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Samsung, the South Korean electronics giant, had planned to invest $22 billion in Bangladesh during the Awami League’s tenure but ultimately decided against it due to land-related issues, according to Chowdhury Ashik Mahmud Bin Harun, executive chairman of the Bangladesh Investment Development Authority (Bida). He explained that the company initially sought to invest in the Korean Export Processing Zone (KEPZ) but chose to move to Vietnam instead when land mutation problems could not be resolved.
“Under the previous government, Samsung showed interest in investing in KEPZ, but due to land mutation issues, they shifted their investment to Vietnam,” Chowdhury said during the Bangladesh Investment Summit on April 7. “If the government had acted promptly to resolve these issues, the investment would have remained in Bangladesh.”
Chowdhury also highlighted that other investors had turned away from the country for similar reasons, as the previous government failed to provide adequate opportunities.
He further pointed out that while the previous administration thought the land could not be allocated to KEPZ, the current government had successfully resolved the issue within just two months. “We have accomplished in two months what was deemed impossible in the past decade. If there is goodwill, anything is achievable,” he remarked.
The Korean Export Processing Zone in Chattogram began operations in 1995, with the Youngwon Group developing the industrial zone. Chowdhury recalled a meeting with Youngone Corporation Chairman Kihak Sung, where Sung expressed his frustrations about the ongoing land issues. Sung, a major investor in Bangladesh, emphasized the importance of resolving these land-related problems to attract further investment.
Chowdhury explained that Samsung left Bangladesh due to unresolved issues with land documentation, adding that the company could not proceed with investment until the paperwork was in order. He also revealed that Kihak Sung had committed to bringing more Korean investors to Bangladesh if the land issues were settled.
In response, Bida set up a special team, the “Project Ambassador,” to address these challenges. The team, including key officials from various ministries, managed to solve issues that had remained unresolved for years in a matter of months.
Chowdhury noted that Kihak Sung had brought about 30 investors from Korea to attend the summit and reassured that the government would eliminate bureaucratic obstacles. He emphasized that Bangladesh’s cost of doing business remains lower than that of competing countries such as Vietnam, Cambodia, and Thailand, particularly in terms of utilities and land costs.
“We are committed to maintaining continuous communication with the investors who are attending the summit over the next six to twelve months, aiming to encourage their investment in Bangladesh,” Chowdhury added. “Investment decisions take time and require sustained effort.”
