Bepza Economic Zone in Mirsarai draws nearly $130m before completion, eyes $2.9b potential

Highlights:

• Bepza Economic Zone attracted $130 million investment before project completion
• Zone generated $52.82 million exports, creating 5,074 Bangladeshi jobs
• Sixty-three companies pledged $1.49 billion investment through land lease agreements
• Zone expanding beyond garments into drones, pharmaceuticals and advanced manufacturing
• Full operations could attract $2.9 billion and 500,000 jobs
• Gas shortages and limited customs services hinder investment and operations

Bepza Economic Zone in Mirsarai, Chittagong, had attracted $130 million in investment as of mid-July – even before the site's development project was completed – generating $52.82 million in exports and creating jobs for 5,074 Bangladeshi citizens, according to the Bangladesh Export Processing Zones Authority (Bepza).

Bepza officials said the zone has opened up possibilities for industrialisation, product diversification and employment. Beyond the traditional ready-made garment sector, it is emerging as a hub for footwear, high-tech products such as drones, pharmaceutical active ingredients (API), and a range of eco-friendly and modern goods.

Infograph: TBS

Leases, Investment and project completion

On 16 July, Chinese company Huarun Tex Co Ltd signed a land lease agreement with Bepza authorities to invest $30 million in a textile manufacturing plant in the Bepza EZ.

With this, at least 63 local and foreign companies had signed lease agreements to invest in the zone, with proposed investment totalling $1.49 billion, Bepza data showed.

12 industrial enterprises have already begun commercial production and export, while three more have started trial production and are expected to join full-scale exports soon.

The zone has 539 industrial plots and two six-storey factory buildings. Of these, 360 plots and one factory building have already been allocated to 59 enterprises, and most of the total plots have now been leased out. Several more enterprises are in the pipeline, with 35 to 40 companies in active talks to invest.

The Mirsarai Bepza Economic Zone establishment project was completed last June. Work began in 2018 at an estimated cost of Tk1,302.91 crore and was completed after a three-year extension, ultimately costing Tk163 crore less than budgeted.

Bepza officials said the zone could attract investment of around $2.9 billion once fully operational. When all enterprises reach full production capacity, annual export earnings could reach $4 billion to $5 billion, while creating new employment opportunities for about 500,000 Bangladeshi citizens.

Top exporters and employers

Kaixi Lingerie Bangladesh is the zone's largest exporter and employer, with an investment of $18.91 million, cumulative exports of $34.56 million and a workforce of 3,651 Bangladeshis – more than half of the zone's total employment.

KPST Shoes (BD), the first company to begin exports from the zone, has invested $5.63 million, exported $9.1 million worth of footwear accessories and employs 220 workers. Mingda (Bangladesh) New Material Company has invested $4.48 million, exported $2.7 million worth of textiles, bags and hospital supplies, and created 147 jobs.

Fengqun Composite Material Company has exceeded its investment performance, exporting $3.09 million against an investment of $2.21 million while employing 46 people.

Jibin Technology (BD), Taisheng (Bangladesh) Webbing Company, Vernon & Oliver Furniture and Goodwood (Dhaka) have also contributed through exports of footwear accessories, furniture and medical products, generating hundreds of additional jobs.

Investment from various countries

Investment proposals from the 62 leaseholding companies underscore strong foreign interest in the Bepza Economic Zone, with China emerging as the largest source of planned investment. 

Chinese firms include Alpen Banyan Garments BD, proposing $108.99 million, Mingda (Bangladesh) New Material with $76.41 million for textiles and hospital products, Kaixi Lingerie Bangladesh with $60.85 million for garments, and Tai Ma Shoes (BD) with $55.05 million for footwear production. 

South Korea is another major investor, led by Park Handbag BD, which plans to invest $80 million in handbags, backpacks and garments. 

Hong Kong (China) has also committed significant investment, with Campvalley Chittagong proposing $54 million for camping equipment and garments, while Nova Intima Limited, a Hong Kong-British Virgin Islands joint venture, plans $28.05 million for women's apparel. 

Sri Lanka's Univogue Garments has proposed $36.49 million for large-scale ready-made garment production.

Arrival of high technology

Four enterprises in high-tech and non-traditional sectors are investing in the zone, Bepza said. 

Chinese-owned AeroSynth Limited has proposed a $3.50 million investment to manufacture drones, including toy drones for entertainment, specialised fishing drones, and lightweight delivery drones.

The project is expected to diversify Bangladesh's export basket and strengthen technology-driven manufacturing.

Chinese company Crescent Hi Tech Company has begun work to domestically produce sensitive, import-dependent raw materials for the pharmaceutical sector, signing a lease agreement with a proposed investment of $7.6 million to produce key raw materials for internationally standard, life-saving medicines – an initiative expected to reduce the pharmaceutical industry's reliance on imports.

Chinese company Bangladesh Prothoma Power Supply Limited has proposed a $12.24 million investment to produce specialised battery plates, a key component for the electronics and energy sectors.

Bayexp International, backed by leading United States investment, has proposed a diversified $15 million investment to tap the international outdoor and adventure lifestyle market.

Quality over quantity: Bepza's strategy

Investment inflows into the Bangladesh Export Processing Zones Authority (Bepza) remain strong despite a challenging investment climate, said Md Tanvir Hossain, member (investment promotion).

He said Bepza is focusing on quality investment and developing backward linkage industries. "When a shoe factory is established, we also try to attract manufacturers of soles, laces and other components so a complete supply chain develops and production costs come down," he said.

Beyond ready-made garments, Bepza is targeting export-oriented sectors such as light engineering. Xiao Hongxi, managing director of Kaixi Lingerie Bangladesh Co Ltd, said the company exports lingerie and related accessories worth around $3 million annually to Europe, citing Bangladesh's competitive workforce, duty-free market access and incentives while calling for better logistics, reliable energy and industrial diversification.

Gas shortage hampers operation

Despite 15 enterprises already exporting from the zone, inadequate gas supply continues to delay full-scale operations. 

At a steering committee meeting on the Bepza Economic Zone project on June 30, authorities stressed the urgent need for gas connections, directing Bepza to coordinate closely with the Bangladesh Economic Zones Authority to expedite supply. 

"If we had gas, we could attract nearly double the investment we currently have," said Bepza Member (Investment Promotion) Md Tanvir Hossain. He also noted that many customs services remain unavailable within the zone, forcing investors to obtain bond registrations and import-export approvals outside the EPZ, increasing time and costs.