Achieve organizational excellence by developing online capabilities and automation to ensure
quality and expeditious delivery of services to the investors. Ensure full implementation of E-
governance in all EPZs.
d. Create more zones in the strategically located sites to accommodate the increasing demand of
the existing investors