Rethinking Bangladesh’s hi-tech parks
The Bangladesh Hi-Tech Park Authority (BHTPA) was established in 2010 with the ambitious goal of transforming the country into a global hub for information and communication technology (ICT). More than a decade later, the organisation's efforts to promote the technology sector's growth have largely fallen short of expectations. While the intent behind the initiative is commendable, its success has been relatively limited, and the expected impact has not fully materialised. Several factors have hindered its progress, and strategic interventions are necessary to unlock its full potential.
One of the primary issues hindering BHTPA's progress is the inadequate infrastructure in the hi-tech parks, it established. Many of these parks suffer from poor internet connectivity, irregular power supply, and a lack of basic amenities, making it challenging for technology companies to operate efficiently. This has deterred potential investors and entrepreneurs from setting up businesses in these parks.
While BHTPA has initiated several projects across the country to establish such parks and business incubation centres, many are plagued by delays in construction and infrastructure development. In some cases, bureaucratic red tape and inefficient project management have slowed down the execution of plans. The lack of timely completion has hindered the ability of tech companies to set up operations in these parks.
Streamlining the execution of infrastructure projects is critical to making the hi-tech parks operational. This can be achieved by improving project management, reducing bureaucratic inefficiencies, and ensuring that clear timelines are adhered to. Public-private partnerships (PPP) in infrastructure development could also help accelerate progress by tapping into private-sector efficiency and capital, although this must be done through a fair process.
For all latest news, follow The Daily Star's Google News channel. The locations of the hi-tech parks are also not optimal. For example, the hi-tech park at Kaliakoir is too far away from Dhaka city with no civic amenities around. Typically, a township should be established surrounding hi-tech parks with shopping malls, movie theatres, children's parks, schools, markets, decent housing, etc. Alternatively, high-speed commuter trains or expressways must link the parks with the main city. Without these amenities, skilled tech professionals would not want to relocate themselves to a rural setting.
There was also a plan to develop an IT park in around 47 acres of land at the Korail slum in the capital. Although the site is a fully developed land, it is currently occupied by many slum dwellers. A resettlement programme for the displaced people was adopted as part of the development project to resettle them in an acceptable manner. However, political governments never attempted to implement this project because of the fear of losing a sizable vote bank. This tech park in the capital would surely be attractive to local and international IT companies.
Unfortunately, the IT industry, the biggest stakeholder in the hi-tech parks, was never consulted while selecting the areas or the districts for the parks. Decisions to establish the parks were mostly taken with the agenda to enhance the image of the local politicians. Some areas, selected for the parks, are unsuitable for IT business as skilled human resources are scarce in those regions. Sites near technological colleges and universities are most appropriate for these parks.
Another significant obstacle BHTPA faces is the shortage of skilled and experienced IT professionals in Bangladesh. While the country has a large pool of young talent, many lack advanced skills in areas such as artificial intelligence, blockchain, cybersecurity, data analytics, and other expertise required by tech companies. This skill gap has made it difficult for BHTPA to attract multinational companies to the hi-tech parks.
Though continuous upskilling of the tech professional is required for the ever-changing tech industry, a significant disconnect exists between academic institutions and this sector. There is little collaboration between Bangladeshi universities and research institutes and the industry in terms of research, internships, and project-based learning. This gap weakens the innovation ecosystem and is responsible for the disparity between the skills needed by the companies and the talent pool available. Skill development must be included in the curricula so that graduates have both knowledge and skill.
It is also important to invest in research and development within the hi-tech parks now, since without its own intellectual property, Bangladesh will struggle harder in the post-TRIPS (Agreement Trade-Related Aspects of Intellectual Property Rights) regime. BHTPA can create specialised research zones or labs focused on emerging technologies. Offering tax breaks or subsidies for companies that invest in R&D would also attract more companies to establish operations in the parks. This will drive long-term innovation and competitiveness.
One of the main objectives of the hi-tech parks is to attract both local and foreign investments to spur technological innovation. However, a limited venture capital ecosystem, risk-averse financial institutions, and low levels of foreign direct investment (FDI) in the tech sector have been obstacles. Many startups and entrepreneurs in Bangladesh struggle to secure seed funding or scale-up investment, which stifles innovation and entrepreneurship.
BHTPA could work with financial institutions to encourage the development of tech-focused venture capital funds and ease access to credit for technology-driven companies. Additionally, tax incentives for venture capital investments, grants, and seed funding for deserving startups could be provided to encourage investment in high-tech startups with potential and research-driven innovations that have commercial value.
Many tech firms and startups also face bureaucratic hurdles when seeking government approvals, licenses, and incentives. The slow processing of paperwork and inconsistent policy enforcement discourage companies from utilising the hi-tech parks. To address this issue, BHTPA needs to streamline its processes and make them more business-friendly. Moreover, some policies related to data privacy, intellectual property rights, and tech regulation are not well developed which undermines confidence in the long-term stability of operations.
Simplifying the process of acquiring business licenses, work permits, and other approvals for tech companies operating in hi-tech parks is essential. Introducing a "one-stop service" for tech firms to handle all regulatory processes would significantly reduce bureaucratic bottlenecks. Moreover, updating policies to align with international standards will help increase investor confidence.
Another challenge that BHTPA has grappled with is the lack of effective marketing and promotion of its hi-tech parks. Many potential investors and companies, both local and international, are unaware of the opportunities and incentives offered by BHTPA, resulting in a low occupancy rate in the parks. BHTPA should enhance its marketing and promotional efforts to increase awareness and attract more businesses. There is a need for a concerted effort to market Bangladesh as a viable destination for technology investment. BHTPA should work with trade bodies and embassies to create a global campaign that highlights the country's strengths, such as its young workforce, strategic location, and improving infrastructure. Showcasing successful case studies from existing tech firms operating in the parks would further enhance credibility.
Compared to regional competitors like India or Vietnam, Bangladesh has struggled to present itself as an attractive destination due to concerns about the inequitable political environment including nepotism and corruption, infrastructure readiness, and ease of doing business. The absence of a coordinated promotional campaign to promote Bangladesh as a tech investment hub adds to the problem.
The BHTPA was established with a vision to develop an ICT-driven ecosystem and contribute to the nation's economic growth by fostering innovation, entrepreneurship, and job creation in the tech sector. However, without addressing key bottlenecks such as infrastructure delays, skill shortages, and regulatory inefficiencies, BHTPA's impact will remain limited. To overcome these challenges and achieve its goals, BHTPA needs to take a proactive approach otherwise its efforts to establish Bangladesh as a technology hub may continue to falter, and the country's potential in the ICT sector may remain untapped. In the long run, fostering innovation and nurturing entrepreneurship will be key to realising the country's vision for an ICT-driven economy.
Syed Almas Kabir is an entrepreneur and a policy advocate.
Views expressed in this article are the author's own.
Follow The Daily Star Opinion on Facebook for the latest opinions, commentaries and analyses by experts and professionals. To contribute your article or letter to The Daily Star Opinion, see our guidelines for submission.
Comments