Located half way between Europe and the Far East. Bangladesh is rapidly developing into a highly profit-earning centre for export-oriented industries. The jcountry has a number of natural advantages that gives it an edge over many neighbouring countries in respect of attracting foreign investment.

■Hie 'plus-points' of the Export Processing Zones of Bangladesh include most inexpensive. adequate and productive supply of local labour (both skilled and unskilled), proximity to international sea and air ports, accessibility of the zones to the global markets, adequate supply of various utility services like power, water, gas. telecommunications and fully serviced Industrial plots with necessary infrastructure, favourable weather, suitable living accommodations and educational facilities for investors and their dependents.

The Export Processing Zones of Bangladesh are getting the attention of the global manufacturers. The . entrepreneurs are attaching utmost importance to the EPZs of Bangladesh also because of the country’s close proximity to the fast growing ASEAN rnarkets hnd within easy reach of the Middle East and the Central Asia.

Bangladesh is easily accessible by air from Europe, Asia and .the United States of America. Almost all the-shipping lines trading in the

Indian and the Pacific oceans regularly call at Chittagong, the country's principal sea port.

Chittagong port can handle large container ships and roll-on/'roIT-off vessels. The port has a large container yard. Berthing and cargo handling capacity of the port-is quite good with modern technical facilities.

Modern telecommunications facilities including international direct dialing system through satellite earth stations are offered to zone enterprises. A nation-wide dialing system connects Chittagong EPZ with the rest of the country. Three hundred telephone lines have been kept reserved for .Chittagong Export Processing Zone.

Labour is another important element. Law forbids formation of labour union in the EPZs of Bangladesh. Strike is illegal in the zones. BEPZA is vested with the responsibility to administer labour matters for all enterprises in the zones. Labour laws applicable to the EPZ enterprises properly safeguard the interest of investors. These laws ensure among others uninterrupted production schedules. At the same time, BEPZA looks after welfare of the workers.

. Bangladesh is quite rich in

human resource. Today, Bangladesh ■ has a growing number of professionals Including managerial and-technical personnel and skilled and unskilled labour. They'are available for. wages which are the lowest in Asia and competitive world-wide. Bangladesh workers are diligent, adaptable and eager to learn which are very vital for any industrial concern. Thip energetic and under utilised labour force of 46.5 million Is Rkely to grow to more than 50 million by the turn, of the century. The gov-ernment of Bangladesh is attaching great importance on attainment of skill with a view to increasing labour productiv- ' ity. With this end in view, concerted efforts of the government and the private organisations are under way in the overall development of human -resources not only in general education but in the technical and vocational fields. The calibre and competence of Bangladeshi managers, technicians and workers are praised by the foreign investors without exception.

All Investments in the' EPZs of Bangladesh are protected by law. The law ensures fair and equitable treatment to all foreign private investors. Under the law, foreign investment in

Bangladesh can neither be expropriated nor nationalised. Among others, the law also guarantees full repatriation of profits and- capital, provides full indemnification in the ‘ event of financial loss due to civil unrest.

A number of International organisations like Multinational investment Guarantee Agency (MIGA) and International Centre for the Settlement of Industrial' Dispute (ICSID) also ensure adequate investment ^aran-

MIGA is a member of the World Bank group to help foreign investors and the host countries in the event of dispute, while ICSID extends arbitration facilities. The Overseas Private Investment Corporation (OPIC) of USA operates its insurance and finance programmes in the EPZs of Bangladesh.

The first EPZ in Bangladesh was established in Chittagong in 1983. The zone, spreading over an area of 453 acres of land, is situated in the southern part of Chittagong. It is only 2.4 kms away from the sea port. 7.24 kms from the international airport and only 5.63 kms away from the main business centre of Chittagong.

The second EPZ, known as

Dhaka Export Processing Zone, has been established at Savar, 35 knis away from the city centre and 25 kms from the Zia International airport. Dhaka EPZ is basically an airfreighted zone. Besides fully developed and. serviced industrial plots, both the EPZs offer standard factpry buildings on rent. The plots and factory buildings are ready for immediate construction of factory and installation of machineries.

Three .types of investments are allowed in the EPZs of Bangladesh. These are: (i) 100 per cent foreign owned including Bangladesh nationals ordinarily resident abroad (ii).Joint venture projects between foreign and Bangladeshi entrepreneurs resident in Bangladesh and (ill) 100 per cent Bangladesh entrepreneurs resident in Bangladesh.

There is no celling on foreign investment in the EPZs of Bangladesh. In the EPZs of Bangladesh, foreign private investment can be made either Independently or through joint venture on mutually beneficial terms and conditions.

An investor has option to establish either public or private limited company or sole proprietorship or partnership concern.

Investors may also take advantage of the Generalized. System of Preference (GSP) which allows duty Tree/reduced duty access to American, European and Japanese markets under certain conditions. Import into, the United States from Bangladesh also enjoys Most Favoured Nation (MFN)'status.

-Bangladesh Export Processing Zones Authority, extends "One Window Same' Day Service" to investors. It also pursues a simplified procedure. Rules, regulations, ex-port-import documentation and procedures have been framed to make them simple with minimum formalities. Procedures have been so simplified that while submitting application for plots, an investor needs only to give bank reference certificate of .the sponsor, project feasibility report and Memorandum and Article of Association of the Company. The investors are required to deal only with BEPZA for Investment and all other operational purposes.

BEPZA sanctions project generally within one week. The authority Issues required import/export permits within 24 hours. It also Issues work permits for foreign nationals working in enterprises of both

Chittagong and Dhaka EPZs. In the EPZs of, Bangladesh everything is done under 'One Umbrella'.

The Bangladesh EPZ Authority offers highly competitive and attractive package of fiscal -nri non-fiscal incentives-to .' e investors. These Include tax hpliday for ten years, exemption of income tax on interest on borrowed capital, relief from double taxation subject to bilateral agreement, complete exemption from dividend tax for tax holiday period for foreign nationals and exemption of income tax on salaries of foreign technicians for three years. The package also includes free import of machineries, equipment. raw apd construction materials for factory buildings in the zones and export of goods produced in the EPZs.of Bangladesh.

The Bangladesh Export Processing Zones Authority allows full repatriation of profit, capital and investment including capital gains. The authority permits remittances of all post tax profit and dividend on foreign capital, savings from earnings. retirement benefits, per sonal assets of Individual on retirement or termination of service and approved royalties

and technical fees.

. Investors in the EPZs of Bangladesh enjoy freedom from national import policy restrictions. Import of raw materials for industries are allowed on Documentary Acceptance (DA) basis. The investors enjoy advantage of opening back to back LC for certain types of industries for import of raw materials. Import of goods from the domestic tariff area IS also permitted. All customs formalities are done at the premises of the factories concerned in the zone.

Industries from Japan. South Korea, Hong Kong, USA. Singapore. UK. Pakistan. Holland. Sweden. Thailand. India, Germany, Canada. Australia and Bangladesh are now operating in the EPZs of Bangladesh.

Within a short span of lime, the Export Processing Zones of Bangladesh have succeeded in drawing attention of the global investors. Today, both Chittagong and Dhaka EPZs are pulsating with production and export. The Export Processing Zones of Bangladesh have become turning points for many entrepreneurs. And investors around the world who reckon the EPZs of Bangladesh as a safe and profitable place for Investment.'

{The author is a Deputy General Manager (Public Relations) of Bangladesh Export Processing Zones Authority.I