Bangladesh and ASEAN: A Partnership for Growth, Connectivity and Stability
MD Shamadul Islam
Data Analyst | Former Digital Marketing Executive & IT Trainer | Geopolitics Enthusiast | Aspiring Advertising Agency Founder
The Association of Southeast Asian Nations (ASEAN), comprising ten dynamic member countries, stands as a significant global economic bloc with a collective GDP of $4.5 trillion and a population of over 680 million people. Bangladesh, with its remarkable growth trajectory, strategic location, and youthful population, has increasingly become a player of importance on the global stage. The question is, could Bangladesh's inclusion in ASEAN be the next great leap for both the nation and the regional bloc? This article explores why ASEAN should consider Bangladesh as a new member and how both sides would benefit from this partnership.
Bangladesh: A Rising Economic Power
Impressive Economic Growth
Over the past decade, Bangladesh has consistently outpaced its neighbors in terms of economic growth. The country's GDP has been growing at an average rate of 6.5% annually, making it one of the fastest-growing economies globally. As of 2024, Bangladesh's GDP stands at approximately $500 billion, placing it among the world's top 40 largest economies. This rapid growth is attributed to several factors, including a burgeoning manufacturing sector, robust remittances, and an expanding service industry.
Bangladesh is also experiencing a demographic shift, with 65% of its population under the age of 35, providing it with a young, dynamic, and increasingly skilled workforce. This demographic dividend presents a huge opportunity for ASEAN to tap into Bangladesh’s labor force, particularly in industries like textiles, construction, and information technology.
Export Growth and Trade Potential
Bangladesh has positioned itself as a global leader in the export of ready-made garments (RMG). It is the second-largest exporter of RMG globally, with export revenues nearing $46 billion annually. In addition, Bangladesh is making strides in sectors such as pharmaceuticals, leather goods and information and communication technology (ICT).
While Bangladesh’s trade relations with ASEAN countries have been growing steadily, reaching $13 billion in 2022, membership in ASEAN could significantly increase the volume of trade, offering duty-free access to the ASEAN Free Trade Area (AFTA) and enabling Bangladesh to benefit from ASEAN’s various regional trade agreements (RTAs). This enhanced trade access can boost Bangladesh’s garment exports, but also open doors for sectors such as ICT, pharmaceuticals, and agriculture.
ASEAN: A Bloc of Regional Economic Power
Hub for Trade and Investment
ASEAN is not only a major economic bloc but also an attractive destination for foreign direct investment (FDI). In 2022, the region received more than $174 billion in FDI, a testament to its business-friendly environment, stable growth, and vibrant manufacturing sectors. Furthermore, ASEAN's collective GDP exceeds $4.5 trillion, and its intra-regional trade accounts for more than 20% of the total trade volume. The region is a powerhouse in global manufacturing and trade, particularly in electronics, automobiles, and energy.
ASEAN is also home to rapidly growing consumer markets. Countries like Vietnam, Indonesia, and Thailand are seeing the rise of a new middle class, creating massive demand for goods and services from other ASEAN countries as well as from external markets. With its strategic location, Bangladesh could serve as a gateway to connect ASEAN with South Asia, the Middle East, and Africa, thus benefiting from greater cross-border trade and investment opportunities.
Why ASEAN Should Welcome Bangladesh
1. Economic Synergies and Expanding Markets
Bangladesh’s 170+ million population presents a substantial new market for ASEAN countries, which would benefit from the demand for consumer goods, automobiles, electronics, and other products. The country’s rapidly expanding middle class is increasingly becoming a consumer force, providing ASEAN businesses with access to a growing market. Bangladesh’s inclusion in the ASEAN fold would complement ASEAN’s collective consumer base of over 680 million people and contribute to expanding regional demand.
Additionally, Bangladesh’s key sectors like garments, leather goods, and pharmaceuticals align perfectly with ASEAN’s manufacturing hubs, such as Vietnam, Indonesia, and Thailand, fostering cross-border collaboration and creating a more integrated regional economy.
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2. Regional Connectivity and Infrastructure Expansion
Bangladesh’s strategic location is a significant asset. Its position between South Asia and Southeast Asia gives ASEAN countries unparalleled access to the Indian subcontinent, the Middle East, and African markets. By joining ASEAN, Bangladesh would participate in regional connectivity initiatives like the Master Plan on ASEAN Connectivity (MPAC 2025), which focuses on infrastructure development, transport, and logistics networks.
Bangladesh’s infrastructure development in recent years, including projects like the Matarbari Deep-Sea Port, enhances its potential as a key regional trade and transit hub, facilitating faster and more cost-effective movement of goods across Southeast Asia and beyond.
3. A Young, Dynamic Workforce
Bangladesh’s young, growing workforce presents ASEAN with opportunities to source labor for various industries, including construction, agriculture, textiles, and services. As ASEAN faces an aging population in some member states, Bangladesh could play an essential role in alleviating labor shortages while contributing to the economic dynamism of the region.
How Bangladesh Can Benefit from ASEAN Membership
1. Duty-Free Access to ASEAN Markets
As a member of ASEAN, Bangladesh would benefit from the ASEAN Free Trade Area (AFTA), which would grant it duty-free or preferential access to the region’s markets. This would be a major advantage for Bangladesh’s textile and pharmaceutical sectors, which are already among its top export earners. Access to ASEAN’s vast market of over 680 million consumers would expand Bangladesh’s export base and reduce dependence on traditional markets in the EU and the U.S.
2. Boost in Foreign Direct Investment (FDI)
ASEAN is a leading destination for FDI due to its economic stability, integrated market, and trade-friendly policies. As part of ASEAN, Bangladesh would become part of this lucrative investment landscape, attracting new foreign investments in key sectors such as infrastructure, ICT, and energy. ASEAN’s investment frameworks could provide Bangladesh with the tools needed to foster its own industrialization and economic diversification.
3. Learning from ASEAN’s Development Models
Countries like Vietnam and Malaysia have successfully implemented industrial policies that spurred economic growth and development. By joining ASEAN, Bangladesh would gain access to these models, which it could adapt to its own context to drive future growth. Cooperation with ASEAN on matters such as digital economy, e-commerce, and green energy would further enhance Bangladesh’s economic standing in the region.
Addressing the Rohingya Crisis: ASEAN’s Role
One of the most pressing issues Bangladesh faces is the ongoing Rohingya refugee crisis. Since 2017, more than 1.1 million Rohingya refugees have fled to Bangladesh, creating a humanitarian emergency in the country. ASEAN’s collective diplomacy and engagement could provide crucial support in resolving this crisis.
ASEAN’s Potential Contribution:
A Win-Win Partnership for Bangladesh and ASEAN
The potential for a mutually beneficial partnership between Bangladesh and ASEAN is vast. Bangladesh offers ASEAN a young, dynamic workforce, new trade opportunities, and strategic regional connectivity. ASEAN, in turn, can provide Bangladesh with access to lucrative markets, investment opportunities, and expertise in infrastructure and industrial growth.
By welcoming Bangladesh as a member, ASEAN stands to strengthen its regional position, while Bangladesh could accelerate its path toward becoming a global economic player. With shared interests in economic growth, regional stability, and sustainable development, this partnership could usher in a new era of prosperity for both Bangladesh and ASEAN.