Products and services traded globally are produced through multiple stages. The entire process of adding value step by step across different countries is known as the Global Value Chain (GVC). Multinational enterprises (MNEs) play a central role in these value chains by organising production networks, setting standards, and controlling market access.
In Bangladesh, however, the participation of multinational companies in the value addition of products and services and exports remains limited. A recent observation published by the Asian Development Bank (ADB) found that the contribution of multinational companies to Bangladesh’s GDP remains below 5 percent. Their share in exports has also not reached 5 percent. In both cases, the participation of MNEs in 2020 remained at the same level as in 2009. The findings were published in the May 2026 edition of ADB’s report titled Global Value Chains and Inclusive Development: Asian Development Policy Report.
Hong Kong ranks at the top in the Asia-Pacific region in terms of multinational contribution to gross value added (GVA), according to the report. In Hong Kong, the value-added contribution of MNEs accounts for nearly 40 percent of GDP, while their contribution to total exports is close to 60 percent. In China and Singapore, MNEs contribute more than 35 percent to the manufacturing sector’s GDP. In Vietnam, Brunei, and Thailand, the rate is slightly below 20 percent. Bangladesh, positioned at the bottom of the list, has a contribution rate of less than 5 percent.
Former lead economist of the World Bank Dhaka Office, Zahid Hussain, believes the situation remains largely unchanged. He told Bonik Barta, “Increasing participation in global value chains requires networks. If Bangladesh can expand its integration and branding in global value chains through MNEs, local firms could also benefit. But the presence of MNEs in our country is extremely limited. Their presence in the energy sector is no longer as strong as before. Several banks have left. In exports, there are a few Korean firms concentrated in the EPZs, but beyond that, there’s no strong multinational presence.”
Asked why Bangladesh has failed to utilise the capabilities of multinational enterprises in the manufacturing sector, he said, “Without a proper investment climate, foreign investors or MNEs won’t come to Bangladesh. Issues such as load-shedding, gas availability, and the skill level of workers are playing negative roles, while the lack of policy predictability is also a major concern. Different policy directives are issued at different times. MNEs won’t invest in such an environment. Moreover, the requirement for joint ventures with local partners for investment here is also creating barriers for MNE investment. Consequently, whether in product value addition or integration into global value chains, we’re unable to benefit from the capabilities and experience of MNEs.”
Experts say Bangladesh still lags in attracting foreign direct investment (FDI), technology transfer, and integration into global production networks. A large share of the country’s industrial production and export sector is concentrated in the ready-made garment industry. In this sector, value addition remains at a very low level. These factories mainly assemble imported raw materials or components and then export the finished products. Backwards and forward linkage industries around the sector have also not developed adequately. In addition, Bangladeshi firms have limited participation in the high-technology, design, branding, and research and development (R&D) segments of the garment industry.
In recent years, the global value chain environment has undergone significant changes. As a result, the conditions under which economies, firms, and workers participate in and benefit from global production networks have also changed. These transformations have occurred across multiple dimensions, including the global economic and political environment, technology, production processes, and the governance structures of GVCs.
Liberal trade policies and integration with the international economy have played a major role in the prosperity and success of many Asia-Pacific countries over the past several decades. Through this integration, countries increased their participation in global value chains. Alongside expanding exports and international market integration, policy strategies also emphasised attracting foreign investment. The successful implementation of these strategies contributed significantly to rapid industrialisation, large-scale employment generation, and poverty reduction in those countries. Currently, trade in the Asia-Pacific region is no longer limited to the exchange of final goods; rather, it is increasingly being driven through participation in global value chains.
Sector insiders say that to ensure sustainable progress, Bangladesh must focus not only on increasing exports but also on raising value addition in its products. To achieve this, the country needs to move further up the value chain through greater use of advanced technology, branding, design, and supply chain management in the industrial sector. Alongside strengthening Bangladesh’s position in value addition, the multinational companies’ participation could play a supportive role in ensuring effective and profitable integration into global value chains. By leveraging such participation, industrial firms can gain access to advanced technologies, financing, and capacity-building opportunities. In recent years, foreign direct investment (FDI) inflows have played a major role in the export growth of Vietnam’s electronics sector.
At present, multinational companies contribute to value addition and exports at varying levels across countries. Multinational enterprises account for nearly 15 percent of total exports in the Asia-Pacific region on average, according to the Analytical Multinational Enterprise (AMNE) database. In countries such as Brunei, Hong Kong, Thailand, and Vietnam, the contribution of foreign affiliates to domestic production, value addition, and employment has been increasing steadily. Particularly in small and open economies such as Singapore and Hong Kong, multinational enterprises serve as channels for technology transfer, export market access, and participation in global value chains. By contrast, many multinational companies have scaled back or withdrawn their operations from Bangladesh in recent years.
Several multinational companies have been operating manufacturing activities in Bangladesh for many years. However, most of these firms’ business models are centred primarily on meeting domestic market demand rather than exports. In the FMCG sector, companies such as Unilever, Reckitt Benckiser, Nestlé, Marico, and Procter & Gamble operate in consumer goods. In the telecommunications sector, there are Telenor-backed Grameenphone, Axiata Group Berhad-backed Robi Axiata, and VEON-backed Banglalink. In the banking sector, Standard Chartered Bank operates in Bangladesh, while the manufacturing and chemical sectors include companies such as Linde Bangladesh and Berger Paints.
Masud Khan is the chairman of Unilever Consumer Care Limited. He also serves as an independent director on the boards of three other multinational companies in the FMCG sector: Singer Bangladesh Limited, British American Tobacco Bangladesh Company Limited, and Marico Bangladesh Limited.
He told Bonik Barta, “Due to the lack of a strong presence of MNEs in the country, Bangladesh hasn’t been able to integrate effectively into global value chains. At present, instead of new companies entering, many are actually leaving. Manufacturing is now becoming concentrated in countries such as India, China, and Vietnam because they offer significant economies of scale in production. In Bangladesh, however, the middle class and affluent consumer base haven’t yet developed sufficiently to reduce costs through large-scale production. MNEs here strictly follow product standards, compliance requirements, and regulations. If local companies were also held to the same standards, it would create a balanced competitive environment. In addition, the ease of doing business in Bangladesh is highly complicated. Due to these complexities and the lack of a level playing field, no major new multinational companies are entering sectors outside garments, while existing companies are also struggling under compliance and regulatory pressures.”
Although Bangladesh has become integrated into global value chains, it has made limited progress in increasing domestic value addition. By contrast, over the past decades, countries such as China, Indonesia, Malaysia, Philippines, Sri Lanka, and even Pakistan have advanced both in sectoral diversification within global value chains and in increasing local value addition to export products.