
Experts caution that diversification of export products is essential as Bangladesh attempts to escape the Least Developed Countries (LDC) category, as this over-reliance on a single commodity and market poses serious hazards.
Any commercial or diplomatic friction in important export regions could result in a fast loss in earnings and a sudden decline in the demand for clothing worldwide could cause significant disruption.
Since the United States imposed counter-tariffs, Bangladesh’s garment exports have decreased for two months in a row. The fall in garment exports has also dragged down the country’s overall export earnings. While overall exports fell by 4.61% in September, clothing exports fell by 5.66%.
As Bangladesh works to leave the Least Developed Countries (LDC) category, experts warn that this excessive reliance on a single product and market presents significant risks and that export product diversification is crucial.
Despite a decline last month, Bangladesh’s top-earning industry is still the garment sector, according to data from the Export Promotion Bureau (EPB). In September 2025, apparel exports stood at US $ 2.839 billion, compared to US $ 3.011 billion in the same month last year.
The exports of Bangladesh are four times more concentrated than those of other developing nations, according to a recent Asian Development Bank (ADB) paper titled Promoting Export Diversification in Bangladesh.
With almost 80% of exports flowing to North America and the European Union, the research emphasised the nation’s excessive reliance on a small number of markets. 72% of Bangladesh’s total exports come from 10 nations, compared to 52% for India and 64% for Sri Lanka.
Syed Nasir, Managing Director of Exclusive Can, discussed the need for diversification, saying that Bangladeshi companies should attend more international trade shows in order to increase export diversity.
“To increase exports, we need to improve our laws, lower corporate tax rates and follow other nations’ export-boosting tactics,” he said.
“Due to the tariff shock from the United States, Bangladesh’s apparel exports fell by 5.66% in September, which has directly affected the country’s overall export earnings,” said Mohammad Hatem, President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).