During the 2023-24 fiscal year, 29% of the country’s total investment came to eight EPZs under BEPZA and the recently started production in the BEPZA economic zones. BEPZA Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman, BSP, ndc, psc, gave this information at a Meet the Press event organized at the BEPZA Complex in Dhaka yesterday.
He further said that while investment across the country decreased by 71% in the first 6 months of the 2024-25 fiscal year, the rate of decrease in BEPZA was 22.33%. On the other hand, exports from BEPZA zones increased by 22.41% in the first 6 months of the 2024-25 fiscal year.
The BEPZA Executive Chairman answered various questions in front of journalists from leading print and electronic media of the country present at the Meet the Press event.
BEPZA Executive Board Member (Investment Development) Md. Ashraful Kabir presented a Power Point presentation on BEPZA’s overall program, recent achievements, contribution to the national economy, labor and environment-friendly environment of EPZs.
BEPZA Member (Engineering) Md. Imtiaz Hossain, Member (Finance) ANM Faizul Haque and senior officials of BEPZA were present at the ‘Meet the Press’. The program was moderated by BEPZA Acting Executive Director (Public Relations) Abu Sayeed Md. Anwar Parvez.
BEPZA’s journey started in the country in 1980 with the objectives of industrialization, export growth, employment generation by bringing investment to the zones under BEPZA. BEPZA was given the authority to establish, develop and manage EPZs in different regions of the country.
EPZs started in Bangladesh with the establishment of Chittagong EPZ in 1983. Based on the success of Chittagong EPZ, 10 years later, the country’s second EPZ - Dhaka EPZ was established in Savar, near Dhaka, in 1993. In continuation of this, 6 more EPZs were established in different parts of the country between 1998 and 2006. Currently, a total of 8 EPZs are operating under BEPZA in the country, namely - Chittagong, Dhaka, Mongla, Comilla, Uttara, Ishwardi, Karnaphuli and Adamji. In addition, work is underway to establish a BEPZA economic zone in Mirsarai, Chittagong under BEPZA, where several industrial enterprises have already started production activities. Work has started on establishing two EPZs in Patuakhali and Jessore districts. In addition, the government has decided to establish an EPZ in Gaibandha district.
BEPZA contributed 29% of country’s total FDI in fiscal year 2023-24:
The total area of the eight EPZs under BEPZA and the BEPZA economic zone is only 3,445 acres, i.e. only 13.95 square kilometers. Through this very small area of Bangladesh’s total area, the zones under BEPZA contributed 29% of the country’s total foreign direct investment or FDI in the fiscal year 2023-24. According to Bangladesh Bank, the total FDI in the country in the last fiscal year was $1468.17 million, of which $424.29 million were invested in the zones under BEPZA alone.
Contribution of EPZs to country’s national exports is 16%:
In the fiscal year 2023-24, the export volume of the eight EPZs under BEPZA and the operating companies of the BEPZA economic zones accounted for 16% of the country’s total exports. In the said fiscal year, the country’s total exports were $44.47 billion, of which $7.07 billion worth of goods were exported through BEPZA. BEPZA has been consistently contributing 15-20 percent of the country’s total exports every year.
BEPZA signs 28 new investment agreements amid global challenges:
Despite global challenges, 28 domestic and foreign companies have signed agreements with BEPZA to set up industries in EPZs and BEPZA economic zones in 2024, with a total proposed investment of $568.49 million. China, Netherlands, Ireland, UK and Bangladesh have signed agreements with BEPZA to invest here.
BEPZA ranks 1st among the country’s state-owned enterprises and autonomous bodies in financial risk management:
BEPZA has contributed to the country’s socio-economic development and has also proven its success in financial risk management. According to the “Debt, Contingent Liabilities and Financial Risk Report” of the Monitoring Cell of the Finance Department of the Ministry of Finance, BEPZA has ranked 1st among the 101 state-owned enterprises (SOEs) and autonomous bodies (ABs) of the country in the fiscal years 2021-22 and 2022-23.
48% diversified products:
By reducing the single dependence on ready-made garments for export, the country’s EPZs are strengthening the foundation of the country’s economy by diversifying and diversifying export products. Apart from the traditional garments and garments accessories produced in the country, 48% of the products produced in EPZs are diversified products. BEPZA is giving priority to setting up high-tech industries. An agreement has already been signed here to set up Bangladesh’s first unmanned aerial vehicle, commonly known as a “drone”, such a high-tech factory. Notable products produced in EPZs include tents and tent equipment, bicycles, cosmetics, Hollywood masks, camping furniture, golf shafts, wigs and fashion hair, mannequins, jute products, energy saving bulbs, metal products, toys, glasses and glasses frames, camera lenses, mobile parts, car seat heaters, bamboo coffins, PPE, face masks, bridal gowns, gift boxes, eyelashes, cartons, PVC aprons, safety shoes, bags, luggage, etc.
Investments from 38 countries of the world in BEPZA zones:
Investors from a total of 38 countries have invested in BEPZA zones. In terms of number, China has the most companies, 108, followed by South Korea (61), Japan (29), India (19), the UK (19), the US (17), Sri Lanka (7) and others.
BEPZA’s contribution to the national economy:
Since its establishment, BEPZA has paid income tax of Tk 1,215.94 crore to the government treasury and paid Tk 1,226.45 crore in installments. That is, BEPZA’s total financial contribution to the national economy till December 2024 is Tk 2,442.39 crore.
In the fiscal year 2023-24, BEPZA has contributed Tk 31,758.48 crore directly/indirectly to the national economy through EPZ industries.
BEPZA at a glance:
Currently, a total of 449 industrial enterprises are operating in the eight EPZs and BEPZA economic zones under BEPZA. Of these, 258 are 100% foreign-owned or A-type enterprises, 49 are jointly owned or B-type enterprises and 142 are 100% domestic enterprises or C-type. In addition, 108 industrial enterprises are under implementation.
New investment opportunities: ‘BEPZA Economic Zone’ - 3 companies start production and exports during the project:
In 2018, the work of BEPZA Economic Zone was started on 1138.55 acres of land in Mirsarai, Chittagong as the ninth zone of BEPZA. This is BEPZA’s largest initiative and the only economic zone. The work of this project is still ongoing. According to the project plan, a total of 539 industrial plots and 45 standard factory buildings will be built in this zone.
Immediately after the work of this zone started, BEPZA received a huge response from domestic and foreign investors. So far, a total of 42 domestic and foreign investors have signed agreements with BEPZA for investment, with a total proposed investment of $970.91 million. A total of 249 industrial plots have already been allotted to the companies that have signed the lease. While the project is ongoing, 3 companies in BEPZA Economic Zone have started production and exports in 2024, with an actual investment of $28.23 million. It is expected that some more companies will start their production activities this year.
New areas of potential Jessore and Patuakhali EPZ:
BEPZA has started land development work after acquiring land to establish Jessore EPZ in Jessore district and Patuakhali EPZ in Patuakhali district for the socio-economic development of the country.
There are plans to build 306 industrial plots in Patuakhali EPZ on 410.78 acres of land, with a total investment of $1530 million, annual exports of $1836 million and creation of 100,000 direct and 200,000 indirect employment opportunities.
400 industrial plots will be built in Jessore EPZ with an area of 503 acres. BEPZA expects that when full-fledged production starts in Jessore EPZ, a total investment of $2000 million, annual exports of $2400 million and creation of 150,000 direct and 300,000 indirect employment opportunities will be created.
Labor Management in EPZs:
EPZs are formed by a unique combination of worker-owner-management, through which a favorable working environment prevails in EPZs. In 2019, the ‘Bangladesh EPZ Labor Act’ was passed, making provisions on the recruitment of workers in industrial establishments located in various EPZs of BEPZA, the relationship between the owner and the worker, determination of the minimum wage rate, payment of wages, compensation for injuries to workers due to accidents during work, health, safety of workers, etc., and in 2022, the Bangladesh EPZ Labor Rules were formulated, the smooth implementation of which has made the working environment of EPZs safer, more decent and labor-friendly. This act has facilitated the process of forming Workers Welfare Associations (WWAs) of EPZ workers. The Workers Welfare Associations, elected through secret ballot, are working independently as Collective Bargaining Agents or CBAs to raise and settle industrial disputes and protect the rights and interests of workers.
Minimum wages and benefits of EPZ workers are higher than those of factories outside EPZ:
Excluding food and travel allowance, the minimum wage of EPZ workers is Tk 12,800. Whereas, workers of factories outside EPZ are getting Tk 12,500 including food and travel allowance. That is, EPZ workers are enjoying higher wages and other benefits than outside workers. In addition, 50% of the total workers working in any factory are getting an annual minimum increment of 10%. The wage increase rate of the remaining 50% is 9-10% whereas the annual wage increase rate of workers outside EPZ is 9%.
Worker welfare:
In order to ensure free healthcare, there is a hospital or medical center in every EPZ. In addition, ‘BEPZA Public School and College’ has been established in most EPZs. The children of workers are getting the opportunity to study in these schools with 50% subsidy.
In order to ensure free healthcare to the workers, hospitals or medical centers and day care centers have been set up in various EPZs to take care of the children of the workers.
BEPZA has launched a round-the-clock helpline to resolve any problems of the workers working in the EPZs at their workplace. One of the objectives of launching the helpline is to take steps to resolve them properly and quickly based on the specific complaints of the workers working in the industrial establishments in the EPZs. Workers can call the helpline number ‘16128’ from any number and report their problems. Since the launch of the helpline on 28 March 2021, a total of 1,30,77 complaints have been received till December 2024, out of which 1,30,34 complaints have already been resolved and 43 are under process.
Eco-friendly EPZ:
In order to ensure maximum safety in maintaining the environmental balance, there are high-tech eco-friendly service industries such as power generation plants, central waste treatment plants, water treatment plants, solar power in the EPZs. In order to encourage low-carbon green zones in EPZs, solar panels, solar street lights, and the use of electricity from boiler exhaust have been introduced along with afforestation.
BEPZA is playing a leading role in the journey of green industrial factories. Vintage Denim Studio, a factory in Ishwardi EPZ, is the first green factory in the country. Vintage Denim Studio was the first to receive the LEED Platinum certificate from the US Green Building Council for protecting the environment through green industrialization. Following the path shown by him, more than two hundred environmentally friendly factories have been established in the country today and Bangladesh is considered a global leader of green industries in the world.
OSS:
Since its inception, BEPZA has been providing “One Window Same Day Service” to the investors of EPZs. Under the ‘One Stop Service Act, 2018’ enacted by the government, BEPZA has formulated the One Stop Service Rules 2019, which ensures immediate service. Out of the 200 types of investment-related services for running a business, 124 types of services are provided directly by BEPZA and 76 types of services related to other organizations are available to investors from BEPZA OSS Center. In the last 06 months, 4,12,305 BEPZA-related services and 144 other organization-related services have been provided to investors.
