Turning Bangladesh’s Energy into Manufacturing Strength: BSEZ Opens Up a New Destination for Business Expansion

With its young and abundant workforce, expanding domestic consumer market, and strong affinity for Japan, Bangladesh is attracting attention as a new destination for manufacturing investment. At the same time, companies considering entry into the market often have concerns about local business operations, including infrastructure and institutional frameworks. The Bangladesh Special Economic Zone (BSEZ), developed and operated by Sumitomo Corporation together with the Japanese and Bangladeshi governments, is addressing these challenges and creating an environment in which tenant companies can focus on their businesses with confidence. In this interview, we spoke with Sales Department General Manager Hiroki Nakane, who has been assigned to BSEZ since May 2025, about Bangladesh’s appeal, its potential as a manufacturing destination, and BSEZ’s aspirations for the future.

Theme 1: Bangladesh Through the Eyes of an Expatriate Manager

To begin, could you introduce yourself and describe your current responsibilities?

My name is Hiroki Nakane, and I have been assigned to BSEZ since May 2025. My responsibilities fall broadly into three areas. The first is sales. We begin by helping companies understand Bangladesh, then explain the value of BSEZ, the country’s only Model Economic Zone, with the ultimate goal of welcoming them as tenants. The second is operational support for tenant companies. We do not regard signing a contract as the finish line. Rather, we believe that “the signing of a contract marks the beginning of our relationship.” We work alongside tenants locally to help resolve the various issues that arise in the course of their operations. The third is the day-to-day operation of the industrial park. In addition to managing and maintaining existing infrastructure, I oversee engineering areas such as expansion and development works.

Having worked in Bangladesh, what aspects of the country do you find attractive that are not widely recognized in Japan?

First, Bangladesh is more developed than many people imagine. GDP per capita exceeds approximately USD 2,500 nationwide and is said to exceed approximately USD 5,000 in Dhaka. Dhaka alone has a population of more than 20 million and is a major metropolis with a skyline of high-rise buildings.
Bangladesh is well known as a Japan-friendly country, but from my own experience, its affinity for Japan is so strong that I sometimes feel it may be the most pro-Japanese country in the world.
This affinity for Japan is also one of the country’s major business attractions. Simply being Japanese can create opportunities to meet government officials and senior executives of local conglomerates, and we frequently receive business proposals directly from them. Despite the country’s rapid development, its strong trust in and expectations toward Japan could create significant business opportunities for Japanese companies.

During your assignment, was there an event or episode that made you feel that the country is poised for substantial growth?

Bangladesh has a population of approximately 180 million concentrated in an area roughly equivalent to Hokkaido and the Tohoku region combined. Its median age is approximately 26, providing a strong demographic foundation for national growth. Living here, I strongly feel both the scale of the population and the energy of its young workforce. In our recruitment activities, it is not uncommon to receive approximately 600 to 900 applications for a single position. During interviews, we meet many candidates with excellent English skills, strong motivation, and passion for their work. Each time, I am reminded of the country’s enormous growth potential.
Infrastructure development around the capital is also progressing, with airport, MRT, and arterial road expansion projects moving forward one after another. New commercial facilities, apartment buildings, and other developments are visible throughout the city, creating a real sense that we are witnessing the country transform before our eyes. I believe this combination of workforce energy and urban change symbolizes Bangladesh’s growth.

Theme 2: Potential as a Manufacturing Destination

What are the main reasons companies become interested in Bangladesh?

Broadly speaking, companies are interested either in Bangladesh’s continuously growing domestic market or in manufacturing in the country for export. Companies targeting the domestic market aim to enter its young, populous, and expanding consumer market at an early stage, build their brands, and capture first-mover advantages. We are seeing particularly strong interest from B2C businesses in sectors such as home appliances, food products, and daily necessities.
Export-oriented companies are attracted by Bangladesh’s abundant workforce, competitive labor costs, and strategic location. In addition to labor-intensive industries such as wire harness manufacturing, a growing number of companies are interested in so-called “deemed export” models, under which items such as apparel materials are manufactured in Bangladesh, sold to export-oriented companies in the country, and subsequently exported overseas.

Have you seen any recent trends in the industries or types of companies showing increased interest?

Following the successful general election in February 2026 and with the political situation showing signs of stabilization, we have received inquiries from companies across a wide range of countries and industries. For the domestic market, we are seeing greater interest in consumer goods, particularly daily necessities, and we hope to see more two-wheeler and four-wheeler projects in the future. On the export side, interest is growing among industries supporting the broader apparel value chain, including RFID tags and other materials used in garment production.
More recently, interest has also grown among companies handling higher-value-added products, such as functional apparel and textiles for sportswear. Manufacturing these products requires high-capacity, stable infrastructure, including electricity and water. BSEZ is developing infrastructure capable of supporting not only traditional labor-intensive industries but also more advanced manufacturing, and we believe it can serve as a platform for the upgrading of Bangladesh’s industrial base.

What questions or concerns do you most frequently receive from companies considering entry into Bangladesh?

The most common concerns relate to power supply, logistics, and institutional matters such as laws and regulations. Regarding electricity, we are often asked about the frequency of outages and the stability of voltage and frequency. Compared with Thailand and Vietnam, where Japanese manufacturers have long established operations, the reality is that Bangladesh remains at an earlier stage of development.
In logistics, many companies are concerned about international shipping lead times through Chattogram Port, approximately 260 km south of Dhaka, as well as customs clearance procedures. As evidence of the country’s development, cargo volumes are increasing year by year. However, port capacity has become constrained, procedures take considerable time, and this has become a challenge for manufacturers. The legal framework also contains areas that remain unclear, requiring significant effort to verify and interpret applicable requirements.

Theme 3: What BSEZ Makes Possible

How does BSEZ support companies in addressing these concerns and challenges?

We recognize the issues mentioned above as forms of country risk for manufacturers. At the same time, when we look back at other Asian countries that have achieved industrial development, many grew while facing similar challenges. In that sense, we do not believe Bangladesh is uniquely disadvantaged.
Nevertheless, these are unquestionably important issues, and improvements are expected. That is precisely why BSEZ is working with its Japanese and Bangladeshi government partners to minimize these risks.
For example, we are developing a substation to provide stable extra-high-voltage power, which would be difficult for a private company to introduce independently. We are also working to establish customs functions within the BSEZ site and advocating improvements to the legal and regulatory framework. Rather than leaving these challenges to individual companies, BSEZ places importance on addressing them as an industrial park. We would welcome the opportunity to explain these specific initiatives in detail to manufacturers during a site visit.

What are BSEZ’s strengths compared with other industrial parks?

A major strength is the participation of both the Japanese and Bangladeshi governments as partners. Although BSEZ is a private-sector-led project centered on Sumitomo Corporation, the Japan International Cooperation Agency (JICA), representing the Government of Japan, and the Bangladesh Economic Zones Authority (BEZA), a Bangladeshi government agency, also participate in the project.
In a country undergoing rapid development, challenges involving power, logistics, and institutional frameworks may be difficult for private companies to resolve independently. As an industrial park with government partners, BSEZ can consolidate the voices of manufacturers and advocate more forcefully for solutions.
We believe this structure is one of BSEZ’s key differentiators in Bangladesh today.

What aspects tend to surprise or impress companies when they visit the site?

Many visitors are pleasantly surprised and find that their impressions change completely. Some arrive with an image of Bangladesh as a developing country and concerns about daily life, but after visiting, we frequently hear comments such as, “It is more developed and safer than I expected,” and “It is far more pro-Japanese than I imagined.”
At BSEZ, visitors appreciate the well-managed operation of the industrial park. In addition to having two Japanese expatriate staff members, including myself, stationed on site, essential infrastructure such as electricity, water supply, and drainage is firmly in place. Flood-control measures have also been implemented, and the site does not become inundated even after heavy rainfall during the rainy season.
This environment may seem standard to Japanese companies, but locally it provides significant reassurance. Seeing in Bangladesh the kind of well-organized manufacturing environment found in other industrialized Asian countries often changes visitors’ impressions considerably.

Theme 4: Living in Bangladesh and Shaping the Future

What is life like in Bangladesh? How do you spend your days off, and do you have any favorite activities?

I live without any particular inconvenience and find daily life more comfortable than I had expected. On my days off, I often practice golf near Dhaka. About a 15-minute drive from my home, there is a facility with both an 18-hole course and a driving range, where I take lessons from a local coach.
After practicing, I usually have a meal at a restaurant in Dhaka. There are many options, including Chinese, Italian, and Japanese cuisine, and food delivery apps are also widely available, so finding something to eat is rarely a problem. The number of gyms has also increased, and I use them when I want to exercise. This wide range of leisure options is another attraction of Bangladesh that I have discovered by living here.

What message would you like to share with companies considering international business expansion?

If you have never visited Bangladesh, or if some time has passed since your last visit, I would strongly encourage you to come and see the country as it is today. By visiting in person, you can experience the energy of a nation in development, as well as its comfortable and safe living environment.
To help visitors understand the many attractions of Bangladesh, BSEZ’s Japanese expatriate staff provide guidance not only on the industrial park, but also on daily life, dining, shops, and other aspects of Dhaka. We hope you will visit Bangladesh and experience the country’s energy and appeal firsthand.

What kind of industrial park do you hope BSEZ will become in the future?

First, as a project invested in by both the Japanese and Bangladeshi governments, we want more companies to learn about BSEZ so that we can help attract foreign direct investment to Bangladesh and contribute to industrial diversification. In doing so, our motto is: “The signing of a contract marks the beginning of our relationship.”
We want BSEZ to be an industrial park where every tenant company feels that choosing BSEZ was the right decision.
Beyond that, we want BSEZ to become an industrial park that is valued by Bangladesh and its local communities. We aim to create an environment and systems that enable the Bangladeshi employees of our tenant companies, as well as their families, to feel glad that they work within BSEZ.