Exporting Intangibles and the Import Export Nexus in Bangladesh

The export landscape of Bangladesh is undergoing a subtle yet significant transformation, with embedded services emerging as a critical yet underrecognized contributor. These services—logistics, trade finance, ICT, and compliance—initially designed to support the import sector, are increasingly being internationalized, forming a new pillar of the country’s trade potential. Despite their growing relevance, these embedded services remain statistically invisible and excluded from export policy frameworks. This gap limits strategic alignment, underutilizes economic potential, and obscures an important revenue stream for firms. Addressing this, the study aims to explore the nature, growth trajectory, and exportability of such services within the ready-made garments (RMG) value chain. A mixed-methods approach was adopted, incorporating trend analysis (2013–2023), institutional document review, eight semi-structured interviews, and a survey of 30 export-oriented service firms. Findings reveal an 8.4% annual growth rate in embedded service exports. Over 40% of surveyed firms generate the majority of their revenue from these services, targeting markets in South and Southeast Asia, and the Middle East. Yet, regulatory ambiguity and the absence of formal recognition continue to constrain their scalability. The study recommends urgent policy reforms to recognize, classify, and incentivize embedded services, positioning them as a strategic lever for trade diversification, digital competitiveness, and a successful transition beyond LDC status.