BE Magazine

Company Limited, is considering setting up a
manufacturing factory in the SEZ area.
As many Japanese companies are showing keen
interest to set up their factories in SEZ areas, the
Bangladesh Economic Zone Authority (BEZA) is
developing an SEZ exclusively for the Japanese at
Araihazar Upazila in Narayanganj district.
Act & Fact
Bangladesh Export Processing Zones Authority Act
of 1980 led to the establishment of semi-autonomous
Bangladesh Export Processing Zones Authority
(BEPZA). Primarily focused on the Ready-Made
Garments (RMG) sector, BEPZA leases serviced
land to industrial tenants in eight Export Processing
Zones (EPZs) across Bangladesh. As of 2017, BEPZA
hosted 463 tenants in RMG as well as non-RMG
sectors like chemicals and footwear. Among those
ventures, 56% were fully foreign-owned, 16% joint
ventures of foreign and domestic investors, and the
remaining, local ventures.
Two new acts, Bangladesh Economic Zones
Authority Act 2010 and Bangladesh Hi-Tech Park
Authority Act 2010 led to the creation of two
more agencies semi-autonomous like BEPZA.
Bangladesh Economic Zones Authority (BEZA) and
the Bangladesh Hi-Tech Park Authority (BHTPA)
are tasked to oversee the expansion of economic
zones (EZs) and hi-tech parks (HTPs). These new
SEZs operate under different regulatory regimes
compared to BEPZA.
For example, EPZs operated by BEPZA are publicly
owned. On the other hand, BEZA and BHTPA aim
to rely mainly on private capital and expertise, with
government oversight, to build and operate SEZs.
BEZA aims to develop 100 EZs by 2025, in all
the potential areas across Bangladesh, including
underdeveloped regions. BEZA allows production
for both domestic and foreign markets, with the
view to boost up rapid diversification of industry,
increase in production, job creation and export.
According to ADB research, SEZs can be fit drivers
for increased trade, Foreign Direct Investment
(FDI), and better economic policymaking and
reforms. The Asian Economic Integration Report
2015 finds that in developing Asia, countries with
SEZs attract significantly more FDI, with the
existence of SEZs corresponding to 82% greater FDI
levels. Moreover, as countries develop, areas with
SEZs can be transformed from mere manufacturing
sites to hubs for innovation and modern services.
BEZA offers multiple incentives to the Zone
Developer and investors of a particular
manufacturing unit ranging from fiscal incentives.
The range of incentive structure includes
fiscal incentives and non-fiscal incentives. The
government has adopted the Bangladesh Private
Economic Zones Policy 2015 to facilitate private
investment in SEZs.
According to BEZA, work is progressing fast on land
development and utility connection in the public
SEZs. Significant progress is in place in 28 SEZs, of
which 13 are in public and 15 in private sectors.
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economic zone
December, 2019
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