SEZ has larger scope of operations, says WB expert
Monday, 30 March 2009
Sheikh Shahariar Zaman
Special economic zone (SEZ) helps to increase export as well as domestic production as it has larger scope of operations.
Export oriented industries can only be set up in export processing zone (EPZ) to get certain benefits but for factories set up in SEZ, there is no such stipulation as the units can manufacture products for both domestic and international markets, said senior World Bank SEZ consultant Cecilia Sager.
Talking exclusively to FE recently about the advantages and problems relating to SEZ, Ms. Sager said "Not only manufacturing units but service providers as well can run their operations from SEZ."
A zone should have all the utilities besides other services like medical services, she explained.
The common problems in setting up SEZ are poor site selection, uncompetitive policies and cumbersome procedures and controls.
The International Finance Corporation (IFC) has recently revealed that the selected site for Sylhet SEZ is not viable.
"The site must have all facilities including utilities and transport along with proximity to market," she said.
The government can develop a SEZ site with the help of private sector to reduce expenses on infrastructure, she opined.
"It takes about five years to develop an SEZ as it includes feasibility study of the location, developing the infrastructure, allocation of lands to different business units and setting up production facilities," she added.
Special economic zone (SEZ) helps to increase export as well as domestic production as it has larger scope of operations.
Export oriented industries can only be set up in export processing zone (EPZ) to get certain benefits but for factories set up in SEZ, there is no such stipulation as the units can manufacture products for both domestic and international markets, said senior World Bank SEZ consultant Cecilia Sager.
Talking exclusively to FE recently about the advantages and problems relating to SEZ, Ms. Sager said "Not only manufacturing units but service providers as well can run their operations from SEZ."
A zone should have all the utilities besides other services like medical services, she explained.
The common problems in setting up SEZ are poor site selection, uncompetitive policies and cumbersome procedures and controls.
The International Finance Corporation (IFC) has recently revealed that the selected site for Sylhet SEZ is not viable.
"The site must have all facilities including utilities and transport along with proximity to market," she said.
The government can develop a SEZ site with the help of private sector to reduce expenses on infrastructure, she opined.
"It takes about five years to develop an SEZ as it includes feasibility study of the location, developing the infrastructure, allocation of lands to different business units and setting up production facilities," she added.