Published: April 8, 2025, 06:35 PM
Chowdhury Ashik Mahmud Bin Harun, the Executive Chairman of the Bangladesh Investment Development Authority (Bida), revealed that South Korea-based multinational electronics giant Samsung had initially planned to invest $22 billion in Bangladesh during the Awami League (AL) regime. However, the company decided to withdraw from the investment due to land-related problems.
Speaking at the opening session of the Bangladesh Investment Summit on 7 April, Chowdhury explained that Samsung had intended to invest in the Korean Export Processing Zone (KEPZ) but was deterred by issues concerning land mutation. As a result, Samsung shifted its investment plans to Vietnam.
"Had the previous government resolved these land issues quickly, Samsung would have stayed and invested in Bangladesh," Chowdhury stated. He also pointed out that not just Samsung, but many other investors had been dissuaded from investing in Bangladesh due to missed opportunities under the previous government.
The Bida chairman further explained, "The previous government thought that the land could not be allocated to KEPZ, but the current government resolved this problem within just two months. What could not be achieved in the last 10 years was completed in just one month. If there is goodwill, everything is possible."
KEPZ, which began operations in Chattogram in 1995, was privately developed by the Korean company Youngwon Group.
Chowdhury also spoke about a meeting he had with Youngone Corporation Chairman Kihak Sung when he first joined his position in September 2024. During the meeting, Kihak Sung expressed his concerns about the unresolved land mutation issues affecting KEPZ, saying, "I am doing business in Bangladesh, I love this country, but what is happening with me is not right."
Explaining why Samsung ultimately decided to pull out, Chowdhury said, "Samsung saw that the land papers were not in order, and we could not tell them when they would be. As a result, Samsung left Bangladesh."
Kihak Sung also mentioned that if the land issues were resolved, he would be able to bring many other investors to Bangladesh. In response, Bida formed a dedicated team called the Project Ambassador, which included officials from various ministries and local authorities like the deputy commissioner of Chattogram. Chowdhury emphasized that the current government has resolved what was previously deemed impossible.
As a result of these efforts, Kihak Sung brought around 30 investors from Korea to the investment summit, said Chowdhury.
The Bida chairman also addressed concerns about the cost of doing business in Bangladesh, highlighting that while costs for water, electricity, gas, and land are comparable to countries like Vietnam, Cambodia, and Thailand, Bangladesh`s overall business costs remain lower in other areas.
Chowdhury concluded by stating that Bida will maintain continuous communication with the investors attending the summit over the next 6-12 months with the aim of securing investments. "Investment decisions are not made overnight, it is an ongoing process," he added.
