Investment Zones in Bangladesh
Bangladesh offers two types of special economic zones for investors — Export Processing Zones (EPZs) managed by BEPZA and Economic Zones (EZs) managed by BEZA. Additionally, BIDA serves as the national investment facilitation body for investments outside these zones. Understanding these authorities is essential for any organisation setting up manufacturing, logistics, or service operations in Bangladesh.
Authority Comparison
| Aspect | BEPZA | BEZA | BIDA |
|---|---|---|---|
| Full name | Bangladesh Export Processing Zones Authority | Bangladesh Economic Zones Authority | Bangladesh Investment Development Authority |
| Established | 1980 | 2010 | 2016 |
| Legal basis | BEPZA Act 1980 | BEZA Act 2010 | BIDA Act 2016 |
| Focus | Export-oriented manufacturing in designated EPZs | Both export and domestic-oriented in economic zones | Investment facilitation nationwide |
| Zones | 8 operational EPZs | 100 planned EZs (varying stages of development) | Not zone-based — nationwide coverage |
| Website | bepza.gov.bd | beza.gov.bd | bida.gov.bd |
BEPZA — Export Processing Zones
Operational EPZs
| EPZ | Location | Established | Key Sectors |
|---|---|---|---|
| Dhaka EPZ | Savar, Dhaka | 1993 | Garments, electronics, footwear |
| Chittagong EPZ | Chittagong | 1983 | Garments, textiles, leather |
| Mongla EPZ | Bagerhat | 1999 | Agro-processing, shrimp |
| Comilla EPZ | Comilla | 2000 | Garments, light engineering |
| Uttara EPZ | Nilphamari | 2001 | Garments, jute |
| Ishwardi EPZ | Pabna | 2001 | Agro-processing, textiles |
| Adamjee EPZ | Narayanganj | 2006 | Garments, textiles |
| Karnaphuli EPZ | Chittagong | 2006 | Ship-breaking, steel |
EPZ Building and Compliance
- One-stop service: BEPZA provides all approvals within the zone — construction permit, utility connections, environmental clearance, labour issues, customs
- Building plan: Approved by BEPZA engineering department (not RAJUK)
- Fire safety: BEPZA conducts fire inspections within zones
- Labour: Separate labour law applies in EPZs — EPZ Workers Welfare Association and Industrial Relations Act
- Structural safety: Post-Accord/Alliance, structural assessments conducted for all EPZ garment factories
- Advantages: Simpler approval process, infrastructure provided, duty-free imports, tax holidays
- Limitations: Must be export-oriented (minimum 80% export), limited to designated zones
BEZA — Economic Zones
Key Differences from EPZ
- Broader scope: Both export and domestic market oriented — no 80% export requirement
- Private zones: Allows private sector to develop and operate economic zones
- Larger scale: 100 EZs planned across the country (many under development)
- Special EZs: Japanese EZ (Araihazar), Korean EZ (Chittagong), Indian EZ (Mongla) — country-specific zones
- One-stop service: BEZA OSS provides approvals, but still in development for many zones
Key BEZA Zones (Operational or Near-Operational)
| Zone | Location | Focus | Status |
|---|---|---|---|
| Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) | Mirsarai, Chittagong | Heavy industry, multi-sector | Operational (phase 1) |
| Jamalpur EZ | Jamalpur | Light manufacturing | Operational |
| Sreehatta EZ | Sylhet | IT, light industry | Under development |
| Japanese EZ | Araihazar, Narayanganj | Japanese investment | Under development |
BIDA — Investment Development Authority
- Role: National investment promotion and facilitation — not zone-specific
- One-stop service: BIDA OSS handles: company registration, investment registration, work permit, visa recommendation, IRC/ERC, utility connections, environmental clearance
- Building relevance: BIDA does not directly approve building plans, but facilitates the approvals needed from other agencies (RAJUK, FSCD, DoE, utilities)
- Online portal: BIDA has been digitalising services — many applications can be submitted online
- For MNCs: BIDA is typically the first point of contact for foreign companies entering Bangladesh
Choosing Between EPZ, EZ, and Non-Zone
| Factor | EPZ (BEPZA) | EZ (BEZA) | Non-Zone (BIDA) |
|---|---|---|---|
| Export requirement | 80%+ export mandatory | No minimum | No restriction |
| Approval process | Single window — BEPZA | BEZA OSS (developing) | Multiple agencies (RAJUK, FSCD, DoE, etc.) |
| Tax incentives | 10-year tax holiday | Varies by zone and sector | Standard tax regime |
| Infrastructure | Provided within zone | Varies by zone maturity | Must arrange independently |
| Labour law | Separate EPZ labour law | Standard labour law | Standard labour law |
| Best for | Export-oriented manufacturing | Mixed export/domestic, larger scale | Services, offices, domestic market |
Practical Guidance
- For export-oriented factories: EPZ offers the most streamlined approvals and established infrastructure. Dhaka EPZ and Chittagong EPZ are most developed.
- For mixed-market operations: BEZA zones offer flexibility without export restrictions, but infrastructure maturity varies widely.
- For offices and services: Non-zone locations with BIDA facilitation. BIDA OSS can help navigate multi-agency approvals.
- Building compliance in zones: Approval process is simpler, but safety requirements still apply. Post-Rana Plaza, all factory buildings face structural, fire, and electrical safety scrutiny regardless of zone.
References
- BEPZA — Bangladesh Export Processing Zones Authority
- BEZA — Bangladesh Economic Zones Authority
- BIDA — Bangladesh Investment Development Authority
- BEPZA Act 1980
- Bangladesh Economic Zones Act 2010
- One Stop Service Act 2018
Insights & Guidance
- BEPZA manages 8 EPZs for export-oriented manufacturing — one-stop approvals, tax holidays, but 80%+ export requirement.
- BEZA manages economic zones with no export minimum — 100 zones planned, varying development stages.
- BIDA is the national investment facilitator — not zone-specific, handles multi-agency coordination for all investors.
- EPZ building approvals go through BEPZA (not RAJUK), but safety requirements still apply.
- For offices and services, non-zone locations with BIDA support are typical. For factories, evaluate EPZ vs EZ vs non-zone based on export ratio, location, and incentives.
Choosing the right zone or non-zone location affects building approval processes, compliance requirements, tax incentives, labour regulations, and utility infrastructure. Understanding the differences between BEPZA, BEZA, and BIDA helps organisations make informed site selection decisions aligned with their operational needs.
- Wrong zone type — entering an EPZ without meeting 80% export requirement.
- Immature zone — investing in a BEZA zone that lacks basic infrastructure (roads, power, water).
- Assumption of simplified compliance — zone location simplifies approvals but doesn't eliminate safety requirements.
- BEPZA/BEZA membership/registration
- Zone-specific building plan approval
- Investment registration (BIDA)
- Zone compliance certificates
- Zone infrastructure maturity — roads, power, water, drainage
- Zone management office — is it staffed and functional?
- Other tenants — operational factories indicate zone viability
- What infrastructure is available now vs planned?
- What is the one-stop service scope — which approvals are handled internally?
- What are the current incentives and how long do they last?
- Investment structuring — lawyer or consultant specialising in Bangladesh investment law and zone regulations.
- Tax planning — tax advisor for zone incentives vs non-zone tax structure comparison.
- Site selection — industrial real estate consultant with zone experience.