Key Sectors for Investment

Key Sectors for Investment

There are some business sectors in which Bangladesh has a particular competitive edge and opportunities for exceptional returns on investments. Information and communication technology, infrastructures, textiles, electronics, light engineering, power & gas, ship-building, Business Process Outsourcing (BPO), fish farming, leather & leather products, ceramics, agro-based industries, pharmaceuticals, tourism, agro-based business, plastic, furniture, home textile, jute & jute products are among such sectors. Chinese investors can consider, among others, the following sectors:

Textile & clothing

 Bangladesh is the second largest textile and clothing exporter in the world, only next to China. Clothing industry is the country’s biggest export earner and Bangladesh produces a wide range of clothing articles: from spinning to weaving, from knitwear to leisurewear and high street fashions. The factories design and produce for the world’s leading brands and retailers.

For its export-oriented textile and clothing business, Bangladesh needs huge quantity of yarns, fabric, clothing accessories as well as related machinery and packing materials. Investments in these areas could bring substantial profit.

ICT and business services

ICT has been identified as a priority sector in Bangladesh. Government has undertaken numerous measures for the widespread digitization of the country in on hand and for enhancing export of ICT products and services to outside world in the other hand. Because of government’s policy, domestic ICT market is expanding at a rapid pace. Similarly, export of ICT products and software from Bangladesh has witnessed substantial growth in the recent year. In addition, Bangladesh possesses a large pool of highly skilled IT professional. Besides, widespread use of English language provides the bright prospects for a robust growth in call centre business. All these make Bangladesh’s target of emerging as a leading global outsourcing center realistic. The rapidly flourishing ICT sector of Bangladesh provides ample opportunity for win-win cooperation.


 Pharmaceutical is one of the fastest growing sectors in Bangladesh. At present, Bangladesh exports different pharmaceutical products to 86 countries including highly regulated US and EU markets. The WTO TRIPS agreement permits Bangladesh to reverse-engineer patented generics to sell locally, and export to markets around the world. This has created a strong manufacturing and technically experienced base with growth of 12% a year and a potential for R&D and clinical trials. The government is in the process of establishing an Active Pharmaceutical Ingredients (API) Park in Bangladesh to further promote the competitiveness of country’s pharmaceutical sector. Investments in this part could be highly rewarding.

Agro processing

Over 90 varieties of vegetables are grown in Bangladesh. There are huge opportunities for investment in cold storage, vegetable preservation, production of fertilizers and seeds, eco-friendly jute products, shrimp and fish farming, halal foods, milk, value added foods for export.

 Leather products

Bangladesh has a mature tanning industry, producing around 2-3% of the world’s leather from a ready supply of raw materials. The finished goods sector is also taking its lead in parallel. With good export incentives plus tariff and quota free access to major markets such as the EU, Bangladesh is an unrivaled location to outsource the manufacture of finished leather products. Soon Bangladesh will emerge as a major exporter of footwear.

Light engineering

Light engineering sector in Bangladesh is growing very rapidly due to high domestic demand and bright export prospects in international market. Abundance in cheap but trained and hardworking workforce makes it possible to keep the production cost very competitive. Light engineering sector offers very lucrative profit prospects to the investors.

Electrical, electronic products and home appliances

These sectors offer enormous prospects. Domestic demand for such products is rapidly growing with the substantial growth in per capital income. On the hand, cost competitiveness provides huge prospects for export growth, particularly in the Middle East. Combination of foreign technological innovation and capital with cheap and productive local workforce can open a horizon of endless benefits.

Ship building

This sector offers huge growth prospects. Due to escalation of labour costs in our major ship building nations, this labour-intensive sector in Bangladesh has started gaining competitive edge over others. Bangladesh’s export earnings from this is increasing very rapidly。

Plastic & rubber products:

There is huge domestic and international market for plastic and rubber articles such as pipes and toilet fittings, utensils and household items, automobile and other equipments components.

Tourism related infrastructure:

Tourism sector in Bangladesh has experienced substantial growth in the recent years.  The country seeks to improve its tourism related facilities to cope with the growing demand and also to make the tourism more attractive. Investments in tourism related infrastructure such as hotels & resorts, theme parks, leisure activity facilities are expected to be highly rewarding, given the present demand-supply scenario.