Tuesday, January 7, 2025
Year : 2, Issue: 19
by Shivam Goyal
Donald Trump’s potential return to the US presidency could present both challenges and opportunities for Bangladesh. Known for his transactional approach to foreign policy, Trump’s administration historically prioritized partnerships that demonstrated clear and immediate mutual benefits.
For Bangladesh, this means positioning itself as a valuable technology partner, a reliable trade ally, and a strategic counter to Chinese influence in South Asia. Capitalizing on Geopolitics: Bangladesh’s Role in the Indo-Pacific During his first term, Trump’s foreign policy emphasized trade and economic pragmatism, especially in strategically significant regions. Bangladesh, with its proximity to India, Myanmar, and the Bay of Bengal, holds unique geopolitical importance.
A Trump-led administration may see Bangladesh as a key ally in countering Chinese influence in South Asia. T o capitalize on this, Bangladesh can collaborate with the US on maritime security, anti-piracy operations, and digital infrastructure initiatives. Joining US-led frameworks like the Indo-Pacific Economic Framework (IPEF) could also create economic opportunities while reinforcing its strategic alignment with US interests. Vietnam’s successful participation in initiatives like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) demonstrates how nations can leverage such alliances to attract US investment.
Bangladesh can adopt a similar approach, signaling its commitment to cooperative, US-aligned strategies. Tech as the Catalyst: Positioning Bangladesh for US Partnership Bangladesh should focus on sectors aligned with US domestic priorities, such as cybersecurity, digital infrastructure, and tech services.
Cybersecurity as a Growth Area The global demand for cybersecurity solutions offers an opportunity for Bangladesh to shine. By investing in specialized training programs, Bangladesh could create a skilled workforce that appeals to US companies facing talent shortages. For example, the Philippines has successfully trained professionals for international markets, attracting significant US investment in tech.
Digital Outsourcing and Fintech Opportunities Positioning itself as a digital outsourcing hub could further strengthen ties with the US Bangladesh’s competitive cost structure, combined with its growing expertise in fintech, artificial intelligence, and data processing, makes it a compelling alternative to traditional outsourcing giants like India and the Philippines. Learning from Neighbors: Lessons from Vietnam and the Philippines Bangladesh can draw lessons from Vietnam’s success in attracting US investment through targeted incentives, improved infrastructure, and regulatory reforms.
Vietnam’s promotion of its tech and manufacturing capabilities, coupled with its strategic importance in the region, has yielded significant economic benefits. Similarly, the Philippines has capitalized on reforms in labor standards and ethical sourcing to secure US partnerships in tech and outsourcing sectors. By aligning its labor practices with international standards and fostering investor-friendly policies, Bangladesh can unlock new opportunities for foreign direct investment (FDI). Homegrown Global Success Stories in Bangladesh’s Tech Industry Bangladesh’s tech ecosystem already boasts success stories like Pathao and bKash.
Pathao, a rapidly growing ride-hailing and logistics company, has integrated digital payment solutions and attracted foreign investors. Similarly, bKash’s rise as a leading mobile financial services provider, with backing from global players like Alipay, highlights the sector’s potential. In telecommunications, Banglalink and Robi Axiata have invested in digital health platforms and high-speed networks. Collaborating with US firms in health tech and telecommunications could align Bangladesh with US goals for expanding digital infrastructure and reducing healthcare costs globally.
As a Roadmap for US Engagement to enhance its appeal as a US partner, Bangladesh can take the some steps in this regard.
Develop Specialised Tech Zones
Establish dedicated zones with tailored infrastructure, streamlined regulations, and tax incentives to attract foreign tech companies.
Invest in US-Aligned Skills Training
Expand programs like the Leveraging ICT for Growth, Employment, and Governance (LICT) Project to include cybersecurity and data analytics, partnering with US institutions to ensure global standards.
Enhance Labor Standards and IP Protection
Aligning with international labor and intellectual property standards can reassure US investors and attract ethical, long-term investments.
Strengthen Trade Agreements
Negotiating trade deals that favor tech exports and digital services can ease market access for US companies operating in Bangladesh.
Encourage Private Sector Partnerships
Facilitate collaborations between local startups and American firms in fintech, agritech, and health tech to foster a robust, collaborative ecosystem. Bangladesh stands at a pivotal moment in its relationship with the United States.
By adopting targeted reforms and leveraging its tech potential, it can turn challenges into opportunities and foster a mutually beneficial partnership with a Trump-led administration. With strategic alignment, investment in digital infrastructure, and a focus on US priorities, Bangladesh can establish itself as a reliable partner in the Indo-Pacific region, ensuring shared growth and stability.
Author is a graduate of Dartmouth College, is a Partner at Endeavor Capital Management.
