Export Diversification and Role of Export Processing Zones in Bangladeshg g

Presentation By

A Z M AZIZUR RAHMAN

BANGLADESH EXPORT PROCESSING ZONES AUTHORITY (BEPZA)

General Manager (Investment Promotion)

1

( )

PRIME MINISTER’S OFFICE

Mission Of BEPZA

TO STRENGTHEN THE ECONOMIC BASE OF BANGLADESH BY:

PROMOTING INVESTMENT &

GENERATION OF EMPLOYMENTGENERATION OF EMPLOYMENT

2

Objectives Of BEPZA

PROMOTION OF FOREIGN (FDI) & LOCAL INVESTMENTEMPLOYMENT GENERATION TRANSFER OF TECHNOLOGYDEV. OF BACKWARD & FORWARD LINKAGESPROMOTION OF EXPORT

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EPZs Of Bangladesh

INDIA

UTTARAUTTARA-- EPZEPZDHAKADHAKA-- EPZEPZ

COMILLACOMILLA--EPZEPZISHWARDIISHWARDI-- EPZEPZ

INDIAADAMJEEADAMJEE--EPZEPZ

INDIA CHITTAGONGCHITTAGONG--EPZEPZ

MYANMARBAY OF BENGAL

MONGLAMONGLA--EPZEPZ

4KARNAPHULI-EPZ

To diversify export products Export Policy 2009-2012 identified the following products as :

Highest Priority Sector : a) Agro-products & Agro-processing products ;b) Light engineering products (Including Auto-parts &

Bi lBicycles ;c) Oceangoing Ship buildingd) Ph ti l d td) Pharmaceutical products ;e) Software & ICT products ; andf) Home textilesf) Home textiles.g) Footwear & Leather Products ;h) Toiletriesh) Toiletries

To diversify export products Export Policy 2009-2012 identified the following products as :

Special Development Sector :(a) Crust and Finished leather;(b) Frozen fish production & processing ;(c) Handicraft items ;(d) El t i d El t i d t (d) Electric and Electronic products ;(e) Fresh flowers & foliage ;(f) Jute and jute goods products ;(f) Jute and jute goods products ;(g) Hand-woven textile from hill areas (Pahari Tant bostro) ;(h) Diamond cutting & polishing;( ) g p g;(i) Herbal medicine & Medicinal plants; (j) Ceramic and Melamine products. (k) Plastic products; and(l) Furniture industries.

Diversified export items from EPZs

Garments Accessories TextileTent / Tent Accessories

Bag/ Luggage/ Thermal bagWater Treatment PlantsSleeping Bag and Camping Furniture

Electrical equipment and componentsLED lamp and Selection ButtonF it

Camping Furniture Electronic productsGolf shaftWig and fashion hair

Furniture Bi-cycleEnergy saving lightsCosmetic and Hollywood mask

gJute productsCosmetics and Hollywood mask

Cosmetic and Hollywood maskOptical goodsAutomobile Parts for Nissan, Toyota, Hino

Energy saving bulbsMetal productsPower Generation Toys

Engineering products Leather products and Footwear Battery C & l

Toys Eye –glass and Frame Carpet Chopsticks

Camera & camera lens Mobile Parts Gold and diamond jewelery

pBamboo made CoffinEffluent Treatment Plants

Trend in Export Trade(Product & market wise)

1972-73 2009-20101972 73 2009 2010No. of Products 25 176No of Markets 68 217No. of Markets 68 217

Export value 348 Mln. 16,172 Mln.

Export performance during July 2010- Jun,2011 has achievedUS $ 22924 million.

Regional Export Market Shareg p

S/l no. Region Market share

01 European Union (E-U) 52.3%

02. American Region 33.3%Region

03. Asian Region 8.8%

04 Middle East 2 5%04. Region 2.5%

05. African Region 0.6%

06 Oceania Region 0 3%06. Oceania Region 0.3%

07. East European Region 0.3%

08. Other 1.8%

Source EPB, 2009-2010

Product wise Present Export Scenario

S/l no. Region Market share

Woven01. Woven Garments 37.11%

02. Knitwear 40.01%

03. Frozen Food 2.73%

04. Jute Goods 4.86%

05 Leather 1 40%05. Leather 1.40%

06. Agri Products 1.50%

Engg Produ07. Engg. Products 1.92%

08. Footwear 1.26%09 Other 9 21%09 Other 9.21%

Source EPB, 2009-2010

Trend in Export Trade from EPZs of Bangladesh(Product & market wise)

2010-20112010 2011No. of Products 150No of Markets 120No. of Markets 120

Export value 3698 Mln.

Export target US $ 4.00 billion for 2011-2012.

Product wise Present Export Scenario of EPZs

S/l no. Region Market share

01 Garments 46 93%1% Garments01. Garments 46.93%

02. Textile 27.30

03. Backward linkage 9.35%2%

0%

5%4%

Garments

Textile

Footwear and Leatherd03. Backward linkage 9.35%

04. Tent and camping items 5.42%

Footwear and48%4%

9% goodsBackward linkage

Electric and ElectronicItems

05. Footwear and Leather goods 3.97%

06. Agro Products 0.74Electric and 27%

ItemsFurniture

Tent and camping items

07. Electric and Electronic Items 1.71%

08. Furniture 0.11%09 Other 4 43%

27% Agro products

Others

09 Other 4.43%

Source EPB, 2010

Export from EPZsYEAR EXP ($m)1994-1995 228.261995-1996 337.021996-1997 462.77

99 998 636 01997-1998 636.051998-1999 711.691999-2000 890.812000 2001 1067 872000-2001 1067.872001-2002 1077.022002-2003 1200.002003 2004 1354 002003-2004 1354.002004-2005 1548.682005-2006 1836.182006 2007 2063 672006-2007 2063.672007-2008 2429.582008-2009 2581.702009 2010 2822 54

13TOTAL EXPORT: US$26,844.64 m

2009-2010 2822.542010-2011 3697.622011-2012(Oct, 11)

1409.75

YEAR TOTAL EXPORT OF BANGLADESH

TOTAL EXPORT OF EPZs

BEPZA’s CONTRIBUTION (%)

BEPZA’s Contribution To National Export

BANGLADESH (US$m)

OF EPZs (US$m)

CONTRIBUTION (%)

1994-1995 3473 228 6.56

1995-1996 3882 337 8 681995-1996 3882 337 8.68

1996-1997 4418 463 10.48

1997-1998 5161 636 12.32

1998-1999 5313 712 13.40

1999-2000 5752 891 15.49

2000-2001 6467 1068 16.51

2001-2002 5986 1077 18.00

2002-2003 6548 1200 18.33

2003-2004 7603 1354 17.80

2004-2005 8655 1549 17.90

2005-2006 10526 1836 17.44

2006-2007 12178 2064 17.00

2007-2008 14111 2429 17.22

2008 2009 15560 2582 16 60

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2008-2009 15560 2582 16.60

2009-2010 16250 2822 17.36

2010-2011 22924 3698 16.13

Global economic recessionChallenges

Scarcity of land/ plots in the strategic location as perinvestors requirements.Gas and electricity supplyStrategic location of Industrial enclaves.Shortage of training institutions for upgrading skills of workers/ management staff.

Establishment of airport in some area.Lack of harmonious industrial relation management

Setting up water de-saline project/ WTP

Challenges

g p p jSetting up Effluent Treatment PlantActivities of port Lack of skilled manpowerCommunication barrier in terms of languageDifferent location of different service providers.

Recommendations

1. Setting up more industrial Zones :a) Economic Zonesa) Economic Zonesb) Private EPZs) E t P i Zc) Export Processing Zones

d) Industrial Enclaves.2. Improvement of infrastructure and utility facilities3. Diversification of export destinationsp4. Diversification of products

Recommendations

6. Increase GSP facility to other developed countries 7. Duty free access to USA (NPTDA-2009)8. Promote more FDI and local investment 9. Ensure compliance issues 10 Reduction of lead time10. Reduction of lead time11. Establishment of backward linkage industries 12 Encourage diversified investment in Private sector12. Encourage diversified investment in Private sector.13. Setting up skilled development Institute14. Development of communication skill in terms of languagep g g15. Locations of service sector under one window.

Questions & AnswersQuestions & Answers

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