JICA Study on FDI promotion and investment needs assessment in the upcoming Economic Zones (EZ) in Bangladesh (From June to July 2015) Questionnaire for Enterprise Survey A. Basic Information of the Enterprise 1. Name of Enterprise : 2. Name of Representative : 3. Designation: 4. E-mail and Mobile No. 5. Office Address : 6. Phone No./Fax No:: 7. Year of Establishment:: 8. Legal Status: __1. Sole Proprietorship __2. Partnership __3. Limited Company (Private /Public Limited) __4. Others (Please specify ____________) 9. Nature of Business : __1. Manufacturing __2. Trading __3. Others (Please specify ____________) _____persons a) Local ……b) Foreign:…… a) Male:…….... b) Female: ………. __1. Medium (number of employee: 20-99) __2. Large (number of employee:100+) ) 10. Number of Employees: 11. Size of Enterprise: 12. Membership with Trade Bodies : a)……………………………………………… b)……………………………………………… c)……………………………………………… 13. Nature of Ownership : __1. 100% Local __2. Joint Venture __3. 100% foreign 14. Products: Products 1: ____________________________ Products 2: ____________________________ Products 3: _____________________________ 15. Classification of Sector as par draft National Industrial Policy 2015: __1. Highly priority sector __2. Priority sector __3. Not in the priority sector Page 1 of 9 16. Primary market of your products : __1. Domestic market __2. Export market __3. Both domestic and export 17. Raw Materials of products: Products 1: _____________________________ Products 2: _____________________________ Products 3: _____________________________ 18. Raw materials importing countries: Country 1: _____________________________ Country 2: _____________________________ Country 3: _____________________________ 19. Clients of your enterprise: __1. Individual Consumers __2. Wholesaler/ Retailers __3. Manufacturers __4. Affiliated Company/Enterprise __5. Government __6. Non-government organizations (NGOs) __7. Others, please specify ..………………… 20. Annual Sales / Turnover (in million BDT ): Year 2014 (BDT…………………………….. Year 2013 (BDT…..………………………… Year 2012 (BDT…………………………….. 21. Business sector to which your enterprise belongs: No. Sector No. Sector 1 Automobile /Motor cycle parts 11 Medical Equipment and Devices 2 Bi-cycle 12 Pharmaceutical and Healthcare Goods 3 Electrical and Electronics 13 Cosmetic & Toiletries 4 14 Plastic and Rubber Products 15 Wooden Products / Furniture 16 Paper and Pulp goods 7 Footwear and Leather Goods Light Engineering (Refer to below notes) Bio-technology/ Energy efficient/Solar Systems Agro-products, Beverage 17 Cables, wire harness 8 Ready Made Garments/Apparels 18 Chemical Products 9 Knitting and Textile, Yarn, Spinning 19 Machinery and Optical Products / Equipment 10 Garment Accessories 20 Jute and Jute Goods Materials 21 Others, please specify……………………………………………………………………………… 5 6 Note: Light Engineering includes machinery parts, metal processing, metallic abrasive, metallic mold, casting, cutting work, welding, plate, heat treatment, coating, thermal spray etc. Page 2 of 9 B. Intention/ Plan for Investment in the Plot within any Economic Zones 1.0 No. 1 2 2.0 Are you aware about the Government’s initiative of developing Economic Zones in Bangladesh? Opinion Yes No Would you please share your knowledge on the on-going initiative of the Government to develop EZs in Bangladesh? ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------3.0 No. 1 2 4.0 No. Do you want to invest or set-up industries within the upcoming Economic Zones in Bangladesh? Opinion Yes No What is the purpose of your investment in the upcoming EZs in Bangladesh? Reason(s) of Investment 1 Expanding the existing production unit 2 Establishing new production unit 3 Relocating the existing production units from other countries 4 Setting-up Operation and Maintenance (O&M) Unit 5 Others, if any please mention ………………………………………………… 5.0 No. If the respondent is a foreign entrepreneur/enterprise operating in Bangladesh, what is main reason(s) of investing in Bangladesh? (Multiple answers are allowed) Reasons/ Rationale No. Reasons/ Rationale 1 To take advantage of market access 7 Domestic market potential 2 To avoid legal barriers 8 Improvement of productivity 3 Environmental protection 9 Improvement of quality of products 4 Linking with global supply chain (Backward and Forward) 10 Cost reduction 5 Availability of labor force 11 Research & Development (R&D) 6 Scope of Regional markets 12 Others, please specify…………………… Page 3 of 9 6.0 What type of industry would you like to establish in the upcoming EZs in Bangladesh? No. Type of Industry (Target Market) 1 Domestic market oriented industry 2 Export market oriented industry 3 Both domestic and export market oriented industry 7.0 No. What particular sector you are planning for new investment in the upcoming EZ? Sector No. Sector 1 Automobile /Motor cycle parts 11 Medical Equipment and Devices 2 Bi-cycle 12 Pharmaceutical and Healthcare Goods 3 Electrical and Electronics 13 Cosmetic & Toiletries 4 14 Plastic and Rubber Products 15 Wooden Products / Furniture 16 Paper and Pulp goods 7 Footwear and Leather Goods Light Engineering (Refer to below notes) Bio-technology/ Energy efficient/Solar Systems Agro-products, Beverage 17 Cables, wire harness 8 Ready Made Garments/Apparels 18 Chemical Products 9 Knitting and Textile, Yarn, Spinning 19 Machinery and Optical Products / Equipment 10 Garment Accessories 20 Jute and Jute Goods Materials 21 Others, please specify……………………………………………………………………………… 5 6 8.0 No. 1 What is your preferred location for Economic Zones in Bangladesh? Location Within the outskirts of Dhaka city 2 Within the outskirts of Chittagong city 3 Anywhere in Bangladesh 4 No specific choice for locations if utilities are available Page 4 of 9 9.0 According to your opinion, what should be the distance (km/drive hours) between Economic Zone and Dhaka? ………………………………..km, 10.0 No. What is your preferred size of land or factory building within the EZs? Particulars 1 Expected Size of Land for lease 2 Expected Size of Factory Building 3 No specific size in mind yet 11.0 No. Size (Square meter) What is your desired amount of rentals and security deposits against land lease or factory building within the EZs? Particulars Amount per Square Meter ( BDT) 1 Expected Rental for Land lease 2 Expected Rental for Factory Building 3 No specific idea in mind yet 4 Expected Amount /Percentage of Security Deposit 12.0 No. What is your expected mode of payments of rental lease of land or factory building? Particulars Monthly/Quarterly/Half-yearly/Annually 1 Payment of rental against land lease 2 Payment of rental against factory building 13.0 No. What are the other issues that influence investment decision in a particular EZ? Other factors influencing investment decision in EZ 1 Existence of combined Effluent Treatment Plant 2 EZ locates nearest to the Inland Container Terminal 3 Shared Warehouse and Logistics Center 4 Common Water Treatment Plant 5 Security and Protection Measures 6 Presence of Urban Amenities (Housing, hospital, education, shopping centers, etc.) 7 Others, please specify if any………………………………………………………. Page 5 of 9 14.0 No. When is the tentative timing of your new capital Investment within the upcoming EZs? Timing for Investment 1 Within 1 year 2 Within 1 to 3 years 3 Within 3 to 5 years 4 Not foreseeable future C. Support Services Available 1.0 No. 1 2 3 4 5 6 7 8 9 2.0 What are the key criteria for site that your company intends to select? (Multiple answers allowed) Criteria for Project Site Selection Markets for Products Scope of linking with Value Chain Proper Zone Development Plan Existence of Sufficient Infrastructure Availability of Raw Materials Availability of Adequate Human Resources Efficient Management of Zone Developer Industrial cluster nearby Others, please specify……………………….. High Priority Sector Priority Sector Are you aware about the following “Incentives and Benefits Package” available for the prospective investors in the upcoming EZs? Yes/ No. If you have any suggestions or proposals, please mention other than Existing Incentive and Benefits in EZs 1) Tax Holiday: For all Economic Zones Income Tax Holiday (ITH)-–1st and 2nd year 100%, 3rd year 80%, 4th 70%, 5th 60%,6th 50%, 7th 40%, 8th 30%, 9th 20% and 10th year 10%. 2) Custom Duty: Duty free import of raw materials, construction materials, capital machineries, finished goods. 3) Income Tax-others: Exemption from dividend tax (After tax holiday over) 4) Repatriation: Full repatriation of capital and dividend. 5) Free Flow FDI: No ceiling of FDI. 6) Backward Linkage: 100% backward linkage raw-materials and accessories to sell for export oriented industries (EOI) in Domestic Tariff Area (DTA). 7) Local Sale: 20% sale of finished product to DTA (From Export Processing Area –EPA). 8) Sub-Contracting: Sub-contracting with DTA allowed. Page 6 of 9 Proposed /Suggested 9) Stamp Duty: 50% exemption of stamp duty and registration fees for registration of leasehold land/ factory space 10) VAT: 80% exemption of VAT on all utility services consumed inside the zone. 11) Custom Duty: Duty exemption on Export. 12) CD on Vehicle: Exemption of CD for import of 2 vehicles within 1st 5 years for foreign investors (for one time). 13) Double Taxation: Exemption of double taxation subject to Double taxation agreement. 14) IT Individual: 50% Rebate of income tax on salary income of expatriates for 5 years 15) Custom Bond: Consider EZ as custom bonded area. 16) Foreign Exchange: FC loan availability (To ease business activity). 17) Foreign Exchange: FC Account for Non-Resident and for both local and joint venture industry. 18) Joint Venture: Joint venture allowed 19) Royalties: Royalty, technical fees will be exempted from income tax. 20) Capital Gains: Tax exemption on capital gain. 21) Share Transfer: Share transfer allowed. 22) Work Permits: Work permits – No restrictions on issuance of work permits on project related foreign nationals and employees but limited up to 5% of total employees. 23) Re-Investment: Re-investment of remittable dividend to be treated as new foreign investment. 24) Resident: Resident visa for investment of US$ 75000 or more. 25) Citizenship: Citizenship for investment of US$ 500,000 or more 3.0 No. What are the business development services (BDS) you expect form the EZ Developer? Business Development Services High Priority Sector 1 Regulatory support 2 Business information support 3 Legal and documentation 4 Accounting and Auditing 5 Logistics Support including C&F services 5 Training and skill development 6 Recruitment and payroll management Page 7 of 9 Priority Sector 7 Market access and market promotion 8 Taxation services 9 Printing and packaging 10 Operation and Maintenance 11 Others, please specify D. Utilities Support Facilities 1.0 No. What is the current consumption pattern of utility facilities for your existing factory? Element of required utility facilities 2 Electricity Gas 3 Water 4 Others, please specify 1 2.0 No. 1 Current Monthly Consumption (Unit) What is the current source of water that you are using for your industries? Source of water Piped / Supply water 2 Ground water 3 Surface Water 4 Others, please specify……………………………….. 3.0 No. Are you satisfied with the current supply of utility facilities? Yes/No. If no, what kind of problems you are facing? Problems/ difficulties 1 Frequent Fluctuation in supply (low voltage/ minimum flow) 2 Load shedding / power failure 3 Iron in water / inappropriate water for factory production 4 Others, please specify Page 8 of 9 4.0 No. 1 2 What are the elements of utility facilities that you will need to set-up and run your factory at what quantity or volume? Element of required utility facilities Electricity Gas 3 Water 4 Telecommunication 5 Others, please specify 5.0 No. Required Quantity (Unit) / Per Month How much you are paying now as charges for utility consumption and how much you want to pay in future within EZ? Element of utility 1 Electricity 2 Gas 3 Water 4 Telecommunication 5 Others, please specify Existing Unit Rate (in BDT)/Month Expected Unit Rate (in BDT)/Month Should you have any enquiry on the questionnaire, please feel free to contact to the following person in charge: The person in charge: Mail address: …………………………….. ……………………………..Telephone:…………………………… Thank you so much for your kind cooperation to this survey Respondent’s Contact Information Name Designation Cell Phone No. E-mail address The End Page 9 of 9