Bangladesh is offering excellent opportunities to foreign investors in its Export Processing Zones (EPZs). These EPZs, according to a brochure sent to SAUDI COMMERCE recently by the Bangladesh Embassy in Riyadh, have been exclusively planned for overseas firms to establish their manufacturing units.
Bangladesh government has offered a package of incentives to overseas firms interested in setting up industries in the EPZs.
These include tax holiday for ten years followed by a reduced rate for the next 5 years, relief from double taxation, exemption from dividend tax, duty free import and export, full repatriation of capital and profits and good infrastructure facilities. Another advantage for foreign firms is that there is ready availability of local skilled but inexpensive work force.
Apart from EPZs, there are enormous investment opportunities in a variety of sectors throughout Bangladesh, says the brochure. These areas are mainly agrobased industries, flower cultivation & artificial flower production, information technology, jute & jute goods, frozen food, jewelry & diamond cutting and polishing, leather products and oil & gas industries.
There are currently 123 fully foreignowned companies and 27 joint ventures in 6 EPZs located at Chittagong, Dhaka, Mongla, Comilla, Ishurdi and Nilphamari. Total number of units in these EPZs has reached 196.
The volume of foreign investment in these EPZs exceeded $ 582 million by May, 2004.
Last year's investment alone amounted to around $ 78 million. South Korea is the largest investor in Bangladesh EPZs putting in over $ 226.6 million in 52 units followed by Japan with $ 103.6 million covering 21 units. Another major investor is China which has 22 units with an investment of nearly $ 100 million.
Investors from over 26 countries including US, UK, Germany, Demark, Sweden, Belgium, Switzerland, Netherlands, France and a number of Asian countries have set up an array of industries in the EPZs. These include ready-made garments, textiles, electrical & electronic products, footwear, leather & leather goods, plastics, metals and paper products.
These industries are mostly export-oriented. The value of exports from these EPZs amounted to $ 1,069 million during the year ended March 2004. In the previous year, these exports accounted for over $ 1.2 billion representing around 18.3 percent of the country's total exports.
Shamsul Huda
© Saudi Commerce and Economic Review 2004
