2024 Business Conditions Survey: Overview
The KOTRA Dhaka Trade Center conducts an annual business conditions survey of Korean companies operating in Bangladesh. The 2024 survey registered approximately 180 Korean companies active across Bangladesh, of which 150 completed the questionnaire. This dataset represents the most reliable reference source available to Korean companies evaluating Bangladesh market entry.
Korean corporate presence in Bangladesh spans approximately four decades, beginning with the garment industry in the 1980s. The initial concentration in apparel and textiles has steadily diversified into IT, trading, services, and energy. The 2020s in particular have seen a notable increase in new entrants in digital services, fintech, and logistics.
Sector Distribution: From Garments to Digital
Apparel and textiles remain the largest sector by number of companies, but trading, IT/services, and non-apparel manufacturing have steadily increased their share. This pattern mirrors the broader diversification of the Bangladesh economy away from garment dependence.
| Sector | Companies | Share | Primary Activities | Employment Scale |
|---|---|---|---|---|
| Apparel & Garments | 68 | 38% | OEM/ODM production, exports | ~85,000 |
| Textiles & Yarn | 22 | 12% | Fabric and yarn production | ~12,000 |
| Trading & Commerce | 25 | 14% | Import/export brokerage, sourcing | ~3,000 |
| Manufacturing (Non-apparel) | 18 | 10% | Wigs, footwear, electronic components | ~8,000 |
| Construction & Engineering | 12 | 7% | Infrastructure construction, plants | ~5,000 |
| IT & Services | 15 | 8% | Software development, BPO, consulting | ~2,500 |
| Logistics & Transport | 8 | 4% | Freight forwarding, customs clearance | ~1,500 |
| Other (Food, Energy, etc.) | 12 | 7% | Food processing, solar, etc. | ~3,000 |
Regional Distribution: Dhaka–Chittagong Concentration
Korean companies are heavily concentrated in the Dhaka metropolitan area (67%) and Chittagong (23%). Within greater Dhaka, the Dhaka EPZ, the Ashulia industrial zone, and the Gazipur industrial cluster are the primary hubs for Korean apparel and manufacturing companies. Chittagong companies are predominantly export-oriented manufacturers leveraging port proximity.
| Region | Companies | Share | Key Locations | Characteristics |
|---|---|---|---|---|
| Dhaka Metropolitan Area | 120 | 67% | EPZ, Ashulia, Gazipur | Headquarters and office concentration |
| Chittagong | 42 | 23% | CEPZ, near Chittagong Port | Export manufacturing dominant |
| Narayanganj | 8 | 4% | Industrial parks under development | Emerging entry destination |
| Other Regions | 10 | 6% | Rajshahi, Sylhet, etc. | Agriculture and energy projects |
Large Corporations vs. SMEs: Entry Pattern Comparison
Segmenting Korean companies in Bangladesh by revenue scale reveals distinct entry patterns between large corporations (annual revenue $10M or above) and SMEs (below $10M). Large corporations typically enter through substantial investments in apparel, construction, and energy; SMEs more commonly begin at smaller scale in trading, services, and IT.
Top Five Operational Challenges
The following challenges were most frequently cited in the business conditions survey. These represent the core risk factors Korean companies must prepare for before entering the Bangladesh market.
Korean Companies' Three-Year Business Plans
When asked about business plans for the next three years, 62% of survey respondents indicated plans to "maintain or expand" operations. Expansion intent was highest in IT/services, logistics, and non-apparel manufacturing.
| Plan | Response Rate | Primary Sectors | Key Details |
|---|---|---|---|
| Business Expansion | 35% | IT, logistics, manufacturing | New factories, workforce growth, product diversification |
| Status Quo | 27% | Apparel, trading | Maintain current production lines, pursue efficiency improvements |
| Cautious Wait-and-See | 22% | All sectors | Monitor political and economic conditions before committing |
| Considering Scale-down | 10% | Apparel (selected companies) | Responding to wage increases and declining order volumes |
| Considering Exit | 6% | Trading (selected companies) | Deteriorating market conditions and profitability decline |
The primary investment areas among companies planning expansion include factory automation (smart factory implementation), new production line additions, and digital service expansion. A notable trend among apparel companies is the increasing frequency of green facility investments driven by ESG compliance requirements.
The Korean companies in Bangladesh directory captures the first-hand experience and operational data of companies already active in the market. Companies evaluating new market entry can use this material for sector benchmarking, location selection guidance, and advance risk identification. The detailed directory — including company names, contact information, and sector classifications — is available upon request from the KOTRA Dhaka Trade Center.