HONOR inaugurates manufacturing facility in Gazipur

Bangla Press Desk:   Chinese-based smartphone brand HONOR inaugurated its manufacturing facility in Bangladesh with local company Smart Technologies, marking its official entry into local production.

On Tuesday, representatives from the government, HONOR and Smart Technologies inaugurated a factory at Hi-Tech Park at Kaliakair in Gazipur.

At the initial stage, the facility will operate a single production line with an annual capacity to assemble 60,000 units, with plans to expand to four lines within the first year, with an eye to export.

The facility, with an initial investment of Tk 150 crore, will employ more than 300 employees, according to HONOR.

‘With the opening of this facility, HONOR is taking a step towards localising production in Bangladesh, as devices assembled here will soon be available under the ‘Made in Bangladesh’ label,’ said Mohammad Zahirul Islam, managing director of Smart Technologies.

He said that the factory had been designed to align manufacturing excellence by integrating global artificial intelligence innovation with local manufacturing expertise in Bangladesh.

In his speech as chief guest, Faiz Ahmad Taiyeb, special assistant to the chief adviser for the Ministry of Posts, Telecommunications, and Information Technology, stressed the importance of digital transformation and the need to expand access to devices and jobs.

He said that the government would ensure a secure investment climate for the country’s growing device manufacturing industry, as Bangladesh stood at a critical juncture in its digital transformation journey.

Referring to the mobile device sector, he said that smartphone usage in Bangladesh currently stood at about 41-45 per cent and smartphone sales were nearly $10 billion in 2021.

‘However, due to policy flaws and illegal imports, the market has shrunk to about $8 billion annually,’ he added.

Welcoming local smartphone production initiatives, he reaffirmed that the government would stand firmly beside the industry to ensure its growth and investment protection.

He said that during the factory inauguration, Smart and HONOR would create meaningful jobs in this country, thereby supporting employment and entrepreneurship.

Regarding the National Equipment Identity Register operation from December 16, he said that it would curb illegal smartphone imports and that the import duty structure would be reviewed to safeguard local manufacturing.

‘The success of the device industry relies on maintaining the right balance between lawful domestic production and legitimate imports. If we can ensure a rational tax structure, more companies would come to Bangladesh, and smartphone penetration will rise to 70–80 per cent in the coming years,’ he added.

Digital governance frameworks will build investor trust and expand smartphone penetration, he added, noting that the country’s cyber policy, data protection policy and data governance framework would ensure compliance with regional and global standards and strengthen public trust in the digital ecosystem.

George Zheng, president of HONOR Southeast Asia Region, said that this factory would serve as a symbol of a partnership between HONOR and the government of Bangladesh, between global expertise and local capability.

‘We aim to create jobs, build an environment to flourish skills, and to advance technology,’ he added, saying that the smartphones had already received strong market feedback and users wanted them at more affordable prices.

Bangladesh is already on the path of transformation, and technology could reduce dependence on a single export-oriented industry by making it a global technology manufacturing hub, said Zahirul Islam.

According to HONOR, it entered the Bangladesh market in late 2023 and currently holds about 3 per cent of the market share, which could reach 10 per cent in the coming years. 

The AI-driven factory is expected to create employment opportunities, enhance technical skills among the local workforce, and accelerate technology transfer, said the company officials.

Officials from the government ministry, BTRC, Hi-Tech Park authority and the company also spoke at the event.

BP/TD