Over the past decade, Bangladesh has achieved remarkable progress in infrastructure development, export growth, and key social indicators. Yet, a significant contradiction remains within the industrial sector: while new industries continue to emerge, many existing factories and industrial enterprises remain closed, idle, or only partially operational. Reviving these underutilised industrial assets could make a substantial contribution to employment generation, GDP growth, export expansion, and government revenue.
Among the industries facing closure or severe operational challenges are state-owned jute mills, sugar mills, textile mills, paper mills, chemical factories, leather processing industries, shipbuilding and ship repair facilities, engineering workshops, food processing plants, and agro-based industries.
The jute industry, in particular, was once one of Bangladesh’s greatest economic strengths. Following independence, state-owned jute mills served as a major source of foreign exchange earnings for many years. However, outdated technology, weak management, political interference, excessive staffing, and a lack of product diversification in international markets gradually rendered most of these mills unprofitable, leading to their closure. Similarly, more than fifteen state-owned sugar mills have suffered continuous financial losses over the years, resulting in declining productivity and operational shutdowns.
These industries, however, possess significant potential if modernised. Sugar mills, for example, need not be limited to sugar production. They can be transformed into integrated industrial complexes producing bioethanol, industrial alcohol, cogenerated electricity, molasses-based chemicals, and a range of agro-processing products.
According to the Bangladesh Bureau of Statistics (BBS), the industrial sector contributes more than 35 per cent of Bangladesh’s GDP. Nevertheless, a considerable portion of the country’s industrial assets remains underutilised, preventing the economy from realising its full productive potential.
Among the industries facing closure or severe operational challenges are
state-owned jute mills, sugar mills, textile mills, paper mills,
chemical factories, leather processing industries, shipbuilding and ship
repair facilities, engineering workshops, food processing plants, and
agro-based industries.
Reviving Bangladesh’s dormant industries requires sector-specific and practical reforms. The first step should be a comprehensive national industrial census to identify which industries are completely closed, partially operational, or capable of becoming profitable through modernisation. Such an assessment would enable policymakers to prioritise investment and restructuring efforts.
Secondly, state-owned industries should be opened to public-private partnerships, foreign direct investment, and joint ventures, instead of relying solely on government management. This approach can improve operational efficiency, reduce bureaucratic inefficiencies, and minimise political interference.
No industrial revival can succeed without replacing obsolete machinery and production systems. A dedicated industrial modernisation fund offering low-interest financing would enable firms to upgrade technology and improve productivity.
Bangladesh should also reduce its dependence on traditional products by expanding into higher-value manufacturing. Greater value addition would strengthen the country’s export competitiveness and increase foreign exchange earnings.
More importantly, expanding Technical and Vocational Education and Training (TVET) is essential for improving industrial productivity. A skilled workforce remains the foundation of sustainable industrial growth and technological advancement.
Several countries have successfully transformed their economies through industrial restructuring. Vietnam launched its economic reforms in 1986, restructuring inefficient state-owned enterprises and developing an export-oriented manufacturing economy. As a result, the country’s per capita income has increased several-fold over the past decades. China reformed loss-making state-owned enterprises, established Special Economic Zones (SEZs), and encouraged private-sector expansion, ultimately becoming the world’s largest manufacturing hub.
India also accelerated industrial development through disinvestment policies and the “Make in India” initiative, attracting investment and expanding domestic manufacturing capacity. Brazil transformed its sugar industry beyond food production by investing heavily in bioethanol and renewable energy, making ethanol a central pillar of its national energy strategy.
A phased national industrial revitalisation programme could generate significant economic benefits. It has the potential to create 300,000 to 500,000 direct jobs, while generating an additional 1.0 to 1.5 million indirect employment opportunities. Overall, the programme could support approximately 1.5 to 2.0 million jobs across the economy.
Beyond employment, industrial revival could generate several billion dollars in additional annual output, contributing substantially to GDP growth.
Revived industries would also strengthen public finances by increasing corporate income tax, Value Added Tax (VAT), customs duties, electricity and utility revenues, and export earnings. As industrial production expands, government revenue would grow accordingly, creating greater fiscal space for public investment. Over time, this could help Bangladesh’s transition from a relatively low-productivity, labour-intensive economy to a more productive, diversified and industrialised economy capable of sustaining long-term economic growth.
Bangladesh’s closed industries should not be viewed as dead assets. Rather, they represent a vast reservoir of dormant economic potential. Through sound policy reforms, technological modernisation, effective public-private partnerships, export diversification, and investment in skilled human capital, these industries can once again become powerful engines of national economic development.
The writer is an energy professional
