Special Economic Zone
Encyclopedia
A Special Economic Zone is a geographical region that has economic and other laws that are more free-market-oriented than a country's typical or national laws. "Nationwide" laws may be suspended inside a special economic zone.
The category 'SEZ' covers , including Free Trade Zones (FTZ), Export Processing Zones (EPZ), Free Zone
s (FZ), Industrial park
s or Industrial Estates (IE), Free Port
s, Urban Enterprise Zones and others.
Usually the goal of a structure is to increase foreign direct investment
by foreign investors, typically an international business
or a multinational corporation
(MNC).
, Special Economic Zones were founded by the central government under Deng Xiaoping
in the early 1980s. The most successful Special Economic Zone in China, Shenzhen
, has developed from a small village into a city with a population over 10 million within 20 years. India
has also played a significant role in the founding and establishment of Special Economic Zones. It has the largest outsourcing
industry in Asia
.
Following the Chinese examples, Special Economic Zones have been established in several countries, including Angola
, Bangladesh
, Brazil
, India
, Iran
, Jordan
, Kazakhstan
, Oman
, Pakistan
, the Philippines, Poland
, South Korea
, Russia
, Ukraine
, United Arab Emirates
, Cambodia
, North Korea
. Currently, Puno
, Peru
has been slated to become a "Zona Economica" by its president Alan Garcia.
A single SEZ
can contain multiple 'specific' zones within its boundaries. The most prominent examples of this layered approach are Subic Bay Freeport Zone
in the Philippines
, the Aqaba Special Economic Zone Authority
in Jordan
, Sricity Multi-product SEZ and Mundra SEZ in India
and According to World Bank estimates of 2007 there are more than 3,000 projects taking place in SEZs in 120 countries worldwide.
SEZs have been implemented using a variety of institutional structures across the world ranging from fully public (government operator, government developer, government regulator) to 'fully' private (private operator, private developer, public regulator). In many cases, public sector operators and developers act as quasi-government agencies in that they have a pseudo-corporate institutional structure and have budgetary autonomy. SEZs are often developed under a public-private partnership
arrangement, in which the public sector provides some level of support (provision of off-site infrastructure, equity investment, soft loans, bond issues, etc.) to enable a private sector developer to obtain a reasonable rate of return on the project (typically 10-20% depending on risk levels).
districts of Viana
and Cacuaco
and the northern Bengo
province's areas of Icolo-e-Bengo, Dande
, Ambriz
and Namboangongo.
since the 1980s, and have contributed tremendously to industrialization, boosting exports and substantially improving economic conditions in regions hosting the zones. The EPZs are administered by the Bangladesh Export Processing Zone Authority, or BEPZA. In 2010, FDi magazine
ranked Chittagong
EPZ as the fourth best in terms of economic potential and third most competitive special economic zone in the world.
In 2009, the Bangladeshi government decided to establish SEZs across the country that target both foreign and local markets. In addition of the existing eight EPZs, a further seven SEZs are to be set up by 2013. The government also intends to establish specialized SEZs for specific industries, particularly shipbuilding and pharmaceuticals. Private economic zones for country-specific foreign investors and expatriate Bangladeshis are also being established. A $1 billion Korean EPZ was set up by South Korean investors in Chittagong, while SEZs are planned for Indian, German and Turkish investors.
, 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 sea is very accessible for transportation of goods.
plans to build its first Special Economic Zone in the Kinshasa district of N'Sélé. The SEZ would be operative in 2012 and dedicated to agro-industries.
had in April 2000 announced the introduction of Special Economic Zones policy in the country, deemed to be foreign territory for the purposes of trade operations, duties and tariffs. As of 2007, more than 500 SEZs have been proposed, 220 of which have been created. This has raised the concern of the World Bank, which questions the sustainability of such a large number of SEZs.
The Special Economics in India closely follow the PRC
model.
India passed special economic zone act in 2005. In India, the government has been proactive in the development of the SEZs. They have formulated policies, reviewed them occasionally and have ensured that ample facilities are provided to the developers of the SEZs as well as to the companies setting up units in the SEZs.
India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) 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 (SEZs) Policy was announced in April 2000.
The SEZ Act, 2005, was an important bill to be passed by the Government of India in order to instill confidence in investors and signal the Government's commitment to a stable SEZ policy regime and with a view to impart stability to the SEZ regime thereby generating greater economic activity and employment through their establishment, a comprehensive draft SEZ Bill 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 Special Economic Zones Act, 2005, was passed by Parliament in May, 2005 which received Presidential assent on the 23rd of June, 2005. The draft SEZ Rules were widely discussed and put on the website of the Department of Commerce offering suggestions/comments. Around 800 suggestions were received on the draft rules. After extensive consultations, the SEZ Act, 2005, supported by SEZ Rules, 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
.
The objectives of SEZs can be clearly explained as the following:
(a) generation of additional economic activity
(b) promotion of exports of goods and services;
(c) promotion of investment from domestic and foreign sources;
(d) creation of employment opportunities;
(e) development of infrastructure facilities.
The major incentives and facilities available to SEZ developers include:-
Currently there are 114 SEZs (as of October 2010) operating throughout India in the following states:
Karnataka
- 18; Kerala
- 6; Chandigarh
- 1; Gujarat - 8; Haryana
- 3; Maharashtra
- 14; Rajasthan
- 1;
Tamil Nadu
- 20; Uttar Pradesh
- 4; West Bengal
- 2: Orissa
- 1.
Additionally, more than 500 SEZs are formally approved (as on October 2010) by the Government of India
in the following states:
Andhra Pradesh
- 109; Chandigarh
- 2; Chattisgarh - 2; Dadra and Nagar Haveli - 4; Delhi
- 3; Goa
- 7; Gujarat - 45; Haryana
- 45; Jharkhand
- 1; Karnataka
- 56; Kerala
- 28; Madhya Pradesh
- 14; Maharashtra
- 105; Nagaland
- 1; Orissa
- 11; Pondicherry - 1; Punjab - 8; Rajasthan
- 8; Tamil Nadu
- 70; Uttarkhand - 3; Uttar Pradesh
- 33; West Bengal
- 22.
Multiple Economic zones created by the mandate of the President. Each zone has a different focus.
South Kazakhstan "Ontustyk" special economic zone
is dedicated to the development of the textile industry in Kazakhstan
.
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 USD $8.6 billion deal to develop a deep sea port at Dawei
, by Italian-Thai Development
).
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
(or, Yeonbyeon in Korean) 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.
Other economic zones include the China-Pakistan economic zone open only to Chinese investors and also the future crown jewel of Pakistan, Gwadar
.
There are also talks of creating a Japanese city for foreign investors from Japan only.
There has also been new SEZ proposed on the currently under construction Sialkot-Lahore motorway, Qatar has proposed an investment for $1 billion in a new SEZ along the motorway.
There is also 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 phrase is already complete with a special Chinese zone in it.
Philippine Ecozones are generally administered by the Philippine Economic Zone Authority through a Board (PEZA 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 (0%) 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 (5%) of their gross income to the national government.
Activities Eligible for PEZA Registration and Incentives include but are not limited to (1) Export Manufacturing; (2) Information Technology Service Export; (3) Tourism; (4) Medical Tourism; (5) Agro-industrial Export Manufacturing; (6) Agro-industrial Bio-Fuel Manufacturing; and (7) 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 (7) are Agro-Industrial Economic Zones, 134 are Information Technology Parks and Centers, 65 are Manufacturing Ecozones, two (2) are Medical Tourism Parks/Centers, and nine (9) 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 City
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.
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 MNC
s 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 (FDI)
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.
until March 31, 2005. The first created was the Nouth-Crimean Experimental Economic Zone Syvash
(since 1996). From 1998 to 2000 11 new zones were created.
(U.S.S.R. Special Economic Zones)
is home to two Chinese-supported Special Economic Zones. One sits just outside of Lusaka
and the other is in the copper
rich town of Chambishi. The zones combine expedited customs and administration procedures with tax incentives, to increase investment.
The category 'SEZ' covers , including Free Trade Zones (FTZ), Export Processing Zones (EPZ), Free Zone
Free Zone
Free Zone may refer to:*A free economic zone or free port, an area with relaxed customs, immigration, visa, and/or taxation jurisdiction with respect to the country of location...
s (FZ), Industrial park
Industrial park
An industrial park is an area zoned and planned for the purpose of industrial development...
s or Industrial Estates (IE), Free Port
Free port
A free port or free zone , sometimes also called a bonded area is a port, port area or other area with relaxed jurisdiction with respect to the country of location...
s, Urban Enterprise Zones and others.
Usually the goal of a structure is to increase foreign direct investment
Foreign direct investment
Foreign direct investment or foreign investment refers to the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor.. It is the sum of equity capital,other long-term capital, and short-term capital as shown in...
by foreign investors, typically an international business
International Business
International business is a term used to collectively describe all commercial transactions that take place between two or more regions, countries and nations beyond their political boundary...
or a multinational corporation
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
(MNC).
Globally
In the People's Republic of ChinaPeople's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
, Special Economic Zones were founded by the central government under Deng Xiaoping
Deng Xiaoping
Deng Xiaoping was a Chinese politician, statesman, and diplomat. As leader of the Communist Party of China, Deng was a reformer who led China towards a market economy...
in the early 1980s. The most successful Special Economic Zone in China, Shenzhen
Shenzhen
Shenzhen is a major city in the south of Southern China's Guangdong Province, situated immediately north of Hong Kong. The area became China's first—and one of the most successful—Special Economic Zones...
, has developed from a small village into a city with a population over 10 million within 20 years. India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
has also played a significant role in the founding and establishment of Special Economic Zones. It has the largest outsourcing
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
industry in Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
.
Following the Chinese examples, Special Economic Zones have been established in several countries, including Angola
Angola
Angola, officially the Republic of Angola , is a country in south-central Africa bordered by Namibia on the south, the Democratic Republic of the Congo on the north, and Zambia on the east; its west coast is on the Atlantic Ocean with Luanda as its capital city...
, Bangladesh
Bangladesh
Bangladesh , officially the People's Republic of Bangladesh is a sovereign state located in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south...
, Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
, Jordan
Jordan
Jordan , officially the Hashemite Kingdom of Jordan , Al-Mamlaka al-Urduniyya al-Hashemiyya) is a kingdom on the East Bank of the River Jordan. The country borders Saudi Arabia to the east and south-east, Iraq to the north-east, Syria to the north and the West Bank and Israel to the west, sharing...
, Kazakhstan
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...
, Oman
Oman
Oman , officially called the Sultanate of Oman , is an Arab state in southwest Asia on the southeast coast of the Arabian Peninsula. It is bordered by the United Arab Emirates to the northwest, Saudi Arabia to the west, and Yemen to the southwest. The coast is formed by the Arabian Sea on the...
, Pakistan
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
, the Philippines, Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
, South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
, Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
, Ukraine
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
, United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
, Cambodia
Cambodia
Cambodia , officially known as the Kingdom of Cambodia, is a country located in the southern portion of the Indochina Peninsula in Southeast Asia...
, North Korea
North Korea
The Democratic People’s Republic of Korea , , is a country in East Asia, occupying the northern half of the Korean Peninsula. Its capital and largest city is Pyongyang. The Korean Demilitarized Zone serves as the buffer zone between North Korea and South Korea...
. Currently, Puno
Puno
Puno is a city in southeastern Peru, located on the shore of Lake Titicaca. It is the capital city of the Puno Region and the Puno Province with a population of approximately 100,000. The city was established in 1668 by viceroy Pedro Antonio Fernández de Castro as capital of the province of...
, Peru
Peru
Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
has been slated to become a "Zona Economica" by its president Alan Garcia.
A single SEZ
SEZ
SEZ may refer to:*Special Economic Zone*Seychelles International Airport...
can contain multiple 'specific' zones within its boundaries. The most prominent examples of this layered approach are Subic Bay Freeport Zone
Subic Bay Freeport Zone
Subic Bay Freeport Zone , which is known simply as Subic Bay, is the Philippines' first success case of a into a tax- and duty-free zone similar to Hong Kong and Singapore, operated and managed by the Subic Bay Metropolitan Authority or SBMA. It covers the fenced area of the former U.S...
in the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
, the Aqaba Special Economic Zone Authority
Aqaba Special Economic Zone Authority
ASEZA , is a the statutory institution empowered with regulatory, administrative, fiscal and economic responsibilities within The Aqaba Special Economic Zone ....
in Jordan
Jordan
Jordan , officially the Hashemite Kingdom of Jordan , Al-Mamlaka al-Urduniyya al-Hashemiyya) is a kingdom on the East Bank of the River Jordan. The country borders Saudi Arabia to the east and south-east, Iraq to the north-east, Syria to the north and the West Bank and Israel to the west, sharing...
, Sricity Multi-product SEZ and Mundra SEZ in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
and According to World Bank estimates of 2007 there are more than 3,000 projects taking place in SEZs in 120 countries worldwide.
SEZs have been implemented using a variety of institutional structures across the world ranging from fully public (government operator, government developer, government regulator) to 'fully' private (private operator, private developer, public regulator). In many cases, public sector operators and developers act as quasi-government agencies in that they have a pseudo-corporate institutional structure and have budgetary autonomy. SEZs are often developed under a public-private partnership
Public-private partnership
Public–private partnership describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies...
arrangement, in which the public sector provides some level of support (provision of off-site infrastructure, equity investment, soft loans, bond issues, etc.) to enable a private sector developer to obtain a reasonable rate of return on the project (typically 10-20% depending on risk levels).
Angola
The Republic of Angola formalized the creation of the Luanda-Bengo EP Special Economic Zone in 2009, including 8000 hectares in the LuandaLuanda
Luanda, formerly named São Paulo da Assunção de Loanda, is the capital and largest city of Angola. Located on Angola's coast with the Atlantic Ocean, Luanda is both Angola's chief seaport and its administrative center. It has a population of at least 5 million...
districts of Viana
Viana
Viana is the name of some places:*Viana do Bolo, Galicia, Spain*Viana do Castelo, Portugal*Viana, Navarre, Spain*Viana, Maranhão, Brazil*Viana, Espírito Santo, Brazil*Viana, Angolaorganization...
and Cacuaco
Cacuaco
Cacuaco is a municipality in Luanda Province, Angola. It is a suburb of the capital, Luanda. It has a population of 600,000 and is the site of transmission for the Marburg virus.- Transport :...
and the northern Bengo
Bengo
Bengo may refer to* Bengo in Angola* Bengo * Bengo the Boxer puppy, a 1950s cartoon by William Timym.* Bengo travel...
province's areas of Icolo-e-Bengo, Dande
Dande
Dande, officially Barra do Dande is a town, commune and municipality in Bengo Province in Angola....
, Ambriz
Ambriz
Ambriz is a city, commune and municipality in Bengo Province, Angola.The population of Ambriz is majority Bakongo, with some Portuguese descedents.Also, the population also includes Ovimbundu and Kimbundu....
and Namboangongo.
Bangladesh
Several Export Processing Zones, or EPZs, have been established across BangladeshBangladesh
Bangladesh , officially the People's Republic of Bangladesh is a sovereign state located in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south...
since the 1980s, and have contributed tremendously to industrialization, boosting exports and substantially improving economic conditions in regions hosting the zones. The EPZs are administered by the Bangladesh Export Processing Zone Authority, or BEPZA. In 2010, FDi magazine
FDi magazine
fDi Magazine is an English-language bi-monthly news and foreign direct investment publication owned by The Financial Times Ltd and edited in London. The A4 glossy pages reach a circulation of 14, 768 ABC “senior decision-makers involved in overseas investment” across the world...
ranked Chittagong
Chittagong
Chittagong ) is a city in southeastern Bangladesh and the capital of an eponymous district and division. Built on the banks of the Karnaphuli River, the city is home to Bangladesh's busiest seaport and has a population of over 4.5 million, making it the second largest city in the country.A trading...
EPZ as the fourth best in terms of economic potential and third most competitive special economic zone in the world.
In 2009, the Bangladeshi government decided to establish SEZs across the country that target both foreign and local markets. In addition of the existing eight EPZs, a further seven SEZs are to be set up by 2013. The government also intends to establish specialized SEZs for specific industries, particularly shipbuilding and pharmaceuticals. Private economic zones for country-specific foreign investors and expatriate Bangladeshis are also being established. A $1 billion Korean EPZ was set up by South Korean investors in Chittagong, while SEZs are planned for Indian, German and Turkish investors.
List of SEZs in Bangladesh
- ChittagongChittagongChittagong ) is a city in southeastern Bangladesh and the capital of an eponymous district and division. Built on the banks of the Karnaphuli River, the city is home to Bangladesh's busiest seaport and has a population of over 4.5 million, making it the second largest city in the country.A trading...
EPZ - Karnaphuli EPZ
- Mongla EPZ
- AdamjeeAdamjee Jute MillsAdamjee Jute Mill was established in Narayanganj, Bangladesh, in 1951, by Adamjee Group, immediately after Bawa Jute Mills...
EPZ - DhakaDhakaDhaka is the capital of Bangladesh and the principal city of Dhaka Division. Dhaka is a megacity and one of the major cities of South Asia. Located on the banks of the Buriganga River, Dhaka, along with its metropolitan area, had a population of over 15 million in 2010, making it the largest city...
EPZ - IshwardiIshwardi UpazilaIshwardi is the western most upazila of Pabna District in Rajshahi Division, Bangladesh. It is also the headquarters of western zone of Bangladesh Railway.-Geography:Ishwardi is located at . It has 39,112 units of households and total area 246.9 km²....
EPZ - ComillaComillaComilla is a city in south-eastern Bangladesh, located along the Dhaka-Chittagong Highway. It is the administrative center of the Comilla District, part of the Chittagong Division. The Eastern Wing of Bangladesh Highway Police is located in Comilla....
EPZ - UttaraNilphamari DistrictNilphamari is a district in Northern Bangladesh. It is a part of the Rangpur Division.-Geography: with an area of 1640.91 km², is bounded by Kuchbihar district of West Bengal on the north, Rangpur district on the south, Lalmonirhat district on the east and Panchagarh and Dinajpur districts on...
EPZ - Korean EPZ (Chittagong)
China
Currently, the most prominent SEZs in the country are ShenzhenShenzhen
Shenzhen is a major city in the south of Southern China's Guangdong Province, situated immediately north of Hong Kong. The area became China's first—and one of the most successful—Special Economic Zones...
, Xiamen
Xiamen
Xiamen , also known as Amoy , is a major city on the southeast coast of the People's Republic of China. It is administered as a sub-provincial city of Fujian province with an area of and population of 3.53 million...
, Shantou
Shantou
Shantou , historically known as Swatow or Suátao, is a prefecture-level city on the eastern coast of Guangdong province, People's Republic of China, with a total population of 5,391,028 as of 2010 and an administrative area of...
, and Zhuhai
Zhuhai
Zhuhai is a prefecture-level city on the southern coast of Guangdong province in the People's Republic of China. Located in the Pearl River Delta, Zhuhai borders Jiangmen to the northwest, Zhongshan to the north, and Macau to the south. Zhuhai was one of the original Special Economic Zones...
. It is notable that Shenzhen, Shantou, and Zhuhai are all in Guangdong province, and all are on the southern coast of China where sea is very accessible for transportation of goods.
Democratic Republic of the Congo
Democratic Republic of the CongoDemocratic Republic of the Congo
The Democratic Republic of the Congo is a state located in Central Africa. It is the second largest country in Africa by area and the eleventh largest in the world...
plans to build its first Special Economic Zone in the Kinshasa district of N'Sélé. The SEZ would be operative in 2012 and dedicated to agro-industries.
India
Considering the need to enhance foreign investment and promote exports from the country and realising the need that a level playing field must be made available to the domestic enterprises and manufacturers to be competitive globally, the Government of IndiaIndia
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
had in April 2000 announced the introduction of Special Economic Zones policy in the country, deemed to be foreign territory for the purposes of trade operations, duties and tariffs. As of 2007, more than 500 SEZs have been proposed, 220 of which have been created. This has raised the concern of the World Bank, which questions the sustainability of such a large number of SEZs.
The Special Economics in India closely follow the PRC
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
model.
India passed special economic zone act in 2005. In India, the government has been proactive in the development of the SEZs. They have formulated policies, reviewed them occasionally and have ensured that ample facilities are provided to the developers of the SEZs as well as to the companies setting up units in the SEZs.
SEZs in India
IntroductionIndia was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) 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 (SEZs) Policy was announced in April 2000.
The SEZ Act, 2005, was an important bill to be passed by the Government of India in order to instill confidence in investors and signal the Government's commitment to a stable SEZ policy regime and with a view to impart stability to the SEZ regime thereby generating greater economic activity and employment through their establishment, a comprehensive draft SEZ Bill 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 Special Economic Zones Act, 2005, was passed by Parliament in May, 2005 which received Presidential assent on the 23rd of June, 2005. The draft SEZ Rules were widely discussed and put on the website of the Department of Commerce offering suggestions/comments. Around 800 suggestions were received on the draft rules. After extensive consultations, the SEZ Act, 2005, supported by SEZ Rules, 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
Domestic tariff area
Domestic Tariff Area or Domestic Tariff Zone means an area within India that is outside the Special Economic Zones and EOU/EHTP/STP/BTP....
.
The objectives of SEZs can be clearly explained as the following:
(a) generation of additional economic activity
(b) promotion of exports of goods and services;
(c) promotion of investment from domestic and foreign sources;
(d) creation of employment opportunities;
(e) development of infrastructure facilities.
The major incentives and facilities available to SEZ developers include:-
- Exemption from customs/excise duties for development of SEZs for authorized operations approved by the BOA.
- Income Tax exemption on income derived from the business of development of the SEZ in a block of 10 years in 15 years under Section 80-IAB of the Income Tax Act.
- Exemption from minimum alternate tax under Section 115 JB of the Income Tax Act.
- Exemption from dividend distribution tax under Section 115O of the Income Tax Act.
- Exemption from Central Sales Tax (CST).
- Exemption from Service Tax (Section 7, 26 and Second Schedule of the SEZ Act).
- List of Special Economic Zones in India
Currently there are 114 SEZs (as of October 2010) operating throughout India in the following states:
Karnataka
Karnataka
Karnataka , the land of the Kannadigas, is a state in South West India. It was created on 1 November 1956, with the passing of the States Reorganisation Act and this day is annually celebrated as Karnataka Rajyotsava...
- 18; Kerala
Kerala
or Keralam is an Indian state located on the Malabar coast of south-west India. It was created on 1 November 1956 by the States Reorganisation Act by combining various Malayalam speaking regions....
- 6; Chandigarh
Chandigarh
Chandigarh is a union territory of India that serves as the capital of two states, Haryana and Punjab. The name Chandigarh translates as "The Fort of Chandi". The name is from an ancient temple called Chandi Mandir, devoted to the Hindu goddess Chandi, in the city...
- 1; Gujarat - 8; Haryana
Haryana
Haryana is a state in India. Historically, it has been a part of the Kuru region in North India. The name Haryana is found mentioned in the 12th century AD by the apabhramsha writer Vibudh Shridhar . It is bordered by Punjab and Himachal Pradesh to the north, and by Rajasthan to the west and south...
- 3; Maharashtra
Maharashtra
Maharashtra is a state located in India. It is the second most populous after Uttar Pradesh and third largest state by area in India...
- 14; Rajasthan
Rajasthan
Rājasthān the land of Rajasthanis, , is the largest state of the Republic of India by area. It is located in the northwest of India. It encompasses most of the area of the large, inhospitable Great Indian Desert , which has an edge paralleling the Sutlej-Indus river valley along its border with...
- 1;
Tamil Nadu
Tamil Nadu
Tamil Nadu is one of the 28 states of India. Its capital and largest city is Chennai. Tamil Nadu lies in the southernmost part of the Indian Peninsula and is bordered by the union territory of Pondicherry, and the states of Kerala, Karnataka, and Andhra Pradesh...
- 20; Uttar Pradesh
Uttar Pradesh
Uttar Pradesh abbreviation U.P. , is a state located in the northern part of India. With a population of over 200 million people, it is India's most populous state, as well as the world's most populous sub-national entity...
- 4; West Bengal
West Bengal
West Bengal is a state in the eastern region of India and is the nation's fourth-most populous. It is also the seventh-most populous sub-national entity in the world, with over 91 million inhabitants. A major agricultural producer, West Bengal is the sixth-largest contributor to India's GDP...
- 2: Orissa
Orissa
Orissa , officially Odisha since Nov 2011, is a state of India, located on the east coast of India, by the Bay of Bengal. It is the modern name of the ancient nation of Kalinga, which was invaded by the Maurya Emperor Ashoka in 261 BC. The modern state of Orissa was established on 1 April...
- 1.
Additionally, more than 500 SEZs are formally approved (as on October 2010) by the Government of India
Government of India
The Government of India, officially known as the Union Government, and also known as the Central Government, was established by the Constitution of India, and is the governing authority of the union of 28 states and seven union territories, collectively called the Republic of India...
in the following states:
Andhra Pradesh
Andhra Pradesh
Andhra Pradesh , is one of the 28 states of India, situated on the southeastern coast of India. It is India's fourth largest state by area and fifth largest by population. Its capital and largest city by population is Hyderabad.The total GDP of Andhra Pradesh is $100 billion and is ranked third...
- 109; Chandigarh
Chandigarh
Chandigarh is a union territory of India that serves as the capital of two states, Haryana and Punjab. The name Chandigarh translates as "The Fort of Chandi". The name is from an ancient temple called Chandi Mandir, devoted to the Hindu goddess Chandi, in the city...
- 2; Chattisgarh - 2; Dadra and Nagar Haveli - 4; Delhi
Delhi
Delhi , officially National Capital Territory of Delhi , is the largest metropolis by area and the second-largest by population in India, next to Mumbai. It is the eighth largest metropolis in the world by population with 16,753,265 inhabitants in the Territory at the 2011 Census...
- 3; Goa
Goa
Goa , a former Portuguese colony, is India's smallest state by area and the fourth smallest by population. Located in South West India in the region known as the Konkan, it is bounded by the state of Maharashtra to the north, and by Karnataka to the east and south, while the Arabian Sea forms its...
- 7; Gujarat - 45; Haryana
Haryana
Haryana is a state in India. Historically, it has been a part of the Kuru region in North India. The name Haryana is found mentioned in the 12th century AD by the apabhramsha writer Vibudh Shridhar . It is bordered by Punjab and Himachal Pradesh to the north, and by Rajasthan to the west and south...
- 45; Jharkhand
Jharkhand
Jharkhand is a state in eastern India. It was carved out of the southern part of Bihar on 15 November 2000. Jharkhand shares its border with the states of Bihar to the north, Uttar Pradesh and Chhattisgarh to the west, Orissa to the south, and West Bengal to the east...
- 1; Karnataka
Karnataka
Karnataka , the land of the Kannadigas, is a state in South West India. It was created on 1 November 1956, with the passing of the States Reorganisation Act and this day is annually celebrated as Karnataka Rajyotsava...
- 56; Kerala
Kerala
or Keralam is an Indian state located on the Malabar coast of south-west India. It was created on 1 November 1956 by the States Reorganisation Act by combining various Malayalam speaking regions....
- 28; Madhya Pradesh
Madhya Pradesh
Madhya Pradesh , often called the Heart of India, is a state in central India. Its capital is Bhopal and Indore is the largest city....
- 14; Maharashtra
Maharashtra
Maharashtra is a state located in India. It is the second most populous after Uttar Pradesh and third largest state by area in India...
- 105; Nagaland
Nagaland
Nagaland is a state in the far north-eastern part of India. It borders the state of Assam to the west, Arunachal Pradesh and part of Assam to the north, Burma to the east and Manipur to the south. The state capital is Kohima, and the largest city is Dimapur...
- 1; Orissa
Orissa
Orissa , officially Odisha since Nov 2011, is a state of India, located on the east coast of India, by the Bay of Bengal. It is the modern name of the ancient nation of Kalinga, which was invaded by the Maurya Emperor Ashoka in 261 BC. The modern state of Orissa was established on 1 April...
- 11; Pondicherry - 1; Punjab - 8; Rajasthan
Rajasthan
Rājasthān the land of Rajasthanis, , is the largest state of the Republic of India by area. It is located in the northwest of India. It encompasses most of the area of the large, inhospitable Great Indian Desert , which has an edge paralleling the Sutlej-Indus river valley along its border with...
- 8; Tamil Nadu
Tamil Nadu
Tamil Nadu is one of the 28 states of India. Its capital and largest city is Chennai. Tamil Nadu lies in the southernmost part of the Indian Peninsula and is bordered by the union territory of Pondicherry, and the states of Kerala, Karnataka, and Andhra Pradesh...
- 70; Uttarkhand - 3; Uttar Pradesh
Uttar Pradesh
Uttar Pradesh abbreviation U.P. , is a state located in the northern part of India. With a population of over 200 million people, it is India's most populous state, as well as the world's most populous sub-national entity...
- 33; West Bengal
West Bengal
West Bengal is a state in the eastern region of India and is the nation's fourth-most populous. It is also the seventh-most populous sub-national entity in the world, with over 91 million inhabitants. A major agricultural producer, West Bengal is the sixth-largest contributor to India's GDP...
- 22.
Iran
- Arg - e - Jadid Special Economic Zone: Vehicle Manufacturing Hub.
- PetZone: Petrochemical special economic Zone, MahshahrMahshahrBandar-e Mahshahr is a city in and the capital of Mahshahr County, Khuzestan Province, Iran. At the 2006 census, its population was 109,927, in 24,110 families....
. - Kish: Kish island special economic zone.
- Sarakhs
- Sirjan
- Shahid Rajaee Port http://www.shahidrajaeeport.ir/
- Amirabad Special Economic Zone http://www.pso.ir/Portal/HomePage.aspx?TabID=0&Site=Amirabad&Lang=en-US
- Bushehr Port
- Payam Special Economic Zone, closest SEZ to the capital city TehranTehranTehran , sometimes spelled Teheran, is the capital of Iran and Tehran Province. With an estimated population of 8,429,807; it is also Iran's largest urban area and city, one of the largest cities in Western Asia, and is the world's 19th largest city.In the 20th century, Tehran was subject to...
, with 3600 hec. area within 10000 hec. of Payam International AirportPayam International AirportPayam Airport is an international cargo airport located in Karaj 40 km from Tehran, Iran. The airport was established in 1990 but wasn't opened officially until 1997. Payam Aviation Services Co. operate the Payam Airport as well Payam Airline, Payam Special Economic Zone and Postal hub in...
territory established in KarajKarajKaraj is a city in and the capital of Karaj County, Alborz Province, Iran. At the 2006 census, its population was 1,377,450, in 385,955 families, , making it the fifth-largest city in Iran after Tehran, Mashhad, Isfahan and Tabriz.) It is situated west of Tehran, at the foothills of the Alborz...
for development of air cargo and postal transportation, storage of goods, cold store, packing services, goods productivity, perishable and time sensitive goods export. Payam is the only SEZ in the region with the privilege of its own airport and airlinePayam AirPayam Air is a cargo airline based in Tehran, Iran. It operates cargo services for the Iranian postal, telecom and commercial services. Its main base is Mehrabad International Airport, Tehran.- History :...
. Adjacent to industrial, economical and agricultural center of Tehran, with easy access to railroad, underground and other related highways. In order to attract FDIForeign direct investmentForeign direct investment or foreign investment refers to the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor.. It is the sum of equity capital,other long-term capital, and short-term capital as shown in...
Payam has created equal opportunity and possibility of investment for Iranian and foreign subjects on every scale of partnership, in addition guarantee foreign investment according to attraction and protection law of foreign investments and freedom of invest transfer and obtained income of it, with no administrative encumbrance laws. Furthermore, there is free entrance, without customs duties for goods, machinery and row material until it has been stationed in the zone, with possibility to export goods from zone without customs formalities.http://www.pasc.ir - Abadan
Kazakhstan
- AstanaAstanaAstana , formerly known as Akmola , Tselinograd and Akmolinsk , is the capital and second largest city of Kazakhstan, with an officially estimated population of 708,794 as of 1 August 2010...
Multiple Economic zones created by the mandate of the President. Each zone has a different focus.
South Kazakhstan "Ontustyk" special economic zone
Special Economic Zone
A Special Economic Zone is a geographical region that has economic and other laws that are more free-market-oriented than a country's typical or national laws...
is dedicated to the development of the textile industry in Kazakhstan
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...
.
Malaysia
Malaysia launches East coast Economis Region SEZ in August 2009. The country’s first Special Economic Zone are expected to contribute RM23 billion to the national GDP and create 220,000 new jobs in the ECER.Myanmar
Special economic zones , which offer tax exemptions for different sectors (5 years for production, 8 years for high-tech, 2 years for agriculture, livestock breeding and forestry, and 1 year for banking) are undergoing preliminary construction in Sittwe TownshipSittwe Township
Sittwe Township ) is a township of Sittwe District in the Rakhine State of Myanmar. The principal town is Sittwe....
and Kyaukpyu Township
Kyaukpyu Township
Kyaukpyu Township is a township of Kyaukpyu District in the Rakhine State of Myanmar. The principal town is Kyaukpyu.At Ma Day Island of Kyaukpyu Township, a deep sea port was being built by Aisa World Company by investment of China National Petroleum Corporation....
in Rakhine State
Rakhine State
Rakhine State is a Burmese state. Situated on the western coast, it is bordered by Chin State in the north, Magway Region, Bago Region and Ayeyarwady Region in the east, the Bay of Bengal to the west, and the Chittagong Division of Bangladesh to the northwest. It is located approximately between...
. An international standard airport is also to be constructed. The six free trade zones will be Thilawa Port
Thilawa Port
Myanmar International Terminals Thilawa is a deep sea port 25 km south of Yangon in Myanmar. The international multi-purpose container port, fully owned by Hutchison Port Holdings , can operate 24 hours a day, seven days a week....
in Yangon, Mawlamyine
Mawlamyine
Mawlamyine is the fourth largest city of Burma , situated 300 km south east of Yangon and 70 km south of Thaton, at the mouth of Thanlwin river...
in Mon State, Myawaddy
Myawaddy
Myawaddy is a town in south-eastern Myanmar in Kayin State close to the border with Thailand. Separated from the Thai border town of Mae Sot by the Moei River, the town is most important trading point between Myanmar and Thailand....
and Hpa-an
Hpa-An
-Education:* Computer University, Hpa-An* Hpa-An Education College* Hpa-An University* Technological University, Hpa-An* Hpa-An Nursing Training School-Religion:...
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
Myanmar Port Authority
The Myanma Port Authority is a government agency vested with the responsibility to regulate and administer the coastal ports of Myanmar. It is a department of the Ministry of Transport. The MPA was founded in 1989 and is located in Yangon.-History:...
has been involved in facilitating contracts to develop Myanmar's Special Economic Zones, including a USD $8.6 billion deal to develop a deep sea port at Dawei
Dawei
-Transport:Only recently Dawei was connected to the rest of Myanmar by road and rail. There are plans to construct a deepwater port in Dawei. In November 2010, the Myanmar Port Authority signed a USD $8.6 billion deal with Italian-Thai Development to develop a deep sea port at Dawei...
, by Italian-Thai Development
Italthai Industrial Group
Italian-Thai Industrial Company Limited is a Thai industrial company established in 1964 that began in energy and transportation and has gradually ventured into other fields and has become a group of industries...
).
North Korea
The Rajin-Sonbong Economic Special ZoneRajin-Sonbong Economic Special Zone
The Rajin-Sonbong Economic Special Zone was established by the North Korean government near Rason to promote economic growth through foreign investment. It is similar to the Special Economic Zone setup by the People's Republic of China and elsewhere to pilot market economics in a designated...
was established under a UN
United Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...
economic development programme in 1994. Located on the bank of the Tuman River, the zone borders on the Yanbian Korean Autonomous Prefecture
Yanbian Korean Autonomous Prefecture
Yanbian is a Korean Autonomous Prefecture in Jilin Province, in Northeastern China, above the border with North Korea. Yanbian is bordered to the north by Heilongjiang, on the west by Baishan City and Jilin City, on the south by North Hamgyong Province of North Korea, and on the east by Primorsky...
(or, Yeonbyeon in Korean) of the People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
, as well as Russia. In 2000 the name of the area was shortened to Rason and became separate from the North Hamgyeong Province.
Pakistan
Taking the example of the Chinese success with their SEZs, China is helping Pakistan develop the Haier-Ruba economic zone on the outskirts of Lahore.Other economic zones include the China-Pakistan economic zone open only to Chinese investors and also the future crown jewel of Pakistan, Gwadar
Gwadar
Gwadar also known as Godar is a developing port city on the southwestern Arabian Sea coast of Pakistan. It is the district headquarters of Gwadar District in Balochistan province and has a population of approximately 50,000.Gwadar is strategically located at the apex of the Arabian Sea and at the...
.
There are also talks of creating a Japanese city for foreign investors from Japan only.
There has also been new SEZ proposed on the currently under construction Sialkot-Lahore motorway, Qatar has proposed an investment for $1 billion in a new SEZ along the motorway.
There is also 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 phrase is already complete with a special Chinese zone in it.
List of SEZs in Pakistan
- Karachi Export Processing ZoneKarachi Export Processing ZoneKarachi Export Processing Zone or KEPZ, is located adjacent to the Landhi Industrial Area in Karachi, Sindh, Pakistan.KEPZ is located within a distance of 18 Kilometers from the Quaid-e-Azam International Airport, 20 Kilometers from Port Qasim and 35 Kilometers from Karachi Seaport. The Zone is...
, KarachiKarachiKarachi is the largest city, main seaport and the main financial centre of Pakistan, as well as the capital of the province of Sindh. The city has an estimated population of 13 to 15 million, while the total metropolitan area has a population of over 18 million...
, SindhSindhSindh historically referred to as Ba'ab-ul-Islam , is one of the four provinces of Pakistan and historically is home to the Sindhi people. It is also locally known as the "Mehran". Though Muslims form the largest religious group in Sindh, a good number of Christians, Zoroastrians and Hindus can... - RisalpurRisalpurRisalpur is a city in Nowshera District, Khyber-Pakhtunkhwa, Pakistan, on the Nowshera-Mardan Road. It is nearly 45 km from Peshawar and 15 km from Mardan and is located at 34°4'52N 71°58'21E. In a basin some 1014 feet above sea level, it is bounded on the south and west by the Kabul and...
Export Processing Zone, RisalpurRisalpurRisalpur is a city in Nowshera District, Khyber-Pakhtunkhwa, Pakistan, on the Nowshera-Mardan Road. It is nearly 45 km from Peshawar and 15 km from Mardan and is located at 34°4'52N 71°58'21E. In a basin some 1014 feet above sea level, it is bounded on the south and west by the Kabul and... - SialkotSialkotSialkot is a city in Pakistan situated in the north-east of the Punjab province at the foothills of snow-covered peaks of Kashmir near the Chenab river. It is the capital of Sialkot District. The city is about north-west of Lahore and only a few kilometers from Indian-controlled Jammu.The...
Export Processing Zone, SialkotSialkotSialkot is a city in Pakistan situated in the north-east of the Punjab province at the foothills of snow-covered peaks of Kashmir near the Chenab river. It is the capital of Sialkot District. The city is about north-west of Lahore and only a few kilometers from Indian-controlled Jammu.The...
, PunjabPunjab (Pakistan)Punjab is the most populous province of Pakistan, with approximately 45% of the country's total population. Forming most of the Punjab region, the province is bordered by Kashmir to the north-east, the Indian states of Punjab and Rajasthan to the east, the Pakistani province of Sindh to the... - GujranwalaGujranwalaGujranwala is a industrial city in the north-east of the Punjab province. It is the sixth largest city in Pakistan with a population of approximately 2,661,360 as on 24 June 2011...
Export Processing Zone, GujranwalaGujranwalaGujranwala is a industrial city in the north-east of the Punjab province. It is the sixth largest city in Pakistan with a population of approximately 2,661,360 as on 24 June 2011...
, PunjabPunjab (Pakistan)Punjab is the most populous province of Pakistan, with approximately 45% of the country's total population. Forming most of the Punjab region, the province is bordered by Kashmir to the north-east, the Indian states of Punjab and Rajasthan to the east, the Pakistani province of Sindh to the...
Philippines
Philippine economic zones (ecozones) 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 Philippine Economic Zone Authority through a Board (PEZA 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 (0%) 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 (5%) of their gross income to the national government.
Activities Eligible for PEZA Registration and Incentives include but are not limited to (1) Export Manufacturing; (2) Information Technology Service Export; (3) Tourism; (4) Medical Tourism; (5) Agro-industrial Export Manufacturing; (6) Agro-industrial Bio-Fuel Manufacturing; and (7) 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 (7) are Agro-Industrial Economic Zones, 134 are Information Technology Parks and Centers, 65 are Manufacturing Ecozones, two (2) are Medical Tourism Parks/Centers, and nine (9) 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
Cavite
Cavite is a province of the Philippines located on the southern shores of Manila Bay in the CALABARZON region in Luzon, just 30 kilometers south of Manila. Cavite is surrounded by Laguna to the east, Metro Manila to the northeast, and Batangas to the south...
Economic Zone, Bataan
Bataan
Bataan is a province of the Philippines occupying the whole of the Bataan Peninsula on Luzon. The province is part of the Central Luzon region. The capital of Bataan is Balanga City and it is bordered by the provinces of Zambales and Pampanga to the north...
Economic Zone, Mactan Economic Zone and Baguio City
Baguio City
The City of Baguio is a highly urbanized city in northern Luzon in the Philippines. Baguio City was established by Americans in 1900 at the site of an Ibaloi village known as Kafagway...
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.
List of SEZs in the Philippines
Some of the over 200 SEZs in the Philippines are as follows:- Subic Bay Metropolitan AuthoritySubic Bay Metropolitan AuthorityThe Subic Bay Freeport or what was the former US Naval facility in Subic Bay into a self-sustaining tourism, industrial, commercial, financial, and investment center to generate employment opportunities .-History:...
(76.59 hectares) - Clark Special Economic Zone (29,365 hectares)
- Bataan Export Processing ZoneBataan Export Processing ZoneThe Bataan Export Processing Zone, commonly known as BEPZ, is a special economic zone in Mariveles, Bataan, Philippines. It is the first "free trade zone" in the Philippines established through the enactment of Republic Act No. 5490 by Congress of the Philippines...
(1,733.37 hectares) - PHIVIDEC Industrial Authority
- Zamboanga City Special Economic Zone AuthorityZamboanga City Special Economic Zone AuthorityThe Zamboanga City Special Economic Zone Authority , otherwise known by its corporate name as Zamboanga Freeport Authority , was created by virtue of the Republic Acts of the Philippines 7903 of the Philippines, authored by then Congresswoman and late mayor of the city of Zamboanga, Maria Clara L...
- Cagayan Special Economic ZoneCagayan Special Economic ZoneThe Cagayan Special Economic Zone and Freeport in the Philippines, also known as Cagayan Freeport, was established by virtue of Republic Act No. 7922, otherwise known as the Cagayan Economic Zone Act of 1995...
- Aurora Pacific Economic Zone and Freeport Authority (APECOAPECOThe Aurora Pacific Economic Zone and Freeport, also known as APECO, was established by virtue of , otherwise known as the Aurora Special Economic Zone Act of 2007...
) - Light Industry & Science Park I, II, & III (272.22 hectares)
- Laguna Technopark (289.95 hectares)
- Laguna International Industrial Park (34.88 hectares)
- Hermosa Ecozone Industrial Park (142.04 hectares)
- Keppel Philippines Marine Special Economic Zone (22.92 hectares)
- Filinvest Technology Park - Calamba (51.07 hectares)
- Carmelray Industrial Park I&II - Calamba (CIP I 60.86 hectares; CIP II 143.03 hectares)
Poland
There are 14 Special Economic Zones in PolandPoland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
- Kamiennogórska SSE
- Katowice Special Economic Zone
- Kostrzyńsko-Słubicka SSE
- Krakowski Park Technologiczny
- Legnicka SSE
- Łódzka SSE
- SSE EURO-PARK MIELEC
- Słupska SSE
- SSE Starachowice
- Suwalska SSE
- Pomorska SSE (Pomeranian Special Economic Zone)
- Tarnobrzeska SSE
- Wałbrzych Special Economic Zone "INVEST-PARK"Wałbrzych Special Economic Zone "INVEST-PARK"Wałbrzych Special Economic Zone "INVEST - PARK" was established by Ordinance of Council of Ministry of ministers dated 15 April 1997 and will operate until December 31, 2020. It is situated in south-west Poland in dolnoslaskie, opolskie, wielkopolskie and lubuskie voivodship...
- Warmińsko-Mazurska SSE
Republic of Korea (South Korea)
There are 6 Free Economic Zones in Korea. The first 3 zones were created in 2003 and 3 more were created in 2008.- Busan-Jinhae Free Economic Zone (BJFEZ)
- Daegu-Gyeongbuk Free Economic ZoneDaegu-Gyeongbuk Free Economic ZoneThe Daegu-Gyeongbuk Free Economic Zone is a Free Economic Zone located in the southeastern part of South Korea. DGFEZ has 10 sites spanning 32.55km2 in parts of Daegu Metropolitan City and Gyeongsangbukdo Province...
(DGFEZ) - Gwangyang Free Economic Zone (GFEZ)
- Incheon Free Economic ZoneIncheon Free Economic ZoneThe Incheon Free Economic Zone , located in Incheon, South Korea consists of the three regions of Songdo, Cheongna, and the island of Yeongjong and has a total area of . The goal of the IFEZ is to transform these three areas into hubs for logistics, international business, leisure, and tourism for...
(IFEZ) - Saemangun Free Economic Zone (SGFEZ)
- Yellow Sea Free Economic Zone (YESFEZ)
Russia
RussiaRussia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
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 MNC
MNC
MNC may refer to:* Media Nusantara Citra, Indonesian media company and owner of RCTI, MNC TV, Sun TV, and Indovision** MNC The Indonesian Channel* Mobile Network Code* Monday Night Combat, a video game for the Xbox 360 and PC...
s among investors to Russia's SEZ, such as Yokohama
Yokohama
is the capital city of Kanagawa Prefecture and the second largest city in Japan by population after Tokyo and most populous municipality of Japan. It lies on Tokyo Bay, south of Tokyo, in the Kantō region of the main island of Honshu...
, Cisco
Cisco
Cisco may refer to:Companies:*Cisco Systems, a computer networking company* Certis CISCO, corporatised entity of the former Commercial and Industrial Security Corporation in Singapore...
, Isuzu
Isuzu
, is a Japanese car, commercial vehicle and heavy truck manufacturing company, headquartered in Tokyo. In 2005, Isuzu became the world's largest manufacturer of medium to heavy duty trucks. It has assembly and manufacturing plants in the Japanese city of Fujisawa, as well as in the prefectures...
, Air Liquide
Air Liquide
L'Air Liquide S.A., or Air Liquide , is a major French company supplying industrial gases and services to various industries including medical, chemical and electronic manufacturers. Founded in 1902, it is first in the world market in its field, now operating in over 80 countries. It is...
, Bekaert
Bekaert
N.V. Bekaert S.A. is an industrial company, which is one of the BEL20 companies in the index for the Euronext Brussels stock exchange. The company specializes in advanced metal transformation and advanced materials and coatings...
, 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 (FDI)
Foreign direct investment
Foreign direct investment or foreign investment refers to the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor.. It is the sum of equity capital,other long-term capital, and short-term capital as shown in...
in the Russian economy
Economy
An economy consists of the economic system of a country or other area; the labor, capital and land resources; and the manufacturing, trade, distribution, and consumption of goods and services of that area...
. 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
- DubnaDubnaDubna is a town in Moscow Oblast, Russia. It has a status of naukograd , being home to the Joint Institute for Nuclear Research, an international nuclear physics research centre and one of the largest scientific foundations in the country. It is also home to MKB Raduga, a defence aerospace company...
- ZelenogradZelenogradZelenograd is a city, which, along with the territories and settlements under its jurisdiction, forms one of the administrative okrugs of Moscow - Zelenograd Administrative Okrug...
- Neudorf - industrial and business parkBusiness parkA business park or office park is an area of land in which many office buildings are grouped together. All of the work that goes on is commercial, not industrial or residential....
in special economic zoneSpecial Economic ZoneA Special Economic Zone is a geographical region that has economic and other laws that are more free-market-oriented than a country's typical or national laws...
in StrelnaStrelnaStrelna is a municipal settlement in Petrodvortsovy District of the federal city of St. Petersburg, Russia, situated about halfway between St. Petersburg proper and Petergof and overlooking the shore of the Gulf of Finland...
near Saint PetersburgSaint PetersburgSaint Petersburg is a city and a federal subject of Russia located on the Neva River at the head of the Gulf of Finland on the Baltic Sea...
, RussiaRussiaRussia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects... - Novo-Orlovskoye - SEZ territory in Saint PetersburgSaint PetersburgSaint Petersburg is a city and a federal subject of Russia located on the Neva River at the head of the Gulf of Finland on the Baltic Sea...
, RussiaRussiaRussia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects... - TomskTomskTomsk is a city and the administrative center of Tomsk Oblast, Russia, located on the Tom River. One of the oldest towns in Siberia, Tomsk celebrated its 400th anniversary in 2004...
Tourist Zones
- Krasnodar KraiKrasnodar Krai-External links:* **...
- Stavropol KraiStavropol KraiStavropol Krai is a federal subject of Russia . Its administrative center is the city of Stavropol. Population: -Geography:Stavropol Krai encompasses the central part of the Fore-Caucasus and most of the northern slopes of Caucasus Major...
- Kaliningrad OblastKaliningrad OblastKaliningrad Oblast is a federal subject of Russia situated on the Baltic coast. It has a population of The oblast forms the westernmost part of the Russian Federation, but it has no land connection to the rest of Russia. Since its creation it has been an exclave of the Russian SFSR and then the...
(Yantar, KaliningradYantar, KaliningradThe Yantar Special Economic Zone has been established in 1996 in the Kaliningrad Region of the Russian Federation."Yantar" means amber in Russian. Amber has been collected along the Baltic coasts of present day Kaliningrad Oblast since ancient times, and some sites are still worked today although...
Special Economic Zone) - Altai KraiAltai KraiAltai Krai is a federal subject of Russia . It borders with, clockwise from the south, Kazakhstan, Novosibirsk and Kemerovo Oblasts, and the Altai Republic. The krai's administrative center is the city of Barnaul...
- Altai RepublicAltai RepublicAltai Republic is a federal subject of Russia . Its capital is the town of Gorno-Altaysk. The area of the republic is . Population: -Geography:...
- Irkutsk OblastIrkutsk OblastIrkutsk Oblast is a federal subject of Russia , located in southeastern Siberia in the basins of Angara River, Lena, and Nizhnyaya Tunguska Rivers. The administrative center is the city of Irkutsk. Population: -History:...
- Buryatia
- VladivostokVladivostokThe city is located in the southern extremity of Muravyov-Amursky Peninsula, which is about 30 km long and approximately 12 km wide.The highest point is Mount Kholodilnik, the height of which is 257 m...
Ukraine
Special Economic Zones existed in UkraineUkraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
until March 31, 2005. The first created was the Nouth-Crimean Experimental Economic Zone Syvash
Syvash
Syvash or Sivash also known as the Rotten Sea , is a large system of shallow lagoons on the west coast of the Sea of Azov . Sıvaş in the Crimean Tatar language means dirt. The total water area: 2 560 km², length: 200 km, width: up to 35 km...
(since 1996). From 1998 to 2000 11 new zones were created.
| Name | Location | Area | Established | Time limit* |
|---|---|---|---|---|
| NCEEZ Syvash | Autonomous Republic of Crimea | 1996 | 5 years | |
| Slavutych | Slavutych Slavutych Slavutych is a new city in northern Ukraine, named after the Old Slavic name of the nearby Dnieper River. As of 2007, its population was 24,549.-Geography:... , Kiev Oblast Kiev Oblast Kyiv Oblast, sometimes written as Kiev Oblast is an oblast in central Ukraine.The administrative center of the oblast is the city of Kyiv , also being the capital of Ukraine... |
2,000 ha | 30.06.1998 | until 01.01.2020 |
| Azov | Mariupol Mariupol Mariupol , formerly known as Zhdanov , is a port city in southeastern Ukraine. It is located on the coast of the Azov Sea, at the mouth of the Kalmius River. Mariupol is the largest city in Priazovye - a geographical region around Azov Sea, divided by Russia and Ukraine - and is also a popular sea... , Donetsk Oblast Donetsk Oblast Donetsk Oblast is an oblast of eastern Ukraine. Its administrative center is Donetsk. Historically, the province is an important part of the Donbas region... |
315 ha | 21.07.1998 | 60 years |
| Donetsk | Donetsk Donetsk Donetsk , is a large city in eastern Ukraine on the Kalmius river. Administratively, it is a center of Donetsk Oblast, while historically, it is the unofficial capital and largest city of the economic and cultural Donets Basin region... , Donetsk Oblast Donetsk Oblast Donetsk Oblast is an oblast of eastern Ukraine. Its administrative center is Donetsk. Historically, the province is an important part of the Donbas region... |
466 ha | 21.07.1998 | 60 years |
| Zakarpattia | Uzhhorodskyi Raion Uzhhorodskyi Raion Uzhhorod Raion is one of the raions of Zakarpattia Oblast in western Ukraine. It's administrative center is the city of Uzhhorod, also the center of the surrounding oblast.-Cities:-Towns:-Villages:... and Mukachivskyi Raion Mukachivskyi Raion The Mukachevo Raion is a raion of the Zakarpattia Oblast in Ukraine. Mukachevo is the administrative center of the raion.-Towns:-Villages:... , Zakarpattia Oblast Zakarpattia Oblast The Zakarpattia Oblast is an administrative oblast located in southwestern Ukraine. Its administrative center is the city of Uzhhorod... |
737 ha | 09.01.1999 | 30 years |
| Yavoriv | Yavorivskyi Raion, Lviv Oblast Lviv Oblast Lviv Oblast is an oblast in western Ukraine. The administrative center of the oblast is the city of Lviv.-History:The oblast was created as part of the Ukrainian Soviet Socialist Republic on December 4, 1939... |
116,000 ha | 17.02.1999 | until 01.01.2020 |
| Interport Kovel | Kovel Kovel Kovel is a city located in the Volyn Oblast , in northwestern Ukraine. Serving as the administrative center of the Kovelskyi Raion , the city itself is also designated as a separate raion within the oblast. The current estimated population is around 65,777.Kovel gives its name to one of the... , Volyn Oblast Volyn Oblast Volyn Oblast is an oblast in north-western Ukraine. Its administrative center is Lutsk. Kovel is the westernmost town and the last station in Ukraine of the rail line running from Kiev to Warsaw.-History:... |
57 ha | 01.01.2000 | 20 years |
| Kurortopolis Truskavets | Truskavets Truskavets Truskavets is a city in western Ukraine's Lviv Oblast , near the border with Poland. The city is designated as a separate raion within the oblast.... , Lviv Oblast Lviv Oblast Lviv Oblast is an oblast in western Ukraine. The administrative center of the oblast is the city of Lviv.-History:The oblast was created as part of the Ukrainian Soviet Socialist Republic on December 4, 1939... |
774 ha | 01.01.2000 | 20 years |
| Mykolaiv | Mykolaiv Mykolaiv Mykolaiv , also known as Nikolayev , is a city in southern Ukraine, administrative center of the Mykolaiv Oblast. Mykolaiv is the main ship building center of the Black Sea, and, arguably, the whole Eastern Europe.-Name of city:... , Mykolaiv Oblast Mykolaiv Oblast Mykolaiv Oblast is an oblast of Ukraine. The administrative center of the oblast is the city of Mykolayiv.-Geography:The Mykolaiv Oblast is located in the southern half of Ukraine... , shipyard territory, and adjoining area |
865 ha | 01.01.2000 | 30 years |
| Port Krym | Kerch Kerch Kerch is a city on the Kerch Peninsula of eastern Crimea, an important industrial, transport and tourist centre of Ukraine. Kerch, founded 2600 years ago, is considered as one of the most ancient cities in Ukraine.-Ancient times:... , Autonomous Republic of Crimea |
27 ha | 01.01.2000 | 30 years |
| Porto-Franco | Odessa Odessa Odessa or Odesa is the administrative center of the Odessa Oblast located in southern Ukraine. The city is a major seaport located on the northwest shore of the Black Sea and the fourth largest city in Ukraine with a population of 1,029,000 .The predecessor of Odessa, a small Tatar settlement,... , part of Odessa Trade Sea Port's territory |
32 ha | 01.01.2000 | 25 years |
| Reni | Reni Reni, Ukraine Reni is a small town in the Odessa Oblast of western Ukraine. It is the administrative center of the Reniysky Raion , and is located in the Bessarabian historic district of Budjak. The settlement was founded around 1548, acquiring city status in 1821.The current estimated population is around... , Odessa Oblast Odessa Oblast Odesa Oblast, also written as Odessa Oblast , is the southernmost and largest oblast of south-western Ukraine. The administrative center of the oblast is the city of Odessa.-History:... |
94 ha | 17.05.2000 | 30 years |
| * Initially planned time of operation given. All zones were shut down on March 31, 2005. NCEEZ — Nouth-Crimean Experimental Economic Zone. Sources: http://www.kmu.gov.ua/control/publish/article?art_id=6502922 http://www.kmu.gov.ua/control/uk/publish/article?art_id=3249330&cat_id=32190 http://www.gazdagroup.com/gazda/ua/vezpilgy.html and Пехник А.В., Іноземні інвестиції в економіку України. Навчальний посібник, Вид. «Знання», Київ 2007, pages: 49, 310–319 | ||||
U.S.S.R.
As for Finland and Yugoslavia, the reason for their rapid economic growth was the Soviet Union’s policy of treating those states as special economic zones, through which it gained access to technologies and the know-how of the West. Export of such products to the USSR was often prohibited due to their dual purpose.(U.S.S.R. Special Economic Zones)
Zambia
ZambiaZambia
Zambia , officially the Republic of Zambia, is a landlocked country in Southern Africa. The neighbouring countries are the Democratic Republic of the Congo to the north, Tanzania to the north-east, Malawi to the east, Mozambique, Zimbabwe, Botswana and Namibia to the south, and Angola to the west....
is home to two Chinese-supported Special Economic Zones. One sits just outside of Lusaka
Lusaka
Lusaka is the capital and largest city of Zambia. It is located in the southern part of the central plateau, at an elevation of about 1,300 metres . It has a population of about 1.7 million . It is a commercial centre as well as the centre of government, and the four main highways of Zambia head...
and the other is in the copper
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...
rich town of Chambishi. The zones combine expedited customs and administration procedures with tax incentives, to increase investment.
External links
- Шмонов Н.Н. «Историческое исследование проблем развития особых экономических зон»
- Bangladesh Export Processing Zone Authority BEPZA
- South Kazakhstan "Ontustyk" special economic zone
- Indian Special Economic Zones
- Export Processing Zones Authority Pakistan
- PEZA Philippines website
- India Special Economic zones map
- Open Joint Stock Company "Special Economic Zones" (Russia)
- U.S.S.R. Special Economic Zones
- India: Citizens group demand moratorium on SEZs OneWorld South Asia