Objectives
The main objectives of EPZs are, economic development through investment promotion, to increase the source of foreign exchange earnings through exports, to boost the country's economy through industrialisation, generate employment and to increase efficiency of the workers through modern technology.

Bangladesh is a small country but has enormous potential for industrial advancement and economic growth. It has a large domestic market of about 140 million people and one of the cheapest human resource in the region as well as in the world . With all the positive factors for development , Bangladesh can emerge as one of the most successful countries in south Asia in the field of industrial development in near future. Within a short period Bangladesh has already drawn attention of foreign investors. In this region, Bangladesh offers the most attractive incentives and facilities to foreign investors while foreign investment is fully protected by law.

Factors of success
While identifying the factors responsible for the success of EPZs, it may be borne in mind that there are two different sets of factors, one is internal and the other external. Internal factors are mainly the incentives and facilities offered by the zone authority and the support provided by the government. These are: Attractive tax incentive, irrespective of type and size of the industry, ideal location of EPZs and good infrastructure facilities, congenial production atmosphere and good labour-management relations in the zones, land and factory building are offered on lease and rental basis: resulting in comparatively minimum involvement of initial cost of investment of the enterprises, the investors are provided with 'one window one stop same day' service by the EPZ authority, good administration and quick management decision by the EPZ authority.

There are some external factors that influence the operation and development of certain type of industries in EPZs. These are: Abundant supply of skilled , unskilled and easily trainable labour force to cater to the need of the enterprises in the Zones, liberal quota policy on garments export from Bangladesh, decision in offering GSP facilities and reduced duty access of some Bangladeshi products to American, Japanese, Canadian and some of the European markets.

Mode of investment
Bangladesh Export Processing Zones Authority is a statutory body but very different from other autonomous organisations. It enjoys complete freedom of action in its decision making process independent of any Administrative Ministry.

BEPZA pursues an open door policy in matters of foreign investment in its EPZs. Investment with 100 per cent ownership (Type - ' A ' ) or joint ventures (Type-'B') with no limit to the extent of equity sharing by the foreign partner and 100 per cent Bangladeshi ownership (Type-C) are allowed in the EPZs. BEPZA ensures one-stop service to its investors. Starting from the processing of the project proposal, the approval of the project and allotment of land and factory building are done by the executive office. Rules regulations and documentation procedures have been made easy and simple with minimum formalities. With its commitment to provide prompt service to investors, BEPZA has been able to earn a good reputation, business houses and investors.

Present scenario
A new era drawned in the industrialisation process in Bangladesh with the commissioning of the Chittagong Export Processing Zone. The first zone in Bangladesh was set up in South Halishahar in Chittagong in 1983. Following the tremendous success of the Chittagong EPZ, the government decided to establish the country's second EPZ at Savar near Dhaka a decade later in 1993. In view of the growing demand the government has established four new EPZs one at Mongla, another port city, one at Comilla, situated between Dhaka and Chittagong, one at Ishwardi, near the Jamuna Bridge, and the fourth one in the north at Nilphamari, named Uttara EPZ near Syedpur Airport. The infrastructural development work of these four new EPZs has been completed and the Authority has already started allotment of plots for setting up industrial unit in these EPZs and three of them have already started operation.

Enterprises in EPZs are performing well. New enterprises are springing up and the existing enterprises are expanding their operation. The growth and development of these industries in the zones are hastening advancement of EPZs in the country. Presently there are 210 industries in operation in EPZs, out of which 120 are in Chittagong, 75 in Dhaka, 07 in Mongla, 07 in Comilla and 01 in Uttara at Nilphamari. In addition about 100 industries are in different stages of implementation.

Performance
So far BEPZA's performance is encouraging. It is obtaining a good response from foreign investors. The export, investment and employment of the enterprises in EPZs have been increasing every year. The average growth rate of the last five years for investment, employment and export stands at 20 per cent, 21 per cent and 30 per cent respectively, which indicates the future growth potential of the EPZs in Bangladesh. A large number of female workers are working in the EPZs -- the percentage of female workers stands at about 61 per cent of the total number of employees. With the increase of export, the contribution of EPZs to the total national export quantum is also increasing every year. In the 2003-2004 financial year the export from EPZs contributed about 18 per cent of the total national export. The government also earns a sizeable amount of foreign exchange through the operation of EPZs in the country.

Progress
BEPZA has sanctioned so far 137 industrial units for EPZs of the country over the last three and half years till 2004. Of these 52 are 100 per cent foreign, 30 under joint venture and 55 fully Bangladeshi owned. The enterprises of EPZs have exported goods worth US$ 9196 million. It was US$ 4823.79 million till June 2001. During the last three and half years the export volume increased by about US$ 4372.21 million. This shows an increase of 90.64 per cent. Despite worldwide recession FDI has increased in the EPZs over the said period. Up to June, 2001 the investment in EPZs was US$ 475.20 million but up to June, 2004 the investment stands at US$ 793.40 million. The volume of investment has increased by US$ 318.20 million with a growth ratio of 66.92 per cent. BEPZA has embarked upon a new arena in the socio-economic development of the country through employment with 39,165 new job creation over that three and half years. In the year 2003-04 BEPZA has created new employment opportunity for about 10,071 Bangladesh nationals. BEPZA has played a significant role in poverty alleviation with job creation in the six EPZs of the country.

It may be mentioned that the cumulative exports of EPZs stands at US $ 9196 million. The enterprises of the Bangladesh Export Processing Zones have exported goods worth US$ 1.3 billion during the 2003-2004 fiscal year against the targeted export of US$ 1.225 billion. This shows an increase of about 12.83 per cent over the year before. This is for the 4th consecutive year that BEPZA's export earnings have crossed the billion dollar mark. Meanwhile, the cumulative investment in 210 operating industrial units of the EPZs now stands at US$ 793.40 million. It may be mentioned that investment in the EPZs in the last fiscal year i.e. 2003-04 stands at US$ 115.05 million. This shows an increase of 12.10 per cent over the last year. The operating industries in EPZs have created employment opportunity for about 1,50,000 Bangladesh nationals. With the commissioning of all the industries, the employment may rise upto four lakh.

Investing countries
The countries which have invested in the EPZs of Bangladesh are South Korea, Japan, Hong Kong, China, USA, UK. Germany, Pakistan, Malaysia, Taiwan, India, Panama, Denmark, Thailand, Sweden, Italy, Belgium, Switzerland, the Netherlands, France, Singapore, Nepal, Australia, Canada, Sir Lanka, Mauritius, New Zealand and host Bangladesh.

Products
The industries are producing readymade garments and its accessories, textile items, terry towel, knit wears, caps, tent, electronics and electrical goods, agro products, footwear and leather goods, metal and plastic products, paper products, fishing reels and golf, rope, and miscellaneous etc.

The enterprise are exporting brand products Nike, Reebok, Lafuma, H & M (Sweden), GAP, J.C. Penny, Walmart, Kmart, OSPIG (Germany), Mother Care (UK), Lee, Wrangler, Dockers, NBA, Tommy Hilfiger, Out Door, Adidas, Falcon (USA), Edie Bauyer, Eagle, Raleigh (UK), Emmilee, Free Spiril (UK), Miles (Germany), Brouks, American Eagle, Hi-Tech (UK), Decathlon, Phillip- Maurice (UK), Federated, Styles Co, SAG Harbour (USA), Wins More, H & M (SWEDEN), Mother Care (UK), LL Bean, Target, Autica, Disley, Vans, Vftnfcamera Lens (IO Parts) Konika, Minolta, Golf Shafts, Abu Garcia, Mobile Parts of Sony, Automobile Parts of Nissan, Mitsubishi & Hino.

Impact and prospect
The direct impact of EPZ are increasing foreign currency reserve, industrialisation in new bases, value addition in export, transfer of technology and employment generation. The indirect impact of EPZs are the creation of satellite township near the zones, establishment of backward linkage industries, the development of various trade, increase of activities in the ports, development of communication and enhancing the efficiency of workers.

It is expected that foreign investors will be attracted by the package of incentives and facilities offered by the government and will be encouraged to set up their industries in the EPZs of the country. It is also expected that the contribution of EPZs to the national economy will be higher in the coming years. Their contribution to the total national export quantum was 8.68 per cent in 1995-96, which has increased to about 18 per cent. With the increase of exports and industrial activities, the value addition of the exported goods will also be substantially enhanced in the years to come.

To maintain the increasing trend of development of the country and to fulfil growing demand of the investors government has decided to establish two more EPZs, one at Dhaka Adamjee Jute Mills area and the other at Chittagong Steel Mills area which will rehabilitate the industrial process and valuable workforce of the country.

EPZs of Bangladesh are called "Asia's low cost production bases and beacon for the investors". We are confident that the success of Export Processing Zones will take Bangladesh to the level of developed countries in the near future.

The author is Executive Chairman, BEPZA.