South Asia · current conditions as of 11 October 2026 · fundamentals reviewed 16 October 2026
🇧🇩 Doing business in Bangladesh
Rising garment powerhouse with growing middle class.
Long-term risk: High
Current alert: Elevated
Gas and power crisis: LNG disruption from the Hormuz closure plus a damaged import terminal cut gas supply to about half of demand in mid-August, shutting many factories. Petrobangla says 19 LNG cargoes are secured for October–November, mostly from outside the Gulf.
Bangladesh depends on imported LNG and fuel; the Hormuz closure and a fire at a floating LNG terminal in July cut national gas supply to roughly 50–64% of demand in August, shutting many textile, steel and ceramics plants and forcing long power cuts. Petrobangla says 19 cargoes are secured for October–November from the US, Nigeria and Angola, which should ease supply, but Qatar's force majeure still affects long-term contracts. Inflation was 8.3% in September.
Conditions change fast. Check current government travel and trade advisories before acting.
What makes up the long-term score
Highlights: RMG export leader · Strong remittance inflows · Political transition risk
Key industries
Garments & RMG → Stable
Bangladesh is worlds 2nd largest garment exporter after China with $47B in annual exports to EU and US.
Main investors: EU, US, UK, Canada
Pharmaceuticals ↑ Growing
Bangladesh pharma sector meets 98% of domestic demand and exports to 150+ countries. LDC status provides IP flexibility.
Main investors: India, China, EU, US
Technology & IT ↑ Strong growth
Bangladesh exports $1B+ in IT services. Government Digital Bangladesh initiative driving tech sector development.
Main investors: US, UK, Japan, South Korea
Agriculture & Agritech → Stable
Agriculture employs 40% of workforce. Rice, jute and fish are top commodities with growing agritech investment.
Main investors: Netherlands, Japan, China, India
Sector priorities
- Garment & Textile Diversification: Bangladesh RMG sector upgrading to higher value technical textiles and knitwear creating investment opportunity in manufacturing technology.
- Technology & BPO: Government Hi-Tech Parks and competitive English speaking talent creating growing IT services and BPO investment opportunity.
- Pharmaceutical Manufacturing: LDC IP flexibilities until 2033 and low cost manufacturing creating opportunity for generic pharmaceutical production investment.
Talent & work permits
Bangladesh has a young workforce of 70M with improving education levels. Competitive labour costs. English used in business and export sectors.
- Foreign workers: Work permit from BIDA required. Linked to specific employer. Process takes 6 to 10 weeks.
- Localisation: Foreign nationals cannot exceed 5% of total workforce in most sectors. BIDA approval required for expatriate hiring above threshold.
- Key consideration: Bangladesh offers Asias most competitive garment manufacturing labour costs alongside a growing pool of technology talent.
Summarised from our dataset and not yet linked to sources. Verify with local counsel before acting.
How to enter: first four steps
Bangladesh market entry is managed through BIDA. Special Economic Zones offer streamlined entry for export oriented manufacturing.
- Register with BIDA: Bangladesh Investment Development Authority is the one stop service for foreign investors
- Consider SEZ location: BEZA economic zones offer duty benefits and streamlined licencing for manufacturing investment
- Register with NBR: National Board of Revenue for tax identification and VAT registration
- Open bank account with authorised dealer: required for foreign exchange management and remittance approvals
Indicative cost: 10-person team
Professional-services team (1 senior manager, 5 professionals, 2 admin, 2 support), Grade A office, registration, legal, audit and tax compliance. Model estimate, not a quote.
First year by industry (10 people)
Regulatory watch
- Jan 2026 · Investment Board Restructured: Bangladesh Investment Development Authority restructured to streamline foreign investment approvals.
- Mar 2026 · New Investment Authority: Bangladesh Investment Development Authority restructured as Bangladesh Investment Authority with enhanced powers to approve and facilitate foreign investments.
Compare with South Asia peers
Tap a market to see it side by side with Bangladesh.
Common questions
Is Bangladesh a good market to enter in 2026?
Bangladesh has a long-term score of 5.0/10 on EmergingMarketIQ’s index (long-term risk: High) and scores 4.5/10 now, as of 11 October 2026. Rising garment powerhouse with growing middle class. Bangladesh depends on imported LNG and fuel; the Hormuz closure and a fire at a floating LNG terminal in July cut national gas supply to roughly 50–64% of demand in August, shutting many textile, steel and ceramics plants and forcing long power cuts. Petrobangla says 19 cargoes are secured for October–November from the US, Nigeria and Angola, which should ease supply, but Qatar's force majeure still affects long-term contracts. Inflation was 8.3% in September.
How much does it cost to set up a 10-person office in Bangladesh?
Our cost model estimates about US$196k for the first year (≈US$15k per month run-rate plus ≈US$8k one-off setup) for a 10-person professional-services team; depending on industry the range is US$150k–US$212k. Indicative only.
What are the first steps to set up a company in Bangladesh?
Register with BIDA: Bangladesh Investment Development Authority is the one stop service for foreign investors Then: Consider SEZ location: BEZA economic zones offer duty benefits and streamlined licencing for manufacturing investment Then: Register with NBR: National Board of Revenue for tax identification and VAT registration Then: Open bank account with authorised dealer: required for foreign exchange management and remittance approvals
Source: EmergingMarketIQ country dataset. Current conditions and alerts updated 11 October 2026; GDP (World Bank 2025) and FX 24 September 2026; structural scores reviewed 16 October 2026. Rules, rates and conditions change, so verify with local counsel before acting. Not legal, tax or investment advice.