Connecting Bangladesh to Global Markets

Md. Joynal Abdin

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Founder & CEO, Trade & Investment Bangladesh (T&IB)

Co-Founder & CEO, Bangladesh Trade Center (BTC)

Executive Director, Online Training Academy (OTA)

Secretary General, Brazil Bangladesh Chamber of Commerce & Industry (BBCCI)

 

 

Over the past two decades, Bangladesh has made remarkable strides in integrating with the global economy. From a largely agrarian and aid-dependent nation in the 1970s, Bangladesh has transformed into a vibrant export-driven economy. As of 2024, the country ranks as the second-largest exporter of ready-made garments (RMG) in the world, trailing only China, with over $47 billion in annual garment exports accounting for approximately 84% of its total export earnings. This export dynamism has not only fueled robust GDP growth averaging 6-7% annually since 2010 but also helped lift millions of people out of poverty, reducing the national poverty rate to around 18.7% in 2022, from over 40% in the early 2000s.

 

Strategically located between South and Southeast Asia, Bangladesh serves as a potential trade corridor linking China, India, and ASEAN markets. The country has also seen steady improvements in trade infrastructure, including the development of special economic zones (SEZs), the Padma Bridge, and deep-sea port projects like Payra and Matarbari, aimed at reducing logistics costs and improving supply chain efficiency. In addition, digital connectivity has surged, with over 130 million mobile internet users and the rise of a growing IT outsourcing sector contributing to the country’s integration into global digital markets.

 

However, despite these gains, Bangladesh still faces challenges in maximizing its global trade potential. Barriers such as limited product diversification, tariff and non-tariff barriers in destination markets, and weak compliance with international quality standards continue to hinder broader global integration. As the country prepares for graduation from Least Developed Country (LDC) status in 2026, ensuring a smooth transition by expanding market access, improving trade readiness, and attracting foreign direct investment (FDI) will be more important than ever.

 

This paper explores the current state, potential, and strategic pathways for Bangladesh’s deeper and more sustainable integration into global markets highlighting sectoral strengths, trade agreements, infrastructure developments, and policy reforms necessary to achieve long-term economic transformation.

 

2.0 A New Era of Economic Growth in Bangladesh

Bangladesh has emerged as one of Asia’s most dynamic economies, marked by rapid industrialization, export diversification, and a vibrant digital transformation. With a GDP of approximately $460 billion in 2022, the country is projected to become the 26th largest economy globally by 2030, up from 35th in 2022.

 

2.1 Key Sectors Driving Growth

The ready-made garments (RMG) industry remains the cornerstone of Bangladesh’s export economy, accounting for about 82% of total exports in 2023. However, the economy has diversified significantly:

1. Pharmaceuticals: Now exporting to over 160 countries after fulfilling nearly 98% of local demand.

 

2. Leather Goods: The second-largest export earner, with Bangladesh accounting for 3% of the global leather and products market.

 

3. Plastics: A growing sector with a market size of US$2.9 billion and 20% year-on-year growth between 2017-2018.

 

4. Information Technology: The government has successfully created two million IT jobs, with plans to add another one million by 2025.

 

5. Semiconductors: Companies like ULKASEMI are leading in chip design and export, enhancing Bangladesh’s position in high-tech industries.

 

2.2 Success Stories Across Industries

Bangladeshi enterprises have demonstrated remarkable success across various sectors:

• Noman Group: A leading textile conglomerate exporting approximately $1 billion annually and employing around 70,000 people.

 

• Hatil: The largest furniture exporter in Bangladesh, with a presence in 18 countries and a commitment to sustainable manufacturing practices.

 

• Square Group: A diversified conglomerate with operations in pharmaceuticals, textiles, and media, employing over 65,000 individuals.

 

• BEXIMCO: A pioneer in various industries, including pharmaceuticals, textiles, and information technology, with international retail outlets for its fashion brand Yellow.

 

2.3 Youthful Workforce Fuels Economic Momentum

With a population exceeding 171 million, approximately 28% are between the ages of 15 and 29, contributing to a dynamic and youthful workforce. The labor force participation rate stands at an impressive 61%, with a female participation rate of 42.7%, surpassing neighboring countries like India and Pakistan. This demographic advantage positions Bangladesh to capitalize on its human resources for sustained economic growth.

 

In summary, Bangladesh’s impressive economic growth is driven by diversified industries, successful enterprises, and a vibrant, youthful workforce, setting the stage for a promising future in the global economy.

 

3.0 Bridging the Gap to Global Markets

Bangladesh has entered a decisive phase in its economic journey, where connecting local enterprises to global markets has become a top national priority. Recognizing the transformative potential of international trade, the government has implemented several strategic initiatives aimed at strengthening the country’s global market integration, diversifying exports, and supporting businesses especially small and medium enterprises (SMEs) in accessing international consumers.

 

3.1 Strategic Government Initiatives

The government of Bangladesh, through agencies like the Export Promotion Bureau (EPB) and Bangladesh Investment Development Authority (BIDA), has introduced a number of policies and programs to enhance global connectivity:

• Export Policy 2021–2024 aims to promote high-value, diversified exports beyond traditional ready-made garments, including ICT services, pharmaceuticals, leather goods, ceramics, jute, and frozen foods.
• 100 Economic Zones initiative is designed to attract foreign direct investment (FDI), provide fiscal incentives, and build export-oriented industrial clusters with modern infrastructure.
• National Logistics Policy is under development to streamline the supply chain and reduce export-related costs and delays.
• Supportive financial schemes such as cash incentives for exporters (ranging from 1% to 20% depending on the sector) and access to low-interest export financing via the Export Development Fund (EDF) have further enhanced the competitiveness of Bangladeshi products abroad.

 

3.2 Role of Trade Agreements and International Partnerships

Bangladesh’s trade strategy also emphasizes bilateral and multilateral cooperation to improve market access:

• The country currently enjoys duty-free and quota-free (DFQF) access to markets in the EU under the Everything But Arms (EBA) initiative and to several other developed countries under various Generalized System of Preferences (GSP) schemes.
• With its upcoming LDC graduation in 2026, Bangladesh is actively negotiating free trade agreements (FTAs) and preferential trade agreements (PTAs) with key partners like India, China, Japan, and ASEAN nations to maintain and expand its access to global markets.
• Participation in regional initiatives such as the South Asian Free Trade Area (SAFTA) and the Asia-Pacific Trade Agreement (APTA) has helped foster regional value chains and business collaboration.

 

3.3 E-Commerce and Digital Platforms: New Frontiers for Exporters

Digital transformation is playing a critical role in bridging the gap between Bangladeshi businesses and global consumers. With over 130 million internet users and a rapidly growing e-commerce ecosystem, local firms are leveraging online platforms to reach overseas buyers:

• Online marketplaces like Alibaba, Amazon, Etsy, and Daraz Global are increasingly used by Bangladeshi entrepreneurs to showcase handicrafts, textiles, IT services, and more.
• Exporters in the ICT sector, including software developers and freelance professionals, are using platforms such as Upwork, Fiverr, and Freelancer.com to serve international clients directly.
• Government-backed platforms such as Bangladesh Trade Portal and One-Stop Export Service are simplifying export procedures and offering digital tools to facilitate cross-border transactions.

 

In addition, digital payment systems, logistics improvements, and regulatory reforms such as the e-commerce policy and the digitization of customs clearance are further easing the process for businesses to engage in global trade.

4.0 Leveraging Innovation and Technology

As Bangladesh strides confidently into the digital age, innovation and technology have become critical drivers of its economic growth and global competitiveness. From the rise of homegrown tech startups to the digital transformation of traditional industries, Bangladesh is leveraging technology not only to boost productivity but also to empower a new generation of entrepreneurs and professionals.

 

4.1 The Growing Role of Technology in Economic Growth

The Government’s vision of a “Digital Bangladesh” has served as a catalyst for widespread technological integration across sectors. Since its launch in 2009, this initiative has aimed to ensure the delivery of digital services to every citizen, modernize governance, and foster a knowledge-based economy.

• As of 2024, the ICT sector contributes nearly 1.3% to GDP, with an ambition to raise it to 5% by 2025.
• Over 2 million people are employed in the broader tech industry, including IT services, business process outsourcing (BPO), and freelancing.
• Bangladesh has become the second-largest supplier of online labor globally, according to the Oxford Internet Institute.

 

This expanding digital ecosystem is enhancing everything from financial inclusion to education, and from healthcare delivery to export logistics.

 

4.2 Digital Solutions, Automation & E-Commerce

The adoption of digital tools and automation is reshaping business operations across industries in Bangladesh:

• Manufacturing and textiles are increasingly using automation, AI, and digital compliance systems to meet international standards and remain competitive in global value chains.
• The rise of mobile financial services (MFS)—with platforms like bKash, Nagad, and Rocket—has brought over 120 million people into the digital financial system, increasing transaction efficiency for both businesses and consumers.
• E-commerce platforms such as Daraz, Chaldal, Pickaboo, and AjkerDeal have revolutionized retail and supply chains, with the e-commerce sector estimated to be worth over $3.5 billion as of 2023 and growing at more than 20% annually.

 

Moreover, small and medium enterprises (SMEs) are increasingly embracing cloud services, digital marketing, and online inventory management to boost their market reach and operational efficiency.

 

4.3 Innovative Startups and Tech Entrepreneurs

Bangladesh’s startup ecosystem has blossomed in recent years, attracting both local and international investments:

• Pathao: A local unicorn and super-app that provides ride-sharing, delivery, and payment services to millions of users across the country.
• ShopUp: A B2B commerce platform that helps micro-retailers access logistics, credit, and inventory. It raised $75 million in Series B funding, making it one of the largest tech investments in South Asia.
• bKash: A pioneer in digital payments and financial inclusion, supported by global investors like the Bill & Melinda Gates Foundation, Alibaba’s Ant Group, and the International Finance Corporation (IFC).
• CMED Health: An innovative health-tech startup offering digital health monitoring and analytics, especially in rural areas, using mobile and AI tools.
• ToguMogu: A parenting and childcare platform that leverages AI and community-based features to provide customized health and education advice for families.

 

In addition, incubators such as Startup Bangladesh, Grameenphone Accelerator, and Robi r-ventures are nurturing the next generation of tech talent and businesses by offering funding, mentorship, and global exposure.

 

5.0 Investing in a Sustainable Future

As Bangladesh charts its path toward middle-income and developed nation status, it is placing increasing emphasis on sustainability as a cornerstone of its economic strategy. With climate change posing a significant threat to its densely populated and disaster-prone landscape, the country is aligning growth ambitions with environmental resilience, social equity, and responsible development. A green, inclusive economy is no longer a distant vision it is becoming central to Bangladesh’s national agenda.

 

5.1 Commitment to Sustainable Development

Bangladesh is one of the first countries to integrate the UN Sustainable Development Goals (SDGs) into its national development planning. The government’s 8th Five Year Plan (2020–2025) outlines a commitment to inclusive growth, poverty reduction, environmental sustainability, and climate resilience.

• Bangladesh has adopted a Delta Plan 2100, a long-term strategy to manage water resources, combat climate change, and ensure food security.
• The country spends nearly 2.5% of its GDP on climate adaptation, one of the highest percentages among developing nations.
• Social equity programs such as cash transfers, microcredit, and inclusive education initiatives are helping to ensure that the benefits of growth are widely shared.

 

5.2 Greener Energy and Responsible Manufacturing

As part of its transition to a low-carbon economy, Bangladesh is taking steps to expand renewable energy, reduce pollution, and promote sustainable industrial practices:

• Renewable energy capacity reached 950 MW in 2023, with large-scale solar parks, mini-grids, and off-grid solar home systems playing a key role in rural electrification. The government aims to generate 10% of total energy from renewables by 2030.
• The rooftop solar program under the net metering system is rapidly expanding in urban and industrial areas, particularly in textile and apparel zones.
• The RMG sector, which accounts for over 80% of exports, is leading in sustainable practices Bangladesh is home to over 200 LEED-certified green garment factories, including 10 of the world’s top 12 eco-friendly factories, according to the U.S. Green Building Council.
• Efforts to modernize waste management, water recycling, and energy efficiency are gaining momentum in other sectors such as leather, ceramics, and food processing.

 

5.3 Attracting Foreign Investment Through Sustainability

Bangladesh’s sustainability push is increasingly becoming a magnet for foreign investment, particularly from socially and environmentally conscious investors:

• Global brands sourcing from Bangladesh are now prioritizing ESG (Environmental, Social, and Governance) compliance, creating incentives for local manufacturers to adopt international sustainability standards.
• The government has introduced green financing mechanisms, including the Green Transformation Fund (GTF) and sustainability-linked loans, to support eco-friendly industrial upgrades.
• Investment promotion agencies like BIDA and BEZA are actively marketing green infrastructure, eco-industrial parks, and climate-resilient SEZs to international investors.
• Major foreign investors including those from Japan, the EU, and the Gulf have responded positively to Bangladesh’s climate-conscious policies, viewing them as indicators of long-term stability and responsible governance.

6.0 A Brighter Future for Bangladesh

Bangladesh’s journey toward global market integration is a compelling story of resilience, transformation, and ambition. From its origins as a low-income, agriculture-dependent nation, Bangladesh has evolved into a dynamic, export-oriented economy fueled by strong manufacturing capabilities, digital innovation, strategic government support, and a growing, youthful workforce.

 

Key sectors like ready-made garments, information technology, pharmaceuticals, and agriculture have become engines of growth, while emerging industries such as e-commerce, renewable energy, and high-tech services are charting new frontiers. The government’s proactive trade policies, investment in infrastructure, and efforts to sign new trade agreements are steadily opening doors to international markets. Meanwhile, a thriving startup ecosystem and an increasingly tech-savvy population are helping businesses adopt digital tools and tap into global opportunities.

 

Bangladesh’s unwavering commitment to sustainability and inclusive growth evident in its investment in green manufacturing, climate resilience, and social development underscores its vision for a future that is not only prosperous, but also equitable and environmentally responsible.

 

As Bangladesh continues this transformative journey, the potential for further progress is immense. With continued innovation, global partnerships, and forward-looking policies, the country is poised to emerge as a major player in the global economy.

 

We invite global investors, entrepreneurs, development partners, and thought leaders to learn more about Bangladesh’s economic rise and to explore opportunities for collaboration, innovation, and shared growth in this promising new chapter of the country’s story.

 

Closing Remarks:

Bangladesh stands at a defining moment in its development journey where vision meets opportunity, and ambition aligns with action. From building strong foundations in manufacturing and trade to embracing digital innovation and sustainable practices, the country is forging a path toward inclusive, resilient, and globally integrated growth.

 

As the world seeks new partnerships, untapped markets, and responsible investment destinations, Bangladesh offers a compelling case: a young and driven population, an expanding industrial base, a rising digital economy, and a government committed to reform and progress.

Now is the time to recognize Bangladesh not just as a source of competitive exports, but as a strategic partner for the future one that blends economic potential with purpose.

 

Let us move forward together to connect, invest, innovate, and build a brighter, shared future for Bangladesh and the global community.

Social tagging: #Digital Connectivity > #Export Diversification > #Global Competitiveness > #Sustainable Growth > #Trade Integration