Three new export-processing zones (EPZs) continue to lure in both foreign and local investors thanks to their key advantages like available plots, infrastructural facilities and easy access to labour. On the other hand, according to firsthand accounts, diversifying products and creating women employment these EPZs are also ushering in a change in socioeconomic condition of inhabitants in those backwoods. The Uttara, Mongla and Ishwardi EPZs have attracted an aggregate US$ 251.63 million worth of local and foreign investments by the end of fiscal year (FY) 2015-16, official figures revealed. Of the total, a sum of $ 67.62 million was invested in the three EPZs in the last FY. Besides, a good number of foreign and local investors have already shown their interest in investing in the zones. Some foreign companies have invested as joint venture, and their interest also increased. The trio economic zones in the outlying areas had a modest start in export trade–in the early period when they started off, they exported $ 2.72 million. Now, in FY 2015-16, the country earned $378.2 million, according to Bangladesh Export Processing Zones Authority (BEPZA). The three EPZs are widening country’s export basket by adding new products like wigs &fashion hairs, caps, tent, sleeping bag, camping furniture, bamboo-made coffin, toys, electronics, optical frames, leather products, jute items, metal products, luggage, batteries etc. Bangladesh’s other EPZs have produced basically garment products but these three have changed traditional EPZ-product concepts. Also, a total of 32,795 employment opportunities have been created in the three EPZs, 64 per cent of the workers being women. General Manager (public relations) of BEPZA Nazma Binte Alamgir said, “Visionary decision on decartelization of EPZs changed rural people’s socioeconomic condition.” It is not only eradicating poverty in underprivileged north-southern part of Bangladesh but also creating women empowerment and new business scopes for surrounding locality, she noted. She informed that before joining EPZs most of the female workers were housewives and household chores were their daily activities. They had no specific incomes. Although some of them engaged in different cottage industries like sewing mat, making basket and net etc, but these earnings were not remarkable. Now in respective different positions they earn Tk 5000-11,200 monthly. Also, women get house rent, medical allowance, conveyance that also creates their future security, BEPZA sources said.   Every year an increasing number of women are joining the productive workforce of EPZs of north-southern part of Bangladesh which support the vulnerable women in improving their everyday life.    For contributing to family income, women now take part in any kind of family decision as well as are treated as important members their families in a major change in rural lifestyle.

The government recently offered a set of incentive packages for them to encourage more investments – both foreign and local. The Internal Resources Division issued separate gazette notifications to the effect of the benefits. The facilities have been offered for the EZs administered under the Bangladesh Economic Zones Authority Act 2010, officials said. However, the National Board of Revenue has tagged several conditions against the benefits including that the EZ developers and investors will have to be registered for VAT. All the goods imported under this notification have to be approved and certified by the Bangladesh Economic Zones Authority (BEZA) where the name of the product to be imported and description and quantity of the goods have to be certified by the BEZA. However, the investors or developers cannot avail the benefits if the materials like construction materials are available in Bangladesh. They will also not be given the benefit if the goods imported are not directly linked with development and construction of the EZs. Such products include office equipment, air conditioners, refrigerators, passenger vehicles, articles for household use and other similar goods, and consumable goods.

Duty-free car import for industrial units

Meanwhile, the authorities had also relaxed conditions for the EZ investors for duty-free car import facility to increase foreign investment inflow. An industrial unit of the EZ will enjoy import of two duty-free vehicles by investing $10m or equivalent local currency and employment generation of 500 people in that unit. However, the approval letter and certificate from BEZA have to be submitted to the customs authority at the time of assessment of duties and clearance of the imported vehicles. BEZA will allow EZ investors to import two duty-free vehicles including a Sedan car with a less than 2000cc engine or micro-bus, pick-up vans or double-cabin pick-ups for an industrial unit under the benefit. The importers, however, are not allowed to transfer ownership of the vehicles for five years after the import. Investors can import vehicles duty-free only once under the facility. The vehicle imported cannot be used for any other activity or any commercial purpose other than production purpose and for related activities of that industrial unit. Earlier, the NBR had offered complete tax-waivers on a company’s dividend income, capital gains from transfer of shares and on payable royalties, technical know-how and technical assistance until 10 years of commercial operation. It also offered 10-year tax holiday for investors and 12-year tax holiday for the developers of the economic zones and the high-tech parks. The government plans to establish 100 EZs across the country over the next 15 years, which are expected to generate about 10m additional jobs. By 2030, the export earnings only from the EZs are expected to stand at $40bn, according to BEZA.

The volume of inward foreign direct investment (FDI) to the country’s export processing zones (EPZs) exceeded the target by US$ 66.36 million in last fiscal year (FY), 2015-16. The EPZs under Bangladesh Export Processing Zones Authority (BEPZA) attracted FDI amounting to $ 404.36 million against the target of $ 338 million in last fiscal. It was around one-fifth of the country’s total FDI, amounting to $ 2015.20 million, according to an official statement of BEPZA. The statement also mentioned BEPZA’s contribution to the country’s economy with its eight EPZs that consist 2307.27 acres of land. In FY 2015-16, $ 110.71 million investment has been made in Chittagong EPZ, $ 80.63 million in Dhaka EPZ, $ 60.51 in Karnaphuli EPZ, $ 54.70 million in Adamjee EPZ, $ 33.53 million in Uttara EPZ, $ 30.18 million in Comilla EPZ, $ 18.98 million in Mongla EPZ, and $ 15.11 million in Ishwardi EPZ. Besides, BEPZA has signed investment agreements with 16 new companies in last fiscal for investment of around $ 167.56 million for setting up different industrial units, the statement also added.