Overview of KOTRA's 2023 Market Entry Strategy Report
This article reviews the key messages from KOTRA's 2023 Bangladesh market entry strategy report. Published by the Korea Trade-Investment Promotion Agency, the report is designed to support Korean companies entering overseas markets with country-specific analysis of market conditions, promising industries, and entry strategies.
The 2023 edition covers Bangladesh's macroeconomic environment, industrial structure, trade and investment conditions, business risks, and high-potential products, while also presenting practical entry strategies and case-based implications for Korean businesses.
2023
Publication
KOTRA
$460B+
BD GDP
2023 estimate
6.0%
GDP Growth
2023 outlook
170M+
Population
World #8
$2,700+
GDP per Capita
2023 estimate
$2.5B+
Korea-BD Trade
Two-way trade
7 sectors
Promising Sectors
Identified
500+
Korean Presence
Companies
Macroeconomic Environment Analysis
Bangladesh Macroeconomic Indicators (2023 report basis)
| Indicator | 2021 | 2022 | 2023 (Outlook) | Note |
|---|---|---|---|---|
| GDP Growth | 6.9% | 7.1% | 6.0% | Affected by global slowdown |
| Inflation | 5.6% | 6.2% | 9.0%+ | Food and energy prices |
| Current Account | -$18B | -$6B | -$5B | Deficit narrowing |
| FX Reserves | $46B | $33B | $25B | Downward trend |
| Exchange Rate (BDT/$) | 85 | 100 | 110 | Ongoing depreciation |
| FDI Inflows | $2.9B | $3.5B | $3.0B | Relatively stable |
Analysis of Promising Industries
Manufacturing and Export Sectors
Apparel and Garments85% of BD exports, world #2
Leather and FootwearCore sector for export diversification
PharmaceuticalsStrong generics base, exports expanding
ICT and SoftwareDriven by Digital BD 2041
Infrastructure and Energy
PowerCapacity expansion, LNG transition
TransportMetro, highways, bridges
Economic ZonesBEZA plan for 100 zones
Digital5G, data centers, fintech
Recommended Entry Strategies for Korean Companies
01
Export Textile Inputs to the Garment Industry
Bangladesh's garment industry is the world's second largest and remains highly dependent on imported yarn, fabrics, and accessories such as zippers, buttons, and labels. Korean textile companies can build market share by supplying higher-value functional fabrics, eco-friendly materials such as recycled polyester, and smart textile solutions.
02
Participate in Infrastructure Projects
Bangladesh is pursuing large-scale infrastructure investment under its long-term national development agenda. Korean construction and engineering firms can target metro rail, highways, bridges, and LNG terminal projects. Bid competitiveness improves further when projects are linked with EDCF financing.
03
Invest in Special Economic Zones
BEZA is developing 100 economic zones, and a Korean-dedicated EPZ is already in operation. Manufacturing investors in sectors such as apparel, electronics, and auto parts can benefit from incentives including 10-year tax exemptions, duty exemptions, and guaranteed profit repatriation.
04
Expand into ICT and Fintech
The Digital Bangladesh 2041 agenda continues to accelerate ICT infrastructure investment. Demand is rising for fintech solutions, cybersecurity, and cloud services as mobile financial services platforms such as bKash and Nagad scale quickly. Korean IT firms can explore opportunities in e-government, smart city projects, and digital finance.
Business Risk Assessment
Key Business Risk Factors in Bangladesh
| Risk | Severity | Description | Response Strategy |
|---|---|---|---|
| Political Instability | High | Government change, protests, hartals | Maintain diverse political channels |
| Foreign Exchange Shortage | High | Dollar liquidity constraints, delayed L/C opening | Use KRW settlement and KEXIM tools |
| Infrastructure Gaps | Medium | Power, logistics, and port bottlenecks | Secure backup power and diversify logistics |
| Corruption and Bureaucracy | Medium | Permit delays and informal costs | Work through reliable local partners |
| Natural Disasters | Medium | Floods and cyclones | Prepare insurance and business continuity plans |
How to Use the Strategy Report
KOTRA Strategy Report to Market Entry Workflow
Review the Report
Understand the market
→↓
Select Priority Sectors
Choose from seven sectors
→↓
Use KOTRA Support
Coordinate with the trade office
→↓
Conduct Local Research
Identify buyers and partners
→↓
Execute Entry
Move into trade or investment
KOTRA's market entry strategy report remains one of the most systematic guides available for entering Bangladesh. By integrating macroeconomic conditions, sector potential, and operational risks, it supports more disciplined strategic decision-making for Korean firms.
Market Entry Strategy Report 2025 vs 2023: A Timeline ComparisonCompare the major shifts between the 2023 and 2025 editions
Strategy Chapter 5: SWOT AnalysisReview the SWOT analysis of the Bangladesh market and its strategic implications
KOTRAmarket entry strategy2023Bangladeshreport
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