BEZA Mirsarai Economic Zone Overview
The Bangladeshi Economic Zones Authority (BEZA) is developing the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN), which is located in the Mirsarai-Feni-Sonagazi area in northern Chittagong. It is currently Bangladesh's largest economic zone. Covering roughly 33,000 acres (around 13,000 hectares), it is more than six times larger than South Korea's Yeosu National Industrial Complex (about 2,000 hectares), making it a key pillar of Bangladesh's industrialization strategy.
The Mirsarai zone is a mega project with multinational investors including JICA, CHEC, and India's TATA. Korean site allocation discussions were actively carried out between 2023 and 2024 with close coordination between KOTRA Dhaka and BEZA. Allocating a Korean-specific area (Korean Zone) has been the core negotiation item. Power, gas, water, and port-access conditions remain critical to final settlement decisions.
Infrastructure Status and Development Plan
Infrastructure development in the zone will proceed in five phases. Phase 1 (2,000 acres), which includes land preparation, basic roads, and power distribution, has reached 70% completion. The JICA-backed Japanese area and the CHEC-developed Chinese area are already occupied. Phase 2 (3,000 acres) is implementing waterworks, gas pipelines, and telecom infrastructure, with a completion target in 2025. A 500-acre Korean allocation is being negotiated within Phase 2, and the signing of an MOU between KOTRA and BEZA is considered a prerequisite for final site approval. Current power capacity is 600MW, while additional power and gas are expected from Matarbari Power Plant (1,200MW) and the Maheshkhali LNG terminal.
| Item | Current Status | 2025 Target | Long-Term Target | Investment ($M) | Notes |
|---|---|---|---|---|---|
| Power | 600MW | 1,200MW | 3,000MW | 2,500 | Matarbari linkage |
| Gas | 100 MMCF/d | 200 MMCF/d | 500 MMCF/d | 800 | LNG terminal |
| Water | 20,000 tons/day | 50,000 tons/day | 150,000 tons/day | 300 | Desalination under consideration |
| Roads | 20km | 60km | 200km | 500 | Four-lane minimum |
| Port | 30km to Chittagong | Dedicated jetty under way | 20 berths | 1,500 | Phase 3 |
| Wastewater | 5,000 tons/day | 20,000 tons/day | 100,000 tons/day | 200 | Two STP sites |
| Telecom | 4G | 5G pilot | 5G nationwide | 150 | ICT hub |
Investment Incentives and Entry Conditions
BEZA's incentive package is among the most aggressive in Bangladesh. The 10-year corporate tax holiday is longer than the 7-year EPZ benefit, and duty exemptions also cover a broader scope. The commitment that profit repatriation is fully free (100%) is especially meaningful while foreign exchange controls are still tightening. For Korean allocation discussions, BEZA proposed 500 acres, while Korean stakeholders requested Korean-standard infrastructure specifications, including a substation, water treatment, and wastewater processing facilities. The key point in negotiation remains the classic chicken-and-egg challenge. BEZA expects anchor investors (10-15 firms) before scaling infrastructure, while Korean firms demand completed infrastructure before committing to entry. To resolve this, KOTRA and BEZA are jointly drafting a phased development roadmap.
Entry Strategy and Priority Sectors for Korean Firms
BEZA's Mirsarai zone is a core platform in Bangladesh's industrialization and provides one of the strongest manufacturing-location opportunities for Korean firms. The large 33,000-acre footprint, tax exemption for 10 years, zero import duties, and quick access to Chittagong (around 30km) are major strengths. The planned Korean allocation of 500 acres is progressing, while the key unresolved issue remains securing 10-15 anchor firms to unlock full zone confirmation. Korean firms can still secure a leading position by emulating earlier Japanese and Chinese projects and differentiating through K-innovation capabilities, including smart factories and IoT.