Trade & Business

Bangladesh Import Trend 2020: $54B Import Structure and Export Opportunities for Korea

Bangladesh Import Outlook Overview

Bangladesh imported around US$54 billion in 2020, down 10% from US$60 billion in the prior year. The decline was mainly driven by pandemic-related demand contraction and lower raw-material prices. The five largest supplier countries were China, India, Singapore, Korea, and Japan. Textile inputs, petroleum and energy products, machinery, food, and chemicals were the top import categories. Roughly 30% of imports were related to input materials for the RMG sector, closely tied to back-to-back L/C trading flows.

US$54B
Total Imports
FY 2020
-10%
Year-over-Year
vs. prior year
-US$18B
Trade Deficit
FY 2020
US$52B
L/C Openings
banking data
China
Top Supplier
US$15B
30%
RMG Inputs
import share

Import Composition by Category

Bangladesh Major Import Commodities (2020)
ItemImport ValueShareYoYMain Suppliers
Textile Inputs (Yarn, Fabric)US$12B22%-12%China, India, Korea
Oil & EnergyUS$6B11%-25%Saudi Arabia, UAE, Singapore
Machinery & EquipmentUS$5.5B10%-8%China, Japan, Korea
Steel & MetalsUS$4.5B8%-5%Japan, China, Korea
Chemicals & PlasticsUS$4B7%+2%Korea, Saudi Arabia, India
Edible Oils & FoodUS$3.5B6%+5%Indonesia, Malaysia
Electronics & ElectricalUS$3B6%+8%China, Korea, Japan
Grains & SugarUS$2.5B5%+10%Australia, Brazil, India
Automobiles & TransportUS$2B4%-15%India, Japan, China
OthersUS$11B21%-5%Diverse

The 25% fall in oil and energy imports reflected both weaker global oil prices and reduced shipping demand during COVID-19 disruptions. In contrast, imports of food and grains rose 10%, indicating stronger domestic food security demand.

Comparison of Main Suppliers

China (largest at US$15B)
Share28%
StrengthsTextiles, machinery, electronics, steel
Trendshare expanding
Notelargest single supplier of RMG inputs
Korea (4th, US$1.2B)
Share2.2%
StrengthsTextiles, chemicals, steel, machinery
Trendsteady
Notecompetitive in quality and technology intensity
01
RMG Input Import Structure
Roughly 30% (US$16B) of Bangladesh imports were raw materials and components for the RMG value chain. (1) Yarn (cotton, synthetic): US$5B (India, China, Korea). (2) Fabric (woven, knit): US$4B (China, India). (3) Accessories (zipper, button, labels): US$2B (China, Korea, Japan). (4) Sewing equipment (sewing and cutting machines): US$1.5B (Japan, China, Korea). (5) Chemicals (dyes, auxiliaries): US$1.5B (China, India, Korea). Back-to-back L/C, where input imports are linked to re-export workflows, remains the core mechanism.
02
COVID and Import Contraction
In 2020, Bangladesh import volume contracted by about US$6B. (1) RMG inputs declined as export orders weakened, lowering linked input purchases. (2) Petroleum dropped with lower crude prices (US$60 to US$40 per barrel) and weaker freight demand. (3) Vehicles fell 15% due to reduced new-car demand. (4) In contrast, demand for medical goods (PPE, test kits, oxygen concentrators) exceeded US$0.5B. (5) Food imports rose 5 to 10% on precautionary stockpiling.
03
Korean Export Target Products
High-potential categories for Korean exporters in Bangladesh are: (1) Synthetic fibers and yarn: polyester and nylon yarn (existing exports about US$35M). (2) Chemicals: plastic resins, dyes, adhesives. (3) Steel products: cold-rolled, galvanized sheet, stainless steel. (4) Machinery: construction equipment, textile machinery, packaging equipment. (5) Electronics: semiconductors, display-related components, consumer appliance parts. (6) New segments: cosmetics, food, medical devices, auto parts.
04
Import Controls and Outlook
(1) Average applied MFN tariff is around 27%, among the highest in Asia. (2) L/C margin varies by bank from 5% to 50% depending on credit profile. (3) Import controls require prior registration or pre-clearance for selected items, including BSTI certification. (4) Advance Tax is charged at 5% at import declaration. (5) Outlook: LDC graduation in 2026 is expected to gradually lower tariff ceilings and widen import market access. (6) Digitization: eCRF digital customs filing is shortening clearance timelines.

Import Trend Trajectory

2015
US$40B
2016
US$42B
2017
US$48B
2018
US$56B
2019
US$60B
2020
US$54B
2025 outlook
US$75B
Bangladesh Tariff Schedule 2020Detailed import tariff rates
Bangladesh Customs Procedure 2020Practical import clearance guide

Bangladesh's US$54B import market in 2020 remains a meaningful entry point for Korean firms. In addition to existing textile, chemical, and steel exports, expansion into cosmetics, food, medical devices, and electronics is promising, especially as tariff reductions are expected after LDC graduation in 2026.

ImportsBangladeshRaw Materials2020Trade
Bangladesh Import Trend 2020: $54B Import Structure and Export Opportunities for Korea | Dhaka Trade Portal