The domestic foreign investment, especially in the region known as the Export Processing Zones (EPZ) has exceeded 30 years. In 1983, through the establishment of Chittagong Export Processing Zones (CEPZ), country’s100 percent, export-oriented investment regions started its journey.
After three, decades, the number of EPZ has increased at eight. The extension of EPZ has spread in a backward town like Nilfamari, Ishwar and Mongla besides Dhaka and Chittagong.
The Bangladesh Export Processing Zones Authority (BEPZA) is responsible to manage the EPZ's of the country. It is directly under the control of the Prime Minister's Office. BEPZA was formed in 1980 with the goal of establishing EPZ. After the formation of BEPZA, the establishment of EPZ has started. Chittagong EPZ was the first official launch. 10 years after the establishment of Chittagong EPZ, Dhaka EPZ was established in 1993. Then in 1999 at Mongla, in 2000 at Comilla, in 2001 at Ishwardy and Nilfamari, 2006 at Chittagong named Karnaphuli and at Narayanganj named Adamjee EPZ was launched.
Favorable Environment
Uninterrupted electricity, gas and adequate infrastructure facilities are needed for the power industry. To ensure the safety is the prerequisite of the investment as well. With that in mind, the EPZ's were made. Besides ensuring the facility of industries EPZ's is developed as a safe investment area. When in so many areas, industrial unrest and disruption occurred; it has been reflected in the EPZ rarely. Even labor unrest is rare here.
General Manager of BEPZA, Nazma Binte Alamgir said that EPZ gives to emphasize workers' rights and opportunities, and it is the most important consideration of EPZ. In this sector, international standards are maintained. Besides salary, EPZ workers get the facilities of transportation, lunch, medical improvement as well as a daycare center facility. There is also CBA to meet the demands of the workers, and it also gives a chance to talk about benefits to the workers.
Nazma Binte Alamgir also said that regular monitoring was maintained to meet the worker’s complaint and opportunities. 93 percent of compliance is ensured in the factories located inside the EPZ.
Recently, the government has announced the new wage scale for the workers. Accordingly, EPZ's have also rearranged their wage scale. The minimum wage has been set at 70 U.S. dollars or 5600 takas. For highly trained workers, the maximum salary has been set at 140 dollars or 11,600 takas. There are also some benefits for workers beyond the salary. The wage will be increased by 10 percent per annum.
Now in Chittagong EPZ, there is maximum 1 lakh 85 thousand, in Dhaka 88 thousand, in Karnaphuli EPZ 39 thousand and almost 31 thousand people are employed in Adamjee EPZ. 64 percent of them are women and the remaining 36 percent are men.
Factory Scene
According to BEPZA, currently, there are over 419 supplies based industries in eight EPZ's of the country. 237 industries are of foreign-owned, 61 are of a joint venture owned and 121 are of domestic owned. 143 industries are waiting for production.
Between 419, industries, 171 are in Chittagong; 99 are in Dhaka; 39 are in Adamjee; 39 are in Karnaphuli; 34 are in Comilla; 17 are in Mongolia; 11 are in Uttara, and 10 are in Ishwardi.
BEPZA officials ensured that currently there is no vacancy in Dhaka and Chittagong EPZ, although the demand of industry establishment is higher here. On the other hand, in Mongla, Uttara and Ishwardi EPZ, 50 percent of the space is still vacant. In these places, the investors are being attracted.
After the establishment until June 2013, the total exports of EPZ's are of3450 crore 23 lakh U.S. dollars. Taking exchange rates of per dollar as 80 takas, In Bangladeshi currency, the amount is of the quarter 3 lakh crore. Chittagong EPZ alone exports the highest amount of 1716 crore U.S. dollars.
Around 400 enterprises of 39 countries are investing in EPZs around the world. These countries are South Korea, China, Taiwan, Japan, India, UK, USA, Malaysia, Pakistan, Sri Lanka, Germany, Netherlands, Italy, Canada, Singapore, Denmark, Indonesia, Belgium, France, Switzerland, Spain, and Australia. World’s most renowned brand products are manufactured in these industries. So various products made by Bangladeshi workers are being spread as renowned brands around the world. In addition besides ready-made garment sector, there are a lot of other products based industries are growing in EPZ.
Including Nike, Reebok, Lee, Adidas, Inter Gym, Laphuma, Gap, JC Penny, Wal-Mart, K Mart, American eagle, H & M different branded products are being produced currently here in Bangladesh. Throughout the world, there is a high demand for branded products like Nike, Puma, Palo, Interactive Sports, Ralph Lauren and 50 percent of them are produced in Bangladesh.
Delight Knitting was the first investor organization of EPZ. In February 1984, the company did its first investment in Chittagong EPZ. Later, in the same year, the second investor organization was the Regency garment. Regency garment is still remaining, but the first investor Delight Knitting is closed.
