Bangladesh needs to identify the opportunities and the key weaknesses that the country faces and adopt appropriate measures. There are many ways of doing this analysis. One popular method is to list the Strengths, Weaknesses, Opportunities, and Threats (SWOT) facing the economy and society at large. Although the SWOT analysis is more often applied to evaluate the competitive position of a company, this can also be applied to a country. In particular,SWOT analysis is forward looking; it is less for the past than for the future. The exercise identifies areas that need attention or might emerge as problem areas in future.

1. SWOT Analysis of
“Success of Bangladesh
in International Trade.”

2. SWOT Analysis Process

3. STEP: 01:
The predisposition of any distinct and specific export sector has yet remarkable contribution in Bangladesh export
success albeit most salient sectors such as Labor Migration and Agriculture have enormous contribution in the
development of Bangladesh economy and should assert the factual reason for the success of export history of
Bangladesh but, unfortunately rather than emphasized on Labor Migration or Agriculture which have net
approximately 90% value addition, some others most talkative sector for instance, Jute, Readymade Garments
which has only approximately 19% net value addition industries are considered as prominent emphasized sectors
which are mostly developed due to some advertent global factors, for example, Korea war in 1950’s and world
trade recession in 2007.
So, it is impediment to discourse the success of Bangladesh in global export based on a certain sector. And
therefore, we try to emphasize on overall most salient factors and issues those related with the SWOT analysis of
“Success of Bangladesh in International Trade.”
SWOT Analysis:
SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. SWOT analysis is a planning tool used
to understand the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a domain.

4. STRENGTHS
 Productive and Highly Fertile Agriculture domain.
 Participation of Migrated Labor.
 Geographical Location: Transit and Trans-shipment scope.
 Relaxed Labor law.
 Listed as Least developed country in World Trade
Organization.
 Innovative fabric consumption in garments production.
 Crop grown around the year.
 Huge number of diligent, young manpower.
 Women participation
 Convenience of BTB L/C and duty free custom bonded
warehouse.

5. WEAKNESS
 Industrial Management Inefficiency: If the number of labor
exceed 10,000 then management capability decline therefore,
specially garment owner, interests in small factory rather than
larger factory.
 Lower economize of Scale.
 Very wide trade gap that is unfavorable balance of trade &
balance of payment position: US based export but Asia based
Import policy.
 Unstable Government Policy.
 Low Productivity and Quality.
 Corrupted & inefficient Bureaucracy.
 Serious “Brain Drain”: Transfer of resources in the form of
human capital.
 High degree of irresponsibility, callousness & indifference on the
part of public sector projects.

6. OPPORTUNITIES
 Remittance earning scope: Labor Migration.
 FOB (Freight on Board) based High Value Textile and Garments business
instead of only CM (Cost of Making) based.
 Fisheries: Fish and prawn exports, Shrimp processing and export.
 Tourism.
 Relaxed Labor law.
 Tax holiday Facility (THF): 5 years: Industries located in Dhaka and Chittagong
 Duty Exemption and Concessions on Machinery:
 For 100% export oriented industry, no import duty is charged in
capital machinery.
 Value Added Tax (VAT) is not payable for imported capital machinery and
spares.
 Import duty @ 7.5% is secured in the form of bank guarantee or an
indemnity bond is returned after installation of the machinery.
 Avoidance of Double Taxation:
 For Foreign Investors, double taxation can be avoided on the basis of
Bilateral Double Taxation Avoidance Treaties (DTTs).

7. Incentives to Non Resident Bangladeshi (NRBs):
Tax exemption on the interest on foreign loan under certain conditions.
Exemption of income tax up to 3 years for the foreign technicians employed in industries specified in the
relevant schedule of the income tax ordinance.
Tax exemption on income of the private sector power generation company for 15 years from the date of
commercial production.
Citizenship by investing a minimum of US$ 500,000 or by transferring US$ 1,000,000 to any recognized
financial institution (non-repatriable).
Permanent resident ship by investing a minimum of US$ 75,000 (non-repatriable).
Tax exemption on the capital gain from the transfer of shares of public limited companies listed with a stock
exchange.
Incentives to Export-Oriented and Export-Linkage Industries:
Duty free import of capital machinery and spare parts up to 10% of the value of such capital machinery.
Back to Back L/C: Bonded warehouse and back to back letter of credit facility.
Loan Facility: Providing loans up to 90% of the value against irrevocable and confirmed letter of
credit/sales agreement.
Duty-free samples: The import of specified quantities of duty-free samples for manufacturing exportable
products.
Scheme Facility: The export Credit Guarantee Scheme facility.
Domestic market Facility: 100% export-oriented industry outside EPZ is allowed to sell 20% of their
products in the domestic market on payment of applicable duties and taxes.
Exempt Local Taxes: Export-oriented industries are exempt from paying local taxes such as municipal tax.

8. THREATS
 Emerging Myanmar Economy.
 Diversification of Sri Lankan economy.
 Some African and Caribbean countries have enjoyed zero-tariff facility.
 Impact of Dutch Disease in Bangladesh Economy.
 Predisposition of unseasonal agriculture tendency i.e. Boro cultivation in
winter season.
 Economic instability in Middle East country: Threat Banladeshi Labor
Migration.
 Depleting natural resources base-such as ground water, natural gas etc.
 Insufficient support towards innovative, fundamental/adaptive research
and efforts.
 Hidden Momentum.
 “The Mega-Project – New Roadmap”: 2016 Bangladesh Budget (estimated cost) :
 Metrorail: $2.8 billion
 The Payra deep seaport: $15.5 billion
 Rooppur Nuclear Power Plant: $ 12.65 billion
 Padma Bridge: $ 3.00 billion
 Sonadia Deep sea port: $2.229 billion
 Matarbarhi coal-based power plant: Tk 276.1 core

9. STEP: 2:
SWOT Analysis Part:
1) Strength Vs Opportunity: =
Favorable for Bangladesh int. trade.
Strength (+) positive Opportunity (+) positive
Geographical Location: Transit and
Transshipment scope.
Earning service charge and others
related fee.
Listed as Least developed country in
World Trade Organization (WTO).
Pharmaceuticals Manufacturing,
Country of Origin, Free Use of
copy rights products.
Innovative fabric consumption in
garments production.
FOB based high value textile and
garments business i/o CM
business.
Huge number of hard-working
manpower.
Remittance earning scope: Labor
Migration.
2) Strength Vs Threats: =
Unfavorable for Bangladesh int. trade.
Strength(-) negative Threats (+) positive
Geographical Location: Transit and
Transshipment scope.
Emerging Myanmar and Sri
Lankan economy.
Listed as Least developed country
in World Trade Organization
(WTO).
Intended to be middle economy
country without profound economic
stability
Innovative fabric consumption in
garments production.
Impact of Dutch Disease in
Bangladesh economy.
Huge number of hard-working
manpower.
Adverse government involvement
and lack of policy reform.

10. 3) Weakness Vs Opportunity: =
Unfavorable for Bangladesh int. trade.
Weakness (+) positive Opportunity (-) negative
Corrupted & inefficient Bureaucracy
and Lack of democratic
negotiations ability
Earning service charge and others
related fee from Transit.
Wrong & Unstable Government
Policy.
Pharmaceuticals Manufacturing,
Country of Origin, Free Use of copy
rights products.
Industrial Management Inefficiency.
FOB based high value textile and
garments business i/o CM business.
Low Productivity and Quality.
Remittance earning scope: Labor
Migration.
4) Weakness Vs Threats: =
Favorable for Bangladesh int. trade.
Weakness(-) negative Threats(-) negative
Industrial Management Inefficiency
and Lower economize of Scale.
Emerging Myanmar and Sri Lankan
Economy
Wrong & Unstable Government
Policy.
Intended to be middle economy
country without profound
economic stability
Low Productivity and Quality.
Impact of Dutch Disease in
Bangladesh economy.
Corrupted & inefficient
Bureaucracy and Lack of
democratic negotiations ability
Adverse government involvement
and lack of policy reform.

11. STEP: 3
Decision and Recommendations:
From the discussion so far made, it is clear that there are ample domain that need for improvement and build
up a strong committed structural process. The following measures may be The following measures may be
suggested as identified:
Decision:
 We should emphasize on Agriculture based export oriented business and diversified other the exportable
products.
Recommendations:
 Develop a new export/ import currency exchange policy such as Chinese Renminbi.
 There is an Inverse economic relations between United States of America and Bangladesh economy. If the
purchase power of American people decreased then there is a positive possibility to improve Bangladesh
foreign trade especially Readymade Garments sector. So, we always need to update and conscious about
global trade issues, especially on American economy.
 Diversified export items.
 Emphasize on value added products instead of low value items.
 Emphasize on Agriculture based industry.

12. Thank You.