Bangladesh 2020 Special Economic Zone Policy Overview
Bangladesh operates its special economic zones through a dual structure: BEZA (Bangladesh Economic Zones Authority) and BEPZA (Bangladesh Export Processing Zones Authority). Under the Economic Zones Act of 2010, BEZA is targeting the establishment of 100 economic zones, with 12 operational as of 2020. BEPZA has operated eight Export Processing Zones (EPZs) since 1983, amassing a track record of 520 resident companies, USD 7.5 billion in exports, and 500,000 jobs created.
The core incentives of Bangladesh's SEZ policy include a 10-year corporate tax holiday, full exemption from import duties and VAT on raw materials, unrestricted repatriation of 100% of profits, and permission for 100% foreign ownership. The BEZA Mirsarai zone (33,000 acres) is Bangladesh's largest economic zone, where a dedicated 500-acre Korean zone is under negotiation. Japan (JICA), China (CHEC), and India (Adani) already operate dedicated zones at the site. For Korean companies entering an SEZ or EPZ, the combined package of tax, customs, and administrative incentives can reduce effective tax rates to below 5% — making a thorough assessment of location, infrastructure, and labor conditions essential.
BEZA Economic Zone Status
BEZA was established under the Economic Zones Act of 2010 and operates under the direct supervision of the Prime Minister, offering one-stop services to investors. Of the 100 planned economic zones, 12 were operational as of 2020. Major zones include Mirsarai (Chittagong, 33,000 acres), Mongla (Khulna, 205 acres), Jamalpur (200 acres), and Sreehatta (Sylhet, 352 acres). At Mirsarai, a Japanese zone (JICA, 1,000 acres), a Chinese zone (CHEC, 778 acres), and an Indian zone (Adani, 1,000 acres) are already operational, while a 500-acre Korean zone is being pursued under a KOTRA-BEZA MoU. A key advantage of BEZA zones is that they permit both domestic sales and exports — unlike BEPZA, which is restricted to export-only operations. Land lease rates range from USD 5,000 to 15,000 per acre per year.
| Zone | Location | Area (acres) | Development | Tenants | Key Countries | Notes |
|---|---|---|---|---|---|---|
| Mirsarai | Chittagong | 33,000 | 40% | 100+ | Japan, China, India | Largest zone |
| Mongla | Khulna | 205 | 85% | 30+ | India | Port adjacent |
| Jamalpur | Jamalpur | 200 | 60% | 15+ | Bangladesh | Textile focus |
| Sreehatta | Sylhet | 352 | 30% | 10+ | Bangladesh | Under development |
| Sabrang | Cox's Bazar | 1,100 | 20% | Planned | Korea, Japan | Tourism + industry |
| Korean Zone | Mirsarai | 500 | Under negotiation | — | Korea | KOTRA MoU |
| Japanese Zone | Mirsarai | 1,000 | 40% | 20+ | Japan (JICA) | Operational |
| Chinese Zone | Mirsarai | 778 | 50% | 25+ | China (CHEC) | Operational |
BEPZA Export Processing Zones and Track Record
BEPZA is a mature EPZ platform with more than 35 years of operational history since 1983. Among the eight EPZs, Dhaka EPZ (1993) and Chittagong EPZ (1983) are the largest, and more than 50 Korean companies are resident across the network, producing ready-made garments, wigs, electronics, and footwear. BEPZA's strengths include fully installed infrastructure (power, gas, water, sewage), one-stop administration (BEPZA holds jurisdiction over customs, labor, and environmental compliance), and expedited customs clearance through dedicated EPZ customs counters. Disadvantages include the export-only restriction (no domestic sales), limited land availability (restricted space for new entrants), and rising lease costs. Korean companies evaluating new investment should choose between BEPZA (export-only, operationally stable) and BEZA (domestic + export, higher growth potential) based on their business strategy.
Investment Strategies for Korean Companies in Economic Zones
Bangladesh's SEZ policy operates through a dual structure of BEZA (100 zones) and BEPZA (8 EPZs), offering world-class incentives including 10-year corporate tax holidays, full customs and VAT exemptions, and 100% foreign ownership. For Korean companies, the 500-acre dedicated Korean zone at Mirsarai represents a pivotal investment opportunity, backed by the track record of more than 50 Korean firms already operating successfully within BEPZA. The choice between BEPZA (export-only, fully equipped) and BEZA (domestic + export, higher growth potential) should be driven by individual business strategy, supported by thorough due diligence on power, gas, and logistics conditions. The period through 2029 — while the current incentive framework and EU EBA duty-free access remain in place — represents the optimal window for investment entry.