The New Nation - Internet Edition

BSS, Dhaka

The BEPZA has signed a record level investment agreements with parties worth US$ 1.2 billion during the past 10 months up to April of the current fiscal 2007-08, the sources said.

A senior functionary of the Bangladesh Export Processing Zone Authority (BEPZA) told BSS here that Bangladesh EPZs have become an attractive destination for foreign investment over the recent years.

Investors from countries like Japan, China and Taiwan are taking increasing interest to relocate their factories here mainly because of its various fiscal incentives, low production cost and duty free access to some major global markets.

He said, in view of the growing demand and paucity of industrial plots, BEPZA has decided in February this year to set up two more EPZs - one at Feni and the other at Munshigonj to be called the Meghna EPZ.

The net investment inflow to the country's EPZs over the past 10 months stood at US$ 265 million compared to 152 million during the last fiscal 2006-07 and US$ 112 million over the previous 2005-06.

The eight EPZs are now producing over 50 famous global brands of prestigious wears and sports materials, besides common export products meant for major global market like the EU, USA and some other countries offering zero tariff access.

Some of the these brands include Nike, Reebok and Adida sports ware and Penny, Walmart, Kmart, ready to wear garment. It also covers Konika, Minolta and Nikon, Fuji, Olympus camera lens, Abu Garcia golf shafts, Sony mobile parts and automobile parts for vehicles like Nissan, Mitsubishi and Hino.

The functionary said, the EPZs have been fully integrated with the global marketing chain in one hand and generating employment and income for the local people on the other, besides significantly contributing to the country's export earnings.

About 2.15 lakh people are working in the existing EPZs and their export earnings over the 10 months of the current fiscal stood at US$ 1809 million. The export earnings may hit US$ 2.3 billion at the year-end, he said.

It was US$ 2063 million during the last fiscal, he said adding their total export earnings since beginning of EPZ operation in 1994-95 stood so far at US$ 15.7 billion.

The functionary said, the BEPZA now offers in built ready to start model factory to investors who want to start business immediately. He said, Bangladesh is an attractive place because of its low labor cost, only US$ 30 per month here compared to US$ 80 to 100 in Vietnam, US$ 70 to 75 in Pakistan and Indonesia and US$ 100 to 200 in China.

He said, India is also offering low cost labour and at present setting up 276 special economic enclaves throughout the country to take advantage of the global mobility of capital.

The setting up of Feni and Meghnaghat EPZs are very important to retain foreign investors, he said pointing to their location closer to sea port. The BEPZA wants to develop the site and the infrastructure as soon as possible, he said.