Final

WELCOME WELCOME TO TO

OUROUR PRESENTATION PRESENTATION

SOUTHEAST UNIVERSITY

Assignment on EPZ in BangladeshDepartment of Textile Engineering

Submitted By

Name IdMd. Muhaiminul Islam 2008000400020Md. Abdur Rahim 2008000400034

Mehebub Shuvo 2008000400004Sajib Mazumdar 2008000400023Setu Khandoker 2008000400043

Imam Tawhid Arif 2008000400016

Submitted ToZakir Hossain

Lecture of Southeast University

Submission Date : 19.12.2010

IntroductionIntroduction Export processing zones (EPZs) are specific Export processing zones (EPZs) are specific geographic locations, physical sites, business geographic locations, physical sites, business

premises, buildings and/or assigned localities that premises, buildings and/or assigned localities that have special tax, tariff, or investment incentives and have special tax, tariff, or investment incentives and customs (duty) regimes in order to promote export customs (duty) regimes in order to promote export oriented industry and transactions. Traditionally, oriented industry and transactions. Traditionally,

EPZs include locations that house special economic EPZs include locations that house special economic zones, free trade zones, free ports, custom zones, zones, free trade zones, free ports, custom zones,

commercial free zones, and bonded commercial free zones, and bonded facilities/warehouses facilities/warehouses

Definition of EPZDefinition of EPZ

An export processing zone (EPZ) is defined

as a territorial or economic enclave in which goods may be imported and manufactured and reshipped with a reduction in duties

and/or minimal intervention by custom officials (World Bank 1999).

EPZ ProvidesEPZ Provides

• Plots/factory BLDG in custom bonded area• Infrastructural facilities• Administrative facilities• Fiscal & non-fiscal incentives• EPZ attracts : foreign & local investment

Objects Of EPZObjects Of EPZ

• Promotion of foreign (FDI) & local investment

• Diversification of export • Dev. OF backward & forward linkages • Generation of employment • Transfer of technology • Upgradation of skill • Development of management

Goal of EPZGoal of EPZ– To transform the policy, legal and regulatory environment for the

Export Processing Zone Act, into that of economic zones by 2006 and allow for best practices in corporate governance

– To help operationalize 25 EPZ enterprises, incremental employment of 15,000 jobs, investment and export growth of 30% annually, during the plan period (2004-9)

– To increase level of wholly Kenya owned enterprises in the Export Processing Zones programme to 40% in 2009 from the level of 15% in 2003.

– To facilitate achievement of 40% domestic content value in the EPZ by 2009, up from 30% in 2003.

– To facilitate gradual diversification and expansion of sectors and market activity from the predominant garment/apparel exports to the US, so as to achieve average 40% contribution by this sector in terms of number of enterprises, investment, and total turnover in 2009, down from 62% in 2003

– To achieve geographical dispersion of zones so that each province shall have at least one zone by 2009.

A free trade zone/export A free trade zone/export processing zonesprocessing zones

• A ‘free trade’ or ‘export processing’ zone is an industrial area, set up by countries in order to attract foreign investment. Financial incentives include exemptions on import and export duties, capital gains taxes, property and land taxes, sales and consumption taxes. Additionally there may be tax holidays – a period of no tax obligations. 

Present status of garments Present status of garments industryindustry

• The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is the officially recognized capper clothing export trade body of 4,890 apparel manufacturing companies. The Bangladesh Garment Manufacturers besides Exporters Association (BGMEA) is the only recognized calling conformation that represents all the export oriented garment manufacturers besides exporters of the dynasty.

• The RMG sector earned over US$ 9 billion in 2006. The BGMEA helps to drive commerce by progression sales of Bangladeshi-produced apparel and pursues excellence in the Bangladeshi readymade garments (RMG) articulation as its activities besides programmed, including establishing besides nurturing relationships with alien buyers, businesses and trade associations, organizations, chambers, again research organizations

Macro-economic trendMacro-economic trend

• This is a chart of trend of gross domestic product of Bangladesh at market prices estimated by the International Monetary Fund with figures in millions of Bangladeshi Taka. However, this reflects only the formal sector of the economy. Bangladesh's textile industry, which includes knitwear and ready-made garments along with specialized textile products, is the nation's number one export earner, accounting for 80% of Bangladesh's exports of $15.56 billion in 2009. Bangladesh is 3rd in world textile exports behind Turkey, another low volume exporter, and China which exported $120.1 billion worth of textiles in 2009

Mean wages were $0.58 per Mean wages were $0.58 per manhour in 2009manhour in 2009

YearGross Domestic

ProductUS Dollar

Exchange

Inflation Index(2000=

100)

Per Capita Income(as % of

USA)

1980 250,300 16.10 Taka 20 1.79

1985 597,318 31.00 Taka 36 1.19

1990 1,054,234 35.79 Taka 58 1.16

1995 1,594,210 40.27 Taka 78 1.12

2000 2,453,160 52.14 Taka 100 0.97

2005 3,913,334 63.92 Taka 126 0.95

2008 5,003,438 68.65 Taka 147

Year Wise EmploymentYear Wise Employment

YEAR LOCAL EMPLOYMENT(NOS.)

Chittagong EPZ

CURRENT CUMULATIVE

2009-10 12171 150783

2010-11 (November ,2010) 2940 153723

Dhaka EPZ

CURRENT CUMULATIVE

2009-10 3156 74624

2010-11 (November ,2010) 2182 76806

Mongla EPZ

CURRENT CUMULATIVE

2009-10 7.29 46.58

2010-11 (November ,2010) 11.19 57.77

Comilla EPZ

CURRENT CUMULATIVE

2009-10 95.35 418.48

2010-11 (November ,2010) 53.16 471.64

Uttara EPZ

CURRENT CUMULATIVE

2009-10 1.90 2.31

2010-11 (November, 2010)

1.84 4.15

Ishwardi EPZ

CURRENT CUMULATIVE

2009-10 7.54 15.39

2010-11 (November, 2010)

7.90 23.29

Adamjee EPZ

CURRENT CUMULATIVE

2009-10 103.65 188.57

2010-11 (November, 2010)

54.14 242.71

ConclusionConclusion

• EPZs can be viewed as a positive or negative outcome of globalization. On one side of the argument, the development of EPZs can be seen as a way to attract foreign investment, increase exports, support comparatively rapid economic development, and enhance a country’s strategic trading role. On the negative side, EPZs can be perceived as exclusive sites and sources of human, resource, and environmental exploitation that offer limited direct benefit to a country or its people.

REFERENCESREFERENCES

• Abdel-Latif, Abla M. (1993). “The nonprice determinants of export success or failure: the

• Egyptian ready-made garment industry, 1975-1989”, World Development, vol. 21,

• No. 10, pp. 1677-1684.• Agency for International Trade Information and

Cooperation (AITIC) (1999). The World• Trade Organization Agreement on Textiles and Clothing

(ATC) (Geneva),• <www.acici.org/aitic/documents/docs.htm>• American Textile Manufacturers Institute (2003). The

China Threat to World Textile and• Apparel Trade (Washington, D.C.).

THANK YOUTHANK YOU