Special area set to establish export-oriented industrial establishments (Export Processing Zone) (EPZ). The targets of EPZ include expansion of export for foreign capital attractiveness, rapid industrialization, creating employment opportunities for local manpower, accelerating technology transfer and increasing foreign exchange earnings. At the same time, increasing the trade imbalance, high unemployment, lack of capital, inadequate foreign currency and the lack of technical knowledge was also the goal of the formation of EPZ.
In Bangladesh, in 1980, the first EPZ was established in 1983 on the basis of an Act made in Chittagong, Patenga in Chittagong. Ten years after the second was established, in Savar in Dhaka in 1993. Besides, six other EPZs have been established in Mongla, Uttara, Ishwardi, Comilla, Karnaphuli and Adamjee. The Government of Bangladesh has signed a Memorandum of Understanding with the Korean government to establish a Korean EPZ in Chittagong. In Table 1, in the EPZs in the country, total number of total number of registered industrial units and units of implementation and total investment in both sectors is given, and the number of workers employed is given:
Table 1
Location unit number investment ($ 1 million) Employment ($ 1 million) Employment
Introducing new ones
Chittagong 146 35 698.28 9885.86 136.276
Dhaka 97 23 643.91 7914.95 72,305
Comilla 21 21 79.24 300.81 7,417
Mongla, Khulna 08 05 4.37 36.63 207
Uttara, Nilphamari 04 01 3.06 0.37 1,847
Ishwardi, Pabna 05 19 14.35 7.60 1,107
Adamjee, Narayanganj 08 37 63.12 67.51 6604
Karnafuli, Chittagong 08 63 41.16 36.47 4,643
Total 297 204 1517.48 18250.20 230406
Source Bangladesh Economic Survey 2009 (Ministry of Finance, Government of Bangladesh)![banglapedia_log
Management and control of the EPZs of Bangladesh vested in the Bangladesh EPZ Authority (BEPZA). The government's activities in EPZ include construction of structures (buildings, gas-power-water connections, warehouses, roads etc.) for verification, selection and application of industrial factories, allocating land or building spaces and local or foreign banks and insurance companies, clearing And allocation of seats for forwarding agents, courier companies, post offices etc. The government is also trying to ensure that investment and business of those who invest in EPZ can be conducted in orderly and that the owners-labor disputes do not arise. In addition, investors in EPZ can get loans from government and hope to support all types of industry support. The government establishes EPZ and develops structural structures suitable for it and looks at the EPZ itself as an investment sector and tries to expend the expenditure through establishment and building rent, lease or permanent allocation. However, the lion's share of funds required for investment in EPZ comes as a loan. Deposit of the fixed assets set up in EPZ by the source of one part of capital invested for long term. About 40% of the government's investment in EPZ is spent on all sectors which do not come from any income. The rate at which the government charges the infrastructure for the infrastructural facilities (land, buildings, water-power connections etc.) built here is not determined on the basis of cost-based excellence. These are to be settled in conjunction with neighboring other countries's EPZ rates. From 1974 to 1998, the Government of Bangladesh's investment and investment rates in export processing areas were shown in Table 2:
Table 2 Government investment and uplift rate (million rupees)
Annual uptake of yearly investment income
Land Factory Building Total Land Factories Building
CEPZ
1974-85 248.9 1.5 3.4 4.9 0.62 1.35
1985-93 452.6 63.3 136.3 199.6 8.18 17.64
1993-98 360.3 228.1 2111.3 439.4 25 30.47
DEPZ
1989-98 724.4 78.8 248.4 327.2 10.87 32.30
Source BEPZA
More than 30 countries have invested in various EPZ projects in Japan, South Korea, Hong Kong, Thailand, Sri Lanka, China, Indonesia, Singapore, USA, UK, Australia, Canada, Germany, Italy, Sweden, Netherlands, Switzerland, India and Pakistan. Has done The largest number of industrial units have been set up in the ready-made garment industry (68 of the 297 cases till March 2009). Apart from this, garment factories (43), Knitwear (32), TerritoVail (16) electric and electric products (15), plastic products (14), footwear and leather products (13) and steel products (12). Among other items of EPZ, hat, tent, packaging products, ropes, and agricultural products processing industry.
EPZs play an important role in attracting foreign investment in Bangladesh and increasing production and export of the country through domestic and foreign investment. Foreign exchange gained through EPZ export helps reduce the country's balance of transactions. A part of this foreign currency is converted into domestic currency and the purchase of different products and services from the local market for EPZ. Exported from the EPZ in 1990-91, the country's total exports stood at 2.7% and in 1997/98 this ratio stood at 12.3%. Exports of 18,250.2 million dollars from the EPZs of the country were completed till March 31, 2009. During this period EPZ has employed a total of 230,000 Bangladeshi workers.
Often, foreign trade with foreign investment in EPZ remains with foreign technology. As a result, local workers, artisans, engineers and managers have technology