Govt eyes 18 markets to diversify exports

The exercise aims to identify new exportable products, expand markets for existing goods and determine measures needed to enter promising destinations

The government is preparing an export diversification strategy targeting key international markets as Bangladesh seeks to expand beyond traditional destinations and reduce its heavy dependence on readymade garments (RMG).

Separate strategies will be developed for the selected destinations, assessing market potential, trade barriers, competing countries, promising Bangladeshi products and policy measures needed to improve market access.

The destinations include Malaysia, Singapore, the UAE, Switzerland, South Korea, Russia, Iran, Brazil, Türkiye, the USA, the UK, France, Japan, China, India, Canada, Belgium, and a market comprising Australia, New Zealand and Fiji.

The Commerce Ministry is collecting and analysing market information to prepare country-specific profiles and action plans.

The exercise aims to identify new exportable products, expand markets for existing goods and determine measures needed to enter promising destinations.

Experts said the initiative could help broaden the country’s export base, strengthen its presence in existing markets and build a more diversified and sustainable export structure.

The Commerce Ministry discussed the initiative at a workshop titled “Bangladesh Export Diversification Strategy: Product and Market Diversification Across 18 Key Trading Destinations” at the Secretariat on Monday.

Commerce Secretary Md Ataur Rahman Khan said equal importance was being given to product and market diversification to make Bangladesh’s exports stronger and more sustainable.

“We have collected information from our commercial wings on market conditions, export barriers, potential products and trade opportunities. Based on this, we will prepare separate action plans for each market,” he said.

A specific matrix is being used to assess Bangladesh’s export share in each market, major competitors, ways to improve competitiveness and policy and institutional measures needed to expand market access, he added. RMG still dominates export basket.

RMG accounted for around 81% of Bangladesh’s merchandise export earnings in FY26, highlighting the country’s continued dependence on the sector.

According to the latest Export Promotion Bureau (EPB) data, merchandise exports stood at US$48 billion in FY26, compared with $48.28 billion a year earlier. RMG exports accounted for $38.70 billion.

Of total apparel exports, $19 billion went to the European Union, $7.75 billion to the USA, $4.38 billion to the UK and $1.34 billion to Canada.

Industry insiders said several non-RMG sectors are gradually gaining ground, particularly leather and leather goods, jute and jute products, agricultural goods and engineering products.

Business leaders said reducing dependence on RMG would require faster growth in pharmaceuticals, electronics, agricultural and agro-processed products, leather goods, light engineering, information technology, jute and services.

Former Bangladesh Garment Manufacturers and Exporters Association (BGMEA) director Mohiuddin Rubel said apparel exports to non-traditional markets reached a record $642.93 million in August 2026, the highest monthly figure recorded after two years of stagnation.

The monthly average increased from $574.38 million in FY26 to $611.60 million in the first months of FY27, he said.

“Non-traditional markets have strong demand for different types of RMG, not just high-end apparel. Bangladesh needs to focus on these markets to diversify and expand exports,” said Rubel, who is also founder and CEO of Bangladesh Apparel Voice.

Non-RMG sectors gain ground

Leather and leather goods generated around $1.23 billion in FY26, up 7.1% from the previous year. Jute and jute product exports reached around $884 million, an increase of 7.75%. In June alone, exports from the sector rose around 77%.

Global efforts to reduce plastic consumption could further increase demand for jute bags, carpets, diversified jute products, home décor items and eco-friendly packaging.

Agricultural exports also recorded strong growth towards the end of FY26, rising 46.77% year-on-year in June. However, quality standards, storage, transportation and compliance with international certification requirements remain major barriers to further expansion.

Engineering exports reached around $652 million in FY26, up 21.8%, while shipments surged around 44.7% year-on-year in June.

Electrical products, light engineering goods, machinery parts, metal products and other industrial goods are contributing to the sector’s growing export potential.

Technology, skills key to diversification

Dr Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said services should receive equal attention alongside goods in Bangladesh’s export diversification efforts.

He stressed the need to promote information technology, skills-based services, capacity-enhancing sectors and the country’s freelance workforce.

Bangladesh also needs greater use of technology in manufacturing and services to strengthen its competitiveness in global markets, he said.

Mustafizur recommended greater efforts to expand exports of Bangladeshi goods and services to neighbouring countries by taking advantage of geographical proximity and market potential