The Bangladeshi government is preparing an export diversification strategy targeting 18 key markets, aiming to reduce its over-reliance on ready-made garment (RMG) exports. Under the strategy, Bangladesh will develop individual plans for each target market, assessing market potential, trade barriers, competitor countries, promising Bangladeshi products, and the policy measures needed to improve market access.

Key Points

  • A total of 18 target markets: Malaysia, Singapore, the UAE, Switzerland, South Korea, Russia, Iran, Brazil, Turkey, the United States, the United Kingdom, France, Japan, China, India, Canada, Belgium, and a market grouping comprising Australia, New Zealand, and Fiji.
  • In FY2026, Bangladesh's merchandise exports totaled about $48 billion, of which RMG accounted for about $38.7 billion, or roughly 81%.
  • In August 2026, Bangladesh's RMG exports to non-traditional markets reached $642.93 million, the highest monthly figure after two years of stagnation.

The Ministry of Commerce is collecting and analyzing market information to prepare country profiles and action plans for each destination, and discussed this vision on Monday at a seminar titled "Bangladesh Export Diversification Strategy: Product and Market Diversification in 18 Key Trade Destinations" held at the secretariat. Commerce Secretary Md Ataur Rahman Khan said product diversification and market diversification are given equal importance, and the commerce department has gathered information from various commercial representative offices on market conditions, export barriers, potential products, and trade opportunities, and will use it to formulate a separate action plan for each market. He also noted that officials are using a dedicated matrix to assess Bangladesh's export share in each market, major competitors, paths to enhancing competitiveness, and the policy and institutional measures needed to expand market access.

In terms of export structure, RMG remains the absolute mainstay. Data from the Export Promotion Bureau (EPB) show that merchandise exports in FY2026 stood at $48 billion, slightly below the previous fiscal year's $48.28 billion; of that, RMG exports were $38.7 billion, exports to the EU were $19 billion, to the United States $7.75 billion, to the United Kingdom $4.38 billion, and to Canada $1.34 billion. Industry insiders note that non-RMG sectors such as leather and leather goods, jute and jute products, agricultural products, and engineering products are gradually making progress.

Regarding non-traditional markets, Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and founder and CEO of Bangladesh Apparel Voice, said that in August 2026 RMG exports to non-traditional markets reached a record $642.93 million, the highest monthly figure recorded after two years of stagnation; the monthly average rose from $574.38 million in FY2026 to $611.6 million in the first few months of FY2027. He believes that non-traditional markets have strong demand for all types of RMG, not just high-end products, and that Bangladesh needs to focus on developing these markets.

Other non-RMG categories also showed bright spots. In FY2026, leather and leather goods exports were about $1.23 billion, up 7.1% year on year; jute and jute products were about $884 million, up 7.75%, with growth of about 77% in June alone. The global trend of reducing plastic use is expected to further boost demand for jute bags, carpets, diversified jute products, home decor, and eco-friendly packaging. Agricultural exports grew strongly at the end of FY2026, rising 46.77% year on year in June, but quality standards, warehousing, transportation, and compliance with international certification remain major obstacles. Engineering product exports were about $652 million, up 21.8%, with a year-on-year increase of about 44.7% in June, with electrical products, light industrial products, machinery parts, and metal products contributing the main potential.

Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD), stressed that trade in services should be treated on par with trade in goods, and that information technology, skills-based services, capacity-building industries, and the freelancer community should be promoted. He said Bangladesh needs to apply more technology in both manufacturing and services to enhance its international competitiveness, and suggested leveraging geographic proximity and market potential to increase exports of goods and services to neighboring countries.

For the used clothing and textile and apparel industry, this strategy means that while Bangladesh consolidates its traditional RMG markets in Europe and the United States, it is actively diversifying risks toward emerging and regional markets; for operators engaged in second-hand clothing and textile and apparel trade, changes in Bangladesh's export structure and the direction of non-traditional market flows will directly affect the supply, prices, and re-export landscape of related categories.

Source: Govt eyes 18 markets to diversify exports · Originally published on 2026-09-28