Bangladesh Export Processing Zone - Comilla, Perfrmance of it's export in every year and its evaluation

1. Based on a Study of
Comilla Export Processing Zone
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2. Mr. Md. Abdullah
Assistant Professor
Department of Marketing
Comilla University
Md. Shahadat Hossain Sunny
BBA First Batch
Department of Marketing
Comilla University
Date of submission: July 24, 2011
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3. LETTER OF TRANSMITTAL
July 24, 2011
Md. Abdullah
Assistant Professor
Department of Marketing
Comilla University
Subject: Submission of a Term Paper Report.
Dear Sir
With due regards and respect we state that we are very thankful to you
as you assigned us to prepare this Term Paper on ‘Selling & Sales
Promotion”, which you asked us to prepare it last May 23, 2011. Our
Term Paper topic is- “Performance Evaluation of Export Processing
Zone: A Case Study of Comilla Export Processing Zone”. It is a great
opportunity for us to acquire theoretical and practical knowledge that
would be needed for us to meet today’s challenging job market. We
have tried my best to gather what we believe to be the most complete
information available.
Your kind acceptance and any type of appreciation would surely
inspire us. We would always be available and ready to explain further
any of the context of the whenever you asked.
Sincerely yours
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4. Md. Shahadat Hossain
On behalf of the group
PREFACE
To submit a term paper report is part and parcel of our BBA program.
With a view to shaping human abilities, it is necessary for a human to
amass a practical knowledge with the theoretical exercises. Without
practical knowledge it is difficult for a man to cope himself with a new
environment.
We are the student of BBA, Department of Marketing. Our topic is
“Performance Evaluation of Export Processing Zone: A Case Study of
Comilla Export Processing Zone”. Though it is very difficult to collect all
kinds of information, we have tried our level best to present a real
picture of the scenario of current situation.
In the present competitive arena, only the fittest and qualified business
people will survive. At present, BBA and MBA are very lucrative degree
for the business personnel’s and the submission of the term paper
report is a very important part of the BBA examination. During the
study period, the students get the opportunity to show their theoretical
skill in practical field. If they accomplish it successfully, they will be the
future business talent and play important role in trade, commerce,
industrialization and future economic as well as infrastructure
development of the country. We as the student of Marketing took this
opportunity and attempted to focus the every points of the topic.
This report will provide some recommendation, which we believe our
contribution to take any correct decision. We have given all of our
efforts towards making it a perfect one.
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5. CONTENTS
Page No.
 Abstract………………………………………………………………………
06
 Introduction………………………………………………………………..
06
 Statement of the Problem……………………………………………..07
 Rational of the Study……………………………………………………
07
 Hypotheses of the Study……………………………………………….
07
 Objective of the Study…………………………………………………..08
 Apply the Methodology…………………………………………………08
 Comilla Export Processing Zone……………………………………
09
 Industries are Operated in Comilla EPZ…………………………
10
 Industries in Under Construction………………………………….
11
 Contribution of Comilla EPZ……..………………………………….
11
 Fiscal Year Export of Comilla EPZ………………………………… 13
 Fiscal Year investment of Comilla EPZ…………………………..
13
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6.  Ratio Analysis of Investment and Export……………………….
14
 Conclusion…………………………………………………………………..17
 Academic Research Questionnaire…………………………………18
 Reference…………………………………………………………………….21
Abstract
Export Processing Zone’s are established to attract foreign
capital investment and mobilize investment for capital formation for
rapid industrialization, to create employment opportunities for the
country's manpower, to induce transfer of technology, and to earn
foreign exchange by boosting exports. It plays an important role in
export trade of Bangladesh. We have tried to get proper knowledge
about the performance of Comilla EPZ and its contributions in the
economy of Bangladesh through preparing this report.
Comilla Export Processing Zone is established at the old airport
site in Comilla, near about 4km far from Dhaka-Chittagong National
Highway. There are total 28 foreign, local, and foreign-local jointly
owned companies are operating their production. From starting year of
operation to present year, the amount of investment for
industrialization is increasing with a large number and also the
amount of export from Comilla EPZ has been increased in a big
amount in every year. It plays a great role in the economy and foreign
earnings of Bangladesh.
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7. Introduction
Export Processing Zone (EPZ) is a response to international
market demand for cheaper goods. It addresses the national problems
like growing trade gap, high unemployment, and dearth of capital
investment, shortage of foreign currency and lack of technical
knowledge.
As special industrial parks EPZs are located in areas with
advantages in terms of communication and access to raw materials and
industrial labor. The manifest objectives of EPZs are established to
attract foreign capital investment and mobilize investment for capital
formation for rapid industrialization, to create employment
opportunities for the country's manpower, to induce transfer of
technology, and to earn foreign exchange by boosting exports.
Statement of the Problem
The amount of export of Bangladesh had decreased in last some
years because of world recession. As a result the amount of foreign
investment also decreases. Export Processing Zone plays an important
role in export trade of Bangladesh. At present Export Processing Zone
is facing some problems; such as-
 Because of decreasing the export, productivity of the EPZ’s also
decreases.
 As foreign investment has been decrease, the success of EPZ is
hampered.
 The contribution of EPZ’s in the economy of Bangladesh is not
hopeful.
Rational of the Study
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8. It is expected that the result will be an interesting one. The
findings of the study will help to identify the present scenario and the
level of performance of Comilla Export Processing Zone.
We are going to complete our BBA program. Just after
completing this we have to search for job, as it is business related issue
so it will help to get a good job in export oriented business
organizations. So we have tried to get proper knowledge about the
performance of Comilla EPZ and its contributions in the economy of
Bangladesh through preparing this report.
Hypotheses of the Study
The following hypotheses are formulated in relation to the research
of The Performance Evaluation of Comilla Export Processing Zone.
H1 : The growth of Comilla Export Processing Zone is in progress.
H2 : Comilla EPZ is playing a strong positive role in the economic
contribution of Bangladesh.
These hypotheses guided the research by ensuring various
measuring knowledge.
Objective of the Study
Stating some proper objectives is half done of any successful
task. As the study is an integral part of academic curriculum, its main
objective is to evaluate the performance of Comilla Export Processing
Zone in the economy of Bangladesh. The specific objectives of the
study are given below:
1. To evaluate the performance of Comilla Export Processing Zone.
2. To analyze the role of location, labor and other facilities of
Comilla EPZ in the economy.
3. To know about the contribution of Comilla EPZ in export.
4. To discover the prospects related to the future of Comilla EPZ.
5. To provide some suggestions to improve the overall contribution
in economic development of Bangladesh.
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9. Apply the Methodology
For smooth and accurate study every one has to follow some
rules and regulations. Actually we have conducted a survey by applying
questionnaire method.
Source of Data:
a) Primary data collected through: -
1. Questionnaire.
2. Observation.
3. Personal Interview.
b) Secondary data collected from: -
1. Internet
2. Statistics on Comilla EPZ.
3. BEPZA’s Web site.
4. Newspapers
Questionnaire design:
As the questionnaire is the heart of the survey the researcher
would give his best effort to construct the questionnaire to reflect the
objective of the study. We prepare a questionnaire by using five points
multiple choice questions.
Analysis techniques:
After getting all raw data collected, both theoretical and
numerical techniques have used to analyze data. We used some table of
analysis to prepare this report.
Performance Evaluation of Export Processing
Zone:
A Case Study of Comilla Export Processing Zone
Comilla Export Processing Zone:
Comilla Export Processing Zone (COMEPZ) is established at the
old airport site in Comilla. The site is located about 4km from the
Dhaka-Chittagong National Highway. The total area currently under
development is 267.46 acres.
The profile of Comilla Export Processing Zone is given below.
Location:
Comilla old airport area.
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10. 167 kilometers from Chittagong port, 97 kilometers from Dhaka, and 4
kilometers from Dhaka-Chittagong national highway.
Profile of Zone:
Zone area: 108.28 hectares (267.46 acres)
Number of industrial plots: 211
Size of each plot: 2000 square meters.
Tariff: US $ 2.20 / square meters / year.
Space of Standard Factory Building: 27000 square meters.
Tariff: US $ 2.75 / square meters /month.
Utility Services:
Water Supply: Own water supply system.
Tariff: Taka. 18.47 / cu-m.
Gas Supply: From Bakhrabad Gas system Ltd.
Tariff: Taka. 5.76 / cu-m.
Power Supply: 11 kilovolt, 3 phases, 50 cycles / sec.
Tariff: Taka. 4.18 / kilowatt.
(Utilities will be charged at the current rate of US $)
Contract Address:
Comilla Export Processing Zone, Airport Area,
Comilla, Bangladesh.
Phone: +88 081 77055
Fax: +88 081 77056
Industries are Operated in Comilla EPZ:
In Comilla Export Processing Zone, in total 28 foreign, local, and
foreign-local jointly owned companies are operating their production.
A list of these companies according to the category is given below in
the table.
Sl. No. Name of Company Type Product
01 Blossom Textiles Ltd. A Sweater
02 Yogotex Fabrics Co. Ltd. A Denim Fabric
03 Nor-Pearl Knitwear Ltd. A Garments
Electrical
04 Seiko Precision Parts (BD) Ltd. A
Equipments
05 Whitex Garments (BD) Pvt. Ltd. A Garments
06 Xin Chang Shoes (BD) Ltd. A Footwear
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11. 07 Shepherd Asia Zipper Ltd. A Zipper
08
Ea-Chen Textile Corporation A Interlinings
Ltd.
09 Golden Moon (Bangladesh) Ltd. A Footwear
10 Kadena Sportwear Ltd. A Garments
11 Hun Hsin Textile Co. (BD) Ltd. A Dyed Yarn
12 Yongtai Industries (BD) Ltd. B Sweater
13 R N Spinning Mills Ltd. B Synthetic Yarn
14 Nassa Taipei denims Ltd. B Denim Fabric
15 Nassa Spinning Ltd. B Cotton Yarn
16 Nassa Spinners Ltd. B Polyester Yarn
17 Green Star International Ltd. B All type of Bag
18 FAR Chemical Industries Ltd. B Textile Dyes
19 TM Chemicals Ltd. B Textile Dyes
Plastic Sheet of
20 B. Plastic Industries. C Polymer of Ethylene
& Poly bag
21 Speed Plus Manufacturing Co. Ltd. C Poly bag
Plastic Sheet of
22 Shahjalal Poly Industries Ltd. C
Polymer of Ethylene
Plastic Sheet of
23 REL Plastic Recycling Ltd. C
Polymer of Ethylene
24 Royal Denim Ltd. C Denim Fabric
25 Enzychim Iberica (BD) Ltd. C Textile Dyes
26 Tubingen Chemicals (BD) Ltd. C Textile Dyes
27 Sigma Engineers Ltd. C Treated Water
28 Etasia Interlinings Ltd. C Interlinings
Industries in Under Construction:
Some industries are under in construction to start the
production. Hope these industries will start operating in Comilla
Export Processing Zone.
Sl. No. Name of Company Type Product
01 M/s. Arvind Textile Mills Ltd. A Garments
02 M/s. Eusebio Textile (BD) Ltd. A Textile
03 M/s. BMT International Ltd. A Garments
M/s. Bangladesh Textile &
04 A Textile
Chemical Fibre Industry Ltd.
05 M/s. Italia Knitworks Ltd. A Garments
06 M/s. CAT Garment Co. Ltd. A Garments
07 M/s. Eastport Ltd. A Garments
08 M/s. J B Networks Ltd. B Chopsticks
09 M/s. Vihrea Com Ltd. C Garments
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12. Contribution of Comilla Export Processing Zone:
Comilla Export Processing Zone has big contributions in various
fields. Among them, most important contributing fields are given below.
 Opportunity of Employment:
Comilla EPZ creates an opportunity for the large number of
employment in Comilla. Now near about 5500 workers are working in
Comilla EPZ. It removes unemployment and it will create lot of
employment opportunities in the future.
 Development of Related Business:
A lot of EPZ related business is developed in Comilla with the
setup of the EPZ. A lot of Transport agencies are developed to transport
the exported goods. Some logistics, such as DHL, TNT Express, SWIFT
Logistics are setup business in Comilla. Some banks and insurance
service companies are opened their branch in the EPZ area.
 Economic Development:
Comilla EPZ helps to remove poverty of the various poor peoples
who were lived below the poverty line. These people are now
economically developed by working in Comilla EPZ. Side by side
Comilla EPZ contributes in the economic development of Comilla.
 Infrastructure Development:
By setting up EPZ in Comilla, the infrastructure is developed. It
improve the communication and transportation facility in the old
airport area of Comilla, it increase the location and land value of the
EPZ area.
 Industrialization in Comilla:
After setup of Comilla EPZ, there is a lot of industrialization over
the Comilla district. In last few years, a lot of industries are setup in
Comilla. So it impacts in the industrialization in Comilla.
 Increase Export Earnings:
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13. In every year Comilla Export Processing Zone exports a large
number of produced goods in the foreign countries. EPZs are the
important source of export earnings. It contributes in the increase of
export earnings.
 Balance of Trade:
Every year, Bangladesh faces a big gap in the balance of trade.
Bangladesh imports in a large number and exports limited number of
goods. Export processing zones helps to minimize the balance of trade.
 Earning Foreign Currency:
EPZs are a big and important sector of earning foreign currency.
Comilla EPZ plays a very important role in the earning of foreign
currency every year. The foreign earnings of Comilla EPZ is increasing
every year.
 Balance of Payment:
For the large number of commodity imports with limited
exports, Bangladesh has to pay a lot of foreign currency for the more
amounts of exports than imports. So it creates a big gap in the balance
of payment. EPZ plays a strong positive role to meet the balance of
payment.
So, Comilla Export Processing Zone has a big contribution in the every
sector of Comilla also in Bangladesh.
Fiscal Year Investment of Comilla EPZ:
Comilla Export Processing Zone starts its operation in 2001.
From 2001 to the present year, the amount of investment is increasing
with a large number. The amount of investment in Comilla Export
Processing Zone from fiscal year 2001-02 to 2010-11 is given below.
Year Investment (US$ in million) in Comilla EPZ
2001- 02 0.64
2002- 03 1.05
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14. 2003- 04 9.03
2004- 05 19.59
2005- 06 10.62
2006- 07 21.02
2007- 08 9.72
2008- 09 8.20
2009- 10 20.44
2010- 11 36.26
Fiscal Year Export of Comilla EPZ:
In every year, the amount of export from Comilla Export
Processing Zone has been increased in a big amount. In the following
chart we can see before 5 year, in the fiscal year 2006-07, the export
amount was $46.01 million. In last fiscal year 2010-2011, the export
amount was $145.47 million. So, the export increases more than three
times with in the 5 years.
Year Export (US$ in million) from Comilla EPZ
2001- 02 0.01
2002- 03 1.15
2003- 04 4.10
2004- 05 9.66
2005- 06 34.99
2006- 07 46.01
2007- 08 131.38
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15. 2008- 09 95.85
2009- 10 95.35
2010- 11 145.47
Ratio Analysis of Investment and Export:
To evaluate the performance of Comilla Export Processing Zone,
We have to use some ratio analysis, such as- the return of investment,
the changing rate of investment, and the changing rate of export. From
the results of this analysis, we can reach in a decision about the
performance of Comilla EPZ, and we can prove the hypotheses.
Return on Investment:
This ratio analysis formula measures the rate of return by
exports by the investment in each year. By dividing the amount of
exports in a year with the amount of investment of that year, we can
get the return on investment of that year.
NetExport
Return on Investment =
NetInvestment
Now the returns on Investment in last 5 years are calculated below.
46.01
In 2006-07, Return on Investment =
21.02
= 2.19
131.38
In 2007-08, Return on Investment =
9.72
= 13.51
95.85
In 2008-09, Return on Investment =
8.20
= 11.69
95.35
In 2009-10, Return on Investment =
20.44
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16. = 4.66
145.47
In 2010-11, Return on Investment =
36.26
= 4.01
So, it can be said that the return on investment in Comilla EPZ is
in good condition and the return rate is effective on investment.
Changing Rate of Investment:
This ratio analysis formula measures the increasing or
decreasing rate of investment in each year. By dividing the
difference amount of investment of two years with the amount of
investment of the previous year, we can get the changing rate of
investment in that year.
Changing Rate of Investment,
InvestmentofCurrentYear − Investmentof Pr eviousYear
= Investmentof Pr eviousYear
 100
Now the changing rates of Investment in last 5 years are calculated
below.
21.02 −10.62
In 2006-07, Changing Rate of Investment =  100
10.62
= 97.93%
9.72 − 21.02
In 2007-08, Changing Rate of Investment =  100
21.02
= - 53.76%
8.20 −9.72
In 2008-09, Changing Rate of Investment =  100
9.72
= - 15.64%
20.44 −8.20
In 2009-10, Changing Rate of Investment =  100
8.20
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17. = 149.27%
36.26 − 20.44
In 2010-11, Changing Rate of Investment =  100
20.44
= 77.40%
From the analysis, we can say the changing rate of investment is
positive in maximum previous years and the investment is increases
every year in Comilla Export Processing Zone.
Changing Rate of Export:
This ratio analysis formula measures the increasing or
decreasing rate of export in each year. By dividing the difference
amount of export of two years with the amount of export of the
previous year, we can get the changing rate of export in that year.
Changing Rate of Export,
ExportofCurrentYear − Exportof Pr eviousYear
= Exportof Pr eviousYear
 100
Now the changing rates of Export in last 5 years are calculated below.
46.01 − 34.99
In 2006-07, Changing Rate of Export =  100
34.99
= 31.50%
131.38 − 46.01
In 2007-08, Changing Rate of Export =  100
46.01
= 185.55%
95.85 −131.38
In 2008-09, Changing Rate of Export =  100
131.38
= - 27.04%
95.35 − 95.85
In 2009-10, Changing Rate of Export =  100
95.85
= - .52%
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18. 145.47 − 95.35
In 2010-11, Changing Rate of Export =  100
95.35
= 52.56%
After the analysis, we can say that the changing rate of export in
Comilla Export Processing Zone is positive in maximum previous years
and the amount of export increases every year in Comilla Export
Processing Zone.
Finally, we can say that the growth of Comilla Export Processing
Zone is in progress and it is increasing rapidly.
Conclusion
After the performance evaluation of Comilla Export Processing
Zone, we reach into the conclusion that, though it is a new Export
Processing Zone in Bangladesh, the amount of investment is increasing
every year and it leads to a rapid growth of export from the Comilla
Export Processing Zone. It contributes in the economic development of
Comilla and also in Bangladesh. So, its performance is increasing and
plays a strong positive role in the export earnings, balance of trade,
earning foreign currency and the economy of Bangladesh.
Appendices
The questionnaire format of our research is given here.
Academic Research Questionnaire
Date: Questionnaire No:
A. Demographic Information
Name of the Company / Organization:
Name of Respondent:
Profession:
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19. Address:
Contact Number:
E-mail:
B. Questions on Performance Evaluation of Comilla Export
Processing Zone.
[Please out your option (use) on the box.]
1. The growth of Comilla Export Processing Zone is in progress.
Strongly Agree Agree Neutral Disagree Strongly Disagree
    
2. Do you think distribution efficiency is major factor to increase the rapid growth
of Comilla EPZ?
Strongly Agree Agree Neutral Disagree Strongly Disagree
    
3. To what extents the facilities of low cost labor influence you to choose this EPZ?
81% − 100% 61% − 80% 41% − 60% 21% − 40% 0% − 20%
    
4. To what extents convenient location influence you to choose this EPZ?
81% − 100% 61% − 80% 41% − 60% 21% − 40% 0% − 20%
    
5. To what extents transportation facilities influence you to choose this EPZ?
81% − 100% 61% − 80% 41% − 60% 21% − 40% 0% − 20%
    
6. To what extents the business environments of Comilla EPZ influence you?
81% − 100% 61% − 80% 41% − 60% 21% − 40% 0% − 20%
    
7. To what extents export - import facilities influence you to choose this EPZ?
81% − 100% 61% − 80% 41% − 60% 21% − 40% 0% − 20%
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20.     
8. Employees of Comilla EPZ authority are willing to help and give prompt
service to manufacturers.
Strongly Agree Agree Neutral Disagree Strongly Disagree
    
9. When you face a problem, Comilla EPZ authority shows sincere & interest in solving it.
Strongly Agree Agree Neutral Disagree Strongly Disagree
    
10. Do you think that the Comilla EPZ authority is able to implement the export-
import policies effectively?
Strongly Agree Agree Neutral Disagree Strongly Disagree
    
11. Are the promotional incentives given from the Comilla EPZ authority satisfied you?
Highly Delighted Satisfied Natural Dissatisfied Highly Dissatisfied
    
12. Are you happy with the performance of Comilla EPZ?
Highly Delighted Satisfied Natural Dissatisfied Highly Dissatisfied
    
13. Are you satisfied by using Comilla Export Processing Zone?
Highly Delighted Satisfied Natural Dissatisfied Highly Dissatisfied
    
14. Comilla EPZ is playing a strong positive role in the economic contribution of
Bangladesh.
Strongly Agree Agree Neutral Disagree Strongly Disagree
    
15. Would you consider Comilla EPZ for next project of your company?
Strongly Agree Agree Neutral Disagree Strongly Disagree
    
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21. 16. Would you recommend others for industrialization in Comilla EPZ?
Strongly Agree Agree Neutral Disagree Strongly Disagree
    
≈ Thanks for Your Support ≈
C. Allocation of points:
Strongly Strongly
Agree/ Agree/ Neutral/ Disagree/ Disagree/
Highly Satisfied/ Natural/ Dissatisfied/ Highly
Delighted/ 61% - 80% 41% - 60% 21% - 40% Dissatisfied/
81% - 100% =4 =3 =2 0% - 20%
=5 =1
Reference
 Mohammad Abdul Jabbar.
Assistant Manager (Commercial Operation)
Comilla Export Processing Zone, Comilla.
Cell : 0088 01912 517963
 BEPZA office in Comilla Export Processing Zone.
Old Airport area, Comilla.
Tell : 081 71004
 Managers of the industries of Comilla EPZ.
 Annual Report- 2010-11 of BEPZA.
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22.  Economic Review of Bangladesh 2009-10.
 Web site: Bangladesh Export Processing Authority.
“www.epzbangladesh.org.bd”
 Articles from the daily national news paper.
 Class Lecture of the Course Teacher.
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