Low production costs, a large and strong growing home market with 160 million consumers, an enthusiastic and rapidly emerging private sector and not at least a tremendous international export success for especially the garment industry, are some of the factors which have led international companies to focus on Bangladesh.
Bangladesh offers very low production costs and has become one of the most cost efficient production hubs in the world.
Bangladesh is becoming one of the most popular outsourcing destinations in the world and even a large number of Chinese companies are now moving to Bangladesh to seek cost efficient supply.
The country is strategically located next to India, China and the ASEAN markets and as an LDC country Bangladesh has tariff-free access to several regions and countries. Currently ~60% of the population is below 24 years and the work force is increasing with approximately 1 million people each year.
Bangladesh is an LDC country with a strong aspiration to become a middle income country by 2021. GDP was USD 173.8 billion in 2014. The GDP in Bangladesh was worth 195.08 billion US dollars in 2015. The GDP in November 2016 shows an expansion of 7.05 percent in 2016 from the previous year.
Economy has been growing with approximately 6 % annually over the last decade with the private sector being the locomotive.
The sectors mentioned below are in particular believed to represent significant growth potential in a Danish context
- Energy – including traditional fossil fuel based, renewable energy and energy efficiency
- ICT and business service