en.Wedoany.com Reported - Bangladesh has approved the establishment of its first free trade zones, aiming to shorten export delivery times and attract foreign suppliers, thereby enhancing its status as a regional logistics and trade hub. The Cabinet Committee on Economic Affairs has given in-principle approval for setting up free trade zones near the upcoming Matarbari deep-sea port in Cox's Bazar and in Anwara, close to Chittagong port.

Officials revealed that the two free trade zones will cover approximately 600 acres. Development of the Anwara zone is expected to begin this year, while the Matarbari zone is targeted for development between 2030 and 2033, in sync with the expansion of the deep-sea port. These zones will support trade, logistics, and manufacturing activities, strengthening the country's role as a regional trade and transshipment platform.

The free trade zones will operate outside customs territory, allowing investors to import raw materials and machinery duty-free for value-added processing and re-export. Goods sold to the domestic market will be subject to applicable duties. Warehousing operations are expected to be a key revenue source, as foreign suppliers can store duty-free raw materials in the zones and supply them on demand to exporters in Bangladesh and neighboring countries, thereby shortening export delivery times.

Policymakers view this model as an upgrade over traditional export processing zones, aligning Bangladesh with global success hubs such as Dubai's Jebel Ali Free Zone and the free trade systems in Vietnam and Thailand. The free trade zones are expected to attract light industries, logistics operators, regional distribution centers, and multinational corporations planning to establish supply chain bases in South Asia.

Economists and business leaders emphasized that the Matarbari deep-sea port's capacity to handle large vessels, along with the Anwara site's proximity to Chittagong port, the Karnaphuli Tunnel, the international airport, and existing export processing zones, significantly enhances investor appeal. At the same time, they noted the need for supporting infrastructure upgrades, including key highway expansions, as well as timely legal and regulatory amendments to drive the new free trade zones into operation.

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