List of special economic zones


Bangladesh

Several special economic zones have been established across Bangladesh since the 1980s.
Mandated by the Bangladesh Economic Zones Act, 2010, the Bangladesh Economic Zones Authority was officially instituted by the government on 9 November 2010. BEZA aims to establish SEZs in all potential areas in Bangladesh including underdeveloped regions with a view to encouraging rapid economic development through increase and diversification of industry, employment, production and export.
Bangladesh government has taken an initiative to introduce a hundred SEZ throughout the country. As of March 2016, thirty seven government SEZs have acquired land and are under development.
The following Eight EPZs are in operation:
BEPZA is currently working on Mirsharai Economic Zone project to expand the opportunities for the investors to invest and create employment in a business-friendly environment.

Belarus

Belarus has a SEZ called the China-Belarus Industrial Park.

Botswana

Currently identified areas for SEZs are:
The Cayman Enterprise City SEZ officially launched on Friday, 3 February 2012. It specializes in knowledge based industries. The SEZ has a range of incentives to attract businesses including no corporate, income or capital gains tax.

Cambodia

Formally introduced in 2005, there are 22 SEZs in Cambodia as of November 2014. They are listed below followed by the province in which they are located.
  1. Sihanoukville Special Economic Zone, Sihanoukville
  2. Sihanoukville Port SEZ, Sihanoukville
  3. Neang Kok Koh Kong SEZ, Koh Kong
  4. Suoy Chheng SEZ, Koh Kong
  5. S.N.C. SEZ, Sihanoukville
  6. Stung Hav SEZ, Sihanoukville
  7. N.L.C. SEZ, Svay Rieng
  8. Manhattan SEZ, Svay Rieng
  9. Poipet O’Neang SEZ, Banteay Meanchey
  10. Doung Chhiv Phnom Den SEZ, Takeo
  11. Phnom Penh SEZ, Phnom Penh
  12. Kampot SEZ, Kampot
  13. Sihanoukville SEZ 1, Sihanoukville
  14. Tai Seng Bavet SEZ Svay Rieng
  15. Oknha Mong SEZ, Koh Kong
  16. Goldfame Pak Shun SEZ, Kandal
  17. Thary Kampong Cham SEZ, Kampong Cham
  18. Sihanoukville SEZ 2, Sihanoukville
  19. D&M Bavet SEZ, Svay Rieng
  20. Kiri Sakor Koh Kong SEZ, Koh Kong
  21. Kampong Saom SEZ, Sihanoukville
  22. Pacific SEZ, Svay Rieng

    China

The most prominent SEZs in the country are Shenzhen, Xiamen, Shantou, and Zhuhai. It is notable that Shenzhen, Shantou, and Zhuhai are all in Guangdong province, and all are on the southern coast of China where the sea is very accessible for transportation of goods.

Cuba

is a special economic zone under construction in Cuba, with the intention to attract foreign investment.

Democratic Republic of the Congo

planned to build its first Special Economic Zone in the Kinshasa district of N'Sélé. The SEZ was intended be operative in 2012 and dedicated to agro-industries.
As of April 2013 the DRC did not have any FTZs or free ports.

Greece

The German government is pushing for the creation of special economic zones in Greece and other European countries with struggling economies.

Egypt

The North West Suez Special Economic Zone is located at the Red Sea, 45 km south of Suez. It is served by Sokhna harbour. It was the first SEZ set up under laws passed in 2002.
Additionally, in 2013 Egypt had nine FZs and thirteen Investment Zones.

Ethiopia

Ethiopia has a SEZ named Oriental in Dukem that produces electrical machinery, construction materials, steel and metallurgy. The zone is wholly owned by China.

India

India was one of the first countries in Asia to recognize the effectiveness of the Export Processing Zone model in promoting exports, with Asia's first EPZ set up in Kandla in 1965. In order to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones Policy was announced in April 2000.
A comprehensive draft SEZ Bill was prepared after extensive discussions with the stakeholders. A number of meetings were held in various parts of the country both by the Minister for Commerce and Industry as well as senior officials for this purpose. The draft SEZ Rules were widely discussed and put on the website of the Department of Commerce. Around 800 suggestions were received on the draft rules.
SEZ Act provides for customs duty on services cleared into DTAIt was hoped that the bill would instill confidence in investors and signal the Government's commitment to a stable SEZ policy regime. Thereby generating greater economic activity and employment through their establishment.
The Special Economic Zones Act was passed by the Government of India in May 2005, it received Presidential assent on the 23rd of June, 2005. While introducing the act, then prime minister of India, Dr. Manmohan Singh, said:“SEZs are here to stay”.
The bill came into effect on 10 February 2006, providing for drastic simplification of procedures and for single window clearance on matters relating to central as well as state governments. The remaining part of India, not covered by the SEZ Rules, is known as the Domestic tariff area. Exports from Indian SEZ totalled INR 2.2 Trillion in 2009-10 fiscal. It grew by 43% to reach INR 3.16 Trillion in 2010-11 fiscal. Indian SEZs have created over 840,000 jobs as of 2010-11. Exports through Indian SEZs grew further by 15.4% to reach INR 3.64 Trillion. As of 2011-12 fiscal, investments worth over US$36.5 billion have been made in these tax-free enclaves. Exports of Indian SEZs have experienced a growth of 50.5% for the past eight fiscals from US$2.5 billion in 2003-04 to about US$65 billion in 2011-12.
Special Economic Zone as per Central Sales Tax, 1956 --> A Special Economic Zone is a geographically bound zone where the economic laws relating to export and import are more liberal as compared to other parts of the country. These are like a separate island within the territory of India. SEZs are projected as duty-free area for the purpose of trade, operations, duty, and tariffs. SEZ is considered to be a place outside India for all tax purpose. Within SEZs, a unit may be set-up for the manufacture of goods and other activities including processing, assembling, trading, repairing, reconditioning, making of gold/silver, platinum jewellary etc. As per law, SEZ units are deemed to be outside the customs territory of India. Goods and services coming into SEZs from the domestic tariff area or DTA are treated as exports from India and goods and services rendered from the SEZ to the DTA are treated as imports into India.
The objectives of SEZs can be explained as:
  1. Generation of additional economic activity;
  2. Promotion of exports of goods and services;
  3. Promotion of investment from domestic and foreign sources;
  4. Creation of employment opportunities;
  5. Development of infrastructure facilities.
The incentives and facilities available to SEZ developers include:
There were about 143 SEZs operating throughout India, by February 2016 this had risen to 187. 634 SEZs have been approved for implementation by the Government of India.

Indonesia

Iran

Iran's interest in free trade and special economic zones can be traced back to the 1970s. According to SOAS's Hassan Hakimian, "the FTZs are more ambitious in their objective of acting as magnets for the attraction of Foreign Direct Investment and ultimately for generating a diversified industrial base and promoting Iran's non-oil exports, the SEZ are conceived for goods transit and improving the supply and distribution networks in the country."
The first of Jamaica's special economic zones was created in 1976 with the goal of industrializing the country, as well as increasing foreign exchange and access to technology. This primary zone was in Kingston and was strategically attached to one of the country's main ports, to facilitate efficient transportation. Although it is no longer in use, during its years of operation, the zone consisted of 146 acres of warehouse land, which could be rented by foreign enterprises at very low rates. Private companies were invited to occupy the warehouses, but the government at that time, The People's National Party, remained tentative of relying on foreign capital as a means of industrializing.
With the shift to the Seaga government in the 1980s, export led industrialization became key to Jamaica's economic development, and more effort was put into attracting foreign enterprises to the zone. One of the ways in which this was executed, was by transforming the warehouse land into a center for production of manufactured goods. While the Caribbean Development Bank and the World Bank funded the creation of the zone, the conversion into factories was initiated and paid for by the National Development Bank, a government-owned institution. Due to the large job creation that accompanied the transformation, a second SEZ was opened in Montego Bay in 1988. The majority of the activity, however, remained at the Kingston location, with only ten percent of the factories at the new, smaller site. The factories were primarily occupied by foreign enterprises, and produced apparel items, fish products, fruit juice concentrates and animal feed. As a result of the special economic zones, Jamaica's export of manufactured goods increased ten-fold between 1980 and 1984, although the export of traditional goods, namely bauxite and alumina, stagnated.
Foreign enterprises were attracted to the SEZs by the incentives they offered. The zones operated as separate entities that were not technically part of Jamaica, which allowed companies to bypass local import and exchange controls. Additionally, under the Jamaica Free Zone Act, any enterprise with approval from the Port Authority could import certain items without any customs duties. Any remaining local labour controls were of little concern to foreign companies, since Jamaican workers were typically excluded from all steps except for manufacturing. The materials used for apparel manufacturing, for example, were all imported from the United States and simply assembled by the local workers. The minimal role played by Jamaicans in the production also meant that there were very few backwards and forwards linkages. With the exception of fish products, which incorporated local resources, most of the companies imported their inputs from home or from Asia. Since these enterprises could execute their business with very little engagement with the country, there was no incentive for them to ameliorate Jamaican infrastructure or industry. The Seaga government argued that despite this lack of success in industrializing the country, the zones were effective in providing much-needed employment for the locals.
At its peak, the Kingston and Montego Bay Free Zones employed over 36,000 locals. However, they were criticized for issues of poor working conditions and low wages. The jobs that the factories provided were high pressure, laborious, and provided few opportunities for workers to gain new skills. Jamaican women made up 95 percent of the workforce in the zones, the majority of whom were under 25 years old. These women typically worked twelve-hour days, six days a week, with significant overtime expected. Throughout the mid-1980s, an average income in the zone was US$30 per two weeks, a wage that was comparable to other low-skill, entry-level jobs in Jamaica, but much less than the minimum wages of the countries that owned and operated the factories. Although the creation of these jobs did lift some families out of dire economic situations, the wages were not high enough to stop the cycle of poverty for most. In addition, the government taxed their incomes heavily for ‘health benefits’, yet no aid was provided when medical issues arose. This forced many locals to believe that the government was co-conspiring with foreign countries to exploit them, but without the adequate unionized backing, there was little they could do to fight these injustices. This lack of unionization also meant that many enterprises were not forced to comply with the Factory Act: Occupational issues that arose from poor working conditions, such as overheating, carpel tunnel syndrome, strained eyesight, or back problems, went unnoticed.
Although the workers had a fundamental right to create or join unions, the majority of the factories in the zones remained non-unionized. The International Labour Organization set out guidelines for ethical working conditions, but it was largely up to the Jamaican government to enforce them. Since low-wage female workers were not a priority, very little effort was made to support them. Some women did try to improve the conditions of the factories and were met with mixed success. A few factories started to provide maternity leave and some medical benefits; however, the majority remained unchanged. In response to strikes or labour movements, some companies dismissed their Jamaican workers and brought in workers from Asia who were less vocal about the injustices. This not only took jobs from the locals, one of the key goals behind creating the special economic zones, but also had deleterious effects on future movements to unionize the factories.
The creation of the North American Free Trade Agreement in 1994 had significant impacts on the SEZss of Jamaica and can be seen as one of the main reasons for the closure of the Kingston site. Before this agreement, the United States had held a monopoly over the factory spaces, since the Caribbean Basin Economic Recovery Act of 1983-1995, allowed for one-way free trade benefits on most products entering the U.S. from the Caribbean. NAFTA gave its members similar trade privileges amongst each other that foreign countries received in Jamaica. The agreement made it more attractive for the United States to invest in Mexico than Jamaica and resulted in many of their companies moving to factories in there. Aside from the lower transportation costs between Mexico and the United States, in 1997, Mexican workers were being paid much less than Jamaican workers. In 1996, Jamaica's exports to the United States declined 12 percent, while Mexico's exports to the United States grew by 40 percent. Similarly, by the mid 1990s, employment in the special economic zones had declined 64 percent since its peak in 1987. The loss of 16,000 jobs between the years 1995-1997 was severely detrimental to the workers, who claimed they had been ‘ruined’ by health issues attributed to factory work, and were therefore not fit to pursue any other work. In response to the closure, the Jamaican government tried to promote export-oriented work like data processing and call centers, but neither venture was very successful and few jobs were created. As of February 2013, there has been talk of opening another SEZ in the Caymanas.

Latvia

is the only special economic zone in Baltics consisting of sea-port, industrial area and international airport.

Mauritius

A Chinese owned SEZ has been created in Jinfei called the Mauritius Jinfei Economic Trade and Cooperation Zone. The zone manufacturers textiles, garments, machinery and high-tech. Additionally, it supports trade, tourism and finance.

Malaysia

Malaysia launched an East Coast Economic Region in August 2009. The country's first Special Economic Zone is expected to contribute RM23 billion to the national GDP and create 220,000 new jobs in the ECER.
A Chinese owned SEZ has been created in Jinfei called the Mauritius Jinfei Economic Trade and Cooperation Zone. The zone manufacturers textiles, garments, machinery and high-tech. Additionally, it supports trade, tourism and finance.

Mexico

In May, 2016, President Enrique Peña Nieto signed a new law for the creation of special economic zones to attract investment into certain southern states of the country. The first of the zones are the port of Lázaro Cárdenas, including neighboring municipalities in Michoacán and Guerrero; a corridor in the Isthmus of Tehuantepec between Coatzacoalcos, Veracruz, and Salina Cruz, Oaxaca, that includes both those cities; and the Pacific coast port of Puerto Chiapas. In 2017 another zone is to be created in the petroleum corridor of Tabasco-Campeche.
According to , the Mexican Special Economic Zones regime will provide tax benefits, customs, and business facilitation measures, and possibly financial support to investors. Moreover, the federal government, in coordination with State and local authorities, will also implement parallel policies in the region, such as education, security, health, and infrastructure, in order to boost the competitiveness of the geographic location as well as to attract investment.

Myanmar

Special economic zones, which offer tax exemptions for different sectors are undergoing preliminary construction in Sittwe Township and Kyaukpyu Township in Rakhine State. An international standard airport is also to be constructed. The six free trade zones will be Thilawa Port in Yangon, Mawlamyine in Mon State, Myawaddy and Hpa-an in Kayin State, Kyaukphyu in Rakhine State and Pyin Oo Lwin in Mandalay Region. According to the country's Special Economic Zone Law's Act 7, Section 36, homes and farming properties located on a proposed SEZ must be duly relocated and reimbursed.
The Myanmar Port Authority has been involved in facilitating contracts to develop Myanmar's Special Economic Zones, including a US$8.6 billion deal to develop a deep sea port at Dawei called the Dawei Port Project, by Italian-Thai Development).

Nigeria

Two Chinese SEZs have been constructed in Nigeria.
The Rajin-Sonbong Economic Special Zone was established under a UN economic development programme in 1994. Located on the bank of the Tuman River, the zone borders on the Yanbian Korean Autonomous Prefecture of the People's Republic of China, as well as Russia. In 2000 the name of the area was shortened to Rason and became separate from the North Hamgyeong Province. In 2013 and 2014 a number of smaller special economic zones were announced covering export handling, mineral processing, high technology, gaming and tourism.
North Korea also operates Kaesong Industrial Region in conjunction with South Korea which was formed in 2002.
The State Academy of Sciences operates a special economic zone near Unjong Park in the northern suburbs of Pyongyang.
North Korea designated over a dozen new special economic zones in 2013 and 2014.

Pakistan

Taking the example of the Chinese success with their SEZs, China is helping Pakistan develop the RUBA SEZ on the outskirts of Lahore. RUBA SEZ PVT LTD is a subsidiary of RUBA Group of Companies and was expanded from existing Haier – RUBA Economic Zone.
Other economic zones include the China-Pakistan economic zone open only to Chinese investors in Gwadar, Pakistan.
There are talks of creating a Japanese city for investors from Japan only.
There has been new SEZ proposed on the under-construction Sialkot-Lahore motorway; Qatar has proposed an investment for $1 billion in a new SEZ along the motorway.
There is a new zone under construction in Faislababd, which will be the biggest industrial estate of Pakistan when complete. It has sections for each country and the first phase is complete with a special Chinese zone in it.
Special economic zones in Pakistan:
The Colon Free Zone is located in the city of Colon at the Atlantic entrance to the Panama Canal dedicated to re-export of merchandise to Latin America and the Caribbean.
The Panama Pacifico Special Economic Area was passed into law in 2004 in the Republic of Panama. It is located on the former Howard AFB, near Panama city, on the Pacific side of the isthmus.
Philippine economic zones are collections of industries, brought together geographically for the purpose of promoting economic development. These ecozones were established through Republic Act No. 7916, otherwise known as "The Special Economic Zone Act of 1995" as amended by Republic Act No. 8748.
Philippine Ecozones are generally administered by the through a board, attached to the Department of Trade and Industry. The PEZA Board sets the general policies on the establishment and operations of the Ecozones, industrial estates, export processing zones, free trade zones, and the like. They also review proposals for the establishment of Ecozones, which they subsequently endorse to the president of the Republic of the Philippines. In addition, the PEZA Board regulates and undertakes the establishment, operation and maintenance of utilities, other services and infrastructure in the Ecozone, such as heat, light and power, water supply, telecommunications, transport, toll roads and bridges, port services, and the like.
Several incentives are granted to business establishments operating within Philippine Ecozones, particularly those found in the Omnibus Investments Code of 1987. These incentives include income tax holidays; zero percent duty on importation of capital equipment, spare parts, and accessories; exemption from wharfage dues and export tax, impost or fees; and the simplification of customs procedures, among others. In addition, The Special Economic Zone Act of 1995 exempts business establishments operating within Ecozones from all taxes. In lieu of paying all other taxes, business establishments are only required to pay five percent of their gross income to the national government.
Activities Eligible for PEZA Registration and Incentives include but are not limited to Export Manufacturing; Information Technology Service Export; Tourism; Medical Tourism; Agro-industrial Export Manufacturing; Agro-industrial Bio-Fuel Manufacturing; and Logistics and Warehousing Services.
Although designed to operate separately from the political and economic milieu of surrounding communities, Philippine economic zones do in fact interact with their neighbors. As of 31 May 2010, there were more than 200 Ecozones in the Philippines. Of these more than 200 Ecozones, seven are Agro-Industrial Economic Zones, 134 are Information Technology Parks and Centers, 65 are Manufacturing Ecozones, two are Medical Tourism Parks/Centers, and nine are Tourism Economic Zones. Of the 41 private economic zones, the biggest exporter is Gateway Business Park in General Trias, Cavite and the second biggest private ecozone is Laguna Technopark Inc. The four governmentally owned are Cavite Economic Zone, Bataan Economic Zone, Mactan Economic Zone and Baguio Economic Zone. Some of the more well-known Economic zones are the Clark Special Economic Zone, and Subic Economic Zone, former military bases of the United States of America.
Some of the over 200 SEZs in the Philippines are as follows:
There are fourteen Sezs in Poland.
Special economic zones in Poland:
Korean FEZs are designated by law to facilitate foreign investment, and thereby to strengthen national competitiveness and seek balanced development among regions by improving the business environment for foreign-invested enterprises and living conditions for foreigners.
There are eight Free Economic Zones in South Korea. The first three zones were created in 2003 and three more were created in 2008.
  1. Incheon Free Economic Zone in 2003
  2. Busan-Jinhae Free Economic Zone in 2004
  3. Gwangyang Free Economic Zone in 2004
  4. Saemangeum Free Economic Zone in 2008
  5. Yellow Sea Free Economic Zone in 2008
  6. Daegu-Gyeongbuk Free Economic Zone in 2008
  7. East Coast Free Economic Zone in 2013
  8. Chungbuk Free Economic Zone in 2013

    Russia

currently has 16 federal economic zones and several regional projects.
As of March 2010 Russia's federal special economic zones host 207 investors from 18 countries.
There are major MNCs among investors to Russia's SEZ, such as Yokohama, Cisco, Isuzu, Air Liquide, Bekaert, Rockwool and many others.
Russia's 15 existing and to-be federal special economic zones are managed by OJSC "Special Economic Zones".
OJSC "SEZ" was founded in 2006 to accumulate and implement world's best practices in developing and managing SEZ and promote Foreign direct investment in the Russian economy. It is fully owned and funded by the Russian state.
Federal economic zones in Russia are regulated by Federal Law # 116 FZ issued on July 22, 2005.

Technical/Innovational Zones

The Red Sea Project, a luxury tourist destination currently under construction, will "operate as a Special Economic Zone with its own laws and regulatory framework, specially created to encourage investment opportunities and commercial activities".

Thailand

Thailand has SEZs in the following provinces:
Thailand's Board of Investment estimates that in 2015, 20-25 percent of Thailand's exports were accounted for by border trade. The BOI identifies 13 Thai industries that benefit from SEZs: agriculture; ceramics; autos; electronics; plastics; gems; furniture; textiles; medical equipment; pharmaceuticals; logistics; tourism; and industrial estates. Companies in target industries will receive an eight-year tax exemption; import duty exemptions on machinery and raw materials; double deductions on transportation costs; cheap electricity and water for 10 years; a 25 percent deduction for facilities construction; faster licensing and permit issuance; improved infrastructure and customs services within the SEZ, and other non-tax incentives. Perhaps the biggest incentive is the exclusive right to use unskilled foreign labour as the Thai workforce is in decline. Because of inadequate infrastructure in the SEZs, the government approved infrastructure development plans for SEZs that saw 2.6 billion baht expended on 45 projects in 2015 and another 79 projects, worth 7.9 billion baht, to be completed in 2016.

Ukraine

Special Economic Zones existed in Ukraine until March 31, 2005. The first created was the Nouth-Crimean Experimental Economic Zone Syvash. From 1998 to 2000 11 new zones were created.

Uzbekistan

is home to two SEZs developed in partnership with China Non-Ferrous Metal Mining corporation. One sitting just outside Lusaka focuses on garments, food, appliances, tobacco and electronics. The second is in the copper rich town of Chambishi and focuses on copper related industries. The zones combine expedited customs and administration procedures with tax incentives, to attract increased investment.