Developing an Industrial Park in Bangladesh from the Ground Up – Sumitomo Corporation's 30+ Year Track Record Mobilizes Government

How did you come to be involved in the Bangladesh Special Economic Zone (BSEZ) project?

I have been interested in Sumitomo Corporation’s industrial park business since university. I was attracted by the dynamic nature of developing infrastructure on vast vacant lots, and by the global aspect of contributing to the economic and social development of the different countries in question. After I was fortunate enough to receive a job offer, I continued to hope I would be assigned to work in a job related to industrial parks. In the Global Logistics Dept. – my first posting after joining the company – I learned about the logistics that are also essential to manufacturing in industrial parks.

In 2014, I was assigned to the Overseas Industrial Park Dept. (former name) and gained experience in industrial park projects in Vietnam and Myanmar, which only furthered my desire to work on industrial park development in new countries from the ground up. When I told my manager, I was given the go-ahead to explore new business opportunities in Bangladesh in June 2016. I have now been involved in this project for more than eight years in various capacities, and BSEZ has become a key project that is tantamount to my personal mission for my thirties.

Which aspects of Bangladesh did you see as having the greatest potential?

What events have left a particularly strong impression on you in the course of your work in Bangladesh?

We actually encountered a major crossroads in the early stages of the project. I made my first trip to Bangladesh at the end of June 2016 for a kick-off meeting with government officials, and right afterwards, on July 1, there was a terrorist attack in Dhaka. Several people at Sumitomo Corporation developed deep concerns about doing business in Bangladesh, and I was also seized by the fear that I could have been a victim myself. I found myself asking, "Can we really make it work in this country?"

Yet this incident also gave me an opportunity to rethink the purpose of our project. The factors behind terrorism are very complex and can include religious undercurrents. The real root of the problem, however, may be people's dissatisfaction with and uneasiness within society. If the country and its society were to become more affluent, could this help to address the root problems in some way? As I asked myself these questions and considered the issue deeply, I developed a strong desire to contribute through my work in industrial park development.

In November of that year, we submitted a 100+ page proposal to the Government of Bangladesh, calling on it to take action to improve the investment environment in Bangladesh. The proposal called for revisions to laws and systems, large-scale infrastructure development and other measures. Coming from a private company, I thought it was very ambitious. We were concerned that we might be turned away at the door. Yet we succeeded in conveying our enthusiasm for making a serious effort with the Bangladesh government and the nation as whole, and the authorities expressed their willingness to work with Sumitomo Corporation on this project, leveraging our 30+ years of expertise in the field. I believe that we were able to gain this level of trust because of the reputation that Sumitomo Corporation has established for reliability and our track record as a Japanese developer of industrial parks. When the Government of Bangladesh told us that they were willing to work with Sumitomo Corporation, I was convinced that this project would be a success.

The BSEZ development company was established in 2019, three years after this proposal was accepted. What preparations were made in the interim?

The BSEZ opened in 2022. What were the features and strengths of this long-awaited industrial park?

The BSEZ is the first special economic zone in Bangladesh to meet global standards on infrastructure, including electricity, gas, water, telecommunications and flood defenses. Thanks to the efforts of the Japanese government and JICA, a One-Stop Service Center has been established to handle the myriad permits and approvals required to enter the market here.

The BSEZ came to fruition because it is a Japan-Bangladesh Public-Private Partnership Project. All parties in both countries are working together to achieve the goal of industrial diversification and job creation in Bangladesh. Sumitomo Corporation is proud of its role in providing both the hardware and software necessary to create a platform for manufacturing. The company relies on expertise cultivated through more than 30 years of industrial park business and supporting the overseas expansion of more than 600 manufacturing companies.

In the first phase of BSEZ, companies from industries including home appliances, chemicals, daily necessities, food, equipment and sewing supplies from Japan and elsewhere decided to set up operations here. Sales are progressing smoothly, and in February 2024, construction began on the second phase advanced development area. Our immediate task is to attract industries with more multilayered supply chains to accelerate industrial diversification and job creation in Bangladesh.

Finally, what do you find rewarding about the industrial park business and what is your vision for the future?