| Textile: Sector Highlights: The fastest growing industry in Bangladesh with RMG accounting for more than 75% of total exports. Bangladesh is best placed in the region for textiles and garments because of cheap labor and trade status with the EU. Government incentives for the spinning and weaving industries include a 15% cash subsidy of the fabric cost to exporters sourcing fabrics locally. There is a huge fabric demand supply gap in the RMG industry which is being me by imports. Thus the potential for backward linkage industry is enormous RMG and Backward Linkage: The phenomenal growth in RMG was experienced in the last decade. With about 2,600 factories and a workforce of 1.4 million, RMG jointly with knitwear accounted for more than 70% of total investments in the manufacturing sector during the first half of the 1990's. Electronics:
- Semi-Conductor
- Cell Phone Assembly
- Other Electronics
Sector Highlights
- Manufacturing of semi-conductors could be established as a potential cottage industry.
- Bangladesh is going to be the largest cell-phone market in South Asia .
Information Technology:
- Data Processing
- Software Development
Sector Highlights
- Investment is mostly confined to information processing.
- Bangladesh has a cheaper and rapidly growing IT workforce.
- Government is keen in establishing IT related infrastructure for the development of the industry.
Natural Gas-based Industries:
- Electricity
- Fertilizer
- Petro-chemicals
Sector Highlights
- Bangladesh has a substantial gas reserve of about 20 trillion cubic feet (tcf)
- There is a huge demand for fertilizer in Bangladesh as the agriculture is the principal sector of the economy.
Frozen Foods: Sector Highlights :
- Government is promoting semi-intensive shrimp farming.
- Fish and prawn exports grew at an average 20% in the past decade.
- Shrimp processing and export industry is largely dominated by the smaller unorganized sector.
Leather: a. Finished Leather
b. Leather Goods
Sector Highlights:
- The labor-intensive leather industry is well suited to Bangladesh having cheap and abundant labor.
- Bangladesh has a domestic supply of good quality raw material, as hides and skins are a by-product of large livestock industry.
- Adequate government support in the form of tax holidays, duty free imports of raw materials and machinery for export-oriented leather market
- The industry lacks domestic technology and expertise and local support industries such as chemicals are still under-developed.
Ceramic :
- Tableware
- Sanitaryware
- Insulator
Sector Highlights
- Bangladesh has a skilled manpower in ceramic industry.
- Historically, tableware industry is labor-intensive.
- The clean gas reserve required for firing is a great competitive advantage for Bangladesh .
Agro-based Industry:
- Canned Juice / Fruit
- Dairy and Poultry
Sector Highlights
- Bangladesh has a huge supply of raw materials for the agro-based industry.
- Fruits and vegetable production has increased significantly in recent years.
- Government and NGOs have been conducting regular training programs in developing a skilled manpower for this industry.
There is a substantial demand supply gap in the agro-based industry. |