The Bangladesh Export Processing Zone Authority (Bepza) Economic Zone at Mirsharai, Chattogram, has entered a new phase of operations, with five foreign companies already starting production and exports.
Bepza is witnessing a significant influx of investment in the economic zone, with the signing of 23 investment agreements worth $333.72 million between January and 8 September 2025.
Since 2022, a total of 48 companies have signed lease agreements involving $1.028 billion in committed investment, which is expected to create about 131,000 jobs. Actual investment inflows so far amount to $61.41 million.
Under the agreements this year, 12 companies will establish industries in the zone with a combined proposed investment of $208.53 million.
Five companies start production
According to Bepza, four of the five companies that started production are Chinese-owned, while the fifth is from South Korea. Together, they have so far exported goods worth around $17.3 million and generated employment for nearly 4,000 people.
The operational firms include Fengqun Composite Material Co (BD) Ltd, producing footwear accessories and packaging materials; Kaixi Lingerie Bangladesh Co Ltd, manufacturing a range of lingerie and composite garments; KPST Shoes (BD) Co Ltd, producing insoles, outsoles and EVA foam; Mingda (Bangladesh) New Material Co Ltd, producing textiles and packaging items; and Youngchang BD Co Ltd of South Korea, manufacturing adhesives and primers for footwear.
These companies plan to expand operations, with a combined proposed investment of $156.16 million.
Another four firms – Goodwood (Dhaka) Co Ltd, Jibin Technology (BD) Co Ltd, Taisheng (Bangladesh) Webbing Co Ltd, and Youngchang BD Co Ltd – are expected to begin production shortly, focusing on wooden cutlery, medical products, shoe accessories, adhesives, solvents, and elastic materials.
Growing investor interest
“Investors have shown keen interest even before Bangladesh secured tariff concessions in the US market,” said ASM Anwar Parvez, Bepza’s executive director (public relations).
He added, “Five companies have already started production during the project implementation stage, and four more are set to follow soon. In total, 48 companies have signed agreements to produce everything from garments and footwear to advanced pharmaceuticals, tobacco machinery, and even drones.”
Bepza officials said around 15 additional companies are in the pipeline, with five to seven expected to sign agreements soon. Another 35-40 firms have expressed interest in investing in the zone.
Expansion and diversification
Chinese investors account for the largest share of agreements, followed by companies from South Korea, Sri Lanka, the United States, the United Kingdom, Canada, Singapore, India, the UAE, the Netherlands, the British Virgin Islands, Malaysia, Ireland and Bangladesh.
Among them, the Chinese Kaixi Group is expanding significantly. After launching Kaixi Lingerie Bangladesh Co Ltd in June 2024 with an investment of $60.85 million, the company employed about 3,700 workers. In August this year, it signed a fresh deal to invest another $40.05 million under the name Kaixi Garments Bangladesh Ltd.
Bangladeshi firm Oasis Accessories (Pvt) Ltd has also joined the zone, committing $4.8 million to set up a garment accessories factory.
Future investors are considering ventures in furniture, camping goods, bags, belts, eyewear, electric bicycles and tricycles, solar panels, and personal care tools.
Recently, through negotiations, Bangladesh was able to reduce the US reciprocal tariff on its exports to 20%. On the other hand, high tariffs of about 50% and 30% are still in force on goods from India and China, respectively. This has increased the interest of companies from other countries, including China, to set up factories in Bangladesh, according to Bepza officials.
Infrastructure and facilities
Bepza has assured investors of reliable utility services, including electricity, groundwater supply and distribution, and upcoming water treatment facilities. A gas distribution line is 80% complete, with a DRS station already installed by Karnaphuli Gas Distribution Company.
Development plan approved in 2018
Bepza currently oversees eight operational export processing zones across Bangladesh. Building on that success, the government approved the Bepza Economic Zone on 1,138.55 acres in Mirsharai within the National Special Economic Zone.
The project’s development plan was approved in 2018, with 539 industrial plots created for domestic and foreign investors. Once fully operational, the zone is expected to attract $4.5 billion in investment and generate nearly half a million jobs.
Although the project’s official tenure runs until 31 December 2025, investment and export activities have already taken off, thanks to early infrastructure and utility readiness.