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The Netherlands’ recognition of Bangladesh in 1972 marked the beginning of a seamless and robust evolution of political and economic ties between the two nations. The Bangladesh-Netherlands relationship has been characterized by mutual trust, respect, and a shared understanding of values, driving collaboration in international domains such as human rights, sustainability, and climate change. What began as development cooperation has now expanded to focus on forging and deepening trade and economic partnerships, with the private sectors of both countries leading the way in exploring new areas of collaboration.
Bangladesh’s unique synergistic factors make it an attractive investment destination. The country’s stable economic growth, young population of over 161 million, and emerging middle and affluent class create a favorable environment for economic collaboration.
Moreover, Bangladesh has maintained high GDP growth since 2010 and made significant investments in human development, resulting in improved well-being and life expectancy. The government’s effective navigation of economic aspirations and ties with regional powers like India and China has also attracted increased foreign direct investment from these countries.
The Netherlands has been actively investing in Bangladesh, particularly in the food industry, with Dutch investors playing a pivotal role in the country’s investment scene. Bilateral trade between Bangladesh and the Netherlands has been strong, with significant exports of goods and potential for further diversification. The Bangladesh government has taken active steps to improve the ease of doing business, including implementing a one-stop service for investors and investing in infrastructure and economic zones.
The report, conceived by the Bangladesh Embassy in the Netherlands and produced in cooperation between LightCastle Partners and Larive International (Zeist), provides an overview of the evolving Bangladesh-Netherlands relationship and outlines economic engagements in sectors such as water and the ready-made garments industry.
With Bangladesh’s macroeconomic stability, demographic dividend, and geopolitical advantage, strengthening economic ties with the Netherlands is mutually beneficial. The report highlights the recent achievements of robust sectors in Bangladesh and identifies potential areas for greater collaboration between the two countries, emphasizing the win-win situation that can be achieved through stronger Bangladesh-Dutch economic relationships.
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