Dhaka: Samsung has resumed manufacturing operations in Bangladesh after an 18-month hiatus, providing an early boost to the government’s ambition of transforming the country into a global electronics manufacturing hub by 2030 through long-term policy support and investment incentives.
Production has already restarted at Fair Electronics’ manufacturing facility in Shibpur, Narsingdi, where Samsung refrigerators are now being produced.
According to the company’s roadmap, production of washing machines will begin in September, while Samsung smartphones will return to local production in November. Locally manufactured Samsung mobile phones are expected to reach the domestic market by January next year.
Government Incentives Encourage Investment
Speaking to BSS, Fair Group Chief Marketing Officer Mohammed Mesbah Uddin said the government’s latest fiscal measures have created a more favourable environment for the electronics industry.
He noted that the FY2026-27 national budget reduced VAT on locally manufactured refrigerators, freezers, air conditioners and compressors from 15 percent to 7.5 percent, a move expected to lower retail prices by around 5 percent after overall cost adjustments.
“The latest fiscal measures are encouraging for both manufacturers and consumers,” he said.
The government’s broader strategy aims to provide the electronics and consumer electronics industry with long-term policy support similar to that previously extended to the ready-made garment sector, encouraging investment, local manufacturing and exports while positioning Bangladesh as a regional technology hub by the end of the decade.
Samsung Production Resumes
Fair Electronics became Samsung’s official distributor in Bangladesh in 2014 and established the country’s first Samsung smartphone manufacturing facility in 2017, launching locally assembled Samsung smartphones the following year.
Mohammed Mesbah Uddin said smartphone production remained suspended from mid-2024 until the end of 2025 due to the sharp depreciation of the taka, which significantly increased production costs.
He added that the industry’s transition from 4G to 5G devices also required major technological upgrades and new manufacturing equipment.
The company is currently installing 5G testing equipment, after which smartphone production will officially resume in November.
Regarding refrigerator production, Mesbah Uddin said manufacturing has resumed on a limited scale this year, with plans to increase annual production to 40,000–50,000 units next year.
Although the factory has the capacity to manufacture approximately 2.5 million smartphones annually, the company does not expect to utilise its full production capacity during the first year after restarting operations.
Expanding Electronics Manufacturing
Fair Group has invested approximately Tk 10 billion in electronics manufacturing, including about Tk 3 billion in smartphone production, creating modern production facilities capable of manufacturing multiple consumer electronics products.
Alongside Samsung products, the company continues to manufacture Hisense refrigerators and plans to produce approximately 150,000 refrigerators annually under the two brands by 2027. Current annual Hisense production stands at 40,000–50,000 units.
The factory now carries out much more than final assembly. Its automated production lines perform metal body fabrication, component assembly, foam insulation, compressor installation and final quality inspection locally before products are released to the market.
The company’s future expansion plans also include local production of air conditioners, televisions and smartphones from early 2027, reflecting Bangladesh’s growing capability in diversified electronics manufacturing.
Toward a Regional Manufacturing Hub
The FY2026-27 national budget identifies electronics and consumer electronics manufacturing as one of the four strategic pillars of the government’s ICT and telecommunications policy, alongside connectivity, digital public infrastructure, and data centres and artificial intelligence.
To support the sector, the budget extends duty exemptions on raw materials used in manufacturing mobile phones, refrigerators, air conditioners, washing machines, computers and other digital devices until June 30, 2030, while reducing taxes on key manufacturing inputs.
During a visit to the Fair Electronics factory on July 22, South Korean Ambassador Jijoon KIM described the company as a successful example of technology transfer, local manufacturing and industrial cooperation between Bangladesh and South Korea.
He said Bangladesh’s large and skilled workforce, combined with Korean technology and investment, could help transform the country into a regional manufacturing hub for Korean companies.
Fair Group Chairman Ruhul Alam Al Mahbub called for stronger measures against grey-market and unofficial mobile phone imports, saying a more supportive policy environment would encourage local manufacturing, attract greater investment, increase government revenue and generate employment.
Meanwhile, Samsung Bangladesh Managing Director Jungmin Jung reaffirmed the company’s long-term commitment to Bangladesh and its partnership with Fair Electronics to expand local manufacturing while maintaining Samsung’s global quality standards.
