Transforming Bhasan Char: From Refugee Island to Asia’s Industrial Hub

Bhasan Char, an island in Bangladesh primarily known for hosting Rohingya refugees, has the potential to become a major industrial hub in Asia. While currently viewed as a humanitarian settlement, strategic investment and economic planning could transform the island into a center for shipbuilding, heavy industry, and advanced manufacturing. With its geographical location, low labor costs, and access to maritime routes, Bhasan Char could rival major industrial zones in China, South Korea, and Singapore.

The recent collaboration between WHO and Japan, which allocated $3.2 million to strengthen healthcare infrastructure in Bhasan Char and Cox’s Bazar, is an example of international investment in the island. This funding could be the foundation for a broader economic transformation. By developing industries that create sustainable jobs, Bhasan Char can transition from a refugee settlement into an economic powerhouse, benefiting both the refugees and Bangladesh’s national economy.

One of the most promising industries for Bhasan Char is shipbuilding. Bangladesh already has a growing shipbuilding sector, and with the right investment, Bhasan Char could specialize in producing large vessels, including cruise ships, cargo ships, and even aircraft carriers. Countries like Saudi Arabia and the UAE, which are expanding their naval capabilities, could become major clients, ordering advanced warships and carriers from Bhasan Char at a fraction of the cost compared to Western shipyards.

The low cost of labor in Bangladesh, especially Rohingya, gives it a competitive edge in shipbuilding. With proper training programs and technical education, the island’s workforce could be developed into a highly skilled labor pool. By partnering with global shipbuilders and engineering firms, Bhasan Char could establish itself as a key player in the international shipbuilding industry, supplying vessels to both commercial and military clients.

Beyond shipbuilding, Bhasan Char has the potential to become a hub for renewable energy production. The island's strategic location makes it ideal for offshore wind farms and solar energy projects. Investment in renewable energy infrastructure would not only power industrial activities on the island but also provide excess electricity for mainland Bangladesh, reducing the country’s reliance on fossil fuels.

Another high-potential industry for Bhasan Char is the production of electric vehicles (EVs). As global demand for EVs rises, setting up a manufacturing hub on the island could attract foreign investors. By offering tax incentives and creating a special economic zone, Bangladesh could attract major EV manufacturers from China, Europe, and the US to set up production facilities on Bhasan Char.

The textile and garment industry, a backbone of Bangladesh’s economy, could also thrive on Bhasan Char. Establishing modern factories focused on high-end fashion and eco-friendly textiles would enhance Bangladesh’s reputation as a global leader in sustainable clothing production. Given the rise of ethical consumerism, positioning Bhasan Char as a center for eco-friendly textiles could attract top brands looking for sustainable production partners.

The island’s location in the Bay of Bengal also makes it an ideal candidate for logistics and shipping industries. Establishing a deep-sea port on Bhasan Char could make it a transshipment hub for goods moving between South Asia, the Middle East, and Southeast Asia. This would reduce congestion in existing Bangladeshi ports and provide a direct economic boost to the country.

Aerospace manufacturing is another industry that could thrive in Bhasan Char. With countries like India, China, and Indonesia investing heavily in space programs and commercial aviation, there is a growing demand for aerospace components. Setting up a facility specializing in aircraft parts and satellite production could position Bangladesh as a new player in the global aerospace supply chain.

The pharmaceutical industry could also benefit from investment in Bhasan Char. Bangladesh has a rapidly growing pharmaceutical sector, exporting medicines to over 150 countries. Establishing a pharmaceutical manufacturing hub on the island could attract foreign pharmaceutical companies looking for cost-effective production facilities. This would not only create jobs but also enhance Bangladesh’s position in the global healthcare industry.

The digital economy presents another opportunity for Bhasan Char’s transformation. By developing IT parks and outsourcing centers, the island could become a hub for software development, data processing, and artificial intelligence research. Countries like India and the Philippines have successfully leveraged their human capital to dominate the global IT outsourcing market—Bhasan Char could follow the same path.

For this transformation to succeed, significant infrastructure investment is required. Roads, bridges, modern housing, and a well-developed transportation network must be built to support industrialization. The involvement of international development banks, private investors, and government-backed initiatives will be crucial in financing these projects.

Special economic zones (SEZs) should be established to attract foreign investment. Offering tax incentives, relaxed regulations, and streamlined business registration processes will make Bhasan Char more attractive to multinational corporations looking to set up production facilities in Asia.

A well-planned education and vocational training system must also be implemented to ensure a skilled workforce. Technical schools, universities, and industry partnerships can equip the local population with the necessary skills to work in high-tech industries such as shipbuilding, aerospace, and IT.

Security and stability are also critical for Bhasan Char’s economic transformation. A strong governance structure should be in place to ensure a safe environment for businesses and residents. This will require cooperation between the Bangladeshi government, international organizations, and private sector stakeholders.

Environmental sustainability must be a key consideration in Bhasan Char’s development. Green industry practices, strict waste management policies, and eco-friendly construction techniques should be prioritized to ensure the island’s long-term viability.

To attract investors, Bangladesh must launch an aggressive global marketing campaign highlighting Bhasan Char’s advantages as an industrial hub. Hosting international investment summits, engaging with foreign governments, and leveraging diplomatic ties will be essential in securing major industrial projects.

A successful transformation of Bhasan Char would not only boost Bangladesh’s economy but also provide sustainable livelihoods for Rohingya refugees and local communities. By shifting the island’s identity from a refugee settlement to a dynamic industrial hub, Bangladesh can position itself as a leading economic power in Asia.

With a strategic vision, bold investment, and strong policy frameworks, Bhasan Char can become a symbol of economic resilience. By focusing on industries such as shipbuilding, renewable energy, EV manufacturing, logistics, aerospace, and IT, the island can emerge as a key player in the global economy.

If executed effectively, Bhasan Char could become the “Singapore of the Bay of Bengal,” a thriving economic hub that drives regional trade and industry. The transformation of a refugee island into an industrial powerhouse would stand as a testament to human ingenuity, strategic planning, and economic foresight.