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What You Need to Know About the EPZs in Bangladesh and the Companies Operating There



List of Companies Operating in EPZ in Bangladesh




Bangladesh is a country with a lot of potential for economic growth, especially in the industrial sector. One of the ways that the government has been promoting and attracting foreign investment in the country is by establishing Export Processing Zones (EPZs) in different locations. EPZs are special areas where investors can enjoy various incentives and facilities, such as tax exemptions, duty-free imports, simplified procedures, infrastructure and support services. EPZs also aim to create employment opportunities, enhance exports, transfer technology and skills, and improve the overall business environment in Bangladesh.




list of companies operating in epz in bangladesh


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What are EPZs and how many are there in Bangladesh?




EPZs are defined as "industrial zones with special incentives set up to attract foreign investors, where imported materials undergo some degree of processing before being exported again" by the World Bank. EPZs are also known as free trade zones, free economic zones, or special economic zones in some countries. EPZs are usually located near ports or airports to facilitate trade and transportation.


In Bangladesh, there are eight EPZs under the Bangladesh Export Processing Zones Authority (BEPZA), which is a government agency under the Prime Minister's Office. The eight EPZs are:


  • Chattogram EPZ: Established in 1983, it is the oldest and largest EPZ in Bangladesh. It covers an area of 453 acres and hosts 475 enterprises from 38 countries. The main products of this EPZ are garments, textiles, footwear, leather goods, electronics, plastic goods, etc.



  • Dhaka EPZ: Established in 1993, it covers an area of 356 acres and hosts 413 enterprises from 31 countries. The main products of this EPZ are garments, textiles, knitwear, electronics, plastic goods, etc.



  • Mongla EPZ: Established in 1998, it covers an area of 205 acres and hosts 103 enterprises from 11 countries. The main products of this EPZ are garments, textiles, knitwear, footwear, leather goods, etc.



  • Ishwardi EPZ: Established in 2001, it covers an area of 232 acres and hosts 36 enterprises from 9 countries. The main products of this EPZ are garments, textiles, knitwear, footwear, leather goods, etc.



  • Uttara EPZ: Established in 2001, it covers an area of 213 acres and hosts 40 enterprises from 11 countries. The main products of this EPZ are garments, textiles, knitwear, electronics, etc.



  • Adamjee EPZ: Established in 2006, it covers an area of 245 acres and hosts 125 enterprises from 16 countries. The main products of this EPZ are garments, textiles, knitwear, footwear, leather goods, etc.



  • Karnaphuli EPZ: Established in 2006, it covers an area of 222 acres and hosts 119 enterprises from 15 countries. The main products of this EPZ are garments, textiles, knitwear, footwear, leather goods, etc.



  • BEPZA EZ: Established in 2018, it covers an area of 1150 acres and hosts 5 enterprises from 4 countries. The main products of this EPZ are garments, textiles, knitwear,



What are the benefits of investing in EPZs in Bangladesh?




Investing in EPZs in Bangladesh can offer many advantages for both local and foreign investors. Some of the benefits are:


  • Tax holidays: Investors can enjoy tax exemptions for up to 10 years depending on the location and type of industry.



  • Duty-free imports: Investors can import raw materials, machinery and equipment without paying any customs duty or VAT.



  • Simplified procedures: Investors can obtain all the necessary permits and licenses from a single window service provided by BEPZA.



  • Infrastructure and support: Investors can access reliable power supply, water supply,



What are the challenges and opportunities of EPZs in Bangladesh?




EPZs in Bangladesh face some challenges that need to be addressed in order to maximize their potential and contribution to the national economy. Some of the challenges are:


  • Lack of adequate land: EPZs in Bangladesh are facing land scarcity due to rapid urbanization and industrialization. This limits the expansion and diversification of EPZs and reduces their attractiveness for investors.



  • Lack of skilled labor: EPZs in Bangladesh suffer from a shortage of skilled and trained workers, especially in the technical and managerial fields. This affects the quality and productivity of EPZs and hampers their competitiveness in the global market.



  • Lack of backward linkages: EPZs in Bangladesh rely heavily on imported raw materials and intermediate goods, which increases their production costs and reduces their value addition. EPZs need to develop stronger backward linkages with the domestic economy to reduce their dependence on imports and enhance their local content.



  • Lack of environmental compliance: EPZs in Bangladesh face environmental challenges such as pollution, waste management, energy efficiency, etc. EPZs need to adopt more eco-friendly practices and technologies to comply with the national and international environmental standards and regulations.



Despite these challenges, EPZs in Bangladesh also have some opportunities that can be exploited to improve their performance and impact. Some of the opportunities are:


  • Diversification of products and markets: EPZs in Bangladesh have the opportunity to diversify their products and markets by exploring new sectors and niches, such as high-tech, green, and creative industries. EPZs can also tap into new and emerging markets, such as Africa, Latin America, etc.



  • Integration with regional and global value chains: EPZs in Bangladesh have the opportunity to integrate with regional and global value chains by enhancing their linkages with other EPZs and economic zones in the country and abroad. EPZs can also benefit from the preferential trade agreements that Bangladesh has with various countries and regions.



  • Innovation and digitalization: EPZs in Bangladesh have the opportunity to adopt innovation and digitalization as key drivers of their competitiveness and growth. EPZs can leverage new technologies, such as artificial intelligence, blockchain, internet of things, etc., to improve their efficiency, quality, transparency, and sustainability.



  • Social responsibility and inclusiveness: EPZs in Bangladesh have the opportunity to improve their social responsibility and inclusiveness by ensuring decent work conditions, labor rights, gender equality, social protection, etc., for their workers and communities. EPZs can also contribute to the social development goals of the country by supporting education, health, poverty reduction, etc.



What are some examples of successful companies operating in EPZs in Bangladesh?




There are many examples of successful companies operating in EPZs in Bangladesh that have achieved remarkable results in terms of exports, employment, innovation, etc. Some of these companies are:


  • A-One (BD) Ltd.: A-One (BD) Ltd. is a joint venture company between Italy and Bangladesh that produces knitwear and other textile products. It started its operation in Dhaka EPZ in 1994 with an investment of US$ 5 million. It employs about 1,500 workers and exports its products to Europe, USA, Canada, Japan, etc.



  • Hop Lun (Bangladesh) Ltd.: Hop Lun (Bangladesh) Ltd. is a subsidiary of Hop Lun Group, a leading lingerie manufacturer based in Hong Kong. It started its operation in Adamjee EPZ in 2006 with an investment of US$ 15 million. It employs about 3,000 workers and exports its products to Europe, USA, Australia, etc.



  • German Chemicals Ltd.: German Chemicals Ltd. is a joint venture company between Germany and Bangladesh that produces various chemicals for textile dyeing and finishing. It started its operation in Chattogram EPZ in 2000 with an investment of US$ 10 million. It employs about 250 workers and exports its products to India, Pakistan, Sri Lanka, Turkey, etc.



  • IDEAL Fastener (Bangladesh) Ltd.: IDEAL Fastener (Bangladesh) Ltd. is a subsidiary of IDEAL Fastener Corporation, a leading zipper manufacturer based in USA. It started its operation in Ishwardi EPZ in 2010 with an investment of US$ 20 million. It employs about 1,000 workers and exports its products to Europe, USA,



How to start a business in EPZs in Bangladesh?




If you are interested in starting a business in EPZs in Bangladesh, you need to follow some steps and procedures to obtain the necessary approvals and licenses from BEPZA and other authorities. Here are the main steps:


  • Submit an application form to BEPZA with the required documents, such as project proposal, feasibility study, memorandum and articles of association, certificate of incorporation, etc.



  • Obtain a provisional registration letter from BEPZA after the evaluation of your application.



  • Sign a lease agreement with BEPZA for the land or factory space in the EPZ of your choice.



  • Obtain an environmental clearance certificate from the Department of Environment.



  • Obtain a fire safety clearance certificate from the Fire Service and Civil Defence.



  • Obtain a utility connection approval from the relevant authorities, such as power, water, gas, etc.



  • Obtain an import registration certificate from the Chief Controller of Imports and Exports.



  • Obtain a bond license from the Customs Bond Commissionerate.



  • Obtain a final registration letter from BEPZA after fulfilling all the conditions and formalities.



  • Start your operation in the EPZ and enjoy the benefits and facilities offered by BEPZA.



Conclusion




EPZs in Bangladesh are one of the most attractive destinations for foreign investment in the country. EPZs offer various incentives and facilities for investors, such as tax holidays, duty-free imports, simplified procedures, infrastructure and support services. EPZs also contribute to the economic development of Bangladesh by creating employment opportunities, enhancing exports, transferring technology and skills, and improving the overall business environment. EPZs face some challenges that need to be overcome, such as land scarcity, skill shortage, backward linkages, and environmental compliance. EPZs also have some opportunities that can be exploited, such as product and market diversification, regional and global value chain integration, innovation and digitalization, social responsibility and inclusiveness. EPZs in Bangladesh have many examples of successful companies that have achieved remarkable results in terms of exports, employment, innovation, etc. If you want to start a business in EPZs in Bangladesh, you need to follow some steps and procedures to obtain the necessary approvals and licenses from BEPZA and other authorities.


Conclusion




EPZs in Bangladesh are one of the most attractive destinations for foreign investment in the country. EPZs offer various incentives and facilities for investors, such as tax holidays, duty-free imports, simplified procedures, infrastructure and support services. EPZs also contribute to the economic development of Bangladesh by creating employment opportunities, enhancing exports, transferring technology and skills, and improving the overall business environment. EPZs face some challenges that need to be overcome, such as land scarcity, skill shortage, backward linkages, and environmental compliance. EPZs also have some opportunities that can be exploited, such as product and market diversification, regional and global value chain integration, innovation and digitalization, social responsibility and inclusiveness. EPZs in Bangladesh have many examples of successful companies that have achieved remarkable results in terms of exports, employment, innovation, etc. If you want to start a business in EPZs in Bangladesh, you need to follow some steps and procedures to obtain the necessary approvals and licenses from BEPZA and other authorities. ca3e7ad8fd


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