Showing posts with label BSCIC. Show all posts
Showing posts with label BSCIC. Show all posts

Friday, April 19, 2019

Economic Zones in Bangladesh are Ready for Investment


The economy of Bangladesh is growing rapidly from the past ten years. The government has set a target of export US$ 400 billion of goods by establishing 100 economic zones by 2030 across the country to accelerate and sustain the economic development. Bangladesh Economic Zone Authority (BEZA) is working to achieve this goal. Already 10 to 14 economic zones are being prepared for investment.

Till now, ten economic zones have been completed and are ready for investment, see the below list:
  • Abdul Monem Economic Zone Gazaria, Munshiganj
  • Aman Economic Zone
  • Bay Economic Zone in Gazipur
  • City Economic Zone
  • Karnaphuli Dry Dock Economic Zone in Chattogram
  • Kishoreganj economic zone
  • Meghna Economic Zone in Narayanganj
  • Meghna Industrial Economy Zone
  • Mongla Economic Zone in Bagerhat
  • Sreehatta Economic Zone in Moulvibazar

BEZA Executive Chairman said, "Not only 10, but 14 economic zones are now ready for investment." He also said that most of the 10 economic zones mentioned in the update report are in private sector. Apart from these, few industries in the Mongla and in Mirsarai EZ are being built. Moulvibazar and Feni EZ are ready to invest. Overall, fourteen economic zones are ready for investment. BEZA is currently working to prepare 28 economic zones across the country.

Abdul Monem Economic Zone Gazaria, Munshiganj:
Abdul Monem Economic Zone (AMEZ), an economic zone of the private sector, has been built on 142 acres of land in Gazaria, Munshiganj (East side of Daudkandi Meghna-Gomti Bridge). In January 2017 the zone has obtained the final license and investing 10 Crore 20 Lac 30 Thousand US dollars. Honda Japan has already started Motorcycles manufacturing through investment in Abdul Monem Economic Zone. This project is moving forward in a beautiful environment with the assistance of the BEZA. There is electricity, well communication system, gas will connect soon. If the gas-power service is confirmed, investment in this zone will increase further.

Aman Economic Zone in Sonargaon:
Aman Economic Zone has been established on 83 acres of land in Boiddar Bazar area of ​​Sonargaon upazila under Narayanganj. So far 32 Crore 64 lac US$ have been invested in this zone including development costs. The factories type located here includes cement factories, packaging and ship building yard. Now implementation of food processing projects along with cement, packaging and ship building is in progress. If the gas is available then many more investment projects will be started.

Bay Economic Zone in Gazipur:
Bay Economy Zone Limited is a subsidiary of the famous Bay Group in the country. Total land area of this zone is 65 acres and located in Gazipur Sadar Upazila beside the Gazipur-Chandra highway. It got the final license on April 2017. In addition to development costs, total amount of investment in this zone is 8 crore 88 lac and 60 thousand US$. Toy manufacturing factory Meigo (Bangladesh) Limited is China's direct investment in this economic zone. Products produced in this factory are now being exporting.

City Economic Zone in Rupganj:
City Economic Zone Limited, a subsidiary of City Group. It is located on 81.88 acres of land beside the Shitalakkhya River in Rupganj upazila of Narayanganj which is just two kilometers away from Dhaka-Sylhet Highway. So far the investment in this economic zone has reach 67 crore 50 thousand US$.

Karnaphuli Dry Dock Economic Zone in Chattogram:
Karnafuli Dry Dock Special Economic Zone (SEZ) Limited, the first specialized economic zone in the country to build and maintain ships. It obtains the final license in February 2019. In Anowara, Chattogram this zone is being built. This Dry Dock Economic Zone will have one lac capacity deadweight tonnage (DWT) power. The project is expected to attract huge foreign investment, including the development of sea-going ship repairs and construction industries. If it is implemented, it will be possible to earn foreign currency of $ 120 million a year.

Kishoreganj Economic Zone:
BEZA authority awarded the license to Kishoreganj Economic Zone Ltd (KEZ), a concern of Nitol Niloy Group on February, 2019. KEZ received approval as the ninth private economic zone in the country. Total land area for this zone will be 91.63 acres, located in Pakundia upazila near the Bhairab - Kishoreganj Highway. The KEZ is expected to create job opportunity for 15,000 people within the first five years of operation. The Nitol Niloy Group will set up heavy automobile industry in this zone. Besides, a steel manufacturing plant is likely to set up by an Indian group.

Meghna Economic Zone in Narayanganj:
Meghna Economic Zone has grown in 68 acres of land near Meghna ghat of Sonargaon upazila of Narayanganj. Although it was proposed to be in total 245 acres of land. So far the investment in this economic zone has been 93 crore 76 lac 10 thousand US$. At present, there are 10 approved industrial units including paper and pulp industries, chemical plants, pulse and flour mill.

Meghna Industrial Economic Zone:
The Meghna Industrial Economy Zone is another zone established by the Meghna Group in Sonargaon of Narayanganj district. Total land area for this zone is about 76 acres and already 29 Crore 90 lac US$ has been invested. There will be employment opportunity for 7,000 people in this zone. In the meantime, production of beverage, steel, cement, paper bags etc has been started here.

Mongla Economic Zone in Bagerhat:
Mongla Economic Zone has been established on 205 acres of land near Mongla seaport and Mongla EPZ in Mongla upazila under Bagerhat district. Power Pack Economic Zone Private Limited, a subsidiary of Sikder Group, is responsible for the development and management of this zone. BEZA has already completed the construction of roads, bridges, water supply lines, power sub-stations and administrative buildings which costs at least BDT 50 crore. Development work of some link roads inside the zone has been started.

Sreehatta Economic Zone in Moulvibazar:
Another economic zone prepared for investment is the Shreehatta Economic Zone with a total 352 acres of land in Sherpur, Moulvibazar Sadar upazila. Sylhet is located on the east of the zone, Habiganj is on the west, Sunamganj is on the north and Moulvibazar district on the south. In this economic zone, six industrial establishments have been allotted 231 acres of land. They have planned to invest around US$ 1.4 billion in this zone.

Even though some zones are ready for investment but physical infrastructure development in some areas has not yet been fully established. However, electricity connections were found and it should remain uninterrupted. Gas availability must be confirmed in the zones. Some old industrial areas have been converted to economic zones.

The economic zones which are in fact ready for investment, where all facilities like gas, electricity, infrastructure, communication etc must be ensure with priorities. If these economic zones can be fully activated, it will be possible to attract more investment which will help to achieve the goals of Bangladesh.


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Sunday, April 7, 2019

API Industrial Park will boost up Bangladesh Medicine Industry



Recently, Bangladesh has made a tremendous expansion in the world's medicine market. The developed world never gave medicine to warped Bangladesh after 1971 once, but now drugs from Bangladesh is exporting to around 160 countries in the world after meeting its own demand which is around 98 percent. Now, like the RMG industry, the medicine industry of Bangladesh is being wiped out in Europe and America market.

During the post-independence period, we have seen the frustrating situation of the country in every sector including medicine. Capsule cells and ingredients powder was imported separately from and after filling up, it was sold inside the country. That time the situation was really dangerous. The capsules were made in the house and people took these drugs.

From that situation, now the medicines of Bangladesh have been elevated to such a stage that drugs and medicines made in Bangladesh are exporting to different countries around the world. At present in 48 countries of the world, Bangladesh is leading in the pharmaceutical products. Currently, 24,000 brand drugs are being produced in 257 Pharmaceuticals companies in Bangladesh.

These factories are manufacturing medicines and raw materials worth of more than BDT 25,000 Crore per year. There are about two Lac people are working in this industry. The Active Pharmaceutical Ingredients (API) Industrial Park will be launched in next year to make this advancement faster. To establish an environmentally suitable Industrial Park for Active Pharmaceutical Ingredients, the project is being implemented on 200 acres of land beside Dhaka – Chittagong National Highway (N1) in Baushia, Gajaria, Munshigonj.

There will be 42 number of plots in which Pharmaceutical Ingredients Manufacturing Industrial units will be set up. About 25,000 people will get employment opportunities in the project. All infrastructural facilities including Common Effluent Treatment Plant (CETP) and waste Dumping Yard will be available in this zone.



According to the Export Promotion Bureau (EPB) statistics, presently 46 companies exporting 300 types of medicines and to the world market. Now Bangladesh is dreaming of earning billions of dollars foreign remittance from the world medicine market.

The doors of new possibilities have been opened in the pharmaceutical industry. Medicines discount for Least Development Countries (LDC) increased for more 17 years. Bangladesh's Medicine Industry has got a merit discount till 2033. However, the present world market of medicine is around of 1000 billion US dollars. IQVIA, a multinational company based in United States is doing health-related information technology and clinical research. They conducted a survey on 204 approved pharmaceutical company’s drugs and their sells.

According to the survey of IQVIA, in 2018 the size of the drug market of Bangladesh has increased to BDT 20,512 Crore. From 2014 to 2018, the market's annual growth was 16.15 percent. The country's drug market is growing at an annual rate of 16.50 percent which is really amazing. The size of this market has crossed BDT 20,000 Crore in 2018, and 68 percent of this market is controlling by top 10 medicine companies. Most selling drugs on the market are antibiotics. Antibiotics are among the highest-selling medicines.

According to the Department of Drug Administration, in the last few years the export of medicines from the country has increased significantly. In 2011, the export was only BDT 426 crore. In the financial year 2017-18, export earnings were around US$ 10.44 Crore which is 16.03 percent more than the previous year. In 1982, the size of medicine industry in Bangladesh was BDT 170 crores only. In 2016, only the drug market in Bangladesh was BDT 15,600 Crores.

According to BSCIC, the work of setting up the country's first drug industry Park Activated Pharmaceutical Engineering (API) will be ending in 2020. This will meet the 100% demand of the country’s medicines. The country's first API Industrial Park is being established in Gazaria upazila of Munshiganj district, which is situated near the Meghna River and between the roadway of the Daudkandi and Meghna Bridge.


In order to achieve self-sufficiency in the production of raw material for the pharmaceutical industry, the government has taken initiative to establish this industrial park in 2008. To establish a factory here, 27 companies have been allocated from the Pharmaceuticals Industry Owners Association. The price of land per acre has been fixed at BDT one crore. Most of the owners have already paid a portion of the price of the plot allocated.


The country's pharmaceuticals industries will be able to start work in this zone within next two years.

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Tuesday, March 26, 2019

Matarbari Deep Seaport and Power Hub


The Japan International Cooperation Agency (JICA) is an official agency that coordinates Official Development Assistance for Japan government. JICA is chartered with assisting economic and social growth in developing countries, and the promotion of international cooperation. On 21st March 2019 JICA has presented a presentation on Moheshkhali - Matarbari integrated infrastructure development proposal at Prime Minister’s office. Prime Minister Sheikh Hasina said that she has taken initiative to develop the Matarbari - Moheshkhali integrated area in Singapore model.

The industries and factories will be built around the proposed power and energy hub in Matarbari. She is eager to build a modern world-class Deep Seaport at Matarbari. JICA said in its presentation that the deep seaport they are offering to build in Matarbari will be 18.7 meter in draft. By 2024 they will finish the first phase of the proposed deep seaport.

The economic zone in that area will be beside the LNG terminal which will be constructing to meet the energy needs. With the establishment of the Dhaka-Chittagong National Highway N-1 and the Railway track, direct communication between Chittagong and Cox's Bazar will be established with Matarbari.


JICA has proposed to build a long-term power and energy hub around Matarbari deep seaport region at the end of 2041, According to their plan:
  • Investment of about 20 billion US dollars will be required for the integrated development projects of Maheshkhali - Matarbari. JICA offered nearly half of the amount which is $ 10, 240 million in credit support. In local currencies the amount is about 86 thousand Crore BDT.
  • The master plan of Maheshkhali - Matarbari will be implemented in three phases.
  • The first phase will be built by the year 2024 with a 1200 MW coal based Ultra Super Critical Coal Power plant, a Coal Jetty and Harbor.
  • In the second phase by 2031, the port will be expanded and will build for the purpose of deep seaport and the LNG Terminal will build.
  • In the third phase, special economic zones will be built by 2041, basic energy related industries, and planned infrastructure for planned urbanization will be built also in these area.
  • Power plant of total 21,700 MW electricity will be available from the power hub.
  • The LNG terminal with capacity of 3,500 MMCFD will be developed.
  • Extending the port-based economic zones, the heavy and petrochemical industries will be set up.
  • At the end of the 3rd phase of 2041, Matarbari deep seaport will be able to handle about 4.8 million TEUS container, which will be almost double of container handling capability in the Chittagong seaport.











In a meeting on the progress of coordinated development activities of Maheshkhali-Matarbari held on Thursday, 21st March 2019, JICA highlighted this information to Prime Minister Sheikh Hasina.

In existing Chittagong seaport 9 Meter draft ships can berth and in Mongla port 7 Meter drafts ships can berth. The proposed Payra sea port will be able to handle ships with 14 meter drafts. The Matarbari deep sea port will be 18.7 meter draft. There are only two deep seaports with this 18 meter drafts facility in the world, one of them in Sri Lanka and the other in Dubai. With this 18 meter drafting facility container ship that contain around one lac container will be able to berth in Matarbari Deep Seaport.

The project to build 1200 MW coal based power plant at Matarbari area funded by Japan, is based on the foundation for deep seaport construction. According to the demand of this coal-based power plant, there will be construction of jetties and harbors for large quantities of coal handling. The liquid natural gas (LNG) terminal will be developed in this area. Special economic zones will be set up for industries to attract domestic and foreign investment. Besides, tourist spots will be developed for tourists.

A planned city with all types of facilities will be developed for the officers, employees and workers. The relevant localities will get from the established infrastructure development where there will be all facilities available with modern education and healthcare services etc. Highway and railway links will be established which will be connected to Dhaka directly from Cox's Bazar to Chittagong. And in this master plan the goal is to building Maheshkhali - Matarbari integrated area as the focal point of the industrial growth belt (Big B Initiative) that is surrounded by the Bay of Bengal, Bangladesh, India, Myanmar and China.

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Sunday, October 28, 2018

BEPZA's own Economic Zone in Mirsarai Chittagong


Bangladesh Export Processing Zone Authority (BEPZA) is going to establish and Economic Zone (EZ) in Mirsarai, Chittagong. This zone will be one of the important among all the Economic Zones of Bangladesh. On 18th May 2017 BEPZA, BEZA and Chief Co-coordinator (SDG Affairs) of Prime Minister’s Office signed a Memorandum of Understanding (MoU). The BEPZA Economic Zone has started its journey through the signing.

BEZA (Bangladesh Economic Zone Authority) allocated 1150 acres of land to BEPZA for setting up this economic zone in Mirsarai, Chattogram. Number of industrial plots in this zone will be 850. Approximate investment amount in the economic zone will be around 4.5 billion US$ and it will create employment opportunities for around 5 Lac peoples. BEPZA is already a brand for local or foreign investors; the BEPZA EZ will be one of the important attractive zones to all the investors.


This economic zone will be able to achieve good reputations, efficiency in home and abroad since BEPZA is very expertise in setting up industrial zones, its development and operation. BEPZA is marching ahead successfully and set a unique example in attracting investment in the country for others to emulate. At present there are total eight Export Processing Zones located various areas in the country which are already been famed as Bonanza for the Investment. During the last 2009-16 period, BEPZA has attained US$ 2667.60 million investment in growth of 179.19%. Total export earned US$ 38330.99 with growth of 216.57% and generated employment facility for 2,55,118 peoples of growth 123.29%.

The Government of Bangladesh has planned to establish 100 public and private economic zones across the country which is a new concept of investment. BEZA aims to establish economic zones in all the potential areas in Bangladesh including backward and underdeveloped regions. The BEZA (Bangladesh Economic Zone Authority) is attached with the Prime Minister’s Office (PMO) and is mandated to establish, license, operate, manage and control economic zones in Bangladesh.


Due to scarcity of land in all the EPZs located in Dhaka and Chittagong, it became very difficult to allot new industrial plots to the local and foreign investors. This problem will be solved and it will be possible to allocate plots to the potential Investors of BEPZA in Chittagong area. Moreover the professionalism and experience of BEPZA will expedite the development and maintenance of this Economic Zone.

BEPZA is also playing an important and excellent role in women empowerment and socio-economic development and progress. Till April 2017 around 4,63,000 Bangladeshi nationals are working in the 462 operational enterprises of eight EPZ in the country and among them 64% are female. In the last fiscal year, the all the Export Processing Zone gained US$ 404.36 million investment and exported goods worth US$ 6676.32 million. BEPZA is relentlessly working to increase and diversification of export, generation of employment by attracting investment in the country.



There will be smart road connectivity from Dhaka-Chittagong national highway to the BEPZA Economic Zone. The zone area is 65 KMs away from Chittagong / Chattogram Sea Port, 70 KMS away from Chittagong EPZ (CEPZ), 77 KMs from Chittagong International Airport and 199 KMs from Dhaka city.

Bangladesh Export Processing Zones Authority (BEPZA):
BEPZA COMPLEX, HOUSE: 19/D, ROAD: 6 
DHANMONDI R/A, DHAKA, BANGLADESH
Phone: +88-02-9670530, 9675489, 9675410, 9672969
PABX: +880 2 9613459, 9613467, 9613462
Fax: +880 2 9661849, 9673020, 9665545
Email: chairman@bepza.org / chairman@bepza.gov.bd 
member-ip@bepza.org / member.ip@bepza.gov.bd
gm-ip@bepza.org / gm.ip@bepza.gov.bd
gm-pr@bepza.org / gm.pr@bepza.gov.bd

Bangladesh Economic Zones Authority (BEZA):
Level 12, Monem Business District
111, Bir Uttam C.R. Dutta Road
Karwanbazar, Dhaka-1205, Bangladesh
Phone: +88-02-9632482

BEPZA Economic Zone Site (BEPZA EZ):
Mirsarai, Chattogram
Phone: +88-02-9665326
Fax: +880-02-9663020
Email: pd.ez@bepza.gov.bd

For more information please visit the official website of BEZA and BEPZA.

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Tuesday, October 2, 2018

EPZ in Bangladesh | Facilities and Incentives for Investors


Types of Investors: Classification of the local and foreign Investors in all the EPZs (Export Processing Zone) of Bangladesh are as per the policy of BEPZA are:

  • Type A: 100 percent foreign owned including Bangladesh nationals ordinarily resident abroad
  • Type B: Joint venture between Foreign and Bangladeshi resident entrepreneurs
  • Type C: 100 percent Bangladesh entrepreneurs resident in Bangladesh

Facilities and Incentives:
The authority provides various facilities and incentives for the investors in the EPZs. Below are some details of the list of Incentives & Facilities for the investors:

Fiscal Incentives:
  • Duty free import of construction materials
  • Duty free import of machinery, office equipment & spare parts etc
  • Duty free import and export of raw materials and finished goods
  • Relief from double taxation
  • Exemption from dividend tax
  • GSP facility available
  • Accelerated depreciation on machinery or plant allowed
  • Remittance of royalty, technical and consultancy fees allowed
  • Duty & quota free access to EU, Canada, Norway, Australia etc
  • 10 years tax holiday for the Industries to be established before 1st January, 2012
Duration and rate of tax exemption for Mongla, Ishwardi & Uttara EPZ for the industries set up after January 01, 2012 is as follows:
  • First 03 years (1st, 2nd and 3rd year): 100 percent
  • Next 03 years (4th, 5th and 6th year): 50 percent
  • Next 01 year (7th year): 25 percent

Duration and rate of tax exemption for Chittagong, Dhaka, Comilla, Adamjee & Karnaphuli EPZ for the industries set up after January 01, 2012:

  • First 02 years (1st and 2nd year): 100 percent
  • Next 02 years (3rd and 4th year): 50 percent
  • Next 01 year (5th year): 25 percent

Non-Fiscal Incentives:
  • 100% foreign ownership permissible
  • Enjoy MFN (most favored nation) status
  • Foreign Currency loan from abroad under direct automatic route
  • Full repatriation of capital & dividend
  • No ceiling on foreign and local investment
  • Non-resident Foreign Currency Deposit (NFCD) Account permitted
  • Operation of FC account by 'B' and 'C' type Industries allowed

Facilities:
  • 10% sale to DTA (Domestic Tariff Area)
  • Accords Resident-ship and Citizenship
  • Back to Back L/C
  • Customs clearance at factory site
  • Import and Export on CM basis allowed
  • Import from DTA (Domestic Tariff Area)
  • Import on Documentary Acceptance (DA) basic allowed
  • No UD, IRC, ERC and renewal of Bond license
  • Off-Shore banking available
  • One Window same day service and simplified procedure
  • Relocation of foreign industries allowed
  • Secured and protected bonded area
  • Simplified sanction procedure
  • Sub-contracting with export oriented Industries inside and outside EPZ allowed
  • Work permits issued by BEPZA

Infrastructure:
  • Basic Infrastructure: Water, Electricity and Gas
  • Fully serviced plots available
  • Factory building available on rental basis
  • Enclave for workers Dormitory & Day Care Centre
  • Warehouse / Godown available

Support Services:
  • Business: Courier, Post office, Bank, C&F Agent, Shipping Agent, MTO etc.
  • Administrative: Customs Office, Police Station, In-house Security, Fire Station, Public Transport, Medical Centre etc.
  • Others: Restaurant, Health Club, Investors Club, Recreation Centre, School and College, Sports Complex, Exclusive Telephone Exchange, Electricity Sub Station, Business Centre, Anglers Club etc.

Off-Shore Banking Units:
Foreign investors do not have the opportunity of availing credit facilities from the Different Financial Institutions (DFI) of Bangladesh. In order to cater the need of financial support off-shore Banking facilities is being provided to the foreign owned / Joint venture unit in the EPZ’s of Bangladesh. Presently Foreign Banks in Bangladesh have licentiates for doing off-shore banking:
  • Citi N.A. Bank Ltd.
  • Commercial Bank of Ceylon
  • Dutch-Bangla Bank Ltd.
  • HSBC Ltd.
  • Standard Charter Bank Ltd.
  • State Bank of India
  • Woori Bank Ltd.

Apart from that local bank of Bangladesh also provide off-shore banking like:
  • AB Bank Limited
  • Bank Asia Ltd.
  • BRAC Bank Ltd.
  • Dhaka Bank Ltd.
  • Eastern Bank Ltd. (EBL).
  • IFIC Bank Limited
  • Islami Bank Bangladesh Ltd.
  • Jamuna Bank Ltd.
  • Mercantile Bank Ltd.
  • Mutual Trust Bank Ltd.
  • National Bank Ltd.
  • National Credit and Commerce (NCC) Bank Ltd.
  • One Bank Ltd.
  • Prime Bank Ltd.
  • Pubali Bank Ltd.
  • Shahjalal Islami Bank Ltd.
  • South-East Bank Ltd.
  • Standard Bank Ltd.
  • The City Bank Ltd.
  • The Premier Bank Ltd.
  • Trust Bank Limited
  • United Commercial Bank Ltd.