State-owned factories that have remained closed for years stand as silent reminders of an underperforming economy. Vast stretches of industrial land, existing power and gas connections, and fully built factory complexes remain idle, generating no economic value.
While these public assets lie dormant, their potential continues to be wasted. Against this backdrop, the government’s move to revive closed and loss-making public enterprises through private investment is both timely and necessary.
However, the success of this initiative should not be judged by the number of factories leased out. It should be measured by how many plants actually resume production, how many jobs are created, and how effectively public assets are converted into productive economic resources.
A total of 14 domestic business groups have submitted 86 proposals to restart shuttered state-owned factories and industrial units. The Bangladesh Investment Development Authority (BIDA) is assessing the technical and economic viability of the proposals.
The interest shown by multiple investors in several facilities is encouraging, as it can create competition and allow the government to select investors with the strongest financial and operational capacity.
The government has initially moved to privatise 44 closed and loss-making units under the Bangladesh Sugar and Food Industries Corporation, Bangladesh Textile Mills Corporation, Bangladesh Chemical Industries Corporation, Bangladesh Jute Mills Corporation and Bangladesh Steel and Engineering Corporation.
However, many of these factories did not fail simply because of poor management. Their decline was linked to outdated technology, rising costs, changing market conditions and prolonged administrative neglect.
Therefore, reopening factory gates alone will not be enough. These units require new business strategies, modern technology and market-oriented production plans.
This is where private sector participation can play a crucial role. Investors who commit their own capital naturally have stronger incentives to improve productivity, adopt technology, control costs and respond to market demand.
The government’s role should be to ensure a sound policy environment, effective regulation and accountability. In many cases, transferring operational responsibility to capable private investors can lead to faster and more efficient decision-making.
Another major advantage of these closed industrial sites is their existing infrastructure. Developing a new industrial project requires land acquisition, construction, utility connections and other preparatory work.
Many abandoned factories already have land, buildings, electricity facilities, road access and other supporting infrastructure. With the right investor, production can restart with lower initial costs and within a shorter timeframe.
Reviving these assets can also create employment and encourage industrial growth beyond Dhaka. Bringing idle factories back into operation can support regional economies, particularly in areas that have historically received less industrial investment.
However, the government must remain cautious. Transferring public assets to private investors must not become an opportunity to convert industrial land into unrelated commercial projects.
Past experience shows that some industrial plots have been diverted for purposes other than those for which they were allocated. Such practices must not be allowed to continue.
Lease and partnership agreements must clearly state that industrial land and facilities will be used only for production purposes. Strong legal provisions should allow the government to reclaim assets if investors violate contractual conditions.
Investor selection must also go beyond choosing the highest bidder. Authorities must assess financial strength, technical expertise, industry experience, funding sources, employment plans, environmental impact and export potential.
The speed at which an investor can restart operations and the long-term sustainability of the business should be considered as important as the size of the proposed investment.
The experience of transferring some closed jute mills under the Bangladesh Jute Mills Corporation to private ownership offers some optimism. Several facilities have resumed operations and created employment.
These sites also offer opportunities for diversification into sectors such as jute products, garments, footwear, toys, food processing, electric vehicles, agricultural machinery, solar energy and pharmaceuticals.
However, one reality must remain clear: factories that failed because of outdated technology or obsolete business models cannot be revived by repeating their old practices.
New investments must bring modern technology, skilled workers, efficient management and production strategies aligned with market demand.
If the government’s proposed models of long-term leasing, profit-sharing and public-private partnerships are implemented properly, they can protect both public interests and private investment.
Whatever model is chosen, agreements must be transparent, measurable and enforceable.
At the same time, bureaucratic delays must be reduced. If investors have to wait years for approvals, the purpose of the initiative will be undermined.
Every stage — from proposal assessment and contract signing to approval and handover — should have clear deadlines. No government office should be allowed to hold back industrial revival through unnecessary delays.
Ultimately, success will not be measured by the number of proposals submitted or factories leased out. It will be reflected in actual production, investment, job creation, export growth and revenue generation.
State assets belong to the people. While caution is essential when transferring these assets to private hands, excessive delays and bureaucratic obstacles are equally harmful.
The goal should be clear: transform idle public wealth into productive industries, sustainable employment and long-term economic growth.
If the government ensures fair competition, strong safeguards, capable investor selection and consistent monitoring, closed factories can move from being economic liabilities to becoming engines of a new industrial revival.
The writer is a vice president at the Bangladesh-American Chamber of Commerce USA Inc.
Views expressed are solely those of the author.
