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Over the past three decades, Bangladesh has achieved remarkable export growth, driven primarily by the Ready-Made Garments (RMG) sector. This single industry contributes nearly 80% of the country’s total export earnings. While its role in job creation and foreign exchange earnings has been vital, such heavy dependence has also made the economy structurally vulnerable. Bangladesh’s consistently low ranking on the Economic Complexity Index (ECI) reflects its narrow industrial base and limited capacity to move into more advanced, diversified industries.
As the country prepares to graduate from Least Developed Country (LDC) status in 2026, this imbalance presents a serious challenge. Graduation will gradually phase out preferential market access in major destinations like the European Union and Canada, exposing exporters to stronger competition. At the same time, global trade is rapidly evolving, shaped by automation, changing consumer preferences, and rising demand for more sophisticated products.
Several countries at similar turning points have successfully navigated this transition. China and Vietnam, for instance, began with low-cost garment production but deliberately diversified into higher-value sectors like light engineering, electronics, and chemicals. Vietnam’s transformation is particularly notable. Through targeted incentives, export-processing zones, and proactive foreign investment strategies, it shifted from basic assembly work to a more advanced and diversified export base. This transition boosted its economic complexity and positioned it more strongly in global value chains.
Bangladesh has the foundations to pursue a similar path. A strong SME base and a large labor force provide a solid starting point. Sectors such as light engineering, plastics, leather and leather goods, and footwear offer strong potential — they are labor-intensive, less energy-dependent, and well aligned with existing infrastructure. To support this shift, the Export Competitiveness for Jobs (EC4J) project was launched to enhance competitiveness in these four high-potential sectors. Its goal is to drive strategic diversification, create new employment opportunities, and equip the economy to navigate post-graduation trade dynamics with greater resilience.
LightCastle Partners played a key role in advancing the EC4J initiative through a multi-pronged strategy focused on capacity building, digital infrastructure development, and strategic communication. These efforts aimed to empower businesses, improve access to market intelligence, and strengthen coordination across the export ecosystem.
The first area of work centered on enhancing domestic competitiveness in the four priority sectors. LightCastle developed and delivered a comprehensive training program tailored for industry professionals. Across 20 training batches, 400 participants were trained on both strategic and practical aspects of export readiness. The curriculum combined branding and positioning strategies with hands-on learning in international marketing, data-driven decision-making, and the use of the newly launched Market Intelligence Platform (MIP). Participants learned how to strategically position their businesses in global markets, better understand shifting demand trends, and use digital tools to bridge information gaps. Feedback showed that the training improved their ability to identify market opportunities, analyze competitors, and connect with buyers more effectively.
The second pillar focused on building human capital for export intelligence. LightCastle introduced a Market Research Internship Program to engage university graduates and young professionals across the four sectors. Four internship cycles were conducted, where participants received training on sector analysis, trade data interpretation, and practical market research methods. Their research outputs enriched the MIP database, while the program itself developed a pool of skilled professionals ready to support sector associations and exporting firms with market analysis and intelligence.
The third core component involved creating enabling digital infrastructure. The MIP was developed as a one-stop online platform that supports exporters with intelligence, matchmaking, and facilitation tools. Key features include real-time trade data, market trend dashboards, buyer-seller matchmaking engines, RFQ modules, and interactive communication options. To reach a wider audience, particularly SMEs outside major industrial hubs, the Export Market Intelligence Platform (EMIP) mobile app extended these services to mobile-first users. Together, these platforms ensured exporters could access timely market insights and business opportunities regardless of location.
Finally, the initiative invested in knowledge generation and strategic outreach to strengthen its impact. Throughout the project, 35 knowledge products—including infographics, sector briefs, and analytical articles—were developed and shared. Six global journals were subscribed to in order to provide fresh intelligence inputs. A focused digital communication strategy grew the Export Bangladesh LinkedIn page to 394 followers, building a community of exporters, policymakers, and industry stakeholders. This online presence positioned EC4J and MIP as credible sources of market intelligence and policy dialogue while deepening engagement across the ecosystem.
The Market Intelligence Platform (MIP) was launched on 29th May 2025, through a dedicated event that brought together government officials, industry leaders, exporters, and development partners to highlight the platform’s role in advancing export diversification. The event featured demonstrations of MIP’s key tools, including real-time trade dashboards, buyer–seller matchmaking, and RFQ modules. Panel discussions emphasized how data-driven intelligence can enhance competitiveness and bridge information gaps for SMEs in non-RMG sectors. By convening key ecosystem actors, the launch positioned MIP as a national resource for exporters and generated momentum for its integration into sectoral strategies and business decision-making processes.
The EC4J project has laid a solid foundation for Bangladesh’s journey toward export diversification. By combining targeted capacity building, the development of digital market intelligence systems, and strategic communication, the initiative has equipped firms and sector associations with the knowledge and tools to tap into new markets. Training 400 professionals, nurturing a new generation of market researchers, launching a dynamic intelligence platform, and sharing strategic knowledge have collectively created a strong enabling environment for sectoral growth.
Looking ahead, the focus will be on institutionalizing and scaling these interventions. Consistent use of the MIP and EMIP can help integrate data-driven intelligence into daily business operations. Regular training cycles and internship programs can ensure a steady pipeline of skilled professionals to support market analysis and strategic planning. At the policy level, aligning export incentives, infrastructure investments, and trade facilitation measures with sector-specific growth strategies will be key to sustaining momentum.
Bangladesh now stands at a crucial turning point. By building on EC4J’s early achievements, the country has the opportunity to move beyond its heavy reliance on garments, enhance its economic complexity, and establish a more diversified and resilient export base—well-equipped to thrive in a post-LDC environment.
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