With new BNP govt, Dhaka turns eastward
The newly formed BNP government is seeking to strengthen economic engagement with Southeast Asia, signalling renewed emphasis on the ‘Look East Policy’ to diversify Bangladesh’s trade, investment and energy partnerships.
Officials say the strategy aims to broaden the country’s economic relations beyond its traditional partners while exploring opportunities in fast-growing Asian markets.
The Bangladesh Nationalist Party’s ‘Look East Policy’, first introduced during the tenure of former prime minister Khaleda Zia in 2001–2002, is again being highlighted as an important element of the party’s foreign and economic policy thinking.
The policy centres on strengthening ties with East and Southeast Asian economies, particularly China, Japan and member states of the Association of Southeast Asian Nations (ASEAN).
Officials say the initiative reflects an effort to expand export destinations, attract new investment and tap into emerging regional markets.
“Bangladesh’s engagement with ASEAN has remained relatively limited over the years,” said a senior official at the Ministry of Commerce. “Despite various initiatives, exports to the region account for only a small share of the country’s overall trade.”
Export statistics highlight the gap.
In the fiscal year 2024–25 (July 2024–June 2025), Bangladesh’s total exports reached about $48.28 billion, an increase of 8.58 per cent compared with the previous year.
The growth was largely driven by strong performance in the readymade garments sector.
However, exports to ASEAN countries remained modest, representing roughly one to two per cent of the total export volume.
Goods worth less than $1 billion were shipped to markets including Thailand, Indonesia, Brunei, Singapore, Philippines and Myanmar, according to data from the Export Promotion Bureau.
The figures show exports of approximately $61 million to Thailand, $56 million to Indonesia, $13 million to Brunei, $110 million to Singapore, $86 million to the Philippines and $34 million to Myanmar.
Business leaders say the ASEAN market offers considerable potential for Bangladesh.
With a combined population of more than 700 million people and growing industrial demand, the region is increasingly viewed as a promising destination for Bangladeshi goods and services.
Former president of the Bangladesh-Malaysia Chamber of Commerce and Industry Alamgir Jalil has previously pointed to opportunities for Bangladesh to expand exports of technology-related products and skilled manpower to ASEAN economies.
“Bangladesh already exports semi-conductors to Malaysia and has the capacity to develop skilled labour for sectors where demand exists,” he said.
Among ASEAN countries, Thailand has emerged as a key focus of the renewed engagement.
The newly appointed Thai ambassador to Bangladesh, Thithiporn Chirasawadi, has indicated Bangkok’s interest in exploring a bilateral free trade agreement that could help expand trade and encourage investment.
Officials are also discussing the possibility of establishing a direct shipping route between Thailand’s Ranong port and Bangladesh’s Chittagong port, a move expected to improve maritime connectivity and reduce logistical costs for businesses in both countries.
Thai trade officials have emphasised the importance of addressing tariff and non-tariff barriers to unlock the full potential of bilateral trade.
Bangladesh, meanwhile, has expressed interest in deepening engagement with ASEAN, including support for greater institutional cooperation with the regional bloc.
Energy security is another factor shaping Bangladesh’s renewed focus on Southeast Asia.
As volatility in global energy markets raises concerns about supply stability, the government has been exploring options to diversify sources of petroleum imports.
Bangladesh has traditionally depended on Middle Eastern suppliers such as Saudi Arabia, Qatar, United Arab Emirates, Kuwait, Iraq and Oman.
Officials say the country is now also considering greater imports of refined petroleum products from ASEAN states.
State Minister for Power, Energy and Mineral Resources Anindya Islam Amit said Brunei is expected to export around 120,000 tonnes of oil to Bangladesh, while discussions are under way with Singapore, Malaysia and Indonesia regarding additional petroleum supplies.
“We are exploring alternative energy sources to ease potential supply pressures,” the minister said.
Diplomats in Dhaka indicate that ASEAN countries have shown interest in expanding economic cooperation with Bangladesh. Meetings between ASEAN representatives and leaders of the International Chamber of Commerce Bangladesh have highlighted opportunities for trade expansion, renewable energy investment and the development of skilled human resources.
Nguyen Manh Cuong, chair of the ASEAN Dhaka Committee and ambassador of Vietnam to Bangladesh, said ASEAN countries see strong potential in Bangladesh’s export sector.
He also stressed the importance of promoting new products and strengthening direct air and maritime connectivity to facilitate trade.
Officials say Bangladesh is also seeking to diversify export destinations beyond traditional markets such as the United States, European Union, United Kingdom, Canada, Japan and Australia.
Analysts note that closer engagement with Southeast Asia could provide Bangladesh with new economic opportunities as global trade patterns evolve.
While exports to ASEAN remain relatively small, business leaders believe that improved logistics, greater investment and trade agreements could help strengthen Bangladesh’s presence in the region in the coming years.
For policymakers, the renewed ‘Look East’ approach reflects an effort to position Bangladesh more firmly within Asia’s dynamic economic landscape while expanding the country’s trade and strategic partnerships.
