Just how many economic zones does Bangladesh have?

[Paul2]

I've been trying to sort out what, and where are the best options to locate a factory. I keep counting. There are BEPZA zones, with its own legal regime, and bodies, there are BEZA zones, with their own legal regime, and bodies, there are private BEZA covered economic zones with their own legal regime, and bodies, now, there are also BHTPA zones...

Why so many? And why so close to each other? And why so many authorities? I think they are really trying to confuse people.

 

[Michael Corleone]

I've been trying to sort out what, and where are the best options to locate a factory. I keep counting. There are BEPZA zones, with its own legal regime, and bodies, there are BEZA zones, with their own legal regime, and bodies, there are private BEZA covered economic zones with their own legal regime, and bodies, now, there are also BHTPA zones...

Why so many? And why so close to each other? And why so many authorities? I think they are really trying to confuse people.

Because bureaucracy and bd govt. people loves bureaucracy

 

[F-6 enthusiast]

Not enough

 

[mb444]

As long as you avoid BEZAL you will be ok..


Sorry could not resist.... bezal means inauthentic/fake/low quality in bangla...

As to why so many... well there are lots of jobs worths in BD.. also each of these areas was set up at differing times but they overlapped.... it was felt that each should have own team to get them operational...

Long term plan is the have singular overarching authority. BD lack project management skill. It was felt that keep individual EPZs small and self contained and learn from the experience. Most EPZ also targets particular type of investment, particular industry or investors from particular countries.

There is a long term plan, the current fractured nature is by design.

 

[Bilal9]

I've been trying to sort out what, and where are the best options to locate a factory. I keep counting. There are BEPZA zones, with its own legal regime, and bodies, there are BEZA zones, with their own legal regime, and bodies, there are private BEZA covered economic zones with their own legal regime, and bodies, now, there are also BHTPA zones...

Why so many? And why so close to each other? And why so many authorities? I think they are really trying to confuse people.

There is no confusion brother.

So - as I understand it, there are Govt. approved Economic Zones (EZs) which may be govt. owned (or private).

And there are also privately launched EZs, owned by large conglomerates.

List is here,

Economic Zones Site « BEZA

Look for both categories on the left.

EZs are just like those in China, unionization does not apply, and they are customs duty exempt for imports of raw material and exports of finished goods.

All in a bid to add local value, so local people can make a few pennies and get something to eat.

There are - by some counts, close to a hundred zones acroos the country in various degree of completion. Some larger ones are really huge, such as Mirsarai - AKA "Bangabandhu Economic Zone". That zone (all combined) is close to 35,000 acres and is the largest economic zone in Asia right now.

If I were to invest - I'd invest in a plot there first. That zone is very close to Chittagong port (matter of a few dozen KMs from the port gates).

If that is not possible, I'd still invest in an EZ on the Dhaka-Chittagong Highway corridor. Cumilla is one EZ that is on that Highway.

EZ are spread around the country because people will not need to relocate in order to find work where they live. Bangladesh is a small place, any location in this country (except maybe in the very far North) is less than 200 miles or 300 KM from any of the three ports we have. One more larger deep water port (Matarbari near Cox's Bazaar) and associated EZ and Logistics infra are being built right now.

 

[bluesky]

I've been trying to sort out what, and where are the best options to locate a factory. I keep counting. There are BEPZA zones, with its own legal regime, and bodies, there are BEZA zones, with their own legal regime, and bodies, there are private BEZA covered economic zones with their own legal regime, and bodies, now, there are also BHTPA zones...

Why so many? And why so close to each other? And why so many authorities? I think they are really trying to confuse people.

You are making our PDF posters unhappy and angry. They believe in govt propaganda that EPZs are the clue to industrialization. Some claimed there are 100 EPZs, but I do not see any industrialization in a scale.

 

[Bilal9]

You are making our PDF posters unhappy and angry. They believe in govt propaganda that EPZs are the clue to industrialization. Some claimed there are 100 EPZs, but I do not see any industrialization in a scale.

I hope all PDF'ers can visit the Bangladesh EPZ's around the country and see for themselves whether this is govt. (Hasina) propaganda or not. I can post all the pictures I want but seeing for oneself is believing.

Let me also add, that none of this EPZ investment or industrialization was due to Hasina's efforts other than her taking credit for it. Khaleda's BNP govt. was just as much to credit for what was planned and executed as far as EPZ industrialization many decades ago. This is a minimum successive Bangladesh govts. had to do for planning and providing jobs for their populace. The private investors in Bangladesh (many of whom I admire and know) did the rest.

I have visited the three largest govt. EPZ's in Chittagong, the Karnafuli EPZ (Korean) near KAFCO (also in Chittagong), the Dhaka EPZ near Savar in North Dhaka and I assure you, it is a far stretch to call it propaganda once you have visited them. Haven't visited Adamjee or Cumilla, but I hear they are plenty large as well as the large ones.

One day when all this Covid business dies down, I hope to take all the PDF brothers (including Bluesky bhai) on a tour of the Dhaka EPZ at least.

They haven't been in business for at least four decades sitting there doing nothing....

So- question for brother @Paul2 , which EPZ's have you been to in Bangladesh? Do you plan to go? Nearest ones to Dhaka are Dhaka (Savar) EPZ and Adamjee EPZ.

 

[Paul2]

I hope all PDF'ers can visit the Bangladesh EPZ's around the country and see for themselves whether this is govt. (Hasina) propaganda or not. I can post all the pictures I want but seeing for oneself is believing.

I have visited the three largest govt. EPZ's in Chittagong, the Karnafuli EPZ (Korean) near KAFCO (also in Chittagong), the Dhaka EPZ near Savar in North Dhaka and I assure you, it is a far stretch to call it propaganda once you have visited them. Haven't visited Adamjee or Cumilla, but I hear they are plenty large as well as the large ones.

One day when all this Covid business dies down, I hope to take all the PDF brothers (including Bluesky bhai) on a tour of the Dhaka EPZ at least.

They haven't been in business for at least four decades sitting there doing nothing....

So- question for brother @Paul2 , which EPZ's have you been to in Bangladesh? Do you plan to go? Nearest ones to Dhaka are Dhaka (Savar) EPZ and Adamjee EPZ.

Not a principled choice, but requirements are:

1. Close to two cities in BD with international connections, which are Dhaka, or Chattogram
2. Have perks for electronics engineering/manufacturing
3. Logistical availability, not middle of nowhere
4. Close to educated labour. I guess, being near Dhaka, or Chattogram with some transit connectivity solves this automatically
5. Being relatively big, and populous with other companies of that kind, so there is a chance the rest of the supply chain goes there

 

[Bilal9]

Not a principled choice, but requirements are:

1. Close to two cities in BD with international connections, which are Dhaka, or Chattogram
2. Have perks for electronics engineering/manufacturing
3. Logistical availability, not middle of nowhere
4. Close to educated labour. I guess, being near Dhaka, or Chattogram with some transit connectivity solves this automatically
5. Being relatively big, and populous with other companies of that kind, so there is a chance the rest of the supply chain goes there

If you are looking for locating closer to electronics engineering/manufacturing hubs then locating closer to Dhaka would be a better choice. Air Cargo activity is also more concentrated in Dhaka I'd say.

Walton, Bangladesh' electronics manufacturing giant is located near the locality of Chandra in the area of Kaliakoir, part of Gazipur City. Gazipur is North of the industrial locality of Tongi which is North of Dhaka's Northern-most suburb, Uttara. If you want to steal some labor from them, that is an ideal place to be.

The Dhaka-Gazipur highway is unfortunately a mess right now - because they are building a Bus Rapid Transit as well as an expressway in that area and you will face some delay in getting through. However the closest EPZ in there is the Dhaka EPZ located in the locality of Savar.

That may be an ideal location for electronics assembly because there are educated labor located in that area, and given the relative proximity of Dhaka Airport close by, may be ideal for using airfreight to ship out assembled products. SGS operates in that area (global customs inspection agents).

The other hub of electronics assembly is going to be Narsingdi (still a remote area), which is also North of Dhaka, where Samsung has a smart TV assembly plant. Click below to see location (that whole area North of Dhaka has many export factories),

Narsingdi and Gazipur on a map

If you are primarily interested in Sea-Freight in containers as a logistics and supply chain (both inward and outward) option, then sitting closer to Chattogram EPZ's may be better, as the port is close by.

Chattogram boasts half a dozen VERY large EPZ's, more than half of them owned by the govt. - which contains electronics manufacturing facilities I understand.

However the largest EPZ in Asia is also being built in Mirsarai (still early days), which is a few dozen KM's North of Chattogram, on the DAC-CTG Highway. Educated electronics labor may be harder to find in this area, depending on level of education (compared to Dhaka where there is more availability of educated labor, but also salaries demanded may be a bit higher).

Drone video,

Last but not least - find a REPUTED local partner to team with to get past language barriers and who know the area well, there are shysters and fraudsters aplenty. But people who already have large investments in Bangladesh won't risk their reputation pulling fast ones on you. Again, go talk with the chambers of commerce in each city and make friends. If you are in Chittagong, go see Kihak Sung, president of Youngone Bangladesh, he owns most of the Korean EPZ in that area. He is also a very powerful man in Chottogram Industrial export circles.

The Ispahani family, PHP Family are also reputed conglomerates based in Chittagong, they all have varied industrial operations.

 

[Bilal9]

This was based on IDC report from 2017, Electronics manufacturing is much more diverse and widespread in Bangladesh now. Walton itself has started diversifying into smartphone and computer accessories.