Are Bangladeshi goods ending up in too few markets?

Good news is that Bangladesh managed to fetch more dollars from its exports in 2020-21 – more than 15% higher compared to the previous financial year. 

It’s no mean feat given the Covid-19 reality, when many economies in the world faced challenges of pandemic-induced shutdowns and trade disruptions.

But aren’t Bangladeshi goods ending up in too few export markets? 

In the last financial year, exports fetched an earning of $38.76 billion for Bangladesh – 15.10% higher than $33.67 billion the country had earned from its exports in 2019-20. 

However, the Export Promotion Bureau (EPB) finds that only a handful of countries are our main export destinations. 

With over 72% of all Bangladeshi exports landing in only five markets in 2020-21, it’s evident in itself that Bangladesh’s exports are too concentrated in a handful of markets.   

Of the total export earning of $38.76 billion, Bangladesh earned $28.06 billion from just five markets—the European Union, United States, India, Japan and Canada.  

Market observers and experts note, further expansion, diversification and finding and exploring new markets might be key for Bangladesh to see its exports get its next big jump. 

Once the countries within the EU market are tallied separately, there are at least 16 countries (European and Non-European together) where Bangladesh, of course, managed to export goods worth anything above half a billion dollars of worth.  

The United States of America, Germany, the United Kingdom, and Spain come among the top four countries where Bangladeshi goods worth over $2 billion or more were exported in 2020-21. 

Next seven countries – France, Polland, Italy, India, the Netherlands, Japan and Canada – are the markets where goods worth anything in the range of $1 to 2 billion were exported. 

And, Bangladesh exported goods worth over half a billion dollars but below a billion dollars to five other countries – Australia, Belgium, China, Russia and Turkey. 

Besides, Bangladeshi products also get some markets, though lesser in quantity, in South Korea, Hong Kong, UAE, Brazil, Saudi Arabia, Mexico, Malaysia, Singapore, South Africa, Norway, Chile, Switzerland, Iran, Pakistan, Egypt, Indonesia, Vietnam, Thailand and New Zealand, among others.    

Of all markets, Russia registered the biggest surge in terms of year-on-year increase in its import volume from Bangladesh. Bangladesh’s export to Russia hit an over 36% increase between 2019-20 and 2020-21 financial years.

The other countries where Bangladesh’s exports registered good growth year-on-year are: Polland (over 29%), Australia (nearly 23%), USA (over 19%) and Germany, India, the Netherlands and Canada (all over 16%).

Bangladesh’s major export goods include, among others, readymade garments, jute and jute goods, leather products, agriproducts and pharmaceuticals. 

Five markets where Bangladeshi exports concentrated

Source: Export Promotion Bureau 

Top 16 export destinations –

Countries     Ranking        Exports in billion dollars           Export share    

 Source: Export Promotion Bureau (export percentages and figures have been rounded off)