2025–2027 EIPP Mid-Term Roadmap Overview
The 2025–2027 EIPP (Economic Industrial Park Program) mid-term plan is a three-year roadmap that moves beyond the pilot and policy consulting phases into full-scale industrial park development and foreign investment attraction. Jointly designed by KDI and BEZA, the plan sets three major targets: total investment of $500M, concentrated development of five priority economic zones, and completion of the first Korean-style smart industrial park.
EIPP is a cooperation platform combining Bangladesh's "100 economic zones in 10 years" policy with Korea's industrial park development experience. The 2022–23 pilot phase established an institutional foundation — including amendments to the BEZA Act, standardization of incentive packages, and a one-stop service pilot — and from 2025, the program transitions to the physical investment phase. Bangladesh's low labor costs (average $130/month), strategic geographic location (junction of India and Southeast Asia), and 15-year tax exemption incentives align with Korean companies' supply chain diversification (China+1) strategies.
Details on 5 Priority Economic Zones
The five priority zones were selected based on infrastructure readiness, transportation accessibility, industrial demand, and suitability for Korean companies. They pursue sector-specific strategies: Mirsarai (light manufacturing), Araihazar (ICT and electronics), Mongla (energy and chemicals), Rajshahi (agri-food processing), and Chittagong CEPZ (logistics and bonded). Infrastructure investment and entry timelines are clearly defined for each zone.
| Zone | Location | Area | Specialization | Infrastructure Investment | Phase 1 Completion | Suitable Korean Industries |
|---|---|---|---|---|---|---|
| Mirsarai SEZ | North Chittagong (CH-6) | 30,000 acres | Light manufacturing & assembly | $150M | 2024 completed | RMG automation, electronic components, medical devices |
| Araihazar SEZ | Dhaka suburbs (30km) | 3,000 acres | ICT, electronics, R&D | $80M | 2025 planned | SW development, IT services, electronics manufacturing |
| Mongla SEZ | South Khulna (port adjacent) | 4,500 acres | Energy, chemicals, steel | $100M | 2024 completed | Solar, batteries, chemical materials |
| Rajshahi SEZ | Western inland | 1,500 acres | Agri-food processing, textiles | $40M | 2026 planned | Food machinery, packaging, textile equipment |
| Chittagong CEPZ | Adjacent to Chittagong port | 500 acres | Logistics, bonded, assembly | $30M | Expanding | Logistics equipment, free trade |
Korean-Style Smart Industrial Park (Mirsarai #1)
The first Korean-style smart industrial park will be developed at 500 acres within the Mirsarai Economic Zone. This eco-friendly smart park will feature IoT-based energy management, shared wastewater treatment (ZLD), a dedicated industrial 5G private network, and a shared logistics center — incorporating design lessons from Korea's Eco Delta City and Sejong Smart City. Korean tenant companies will receive a special package including dedicated zone allocation, Korean-language one-stop service, and priority access to local labor consulting.
Investment Incentive Package
| Incentive Item | Content | Period | Eligibility | Notes |
|---|---|---|---|---|
| Corporate Tax Exemption | 0% (standard 35%) | 15 years | Export manufacturing | 50% applied after 2-year grace period |
| Customs Exemption | Machinery and raw materials 100% | Operating period | All manufacturing | Re-export condition |
| VAT Exemption | Production input materials | Operating period | Production within zone | One-stop application |
| Dividend & Profit Repatriation | 100% freely remittable | Permanent | No restrictions | USD accounts permitted |
| Foreign Employee Quota | Up to 20% | Operating period | No KSA/KPS certification required | Management positions only |
| Land Lease | $0.03–0.06/sqm/month | 60 years (renewable) | Zone allocation | Priority assignment for Korean firms |
| Power Supply | Stable 24-hour supply | Operating period | Dedicated zone substation | Solar PPA linkage |
Promising Entry Industries for Korean Firms
Annual Milestones and KPIs
| Year | Key Milestones | Investment Target | Employment Target | KPI Indicators | Review Timing |
|---|---|---|---|---|---|
| 2025 | Smart park groundbreaking, 5-zone master plan finalized, 3 investment roadshows | $80M | 2,000 jobs | 10 MOUs, 1 groundbreaking | Jun 2025 / Dec 2025 |
| 2026 | 10 Korean firm MOUs executed, smart park Phase 1 complete, 3 zones in full operation | $200M | 10,000 jobs | 10 actual investments, 5 operational | Jun 2026 / Dec 2026 |
| 2027 | Expand to additional 5 zones, 20 tenant firms operational, annual exports $2B achieved | $220M | 25,000 jobs | Exports $2B, cumulative $500M | Jun 2027 / Dec 2027 |
Execution Roadmap and Governance
Supply Chain Localization Strategy
Risk Management and Response Measures
| Risk Type | Content | Likelihood | Impact | Mitigation Strategy |
|---|---|---|---|---|
| Political & Policy | Incentive changes due to regime change | Medium | High | BEZA Act institutionalization + Bilateral Investment Treaty (BIT) |
| Infrastructure Delays | Power and road supply delays within zones | High | Medium | Own generation (Solar PPA) + alternative access road design |
| Labor Skill Gap | Shortage of skilled technical workers | High | Medium | Joint KDI vocational training center, Korean OJT dispatch |
| Exchange Rate Risk | Taka depreciation | Medium | Medium | Increase dollar-denominated contracts, use hedging instruments |
| Logistics & Customs | Port congestion and customs delays | Medium | Medium | Chittagong port EDI system linkage, dedicated customs broker |
| Intellectual Property | IP infringement and technology leakage | Low | High | BEZA dispute resolution mechanism, standardized NDA |