Overview of Bangladesh's Industrial Zone Framework
Bangladesh operates two distinct special economic zone frameworks to attract foreign direct investment. BEPZA (Bangladesh Export Processing Zones Authority) administers eight EPZs (Export Processing Zones), while BEZA (Bangladesh Economic Zones Authority) manages 100 economic zones (SEZ/EZ). Outside these designated areas, BIDA (Bangladesh Investment Development Authority) oversees investment in general industrial locations.
The first decision Korean companies must make when establishing a factory in Bangladesh is whether to locate in an EPZ, an SEZ, or a general zone. Tax incentive structures, utility infrastructure, entry procedures, and operational constraints differ substantially across these categories, making zone selection a critical function of the business model.
BEPZA vs. BEZA vs. BIDA Incentive Comparison
The incentive packages offered by the three regulatory bodies differ significantly across corporate tax exemptions, customs duty waivers, foreign exchange freedom, and labor regulations. EPZs offer the most established infrastructure but limited plot availability; SEZs provide larger site options from new development, though infrastructure completion varies by zone.
Major Industrial Park Comparison
A comparative overview of Bangladesh's principal industrial parks by location, area, utility infrastructure, and rental rates. Includes Dhaka EPZ, Chittagong EPZ, and Adamjee EPZ — the primary sites for Korean company operations — as well as the newly developing Bangladesh-Korea Economic Zone.
| Industrial Park | Location | Area | Rent ($/m²/yr) | Power | Gas | Notes |
|---|---|---|---|---|---|---|
| Dhaka EPZ | North Dhaka | 356 acres | $3.5–4.5 | Stable | Limited | Highest Korean firm concentration |
| Chittagong EPZ | Chittagong | 453 acres | $3.0–4.0 | Stable | Available | Adjacent to port |
| Adamjee EPZ | Adamjee | 269 acres | $2.0–3.0 | Good | Available | Extended exemption period |
| Ishwardi EPZ | Ishwardi | 311 acres | $1.5–2.5 | Good | Available | Inland location |
| Uttara EPZ | Nilphamari | 213 acres | $1.0–2.0 | Average | Limited | Low-cost location |
| Mongla EPZ | Mongla | 250 acres | $1.5–2.5 | Average | Available | Adjacent to Mongla Port |
| Bangladesh-Korea EZ | Near Chittagong | 500 acres | TBD | Planned | Planned | KOICA-supported |
| Mirsharai SEZ | North Chittagong | 30,000 acres | $1.5–3.0 | Under construction | Planned | Largest BEZA zone |
| Araihazar SEZ | Narayanganj | Special zone | $2.5–3.5 | Under construction | Planned | Japan JICA-supported |
| Savar HTPZ | Near Dhaka | 232 acres | $4.0–5.0 | Stable | Limited | IT & high-tech focus |
Eight-Stage Process from Application to Commissioning
Establishing operations from EPZ/SEZ entry application through factory commissioning typically requires six to eighteen months. Utilizing BEPZA's one-stop service allows consolidated processing of 35 permits and licenses, significantly reducing the overall timeline.
Utility and Infrastructure Status
Understanding the current state of electricity, gas, water, and telecommunications infrastructure is a critical input for site selection. While Bangladesh has significantly expanded power generation capacity in recent years, localized and time-of-day supply instability persists, making standby generator procurement an operational necessity.
| Utility | Within EPZ | SEZ / General Zone | Cost | Notes |
|---|---|---|---|---|
| Electricity | Own substation | BPDB grid connection | $0.08–0.12/kWh | UPS & generator essential |
| Gas | Pipeline supply | Regional distributor | $3–5/MMBtu | Supply restricted in some areas |
| Water | Own treatment plant | Municipal / groundwater | $0.5–1.0/m³ | Groundwater permit required |
| Telecommunications | Fiber optic | Fiber / 4G | $200–500/month | Internet speeds improving |
| Wastewater Treatment | Shared ETP | Own ETP mandatory | $2–5/m³ | DoE compliance required |
Bangladesh's industrial zone landscape is at an inflection point — EPZ's proven infrastructure coexists with the vast development potential of SEZs. Korean companies should select the optimal location based on export intensity and business scale: EPZ for export-oriented operations, SEZ for domestic plus export models, and general zones for primarily domestic-focused businesses. Active utilization of BEPZA and BEZA one-stop services, combined with KOTRA Dhaka Trade Center support, provides the most efficient pathway to minimizing factory setup time and cost.