How Bangladesh Can Compete in the International Trade Market

 

Bangladesh has emerged as a developing economy with strong potential to compete in the international trade market. With a population of over 170 million and strategic geographical location, the country has significant opportunities for exports, especially in sectors like garments, textiles, leather, and agriculture. However, global trade is highly competitive and demands innovation, quality, and strategic planning. In 2025, Bangladesh must focus on strengthening its trade policies, diversifying exports, and addressing challenges such as infrastructure gaps, rising production costs, and compliance issues to secure a sustainable position.

Bangladesh is recognized globally for its ready-made garments sector, which remains the backbone of its export earnings, contributing over 85 percent of total exports. The country has also made progress in jute, leather, frozen foods, and IT outsourcing services. According to recent data, Bangladesh exported goods worth over 65 billion dollars in the last fiscal year. However, it faces stiff competition from countries like Vietnam, India, and China. Global demand fluctuations, higher energy prices, and stricter compliance requirements are affecting the growth pace, indicating an urgent need for reform and diversification.

The ready-made garments industry has been the driving force behind Bangladesh's trade growth. To compete internationally, this sector must shift its focus from basic apparel production to high-value products like technical textiles, sportswear, and luxury brands. Improving labor conditions, ensuring compliance with international safety standards, and investing in automation are essential. Global buyers increasingly demand sustainable and eco-friendly production. Bangladesh must adopt green technologies, reduce carbon footprints, and train workers with modern skills to retain its position as one of the top garment exporters in the world.

Overdependence on garments makes Bangladesh vulnerable to market shocks. Diversifying exports into sectors like pharmaceuticals, IT services, agro-processed foods, and shipbuilding can reduce this risk. The global halal food and organic product market also offer vast opportunities. There is increasing demand for skilled outsourcing services such as software development, which Bangladesh can tap into by promoting tech startups and freelancers. Similarly, focusing on non-traditional markets in Africa, Latin America, and Eastern Europe can open new trade avenues beyond the United States and European Union.

One of the biggest challenges for Bangladesh in competing globally is inadequate infrastructure. Delays at ports, poor road connectivity, and limited storage facilities increase costs and reduce competitiveness. In recent years, the government has invested in mega projects like the Padma Bridge, Matarbari deep-sea port, and Dhaka-Chattogram expressway to improve logistics. These developments must be utilized fully to ensure faster and smoother movement of goods. Expanding digital trade platforms and introducing modern customs clearance systems will also make exports more efficient and cost-effective.

To compete internationally, Bangladesh must strengthen its trade relations through free trade agreements and regional cooperation. With its graduation from least developed country status expected to take full effect soon, duty-free benefits in major markets will gradually phase out. Therefore, negotiating favorable trade agreements with countries like China, India, Japan, and ASEAN members is crucial. Bangladesh should also play an active role in organizations like the World Trade Organization and regional trade blocs to ensure fair treatment and market access for its products.

Bangladesh can learn valuable lessons from modern developed countries like the USA, China, Germany, and South Korea in boosting its competitiveness in international trade. These nations focus on advanced technology, efficient logistics, strong quality control, and strategic trade agreements. For instance, China’s investment in infrastructure and digital trade platforms has reduced export costs, while Germany emphasizes innovation and skill development. By adopting such practices, Bangladesh can modernize its industries, expand market access, and build a sustainable, high-value export-oriented economy.

Human resource development plays a vital role in enhancing competitiveness. Many industries in Bangladesh suffer from a shortage of skilled workers, which limits productivity and innovation. There is an urgent need to upgrade vocational training programs, improve technical education, and encourage research and development. By equipping young workers with digital and technical skills, Bangladesh can expand into high-value manufacturing and service sectors. Collaboration between industry and academia is essential to align education with global trade demands.

Innovation and technology are critical for staying competitive in the modern trade environment. Bangladesh must invest in automation, artificial intelligence, and digital trade platforms to increase efficiency and reduce production costs. E-commerce exports are growing rapidly worldwide, and Bangladeshi businesses should take advantage of this trend by creating online marketplaces for local products. Encouraging entrepreneurship and supporting small and medium enterprises with technology adoption will enhance the overall trade ecosystem and create a strong base for sustainable growth.

International markets are becoming stricter with product standards and compliance requirements. Bangladesh must improve quality control mechanisms to meet these global benchmarks. Many buyers demand certification related to labor rights, environmental protection, and product safety. Failure to meet these standards can result in loss of buyers and reputational damage. Strengthening regulatory bodies, providing training for exporters, and introducing regular monitoring will help ensure that Bangladeshi products maintain their competitiveness in the global market.

Sustainability is no longer an option but a necessity in international trade. Countries that fail to adopt environmentally responsible practices face restrictions and penalties. Bangladesh, with its growing industries, must prioritize sustainable production methods. The demand for eco-friendly garments, renewable energy in factories, and waste management has become more pressing. By promoting green factories and reducing industrial pollution, Bangladesh can attract conscious global buyers and secure long-term market access while protecting its natural resources.

Many small and medium exporters in Bangladesh face difficulties accessing financing for expansion and modernization. High interest rates, complex loan procedures, and limited banking support slow down growth. To remain competitive, Bangladesh must reform its financial policies to provide low-interest trade loans, export incentives, and insurance coverage for exporters. Digital banking solutions and trade financing tools can make it easier for smaller businesses to participate in international trade and increase export diversity.

For Bangladesh to compete successfully in the international trade market, a coordinated strategy involving the government, private sector, and communities is essential. From improving infrastructure and diversifying exports to adopting technology and sustainability, every step must align with global market trends. Bangladesh stands at a critical point where timely reforms can either propel it to greater economic success or leave it behind in the global race. Sustainable, innovative, and inclusive growth will be the key to building a resilient trade future.


MD. Sammir Mridha is a Graduate in
Information Technology Services
dministration and Management,
St. Francis College, Brooklyn, New York.