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Export Processing Zones in Bangladesh: Catalysts for Production Growth

Bangladesh, a nation with a burgeoning economy, has strategically established several Export Processing Zones (EPZs) to bolster its export-oriented industries and attract foreign direct investment (FDI). Governed by the Bangladesh Export Processing Zones Authority (BEPZA), these zones have become pivotal in accelerating industrialization, creating employment opportunities, and enhancing the country’s global trade footprint. Spread across various districts, EPZs play a significant role in fostering economic growth and development.

 

We have 8 Export Processing Zones in different districts of Bangladesh.  Short Details are given in below :

Dhaka EPZ 2

Dhaka EPZ (Savar, Dhaka):  The Dhaka Export Processing Zone (DEPZ), established in 1993, spans 356.22 acres and comprises 451 industrial plots.  The industries within DEPZ produce a wide array of products, such as Knitwear and Woven Garments industries as well as other articles.  In the fiscal year 2022-2023, DEPZ achieved export earnings of approximately US$1,801.93 million.  This significant contribution underscores DEPZ’s vital role in Bangladesh’s export economy.  This zone is one of the most prominent, contributing significantly to the apparel and textiles sectors.

 

Kless Hub’s established relationships with Dhaka EPZ industries ensure streamlined production, high-quality results, and reliable delivery schedules.

Adamjee EPZ 1

The Adamjee Export Processing Zone (EPZ) (Narayanganj): Known for its modern infrastructure, this zone has a strong presence in the textile and apparel sectors.  The Adamjee EPZ established in 2006, is situated in Siddhirganj, Narayanganj, approximately 15 km from Dhaka.

 

As of recent reports, Adamjee EPZ houses 51 operational factories in different catagories including Textile and Apparels.  These industries collectively contribute to producing a wide array of export-oriented products.  In the fiscal year 2022-2023, Adamjee EPZ achieved export earnings of approximately US$928.40 million.  This significant contribution underscores Adamjee EPZ’s vital role in Bangladesh’s Readymade Garments Industries as well as Export Economy.  Many prominent Garments industries are working in this EPZ years after years.

 

Kless Hub’s established relationships with Adamjee EPZ industries ensure streamlined production, high-quality results, and reliable delivery schedules.

Chittagong Export Processing Zone (CEPZ)

The Chittagong Export Processing Zone (CEPZ), established in 1983, is the first EPZ in the country.  One of the largest and most significant EPZs in Bangladesh.  It is located in Chittagong, spanning an area of approximately 453 acres. CEPZ hosts a wide range of industries, including garments, textiles, footwear, electronics, and plastic goods, among others.

 

The zone has played a pivotal role in boosting the country’s economy, with an annual turnover in billions of dollars. The garments sector is a major contributor to CEPZ’s output, significantly supporting Bangladesh’s position as one of the top global exporters of apparel. CEPZ’s contribution to the country’s export revenue and employment generation has been exemplary, fostering foreign investment and technological advancement in Bangladesh’s industrial sector.

 

Kless Hub’s established relationships with Chittagong EPZ industries ensure streamlined production, high-quality results, and reliable delivery


Karnaphuli Export Processing Zone (KEPZ)

The Karnaphuli Export Processing Zone (KEPZ), established in 2006, is situated near Chittagong and covers an area of approximately 222.42 acres. This EPZ has been strategically developed to accommodate diverse industries, including garments, textiles, leather goods, electronics, and manufacturing.

 

KEPZ has rapidly gained prominence for its contribution to Bangladesh’s export-oriented industrial growth. The zone generates an impressive annual turnover, with the garments and textiles sector playing a dominant role. KEPZ significantly supports the country’s thriving garments exports, contributing to its reputation as one of the leading global apparel exporters. Its impact on employment and foreign exchange earnings highlights its importance in Bangladesh’s economy.

 

Kless Hub’s established relationships with Karnaphuli EPZ industries ensure streamlined production, high-quality results, and reliable delivery.

Comilla Export Processing Zone (CEPZ)

The Comilla Export Processing Zone (CEPZ) was established in 2000 and is located in the Comilla district of Bangladesh. Covering an area of approximately 267 acres, CEPZ is strategically positioned to support export-oriented industries.  CEPZ hosts a diverse range of industries, including: Ready-made Garments, Textiles, Footwear, Electronics, Leather Goods etc.

 

CEPZ has shown remarkable growth over the years, with an annual turnover amounting to several hundred million USD. The zone plays a critical role in Bangladesh’s export economy, particularly through its thriving RMG sector, which constitutes a significant portion of the zone’s overall production and revenue.

 

Kless Hub’s established relationships with Comilla EPZ industries ensure streamlined production, high-quality results, and reliable delivery.


Uttara, Nilphamari Export Processing Zone (NEPZ)

The Nilphamari Export Processing Zone (NEPZ), commonly referred to as Uttara EPZ, was established in 2001. It is located in the Nilphamari district of northern Bangladesh and spans an area of approximately 213 acres.

 

NEPZ is home to a variety of export-oriented industries, including: Ready-made Garments, Textiles, Leather Goods, etc.  The annual turnover of NEPZ has grown steadily, contributing hundreds of millions of USD to Bangladesh’s export revenue. Its industries are primarily focused on international markets, ensuring high standards and quality products.

 

NEPZ significantly supports Bangladesh’s global apparel export market by delivering high-quality garments to Europe, North America, and Asia. Its contribution extends beyond revenue, creating thousands of jobs and fostering economic growth in the northern region, thus playing a vital role in the country’s export-oriented industrialization strategy.

 

Kless Hub’s established relationships with Uttara, Nilphamari EPZ industries ensure streamlined production, high-quality results, and reliable delivery.

Ishwardi Export Processing Zone (IEPZ)

The Ishwardi Export Processing Zone (IEPZ) was established in 2001 and is located in the Ishwardi Upazila of Pabna district, Bangladesh. It spans an area of approximately 308 acres, making it one of the key EPZs in the country, particularly in the northern region.

 

IEPZ accommodates a diverse range of export-oriented industries, including: Woven and knitted garments.  IEPZ generates an annual turnover in the range of hundreds of millions of USD. It has attracted foreign and local investments, significantly contributing to the country’s export earnings.

 

IEPZ plays a significant role in Bangladesh’s global apparel export industry by supplying high-quality garments to major markets, including Europe, North America, and Asia. It also generates employment opportunities, supports regional economic growth, and strengthens the country’s position as a global leader in the RMG sector.

 

Kless Hub’s established relationships with Ishwardi EPZ industries ensure streamlined production, high-quality results, and reliable delivery.


Mongla Export Processing Zone (MEPZ)

The Mongla Export Processing Zone (MEPZ), established in 1998, is located near the Mongla Port in the Bagerhat district of southern Bangladesh. Covering an area of approximately 122 acres, it is strategically positioned to facilitate export activities due to its proximity to the country’s second-largest seaport.  MEPZ houses a range of export-oriented industries, including:  Woven and knitted apparel. Yarn, fabrics, and processing units. Footwear and accessories.

 

MEPZ contributes significantly to the country’s export earnings, generating an annual turnover of hundreds of millions of USD. Its industries leverage the port’s connectivity for cost-efficient export operations.

 

MEPZ plays a vital role in enhancing Bangladesh’s garments export performance, particularly in markets across Europe, North America, and Asia. Its contribution extends to employment generation and the development of the southern region, strengthening the country’s position as a leading global apparel exporter.

 

Kless Hub’s established relationships with Mongla EPZ industries ensure streamlined production, high-quality results, and reliable delivery.

Contributions to the Economy

The EPZs in Bangladesh have emerged as significant drivers of economic growth. They offer a range of incentives, including tax holidays, duty-free import of machinery, and streamlined procedures for business operations. These measures attract foreign and local investors, leading to substantial FDI inflows.

 

The zones are instrumental in:

 

  1. Employment Generation: EPZs collectively employ hundreds of thousands of workers, with a significant portion being women. This empowerment has had a ripple effect on societal progress and poverty alleviation.

  2. Export Growth: Industries within EPZs contribute a significant share to the country’s total exports, particularly in textiles, garments, and electronics.

  3. Skill Development: By hosting technologically advanced industries, EPZs provide workers with access to training and skill development, enhancing the overall quality of the workforce.

Challenges and Opportunities

Despite their success, EPZs face challenges, including infrastructure limitations, rising labor costs, and competition from other countries offering similar facilities. To sustain growth, Bangladesh must invest in advanced infrastructure, improve regulatory frameworks, and diversify its industrial base within these zones.

 

Opportunities abound in expanding EPZs to underdeveloped regions, promoting green industries, and integrating advanced technologies to boost productivity and sustainability. The government’s plan to establish new EPZs and Special Economic Zones (SEZs) reflects its commitment to maintaining Bangladesh’s competitive edge in the global market.

 

The Export Processing Zones in Bangladesh have proven to be transformative for the country’s economic landscape. By fostering industrialization, creating jobs, and driving exports, these zones have positioned Bangladesh as a significant player in global trade. With strategic planning and continued investment, EPZs will remain vital in shaping the nation’s economic future.


Bangladesh’s RMG Sector: Beyond the EPZs

Bangladesh’s ready-made garment (RMG) industry is not only confined to the Export Processing Zones (EPZs) but also extends across numerous regions, including Dhaka, Gazipur, Manikganj, Narayanganj, Chattogram, Khulna, and Comilla. These areas host a vast number of garment factories that form the backbone of the country’s apparel sector, catering to international markets with exceptional quality and large-scale production capacity.

Key Regional Production Hubs

  • Dhaka & Gazipur: These regions are the main center of Bangladesh’s garment manufacturing. Factories here produce diverse apparel, including woven, knitted, and denim garments, for some of the world’s leading fashion brands. Gazipur, with its dense industrial base, is particularly renowned for large-scale RMG units.

  • Narayanganj: Known as the “Dundee of the East,” Narayanganj has long been a center for knitwear and textile production. The factories here specialize in producing knitted garments and contribute significantly to export earnings.

  • Chittagong: As a major port city, Chittagong facilitates seamless exports and houses numerous factories focused on woven and denim products. Its proximity to the port provides logistical advantages, making it a strategic location for RMG units.

  • Khulna, Manikganj, and Comilla: Emerging as important contributors to the RMG industry, these regions are expanding their industrial capabilities, hosting factories that produce quality garments while diversifying Bangladesh’s manufacturing landscape.


Green Production Units

Bangladesh leads globally in sustainable garment manufacturing, with over 229 LEED-certified green factories. Many of these factories are situated in areas like Dhaka, Gazipur, and Chattogram. Of the world’s top 100 green factories, 54 are in Bangladesh, including 9 out of the top 10. These factories adhere to eco-friendly practices, such as energy efficiency, water conservation, and waste reduction, enhancing their appeal to environmentally conscious global buyers.

 

High Production Capacity with Acceptable Quality

Bangladesh’s RMG sector is renowned for its massive production capacity, with over 4,500 active factories employing more than 4 million workers. Factories in regions outside the EPZs are capable of handling large-scale orders, producing millions of units per year. These units maintain international quality standards, with many factories accredited by organizations like WRAP, SEDEX, and Accord.

 

From high-end woven garments to fast-fashion knitwear, the factories cater to the varied demands of global markets, supplying to brands in the US, Europe, and Asia.

 

Bangladesh’s RMG sector, beyond its EPZs, is a dynamic and growing industry. Its focus on green production, coupled with its high capacity and quality, reinforces the country’s position as a global leader in apparel exports. This extensive network of production hubs ensures sustainable growth and continuous contributions to the economy, making Bangladesh a key player in the global fashion industry.

Kless Hub’s established potential relationships with all Garments Manufacturing Units our of EPZs as well.  We are ensuring streamlined production, high-quality results, and reliable delivery.