From sundarbans to success: The promising economic development in Bangladesh

Bangladesh's economic power: Beyond expectations

Bangladesh's economic journey is filled with surprising data that highlight its potential as a global business partner.

Fact 1: One of the world's fastest-growing economies 

The economic growth rate in Bangladesh has consistently placed it among the world's fastest-growing economies. With an impressive average GDP growth of 6-7% between 2014 and 2023, the nation demonstrates a stable and investment-friendly environment¹. 

This consistent growth not only signals a strong economic development in Bangladesh but also points to a burgeoning middle class with increasing consumer demand. For international businesses, this stable financial landscape and rising prosperity present a wealth of opportunities and a reliable market for expansion.

Fact 2: Second-largest garment exporter globally 

Bangladesh's position as the world's second-largest garment exporter is a testament to its well-established supply chain and skilled workforce. The domestic clothing industry employs around four million workers, with approximately 80% of them being women². 

This has made women garment workers a symbol of economic development in Bangladesh, driving both growth and female empowerment through export-oriented policies. At the same time, this robust and reliable sector offers significant import and export opportunities for global brands looking for sourcing reliability and a vast pool of skilled labor.

Fact 3: Home to the highest number of green garment factories 

Beyond its scale, Bangladesh's garment industry leads in sustainability. Notably, the country is home to the highest number of Leadership in Energy and Environmental Design (LEED) certified green factories in the world³. 

This commitment to environmentally conscious manufacturing positions Bangladesh as a premier sourcing destination for brands with strong corporate social responsibility (CSR) goals. These green factories not only represent a forward-thinking business environment in the country but also align with global demands for sustainable production.

Fact 4: Microfinance pioneer and innovator 

Bangladesh has long been a pioneer in microfinance, which has played a crucial role in fostering grassroots entrepreneurship and supporting the country’s thriving SME sector. This inclusive approach to finance has enabled the SME sector to become a significant employer, providing jobs for around 3.7 million people⁴. 

Microfinance institutions have emerged as participants in providing financial assistance, especially in rural areas where traditional banks have difficulty reaching. The success of this model underscores the innovative business culture in the country and its commitment to inclusive economic development.

Demographic dividend and digital transformation

In addition to its powerful economic engine, Bangladesh's unique demographic and digital landscape present new opportunities for international businesses to explore.

Fact 5: Eighth most populous country with a young workforce 

With a population of over 170 million, Bangladesh is the eighth most populous country in the world⁵. This massive population is characterized by a significant youth-heavy demographic, creating what's known as a "demographic dividend." 

For those interested in doing business in Bangladesh, this translates to a dual advantage: labor force scalability and growing consumer demand. This young, dynamic workforce is a key driver for economic development in Bangladesh, providing a vast talent pool for a variety of industries. This also presents new business opportunities for companies aiming to serve an emerging and tech-savvy consumer base.

Fact 6: Rapid digital adoption and thriving startup ecosystem 

Bangladesh is undergoing a major digital transformation, with a thriving startup ecosystem and rapid digital adoption. With over 2,500 active tech-enabled enterprises, this sector directly and indirectly supports 1.5 million jobs⁶. 

This environment is ripe for new business opportunities, particularly in digital services and e-commerce in Bangladesh. The burgeoning tech scene and strong fintech growth signify a market that's not only ready for innovation but actively embracing it. 

Cultural nuances for business engagement

Bangladesh's demographic and digital advantages are complemented by a rich and dynamic business culture. If you’re looking for entrepreneurship opportunities in the country, it’s important that you know the unique business traditions in the country. 

Fact 7: Emphasis on personal relationships and hospitality 

Bangladesh's business culture places a strong emphasis on personal relationships, which are often the foundation for trust and long-term success in negotiations. Building rapport and engaging in social interactions before business discussions is a customary practice, as it helps establish mutual trust and respect.

To succeed in this environment, it's essential to keep the following in mind:

• Punctuality: While you should aim to arrive on time for a business meeting, you should be prepared to wait, as your partners may not be punctual. However, for a second meeting, it's better to arrive exactly on time.
• Greeting: In a business setting, most Bangladeshis can speak English. An interaction often begins with a firm handshake and a simple "Hello," "How are you?" or "Salam." For a more traditional greeting, a Muslim Bangladeshi may say “As-salamu alaikum” ("peace be upon you"), to which you should reply “Wa alaikum s-salaam” ("and peace be upon you, too"). Meanwhile, the Hindu population often greets with palms folded together at chest level, saying “Namaste.”
• Dress Code: The dress code is also a critical part of business etiquette. For men, a light-colored suit with a tie is appropriate. For women, a business suit with a skirt that covers the knees is acceptable, or salwar kameez, the traditional women’s clothing in the country.
• Business Meetings: The meeting's atmosphere is professional but can also be informal and lively. During the meeting, do not discuss personal matters. Business cards are usually exchanged at the beginning of the meeting. To show respect, accept the card with both hands and examine it carefully before placing it in a card holder. Additionally, it is best not to schedule a meeting at 1:00 pm, as this is when many Bangladeshis will pray and eat.
• Gift-giving: Giving gifts is common in business. When giving a gift, make sure it is something made in your country. Avoid giving alcohol, as it is against Islamic law.

Fact 8: Homogeneous population with religious diversity 

Despite its religious diversity, Bangladesh has a largely homogeneous population, which can simplify cultural targeting for international businesses. For instance, Sunni Muslims make up 91% of the population, while Hindus make up a minority at 8%. Other religious groups include Roman Catholics (400,000 people) and Theravada-Hinayana Buddhists (1 million people)⁷. 

While this cultural consistency simplifies market segmentation, a profound respect for religious sensitivities is crucial in all messaging and campaigns. If you’re planning to import or export products in this country, you need to tailor your strategies to acknowledge and honor religious holidays and traditions. By taking this mindful approach, you can establish a strong brand presence and foster positive relationships within the country.

Fact 9: Pioneering center for the mother language movement 

Bangladesh holds a unique place in history as the birthplace of the Mother Language Movement, a pivotal moment that led to the recognition of Bengali as an official language. In 1952, students and political activists protested against the imposition of Urdu as the sole national language of what was then East Pakistan⁸. This movement, rooted in a fight for cultural and linguistic identity, ultimately led to Bengali becoming an official language. This historical context underscores the deep pride Bengalis have in their language. 

For international companies that plan to do business in Bangladesh, localized communication in Bengali can significantly improve brand resonance and market penetration. Adapting marketing materials, product descriptions, and customer support to the local language is a powerful way to connect with the target audience and demonstrate an understanding of the business environment in Bangladesh.

Unique environmental assets and climate resilience

Along with its cultural and economic strengths, Bangladesh's unique environmental assets provide significant opportunities and require strategic consideration for international businesses.

Fact 10: Home to the world's largest mangrove forest (Sundarbans) 

Bangladesh is home to the Sundarbans, the world's largest contiguous mangrove forest, a UNESCO World Heritage Site. This critical ecosystem is vital for the country's climate resilience, acting as a natural barrier against storm surges and coastal erosion. 

For international partners, this asset presents significant business prospects within sustainable logistics and "blue carbon" initiatives. Engaging with this unique environment responsibly can not only support global sustainability goals but also enhance a company's brand reputation. Also, working with partners who prioritize the preservation of this ecosystem demonstrates a commitment to sustainable business practices.

Fact 11: A riverine nation with over 700 rivers 

As a riverine nation with more than 700 rivers, Bangladesh’s geography profoundly impacts its infrastructure and logistics services. The extensive network of rivers provides natural inland waterways, which can be leveraged for efficient and cost-effective transport. 

However, the seasonal nature of riverine flows, influenced by monsoon rains and dry spells, requires careful logistics planning. Before you even start shipping goods, you need to consider these dynamics to ensure a seamless supply chain. When you know the potential for inland waterway transport, you can access new efficiencies and offer alternative transport methods for shipping and receiving goods.

Seizing opportunities: Your partner in Bangladesh's dynamic future

Bangladesh is a strategic gem for businesses looking beyond conventional markets. Its youthful workforce, rapid digital growth, sustainability leadership, and vibrant entrepreneurial energy offer untapped potential across multiple sectors. When you know its cultural context, environmental strengths, and infrastructure landscape, you can move with agility and insight.

DHL Express Bangladesh empowers businesses to seize these opportunities. With unmatched delivery speed, customs expertise, and tailored logistics services, DHL connects you seamlessly to and from Bangladesh. As part of our GoGreen mission, we also help you meet your sustainability goals with low-emission shipping options.

Uncover Bangladesh's business potential. Open a DHL Express business account today and gain a trusted logistics partner to navigate this dynamic market effectively.