Bangladesh is considered a dynamically growing economy and offers enormous potential for European companies. We took a closer look and compiled the advantages and challenges of this important production and procurement location in our Country Report 2025.
Table of Content
Economic potential and local conditions
Located on the Bay of Bengal, Bangladesh is a new key market in the South Asian region offering strategic access to international sea and air transport corridors. With a population of around 176 million and an average age of 26, there is a large pool of young workers available.Production and labor costs remain at a moderate level, making the location attractive for many industries.
Bangladesh is purposefully promoting its export economy and was considered the second most important export country worldwide for clothing in 2023. At the same time, the South Asian country is expanding its production capacities to include higher-value product groups, which also increases its own demand for investment and intermediate goods from abroad.
Investments in sustainability and digitalization
In order to make Bangladesh more attractive as a production location for companies, the country is actively promoting greater sustainability. Quality standards have risen significantly in recent years and have been brought into line with Western standards. Greater environmental and social responsibility is also being emphasized in the ongoing expansion of Bangladesh’s infrastructure. You can find out more about this topic in our country report.
In addition to sustainability, digitization is also playing an increasingly important role in Bangladesh. For example, the “Digital Bangladesh” initiative was launched to promote the digitization of government and economic activities and the expansion of digital infrastructure. With projects such as the English-language online map “MappedInBangladesh.org“, which provides an overview of the factory landscape in the textile sector, the local government aims to ensure greater transparency.
Success factors for entering the market in Bangladesh
Many brands and manufacturers have already relocated their purchasing or export-oriented production of textiles, DIY and furniture, as well as ceramics, electronics, and leather goods to the South Asian country. However, in addition to the many advantages, there are also some important aspects to consider when entering the market. From location-specific features and logistics issues to choosing the right supplier, the entry should be carefully planned, relying on trusting partnerships and local expertise.
Systematically reviewing and evaluating potential and existing supplier relationships is particularly important for business success in Bangladesh, as it can significantly reduce the risk of potential problems such as supply bottlenecks or failures. Companies that optimize collaboration thus generally procure products better, faster, and at lower costs.
Country Report Bangladesh – Your Added Value
But how can you successfully enter this emerging export market? Which sales intermediaries can best support you in sourcing, purchasing, and production, and what do you need to consider when it comes to cross-border logistics? To help you successfully enter the Bangladeshi market, we have compiled important information on the advantages, challenges, and special features in our country report “Tapping into new markets – Bangladesh as a production location.”
What you can expect:
- Current and insightful market figures
- Special features of the Bengali market
- Tips for establishing and optimizing your supplier structures
- Information for successful cross-border logistics
Interested? You can find all the information you need in the 2025 country report “Tapping into new markets – Bangladesh as a production location”