Why Bhola could become Bangladesh's next industrial heartland
A combination of abundant gas reserves, cheaper land, lower labour costs and direct access to river routes is now drawing billions of taka from major local and foreign investors
Bhola, long seen as a quiet southern island district, is rapidly turning into Bangladesh's newest industrial frontier.
A combination of abundant gas reserves, cheaper land, lower labour costs and direct access to river routes is now drawing billions of taka from major local and foreign investors.
Here is a breakdown of the forces transforming Bhola into what many industry leaders are calling the country's "next industrial heartland".
Keep updated, follow The Business Standard's Google news channel
Gas: The game-changer no other district can match
Bhola's biggest advantage is energy.
While traditional manufacturing hubs such as Gazipur, Narayanganj, Habiganj and even Chattogram struggle with gas shortages, Bhola has a surplus that remains underutilised.
Pran-RFL Chairman Ahsan Khan Chowdhury told TBS that industries located directly near gas fields can cut dependence on expensive transmission infrastructure.
"Two things will happen: the government won't need to spend on gas transmission, and large-scale industrialisation will begin in the region," he said.
Advisers of the interim government also noted during a recent field visit that "Bhola has abundant gas far more than anywhere else right now."
For energy-intensive sectors — plastics, ceramics, fibres, agro-processing and fertiliser — this advantage is decisive.
Cheaper land and labour compared to saturated industrial belts
Dhaka-centric industrial zones have grown prohibitively expensive, says Sheltech Group Chairman Kutubuddin Ahmed, whose company built Bangladesh's largest ceramic plant in Bhola.
He told TBS that Gazipur, Narayanganj and Habiganj "no longer offer viable expansion opportunities" due to congestion and soaring land prices.
Bhola, on the other hand, offers:
- Large contiguous land parcels
- Significantly lower land prices
- A growing pool of trainable labour
- Lower overall production costs
Sheltech's Tk600 crore ceramic plant employs around 1,000 people, 800 of whom are local.
A new industrial corridor emerging along the river routes
Bhola is connected to the rest of the country through extensive river networks, enabling the movement of bulk cargo at far lower costs than road transport.
Urmi Group Managing Director Asif Ashraf highlighted this when explaining his company's $80 million investment in a synthetic and man-made fibre plant.
"Bhola provides both suitable land and gas, plus river access to Chattogram and Mongla ports," he said.
For manufacturers, river transport reduces logistics costs and simplifies export freight movement — an advantage rarely available in other new industrial districts.
Mega investments that could reshape the southern economy
Three of the country's largest industrial investments are already underway in Bhola:
Pran-RFL's Tk6,000 crore industrial park
- 1,000 bighas in Char Veduria
- Expected to create 25,000 jobs
- Factories for plastics, ceramics, glassware, footwear, and household goods
- Full production expected by 2028
Urmi Group's $80 million fibre plant
- 35 acres secured
- Production targeted by 2027
- Will supply yarn and fibre to the group's garment and textile units
China's $1 billion Bhola Eco Development Economic Zone
- Approved by Beza
- First phase: 102 acres, expanding to 158
- 40 labour-intensive and agro-based factories planned
Together, these projects alone position Bhola as a major new manufacturing and export hub.
The government's interest signals Bhola's strategic importance
The interim government is assessing plans to build a major urea fertiliser plant powered by Bhola's gas. Advisers have visited project sites, and feasibility work is ongoing.
A senior official told TBS that a buffer warehouse for fertiliser storage is also being constructed and will be completed by 2027 — a sign of long-term industrial planning in the district.
Gas distribution is already expanding, with Sundarbans Gas Company confirming new connections to Sheltech, Kazi Farms and upcoming factories of Pran-RFL and Urmi.
What this means for Bangladesh
If these investments succeed as planned, Bhola could:
- Become the largest industrial zone in southern Bangladesh
- Shift industrial concentration away from Dhaka and Chattogram
- Create tens of thousands of jobs
- Reduce pressure on congested existing industrial belts
- Drive export diversification into ceramics, fibres, plastics, and agro-products
Former Bhola deputy commissioner Md Azad Jahangir summed up the district's transformation, "With the growing interest from local and foreign investors, Bhola is set to become the largest industrial hub in the south. Once these factories are operational, no youth in Bhola will remain unemployed."
