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Bangladesh is known for its beautiful coastline and its mangrove forest, the Sundarbans. The Sunderbans houses a unique ecosystem and a rich wildlife habitat. It is home to the Royal Bengal tiger, as well as crocodiles, boars, monkeys, and beautiful birds.
Traditionally, few opportunities have existed for advanced education in Bangladesh. However, that is quickly changing. In particular, there is a strong drive to train locals in computing and IT professions. Here are some of the facts you should know about human capital in Bangladesh.
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Tech Graduates and Workforce
Bangladesh’s economy is heavily reliant on the agricultural and textile industries. Most of the population has not received formal education beyond primary years, but that is quickly changing. The government strongly encourages its young population to study technology and computing subjects.
- Young Population: Over 69% of the population is between 15 and 64 years old.
- Expanding Education: There has been a tremendous push to educate the younger population in the past twenty years, particularly in highly populated cities such as Dhaka and Chittagong.
- Low Wages: Despite a growing educated workforce, wages remain relatively low. This climate can be very attractive to companies seeking outsourcing opportunities within the country.
It is expected that Bangladesh will continue to develop its economy. The country has offered special tax incentives to companies in the IT industry that open new businesses.
Key Sectors for Local Activity
Local economic activity in Bangladesh is driven by agriculture and textiles.
- Agriculture: Approximately 60% of the population works in the agricultural industry. The primary crops include rice, jute, tobacco, tea, wheat, tomato, and pulses.
- Textiles: Bangladesh has the largest textile industry in the world. Approximately 60% of its textiles are exported to Europe, while the remaining 40% are sent to the United States.
- Information, Communication, and Technology: While not currently a strong contributor to the GDP of Bangladesh, the IT industry is expected to grow by triple digits as the local population becomes more educated.
The government has implemented specific incentives to attract companies in IT and educational training.
Key Sectors for Outsourcing
Bangladesh is one of the fastest-growing economies in the world. As educational opportunities have increased over the past twenty years, the population has improved its ability to support outsourcing activities. There are a number of business process organizations (BPO’s) that provide information technology and social media activities.
Most people in Bangladesh do not speak English. Only 12% of the population has English speaking ability. However, a higher concentration of English speakers can be found in the larger cities of Dhaka and Chittagong. These cities are also home to the major BPO companies.
The primary language of Bangladesh is Bangla.
The average salary in Bangladesh is BDT 28,100. This payment is equal to approximately USD $325 per month. The highest wages are BDT 116,100 per month, or USD $1,350. However, less than 75% of the population earns more than BDT 77,900, or USD $900 per month.
Prominent Cities for Business
Bangladesh is a small country with a huge population of over 167 million. It is one of the most densely populated countries, as its size is just 21% bigger than the state of New York, yet it is home to almost half as many people as the entire population of the United States. The largest cities in Bangladesh include:
- Dhaka: Dhaka is Bangladesh’s capital and largest city. It contains a number of cultural attractions and is known as the academic and business hub.
- Chittagong: Chittagong is Bangladesh’s second-largest city. It sits in the southeastern part of the country and is the principal maritime gateway to the city. Chittagong’s primary industry is finance and trade.
While there are a few other large cities in Bangladesh, these two make up the primary GDP.
Bangladesh has very low turnover rates. Most workers choose to stay in their positions. Despite its large population, the country averages a 5% unemployment rate.
Is Bangladesh Right for Your Business?
SERVIAP is a leading Professional Employer Organization (PEO) ready to help your business expand operations throughout the Western Hemisphere. PEO is a model of co-employment, where we assume total responsibility for your talent, allowing you to focus on the strategic activities of your organization. Contact us today to learn more about how you can expand your business in Bangladesh.