Research on Export Trade in Bangladesh

BUS302: Research Methods in Business & Management

Submitted By

Farjana Binte Anwar

ID: 14304058

Brac Business School

Brac University

Submitted to

Professor Ali Ahsan

Date of Submission: 05.03.2018

 Export Trade in Bangladesh

Bangladesh is the 55th largest export economy in the world. In 2015, Bangladesh exported
$35.7B and imported $38.3B, resulting in a negative trade balance of $2.6B. In 2015 the GDP of
Bangladesh was $195B and its GDP per capita was $3.34k.

Major export commodities of Bangladesh are Garments, Frozen fish and seafood, Jute and jute
goods, Leather. The major export partners are;

 United States: 24%

 Germany: 15.3%
  United Kingdom: 10%

 France: 7.4%

 The Netherlands: 5.5%

 Italy: 4.5%

 Spain: 4.2% 

Export trade is one of the best business ideas in Bangladesh. Starting export business is
challenging in Bangladesh. The export trade in Bangladesh faces many problems. If one can
overcome these problems then s/he will be successful in Bangladesh.

Research problems
Here are some major problems of export trade in Bangladesh. A brief description of the problem
is now given below.

Inadequate exportable goods

Bangladesh export trade mainly depends on some traditional goods like jute and jute goods,
leather, shrimps, garments and other fishes etc. Its exportable items being limited. Government
and concerned authorities are emphasizing on traditional items. But the scope of the same as
limited. So both exporters and Government should extensively work on it and scope must be
widened.

Lack of experience

Exporters of Bangladesh have little experience in capturing outside market, convincing foreign
buyers and availing fullest opportunities of the world compared to our competitors. Bangladesh
forging Ambassadors and that Export promotion bureau reportedly failed to some extent in
providing facilities to exports and helps to capture world market. Export trade business is still a
hot business for new Bangladesh Entrepreneurs.
Shortage of capital

Export trade presupposes procuring goods through purchases or manufacturing. In both the case,
huge capital is required which many experts cannot easily manage. Bank financing sometimes,
reportedly found inadequate. As a result, provisions and facilities regarding export finance need
to enchant.

Product quality and packaging

The export in Bangladesh faces severe competition. Here not only price but also the quality of
product gets prominence. There is allegation as to our products as being poor in quality and
subject to adulteration. Moreover, to attract customers and maintain quality the importance of
packing cannot be over emphasized. In this regard, we are reportedly far back than our
competitor.

Dishonesty of some exporters

There is an allegation that we have lost some foreign customers due to export trade of low-
quality goods compared to samples sent earlier, misuses trust and sending adulated items. In the
next, there is also allegation as a weight and measurement corruption done by a few, but general
conception goes to the shoulder of all the exporters.
 Export Trade in Bangladesh

Excessive bureaucratic control

Red tape and unfriendly bureaucracy is a common problem in Bangladesh in export trade. Export
trade is not free from it. Exporters allege that the complex formalities, the demand of speed
money by some concerned offices and time-consuming procedure discourage them to go for
export business.

Transport and ware housing problem

Transport system far from the satisfactory stage in export trade business in Bangladesh.
Transport cost is higher, there are problems of hartal and strike and lack of vehicles, wagons etc.
Ware house facilities are also inadequate. As the reasons, exporters face problems both to
transport and ware housing goods.

Broad objective
Broad objective of this research on Export trade of Bangladesh is to identify the major problems
and specific suitable solutions of those problems.

Specific Objective
1. Simplifying export procedures, and helping the private sector achieve efficiency. The
Govt.Desires more and more involvement of the private sector while the govt. will continue to
play its facilitating role.

2. Enhancing technological strength and productivity and facilitating reduce cost and attain
internationally accepted standard of quality of exportable products and thereby consolidate their
competitiveness.
3. Ensuring maximum use of local raw materials in the production of export goods and
encouraging establishment of backward linkage industries.

4. Participation in the international trade fairs, specialized fairs, single country exhibitions
abroad and also sending out trade missions, with a view to consolidating our position in the
existing market and creating new markets

5. Encouraging export of new category high value added readymade garments and also
encouraging the concerned trade associations for establishment of a Fashion Institute.

6. For promotion of high value added leather and leather goods export: providing various
facilities including bonded warehouse facilities for import of materials such as raw hides,
pickled, wet blue, crushed and finished leather, components and chemicals etc. to 100% export
oriented leather industries;

7. For promotion of export of shrimp: Extension and modernization of traditional/semi-intensive

method of shrimp cultivation and ensuring quality as per buyer’s requirements.

8. For promotion of export of jute and jute goods: Undertaking extensive publicity of jute and
jute goods as environment-friendly natural fiber and diversification of the uses of jute products

9. For promotion of export of tea undertaking programmers for establishing brand name and
developing linkage with established blending and distributing agents.

10. For promotion of export of agro based products: undertaking programmers for raising quality
standard and expansion of market.

11. For the promotion of export of electrical and electronic goods (including computer software
and data entry): Building and ensuring conducive infrastructure;

12. For the promotion of export of engineering consultancy and other services and sub-
contracting involving, in a bigger way, Bangladesh missions abroad obtaining contracts

13. Organizing regularly international trade fairs and product-specific fairs with the country;

14. Making appropriate development and expansion of infrastructure conducive to export

15. Making arrangements for necessary technical and practical training for development of
skilled manpower in the export sector;

16. Ensuring maximum utilization of financial and other assistance extended by the World Trade
Organization to the Least Developed Countries;

17. Ensuring maintenance of ecological balance and pollution-free environment in the production
of exportable goods;
18. Extending technical and marketing assistance for development of new products and for
finding appropriate marketing strategies;

19. Taking necessary steps to assist procurement of raw materials by the export oriented
industries at world price.