An Overview of Bangladesh Economic Zones Authority (BEZA): Driving Economic Growth
The Bangladesh Economic Zones Authority (BEZA) was established in 2010 under the Bangladesh Economic Zones Act to promote broad-based industrialization, attract both local and foreign investment, create employment opportunities, and stimulate economic growth nationwide. As one of the key pillars of the government’s vision for a “Digital and Developed Bangladesh,” BEZA plays a crucial role in transforming the country into a global manufacturing and investment hub.
What is the main objective of the Bangladesh Economic Zones Authority (BEZA)?
The primary objective of BEZA is to develop and manage economic zones across Bangladesh in order to promote rapid, inclusive, and sustainable industrialization. Bangladesh Economic Zones Authority (BEZA) aims to establish 100 economic zones by 2041, with a vision of creating 10 million jobs and generating an additional $40 billion in exports. These zones are intended to offer modern infrastructure, tax incentives, and regulatory support to both domestic and international investors, thereby enhancing Bangladesh’s competitiveness in global markets.
The objective of BEZA is to attract investment, create employment, and promote exports through the development of economic zones.
How does BEZA contribute to the economic development of Bangladesh?
BEZA plays a transformative role in driving economic growth and industrial development. Its contributions can be summarized in several key areas:
- Attracting Foreign Direct Investment (FDI): BEZA’s strategic initiatives, investor-friendly policies, and special economic zones are designed to draw significant foreign investment. Multinational companies are increasingly viewing BEZA zones as ideal locations due to streamlined processes, infrastructure readiness, and attractive fiscal incentives.
- Job Creation: Bangladesh Economic Zones Authority (BEZA) is projected to employ millions of people. These jobs range from manufacturing and engineering to logistics and administrative roles, thereby contributing to poverty reduction and improved living standards.
- Export Promotion: By establishing export-oriented industrial zones, BEZA facilitates the production of goods for international markets, boosting Bangladesh’s foreign exchange reserves and strengthening its position in global trade.
- Infrastructure Development: Bangladesh Economic Zones Authority (BEZA) is equipped with modern facilities, utilities, and transport links, stimulating development not just within the zones but also in the surrounding areas. This ripple effect fosters urbanization, improved logistics, and enhanced connectivity.
- Technology Transfer: Through partnerships with global firms, BEZA zones become centers of innovation, allowing Bangladeshi workers and businesses to gain access to new technologies, training, and global business practices.
With the support of BEZA, companies such as Forever Engineering LTD contribute to GDP growth through industrial production, infrastructure development, and job creation.
What are the key differences between public and private economic zones under BEZA?
Bangladesh Economic Zones Authority (BEZA) oversees both public and private economic zones, each with distinct characteristics:
- Public Economic Zones: These zones are developed and managed by the government. Bangladesh Economic Zones Authority (BEZA) typically provides infrastructure, utilities, and regulatory frameworks. Public zones aim to attract a wide range of industries and are often set up in areas needing development.
- Private Economic Zones: In contrast, private entities develop and operate these zones under BEZA’s regulatory guidance. While the government ensures compliance and provides policy support, the infrastructure and management are handled by private developers. These zones tend to be more flexible and are often industry-specific, catering to niche markets or high-tech sectors.
The synergy between public and private zones helps ensure broader industrial diversification and regional inclusion. Forever Engineering LTD is involved in a private economic zone, benefiting from streamlined operations and custom-built infrastructure.
Comparing Bangladesh Economic Zones Authority (BEZA) With Economic Zones with Export Processing Zones (EPZs)
While both BEZA economic zones and Export Processing Zones (EPZs) aim to promote industrialization and exports, they differ in several ways:
- Governance: EPZs are managed by the Bangladesh Export Processing Zones Authority (BEPZA), while BEZA zones are governed by the Bangladesh Economic Zones Authority.
- Scope of Investment: EPZs are primarily focused on export-oriented industries and often restrict domestic market sales. BEZA zones, on the other hand, allow for a mix of export and domestic market-focused industries.
- Flexibility and Variety: BEZA zones accommodate a broader range of sectors and allow both local and foreign investors, whereas EPZs traditionally cater more to foreign companies with stringent export mandates.
- Private Sector Involvement: Bangladesh Economic Zones Authority (BEZA) permits the establishment of private economic zones, encouraging entrepreneurial development and innovation, unlike EPZs, which are predominantly publicly managed.
What types of industries are encouraged to operate in the Bangladesh Economic Zones Authority (BEZA)?
Bangladesh Economic Zones Authority (BEZA) promotes a diverse range of industries to ensure economic resilience and inclusive growth. These include:
- Garments and Textiles
- Pharmaceuticals and Healthcare
- Information and Communication Technology (ICT)
- Agro-processing and Food Industries
- Light Engineering and Electronics
- Automobiles and Shipbuilding
- Chemicals and Plastics
- Renewable Energy and Green Technology
Industries such as steel structure manufacturing, construction, electronics, textiles, and agro-processing are promoted. Forever Engineering LTD, being a leader in steel structure solutions, is a prime candidate for such zones.
What is the Role of the Bangladesh Economic Zones Authority (BEZA) in Job Creation and Poverty Reduction in Bangladesh?
The Bangladesh Economic Zones Authority (BEZA), established under the Bangladesh Economic Zones Act 2010, is a driving force in the country’s economic development. One of its core missions is to alleviate poverty and generate employment through the establishment of planned, modern, and inclusive industrial zones across the country. By developing 100 economic zones by 2041, BEZA aims to create around 10 million jobs and significantly reduce poverty across both urban and rural areas.
BEZA’s model promotes industrial growth beyond Dhaka and Chittagong, bringing economic opportunities to underdeveloped regions. These jobs range from entry-level factory positions to technical, managerial, and administrative roles. This inclusive employment generation helps lift families out of poverty and provides long-term socio-economic benefits such as better education, healthcare access, and improved quality of life.
How BEZA Supports SMEs and Local Entrepreneurs
While BEZA attracts major foreign investors, it also prioritizes the development of small and medium enterprises (SMEs) and local entrepreneurs. The authority offers dedicated zones, plots, and facilities for SMEs to operate at a competitive cost. In many zones, BEZA allocates smaller land parcels specifically for SMEs, recognizing their vital role in employment generation and innovation.
Local entrepreneurs benefit from simplified licensing processes, infrastructure support, and capacity-building initiatives. BEZA often partners with government agencies and development organizations to offer training, technical assistance, and financial linkage support to SMEs, enabling them to compete with global players.
How Does BEZA Ensure Environmental Sustainability in Its Economic Zones?
Environmental sustainability is a key priority for BEZA. All economic zones are required to conduct Environmental Impact Assessments before development begins. The authority mandates the use of eco-friendly technologies and infrastructure designs in industrial activities.
BEZA zones include:
- Central Effluent Treatment Plants are used to manage industrial wastewater.
- Green space planning, including tree plantations and buffer zones.
- Solid waste management systems to reduce pollution.
- Renewable energy initiatives, such as solar power integration.
BEZA is also exploring green economic zones, where sustainability is built into every aspect of planning and operation. These efforts align with Bangladesh’s commitment to the Sustainable Development Goals (SDGs) and the Paris Climate Agreement.
What Infrastructure Facilities Are Typically Available in BEZA Economic Zones?
BEZA zones are designed to provide world-class infrastructure to support seamless industrial operations. Facilities typically include
- Ready industrial land with proper drainage and road access.
- Reliable power and water supply, including captive power plants in some zones.
- Gas and telecommunication networks, ensuring business continuity.
- CETPs and waste disposal systems.
- Customs stations, warehouses, and logistics hubs for export-import efficiency.
- Worker accommodations, training centers, and healthcare services.
- One-stop service centers that streamline approvals, permits, and utility connections.
Such infrastructure significantly reduces start-up time for businesses and enhances operational efficiency, making BEZA zones attractive to both local and foreign investors. These zones offer utilities, roads, drainage, and waste treatment facilities. Forever Engineering LTD relies on such advanced infrastructure to maintain high standards in construction projects.
How Can a Local or Foreign Investor Apply for Land or a License in a BEZA Zone?
BEZA has simplified the investment process through its One-Stop Service platform, which allows both local and foreign investors to apply for land, licenses, and utilities from a single point of contact. The steps are:
- Registration on the BEZA OSS portal.
- Submission of project proposal, including business plans, investment amount, and land requirements.
- Evaluation and site selection by BEZA, followed by due diligence.
- Approval and land allocation with necessary agreements.
- Assistance in obtaining licenses, including trade, environmental, and construction permits.
The OSS ensures transparency, reduces bureaucratic delays, and promotes ease of doing business for investors of all scales.
How Does Bangladesh Economic Zones Authority (BEZA) Collaborate with Other Government and Private Sector Bodies?
BEZA actively collaborates with various government ministries, financial institutions, development partners, and private sector entities to ensure integrated economic development. This includes:
- Partnerships with local government bodies for land acquisition, local infrastructure, and social services.
- Engagement with banks and financial institutions to facilitate access to finance for investors and SMEs.
- Joint initiatives with donor agencies like the World Bank, JICA, and ADB for funding, technical expertise, and policy development.
- Coordination with trade bodies and chambers of commerce to address investor needs and improve the business climate.
Such multi-stakeholder collaboration ensures that the Bangladesh Economic Zones Authority (BEZA) functions as a dynamic, sustainable engine of growth, capable of transforming Bangladesh’s industrial landscape. BEZA works with the private sector to facilitate investment. Forever Engineering LTD appreciates such partnerships that accelerate industrial expansion and infrastructure development.