Structural Shifts in Korea-Bangladesh Export Items, 2021-2023
Overview of Structural Shifts in Export Items
Korea's exports to Bangladesh grew from $1.6 billion to $2.0 billion between 2021 and 2023, marking 25% growth while also revealing notable changes in the product mix. Textile machinery had traditionally been the largest export category, but the share of energy equipment and electrical and electronic products has expanded rapidly, indicating a more diversified export portfolio.
On an HS 2-digit basis, the top 10 product groups account for roughly 75% of total exports, and the top three categories, steel, textile machinery, and electrical and electronic goods, represent more than half of the total. Tracking these structural shifts helps Korean firms refine their export strategy for Bangladesh.
$2.0B
Total Exports
as of 2023
+25%
3-Year Growth
$1.6B to $2.0B
75%
Top 10 Share
HS 2-digit basis
Steel
Largest Item
HS 72-73
Energy Equipment
Fastest Growth
+87%
Textile Machinery
Largest Decline
-10%
Solar Products
Emerging Item
HS 8541
450+
No. of Items
HS 6-digit basis
Trends in Major Export Items
A review of leading export categories on an HS 2-digit basis shows that steel (HS 72-73) remained the top export item for three consecutive years, reflecting demand from Bangladesh's construction and infrastructure sectors. Textile machinery maintained second place despite a declining share, while electrical and electronic goods (HS 85) climbed rapidly into third place.
Three-Year Trend of Korea's Top Export Items to Bangladesh (Unit: $M)
Item (HS)
2021
2022
2023
Growth Rate
Share (2023)
Steel (72-73)
340
380
420
+24%
21%
Textile Machinery (8444-49)
400
380
360
-10%
18%
Electrical & Electronics (85)
240
320
400
+67%
20%
Energy Equipment (84)
128
180
240
+87%
12%
Plastics (39)
120
130
140
+17%
7%
Chemicals (28-38)
100
110
120
+20%
6%
Auto Parts (87)
80
90
100
+25%
5%
Optical Instruments (90)
48
55
60
+25%
3%
Growth Segments vs. Declining Segments
High-Growth Categories (Top 4)
Energy Equipment+87% - turbines, boilers, solar modules
Optical Instruments+25% - surveying, medical, semiconductor use
Declining or Flat Categories
Textile Machinery-10% - market saturation and Chinese competition
Synthetic Fibers-5% - rising local production
Paper & Pulp-8% - impact of digitalization
Audio Equipment-12% - substitution by Chinese products
The common feature among fast-growing categories is their close connection to public infrastructure investment in Bangladesh. Energy equipment (+87%) has been driven by BPDB and PGCB projects. Electrical and electronic goods (+67%) are tied to power-grid modernization, while auto parts (+25%) reflect expansion in transport infrastructure. By contrast, textile machinery (-10%) has weakened as the investment cycle in Bangladesh's textile sector matures and competition intensifies from lower-priced Chinese machinery.
Strategic Recommendations for Exporters
01
Expand Energy Equipment Exports
Energy equipment recorded the highest growth over the three-year period at 87%. Demand is being generated by BPDB power-plant projects, PGCB transmission expansion, and SREDA solar deployment programs. Korean firms should scale exports in HS 8406 (turbines), 8402 (boilers), and 8541 (solar cells), while linking export activity with participation in public procurement tenders.
02
Move Electrical Exports Up the Value Chain
Exports of electrical and electronic goods surged from $240 million to $400 million, but category-level pricing and product mix still matter. Firms should increase the share of higher-value items such as transformers (HS 8504), GIS equipment (HS 8535), and power cables (HS 8544), while avoiding direct price competition with China and India in low-end generic components. Alignment with PGCB projects will be critical.
03
Differentiate Textile Machinery Offerings
Although textile machinery exports are declining, Bangladesh's apparel industry remains a roughly $45 billion market, so the demand base is still substantial. Korean suppliers should differentiate from low-cost Chinese machinery by shifting toward automated and digital textile machinery, including smart-factory solutions. Equipment with energy-efficiency and environmental-performance features should gain traction as compliance requirements tighten.
04
Develop New Product Niches in ICT and Medical Devices
ICT equipment (HS 8471 computers and HS 8517 communications equipment) and medical devices (HS 9018) still account for a small share of exports, but they offer strong growth potential. Demand should rise alongside Smart Bangladesh 2041-related ICT infrastructure investment and healthcare modernization. A detailed HS 6-digit review can help identify attractive niche products.
Structural Shifts in Exports and Strategic Direction
This review of structural shifts in Korea's export items to Bangladesh provides a clear strategic signal for Korean companies. Energy equipment and electrical products have become the main growth engines, and strong expansion is likely to continue through 2024-2025 as infrastructure investment increases further. Textile machinery requires a sharper differentiation strategy, while new categories such as ICT and medical devices offer a path to broaden the export portfolio and sustain long-term growth.