About the project

Partner: Export Competitiveness for Jobs (EC4J) Project, Ministry of Commerce, Government of the People’s Republic of Bangladesh
Project duration: March-August 2026

Bangladesh’s economic growth over the past decades has been largely driven by its export-oriented private sector, particularly the ready-made garments (RMG) industry. However, as the country prepares to graduate from Least Developed Country (LDC) status in November 2026, it faces a critical transition. Graduation will lead to the gradual loss of preferential market access, including Duty-Free Quota-Free (DFQF) benefits, which currently cover a significant share of Bangladesh’s exports. This poses substantial risks to export competitiveness, especially in key markets such as the European Union, Canada, and Japan. The country’s export base remains highly concentrated, with the RMG sector accounting for the vast majority of total exports. This concentration makes the economy vulnerable to external shocks and changes in global trade regimes. In this context, there is a growing policy priority to identify and develop new and emerging private sectors that can support export diversification, enhance value addition, and generate sustainable employment opportunities. This project aims to conduct a comprehensive competitiveness study of potential private sectors in Bangladesh. It seeks to identify high-potential sectors that can drive future export growth in the post-LDC context, while also assessing the likely impacts of losing trade preferences. The study will involve detailed sectoral analysis, value chain assessments, and stakeholder consultations to understand constraints, opportunities, and required policy interventions. In addition, the project will examine trade policy options, including prospects for securing alternative preferential arrangements such as GSP+ and exploring Free Trade Agreements (FTAs). It will also assess gaps in trade facilitation, standards compliance, skills development, and the investment climate that may affect sectoral competitiveness. A key outcome of the assignment will be the development of a feasibility study and a detailed Development Project Proposal (DPP), outlining strategic interventions, investment priorities, and implementation mechanisms. The findings are expected to support the Government of Bangladesh in formulating evidence-based policies and building a more diversified, resilient, and competitive export economy in the post-LDC era.

Objectives of the Study:

• Assess and Propose Strategies for Export Competitiveness: Conduct a detailed quantitative and qualitative assessment of the likely erosion of export competitiveness post-LDC graduation and propose a set of policy and enterprise-level interventions to offset this impact.
• Develop an Export Diversification Roadmap: Identify and analyze high-potential sectors and formulate a targeted roadmap to enhance export diversification in terms of both products and markets.
• Identify and Address Capacity Building Needs: Pinpoint the critical public and private sector capacity gaps—particularly in trade facilitation, standards compliance, and skills—required to achieve and sustain competitiveness in a non-preferential trading regime.
• Feasibility Study: Feasibility Study for the 4+ potential private sectors in Bangladesh, which will be finalized from the sector study report.
• DPP Preparation: Preparation of a Development Project Proposal (DPP) with detailed cost estimates for the selected sectors.

Project activities

Validation Workshop: Competitiveness Study of Potential Private Sectors in Bangladesh

On 16 May 2026, Research and Policy Integration for Development (RAPID), in collaboration with the Export Competitiveness for Jobs (EC4J) Project of the Ministry of Commerce, organised a validation workshop on “Competitiveness Study of Potential Private Sectors in Bangladesh”. Mr Md Abdur Rahim Khan, Secretary-in-charge, Ministry of Commerce, Government of the People’s Republic of Bangladesh, attended the workshop as the Chief Guest. The workshop brought together policymakers, private sector representatives, trade bodies, and development experts to discuss the key findings and policy recommendations emerging from the study covering five potential sectors: agro-processing; fish and shrimp; leather goods and footwear; ITeS and semiconductor; and jute goods and handicrafts. The session was moderated by Dr M A Razzaque, Chairman, RAPID. The keynote presentation was delivered by Dr M Abu Eusuf, Executive Director, RAPID & Professor, University of Dhaka; and Dr Md Deen Islam, Research Director, RAPID & Professor, University of Dhaka. The panel discussion featured valuable insights from Professor Dr Mustafizur Rahman, Distinguished Fellow, Centre for Policy Dialogue (CPD); Ms Ferdaus Ara Begum, CEO, Business Initiative Leading Development (BUILD); Ms Amrita Makin Islam, Deputy Managing Director, Picard Bangladesh Ltd.; Director, Footwear Leathergoods & Accessories Exporters Association of Bangladesh; Mr Imtiaz Ilahi, Managing Director, GraphicPeople Ltd; Mr Md Rashedul Karim Munna, President, Bangladesh Jute Diversified Product Manufacturers and Exporters Association; Mr Mahbub Anam, President, Bangladesh Agro-Processors' Association (BAPA); and Ms Sabina Yeasmeen, Executive Committee Member, Fish Farm Owners Association of Bangladesh (FOAB). The discussions highlighted the importance of strengthening sectoral competitiveness, export diversification, and employment generation through evidence-based policy support and public-private collaboration.

Consultation: Competitiveness Study of Potential Private Sectors in Bangladesh-Information Technology Enabled Services (ITES) and Semiconductor

On 5 May 2026, Research and Policy Integration for Development (RAPID), in collaboration with the Export Competitiveness for Jobs (EC4J) Project of the Ministry of Commerce, organised a consultation on “Competitiveness Study of Potential Private Sectors in Bangladesh”. The consultation focused on the Information Technology Enabled Services (ITES) and Semiconductor, aiming to better understand its evolving needs, key challenges, and priority areas for enhancing competitiveness and export readiness. The session was attended by representatives from key industry associations, along with private sector actors, government stakeholders, and members from academia, ensuring a comprehensive and inclusive discussion. Dr M Abu Eusuf, Executive Director, RAPID, and Professor of Development Studies, University of Dhaka, moderated the session. The trigger presentation was delivered by Dr Md Deen Islam, Research Director, RAPID, and Professor of Economics, University of Dhaka. Mr Sheikh Mohammad Abdur Rahman, Deputy Project Director, EC4J project and Joint Secretary, Ministry of Commerce, chaired the consultation.

Consultation: Competitiveness Study of Potential Private Sectors in Bangladesh-Leather Goods and Footwear Sector

On 4 May 2026, Research and Policy Integration for Development (RAPID), in collaboration with the Export Competitiveness for Jobs (EC4J) Project of the Ministry of Commerce, organised a consultation on “Competitiveness Study of Potential Private Sectors in Bangladesh”. The consultation focused on the Leather Goods and Footwear Sector, aiming to better understand its evolving needs, key challenges, and priority areas for enhancing competitiveness and export readiness. The session was attended by representatives from key industry associations, along with private sector actors, government stakeholders, and members from academia, ensuring a comprehensive and inclusive discussion. Dr M Abu Eusuf, Executive Director, RAPID, and Professor of Development Studies, University of Dhaka, moderated the session. The trigger presentation was delivered by Dr Md Deen Islam, Research Director, RAPID, and Professor of Economics, University of Dhaka. Mr Sheikh Mohammad Abdur Rahman, Deputy Project Director, EC4J project and Joint Secretary, Ministry of Commerce, chaired the consultation.

Consultation: Competitiveness Study of Potential Private Sectors in Bangladesh-Agro-Processing Sector

On 28 April 2026 , Research and Policy Integration for Development (RAPID), in collaboration with the Export Competitiveness for Jobs (EC4J) Project of the Ministry of Commerce, organised a consultation on “Competitiveness Study of Potential Private Sectors in Bangladesh”. The consultation focused on the agro-processing sector, aiming to better understand its evolving needs, key challenges, and priority areas for enhancing competitiveness and export readiness. The session was attended by representatives from key industry associations, along with private sector actors, government stakeholders, and members from academia, ensuring a comprehensive and inclusive discussion. Dr M Abu Eusuf, Executive Director, RAPID, and Professor of Development Studies, University of Dhaka, moderated the session. The trigger presentation was delivered by Dr Md Deen Islam, Research Director, RAPID, and Professor of Economics, University of Dhaka. Mr Sheikh Mohammad Abdur Rahman, Deputy Project Director, EC4J project and Joint Secretary, Ministry of Commerce, chaired the consultation.

Consultation: Competitiveness Study of Potential Private Sectors in Bangladesh-Frozen Fish and Shrimp Sector

On 28 April 2026 , Research and Policy Integration for Development (RAPID), in collaboration with the Export Competitiveness for Jobs (EC4J) Project of the Ministry of Commerce, organised a consultation on “Competitiveness Study of Potential Private Sectors in Bangladesh”. The consultation focused on the frozen fish and shrimp sector, aiming to better understand its evolving needs, key challenges, and priority areas for enhancing competitiveness and export readiness. The session was attended by representatives from key industry associations, along with private sector actors, government stakeholders, and members from academia, ensuring a comprehensive and inclusive discussion. Dr M Abu Eusuf, Executive Director, RAPID, and Professor of Development Studies, University of Dhaka, moderated the session. The trigger presentation was delivered by Dr Md Deen Islam, Research Director, RAPID, and Professor of Economics, University of Dhaka. Mr Sheikh Mohammad Abdur Rahman, Deputy Project Director, EC4J project and Joint Secretary, Ministry of Commerce, chaired the consultation.