Trade opportunities of bangladesh in asean

1.
 Established in Aug 8, 1967.
 5 Founding Member Countries- Indonesia, Malaysia, Philippines, Singapore & Thailand. 
10 Member Countries at present after Brunei Darussalam, Vietnam, Laos, Myanmar and
Cambodia joined.
 Combined Population- 629 Million. Combined Land Area - 4.49 Million Square km (3% of
the total land area of Earth)
 GDP (at current prices)- USD 2.43 Trillion (6th largest as a single economy) and Trade
Volume is $2.26 Trillion (8th largest as single market, 3rd in Asia)
 ASEAN+3 Forum: ASEAN+ China, Japan & South Korea
 ASEAN+6 Forum: ASEAN+ China, Japan, South Korea, India, Australia and New Zealand

2. Three pillars of ASEAN : I. The ASEAN Political-Security Community (APSC) II. The ASEAN
Economic Community (AEC) III. The ASEAN Socio-Cultural Community (ASCC)
The aims and purposes of ASEAN includes:
Acceleration of economic growth 
Social progress and cultural development 
Regional peace and stability 
Assisting on training and research 
Collaboration for greater utilization of their agriculture, industries and trade 
Promotion of Southeast Asian studies 
Maintaining close and beneficial cooperation with other regional organizations

3. Aim is to create a single market and production base, a competitive economic region, a
region of equitable economic development, and a region that is fully integrated into the
global economy. 

The AEC Blueprint 2025, adopted in 2015 provides broad directions through strategic
measures for the ASEAN Economic Community (AEC) from 2016 to 2025.
Characteristics of The AEC Blueprint 2025:  A Highly Integrated and Cohesive Economy 
A Competitive, Innovative, and Dynamic ASEAN  Enhanced Connectivity (Physical
Connectivity, Institutional Connectivity and People-to-People connectivity) and Sectoral
Cooperation  A Resilient, Inclusive, People-Oriented, and People-Centred ASEAN  A
Global ASEAN

4. Country Gross domestic product at current prices Gross domestic product per capita at
current prices International merchandise trade Foreign direct investments inflowExports
Imports Total trade US$ million US$ US$ PPP US$ million US$ million US$ million US$
million 2015 2015 2015 2015 2015 2015 2015 Brunei Darussalam 12,909 30,942 87,117
6,350 3,042 9,392 171 Cambodia 18,463 1,198 3,578 8,839 10,838 19,676 1,701 Indonesia
857,603 3,357 11,108 150,282 142,695 292,977 16,073 Lao PDR 12,639 1,831 5,466 3,714
3,049 6,763 1,079 Malaysia 294,390 9,657 26,515 199,869 175,961 375,830 11,290
Myanmar 65,392 1,246 5,275 11,432 16,844 28,275 2,824 Philippines 289,503 2,850 7,241
58,648 70,295 128,944 5,724 Singapore 291,938 52,744 85,021 366,344 296,765 663,109
61,285 Thailand 395,726 5,737 16,064 214,396 202,751 417,147 8,027 Viet Nam 193,407
2,109 6,083 162,014 165,730 327,744 11,800 ASEAN 2,431,969 3,867 11,009 1,181,889
1,087,970 2,269,859 119,975 Trade within ASEAN States stands at 23% of ASEAN’s trade
with the world
5. Bangladesh-ASEAN Trade Is Negatively Balanced:
Bangladesh-ASEAN trade as of 2015:
 Import: $5,989.99 million
Export: $476.26 million
Trade Balance: -$5,513.73
Total: $6,466.24 million being only 0.3% of ASEAN’s overall trade

What are the causes of poor export figure of Bangladesh with ASEAN?
 Very small export basket with items-Frozen Food, Agri-Products, Chemical products,
Leather, Raw Jute, Jute goods etc
 Non-exploration of export items & trade opportunities
 Poor Negotiation skills
These are going to be diagnosed................
6. Bangladesh is already very eager to get membership of ASEAN considering its potential
economic benefits – “Look East” policy.
 Looking to capture the opportunity of being a “Regional Economic Corridor”.
Reasons to join ASEAN:
 New export destinations
 Reduce dependency on the West  Narrow its trade gaps with other countries  Slow
progress of SAARC compared to other regional bodies
 Promote collaboration on economic, social, cultural, technical, scientific and administrative
issues
7.  India & China have Regional Comprehensive Economic Partnership (RCEP) agreement
with ASEAN  USA has Trans-Pacific Partnership (TPP) trade agreement with ASEAN 
Bangladesh has to engage in strategic regional trade agreement with ASEAN like RCEP &
TPP  ASEAN+3 (China, Japan & S. Korea) & ASEAN+6 (China, Japan, S. Korea, India,
Australia & New Zealand) NB: Even Pakistan is noticeable in the country/region list of
ASEAN website (asean.org) not Bangladesh. Bangladesh’s drawback is here; Weakness in
terms of Political Negotiation.
8. Disaster Management: government level sharing of knowledge. ASEAN Dhaka Center
(ADC): Established in 2013, aiming at strengthening ties between ASEAN and Bangladesh.
‘Look East Policy’ of Bangladesh: Govt. of Bangladesh’s conscious focus to the ASEAN+.
One Belt, One Road policy of China: China is focusing on building a network connecting at
least 60 Asian countries with Europe and Africa It will open door for connectivity with ASEAN
countries.
9.  Overlapping Regional Organizations: Common nations in BIMSTEC and ASEAN are
Myanmar and Thailand.  Master Plan for ASEAN Connectivity 2025: It aims at three major
areas of connectivity among ASEAN nations namely Physical Connectivity, Institutional
Connectivity and People-to-People connectivity.
10. Approaching ASEAN From Trade Perspective: The traders and business firms of the country
should brainstorm on the business opportunities in ASEAN in the current scenario until
anything favorable happens in terms of policy to change the status quo. Therefore, doing a
market research- SWOT analysis, segmentation, targeting and positioning is required for
grabbing the 3rd largest in Asia and the 8th largest market of the world. SWOT Analysis of
ASEAN Countries: Before digging deep into ASEAN, a SWOT analysis has been attempted
on individual countries of ASEAN which will be our starting point of segmentation and
targeting the markets. SWOT analysis has pointed out some key areas which may be kept in
mind for designing our products, services and exchanges.
11. 11. Segmentations ASEAN Countries LDC & Growing (Land, Natural Resources) Laos,
Cambodia, Myanmar High Income & Developed Singapore, Thailand, Vietnam, Brunei
Overlapping TBs (Myanmar & Thailand) both in ASEAN & BIMSTEC Religion (Muslim
Majority) Indonesia, Malaysia, Brunei Population Youth Dense: Laos (71% 18-34y) Land Vs
Population: very high (Myanmar, Cambodia) Aging: 19thASEAN Plus Three Summit on 7
September 2016 in Vientiane, Lao PDR recognized the issue.
12. 12. Country Major Exports Major Imports Thailand Jute goods, Knitwear, Woven Garments,
Agri-Products, Frozen Food Vegetable products , Mineral products, tobacco and
manufactured tobacco substitutes , paper and paperboard, rubber, Textiles Brunei Agri-
Products, Leather, Jute goods Mineral products, Products of the chemical or allied industries;
rubber, Pulp of wood or of other fibrous cellulosic material Indonesia Agri-Products,
Chemical products, Woven garments Vegetable products, Animal or vegetable fats and oils;
Mineral products, Plastics; rubber, paper and paperboard, Base metals, television image and
sound recorders, Vehicles, aircraft, vessels and associated transport equipment Malaysia
Frozen Food, Agri-products, Knitwear, Woven Garments Animal or vegetable waxes, Mineral
products, Plastics; rubber, Products of the chemical or allied Industries, Textiles, Base
metals
13. 13. Country Major Exports Major Imports Myanmar Chemical products, Leather, Jute goods,
Wood, Vegetable products, rubber Philippines Agri-Products, Chemical products, Knitwear,
Woven Garments Tobacco, Mineral products, Raw hides and skins, leather, furskins; Base
metals, Machinery and mechanical appliances Vietnam Frozen Food, Agri-Products,
Chemical products, Leather, Raw Jute, Jute goods Vegetable products , Mineral products,
Textiles, Base metals, Machinery and mechanical appliances; electrical equipment
Singapore Frozen Food, Agri-Products, Knitwear, Woven Garments Vegetable products,
Animal or vegetable fats, tobacco , Plastics, Mineral products, paper, Base metals, Vehicles,
aircraft, vessels and associated transport equipment, musical instruments, sound recorders
and reproducers, television image and sound recorders and reproducers, Textiles
14. 14. Partnership with Myanmar: Strategic  Major Exports: Chemical products, Knitwear.
Major Imports: Wood, articles of wood, wood charcoal, Vegetable products, rubber. 
Opportunities: Cheap and unskilled labor, access to natural resources.  Rationale:
Myanmar has opened-up to the world as global trade sanctions against Myanmar have been
lifted. Myanmar is a corridor link between India-Bangladesh and ASEAN.  Comparative
Advantage: Large number of young population, skill and expertise in certain sectors such as
RMG/textile, pharmaceuticals.  Competitive Advantage: Bangladesh’s skill and expertise in
textile/RMG, pharmaceuticals, leather, IT etc. Bangladesh also has a very good track record
in trade with USA, EU and India.
15. 15. Leather products: Export  Target Markets: Brunei, Cambodia, Malaysia, Thailand 
Rationale: In addition to exporting to countries such as Italy, UK, Belgium, Spain, France,
Germany, Poland, US, Canada, Japan and Australia, Bangladesh can look for new markets
within the ASEAN community for leather products.  Comparative Advantage: Low price of
raw hide and cheap labor.  Competitive Advantage: While Vietnam has strong expertise in
providing high quality leather and leather products, most other countries does not have
developed leather industry.
16. 16. RMG & Backward Linkages: Export, Joint Venture  Markets: Myanmar, Laos, Cambodia
etc comparatively low income countries.  Rationale: Well established Bangladeshi
companies can expand into those countries to manufacture goods with comparatively low
cost.  Comparative Advantage: 30 Years of expertise in Garments manufacturing, skilled
labor, low-cost production.  Competitive Advantage: World’s second largest RMG exporter
after China.
17. 17. Pharmaceutical products: Export  Target Markets: Myanmar, Cambodia, Thailand, Lao
PDR  Rationale: Bangladesh is a candidate to supplement or substitute other international
manufacturers to the developing country markets of both finished drugs and Active
Pharmaceutical Ingredients (APIs) and develop new exporting destinations.  Comparative
Advantage: Low cost of production.  Competitive Advantage: Expertise in the sector and
ability to offer cheaper pharmaceutical products compared to other players in Indonesia and
Vietnam.
18. 18. Halal Products: Partnership ❑ Target Markets: Indonesia, Malaysia and Brunei and other
Muslim countries outside ASEAN ❑ Rationale: Bangladesh can develop Halal products
concept with Brunei and export to Indonesia as well as other Muslim countries globally. ❑
Comparative Advantage: Low cost of production, large workforce. ❑ Competitive Advantage:
Halal products are a relatively new concept, where Brunei has been trying to make their
mark. Bangladesh can develop their own line of Halal products in partnership with Brunei
and market globally to Muslim countries.
19. 19. Eel Fish: Export ❑ Markets: Vietnam, Indonesia and Singapore ❑ Rationale: It will
diversify our export basket; Market can be enlarged by adding Laos, Cambodia and Malaysia
also. ❑ Comparative Advantage: Fresh water rivers, ponds already available ❑ Competitive
Advantage: Fishing culture sector has already matured. Southern and Mid-Northern districts
like Mymensingh, Satkhira etc have ample experience in fishing. Support industry has also
matured.
20. 20. Business Process Outsourcing (BPO): Export & Import, Joint Venture  Markets: EU,
USA, North America and local market ($250 billion globally by 2020).  Rationale: Educated
Tech-ICT savvy young population of BD can find a big scope for employing them. This sector
can be a major source of trading after RMG within a short time.  Comparative Advantage:
Educated Young Population require skill building which will be done by joint-venture with
Pilipino Firms. Bangladesh has a large number of young population.  Competitive
Advantage: Philippines is highly skilled and experienced in this sector by serving the global
BPO market by 12.30%
21. 21. NGO for Development: Strategic Investment & Exchange  Markets: Countries like
Myanmar, Indonesia, Laos and Cambodia are fighting with extreme poverty.  Rationale:
Bangladesh has been globally appreciated for her huge success in poverty alleviation.
Bangladesh can go abroad with this expertise as UN, World Bank and other global
organizations have already endorsed us in this regard. This can both build relation and
create scope for employment in ASEAN countries and engage Bangladeshi investment in
poverty alleviation.  Comparative Advantage: NGOs like Grameen Bank, BRAC and many
other has established themselves.  Competitive Advantage: BD has the credit of winning
Nobel Price by Dr. Muhammad Yunus, a Pioneer in NGO apart from Sir Fazle Hasan Abed
of BRAC. Skill and professionalism in this sector is far beyond our competitors, if any.
22. 22. Human Resource: Market Exploration  Markets: Agro based Market-Myanmar, Laos,
Cambodia Developed Market-Singapore, Malaysia, Vietnam, Brunei etc.  Rationale: Recent
inflow of unskilled labours from Middle East has pressurized the govt for finding new market.
ASEAN developed as well as low density agricultural countries may be a potential market for
skilled and unskilled HR.  Comparative Advantage: Youth population stands 47.3% 
Competitive Advantage: BD has long experience in providing manpower to Middle East
though unskilled.
23. 23. Tourism: Export, Joint Venture  Markets: Singapore, Thailand, Malaysia, Indonesia,
Brunei, Vietnam. Comparatively richer countries of ASEAN. Bangladesh can partner with
Thailand to develop its tourist industry.  Rationale: Bangladesh’s service industry is
booming. There is thousands of people being ready each year to join the wave. Hike of
tourism increases brand value of that particular country significantly. Land of River, longest
sea beach in the world, largest mangrove forest even after being one of the smallest
countries.  Comparative Advantages: Cheap labor, government endorsements, booming
economy etc.  Competitive Advantages: Land of River, longest sea beach in the world,
largest mangrove forest even after being one of the smallest countries
24. 24. Jute Products: Export  Target Markets: Singapore, Vietnam, Malaysia etc (Home
essentials)  Rationale: Increasing concern for Planet  Traditional (Jute Bags, Sacks,
Packaging, Carpets), New (Jute-stick Charcoal), Innovative Products (Car Interiors, Jute and
jute composite could be used with others textile fibres to make innovative finished products.
  Comparative Advantage: Land, Water & Weather; reputation of quality jute fiber being
produced in BD.  Competitive Advantage: Skilled & matured farmers and farming
experience.  Special Note: Jute along with RMG was specially mentioned in speech of
Chinise President Xi Jinping in his state visit to Bangladesh while emphasizing import
products from BD.
25. 25. Products of Cultural & Heritage: Export ❑ Markets: High Income markets like Singapore,
Malaysia, Vietnam and Thailand ❑ Rationale: Branding Bangladesh and diversifying export
basket at the same time. ❑ Comparative Advantage: Pat-paintings, Nakshikhantha,
Terracotta etc are culturally inherited by Bangladesh but not commercially traded. ❑
Competitive Advantage: BRAC has set exemplary trading strategy in this sector and gone
with the products to some first world destination. Skills and management of the items are
definitely a competitive area for BD. However, mass production and marketing are still
lagging behind.
26. 26. The following areas should be selected for future trade in ASEAN: ❑ As 23.9% of the
total trade of ASEAN is done within the block, Bangladeshi companies going out and setting
up joint venture companies in countries where factors of production is available at a
competitive price will be beneficial from trade perspective. Strategic partnership with
Myanmar, Cambodia, Laos & Indonesia may come out as crucial in this regard. ❑ Apart from
policy and strategic stand point, until the status quo of trade relations with ASEAN changes
the following products can be considered seriously by the business community of the country
for sustainable growth in trade with ASEAN: Jute products, Leather goods, Cultural products,
Eel Fish, Pharmaceutical items, Tourism etc. ❑ Finally Bangladesh should seriously think
about joining ASEAN if not right now; at least the country should join the body as an
observer very shortly to take advantages of trade between Bangladesh and ASEAN