ASEAN鈥檚 growing middle-class population and robust intra-regional trade networks create fertile ground for Bangladesh to diversify its exports, writes Rakib Al Hasan
IN AN era where regional blocs shape the global economy and diplomacy, Bangladesh stands at a crossroads. Once hailed as South Asia鈥檚 rising star, it now faces critical challenges as it approaches its transition from least developed country status in 2026. To maintain its growth momentum and secure its geopolitical future, Bangladesh must think beyond its immediate borders. ASEAN 鈥� Southeast Asia鈥檚 most dynamic economic and political bloc 鈥� presents an opportunity too significant to ignore.
With its combined GDP of $3.8 trillion and a population of over 680 million, ASEAN exemplifies the success of regional integration. For Bangladesh, closer engagement with this thriving bloc could unlock new markets, bolster trade and amplify its influence on the world stage. However, the road to ASEAN is complex, requiring strategic diplomacy, economic reforms and a clear vision for regional connectivity.
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ASEAN鈥檚 economic appeal
BANGLADESH鈥橲 economic success has been driven by an export-led growth model, with readymade garments accounting for over 80 per cent of its export earnings. But this heavy reliance on a single sector, coupled with the loss of preferential trade benefits post-LDC graduation, exposes the country to significant risks. ASEAN offers a lifeline.
ASEAN鈥檚 growing middle-class population and robust intra-regional trade networks create fertile ground for Bangladesh to diversify its exports. Beyond RMG, sectors such as pharmaceuticals, IT and agro-industries could thrive in ASEAN鈥檚 diverse markets. Vietnam鈥檚 rise as a global manufacturing hub and Indonesia鈥檚 expanding consumer base highlight the opportunities awaiting Bangladeshi industries.
Additionally, ASEAN鈥檚 emphasis on regional value chains aligns with Bangladesh鈥檚 ambition to move beyond low-cost manufacturing. By integrating into these networks, Bangladesh could transform from an exporter of basic goods into a key player in high-value production, logistics and services.
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Diplomatic balancing
BANGLADESH鈥橲 foreign policy has long been a balancing act between two regional giants 鈥� India and China. While both nations are crucial to its development, over-reliance on their goodwill leaves Dhaka vulnerable to geopolitical shifts. ASEAN provides an alternative, offering a multilateral platform to diversify its alliances.
The bloc鈥檚 commitment to non-alignment and multilateralism resonates with Bangladesh鈥檚 foreign policy goals. Countries like Malaysia and Indonesia, which share cultural and religious ties with Bangladesh, can be valuable allies in strengthening regional cooperation.
The Rohingya crisis underscores the potential of ASEAN as a diplomatic ally. While ASEAN鈥檚 principle of non-interference limits its formal response, individual member states like Malaysia and Indonesia have expressed solidarity with Bangladesh. Engaging ASEAN more actively could elevate the Rohingya issue from a bilateral dispute to a regional humanitarian challenge, compelling Myanmar to face greater accountability within a regional framework.
Furthermore, ASEAN鈥檚 growing role in the Indo-Pacific adds another layer of strategic significance. Bangladesh鈥檚 geographic proximity to key maritime routes positions it as a natural partner in ASEAN鈥檚 efforts to ensure regional stability.
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Connectivity as catalyst
BANGLADESH鈥橲 location, often seen as a constraint, could become its greatest asset in the context of ASEAN integration. The bloc鈥檚 emphasis on connectivity, exemplified by initiatives like the Trans-Asian Railway and the Asian Highway Network, aligns perfectly with Bangladesh鈥檚 aspirations to become a regional trade hub.
Infrastructure projects such as the Matarbari deep-sea port and the Padma Bridge have already enhanced Bangladesh鈥檚 logistical capabilities. By integrating these with ASEAN鈥檚 connectivity frameworks, Bangladesh could serve as a vital link between South and Southeast Asia, facilitating the movement of goods, people and ideas.
Enhanced connectivity would also pave the way for cultural and educational exchanges, fostering deeper ties between Bangladesh and ASEAN member states. These people-to-people connections are crucial for building long-term partnerships.
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Overcoming barriers
DESPITE its potential, deeper integration with ASEAN is not without challenges. Bangladesh鈥檚 geographic location outside Southeast Asia, coupled with its limited trade volume with the bloc, raises questions about its compatibility with ASEAN.
Moreover, Bangladesh must address internal obstacles, including bureaucratic inefficiencies, inadequate infrastructure and a lack of regulatory alignment with ASEAN standards. These barriers hinder its ability to engage seamlessly with ASEAN鈥檚 free trade and open-market principles.
Geopolitically, closer ties with ASEAN could strain Bangladesh鈥檚 relationships with India and China, both of which have vested interests in the region. Navigating these dynamics will require nuanced diplomacy and a clear articulation of Bangladesh鈥檚 strategic goals.
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What Bangladesh must do
TO MAXIMISE the benefits of ASEAN integration, Bangladesh needs a multi-pronged strategy:
Strengthen bilateral relationships: Bangladesh should prioritise building strong ties with key ASEAN members like Thailand, Indonesia and Malaysia. Bilateral agreements on trade, investment and cultural exchanges could serve as stepping stones to broader ASEAN engagement.
Modernise the economy: Reforms to improve the ease of doing business, enhance industrial competitiveness, and streamline trade policies are essential. Investments in emerging sectors like green energy and technology could position Bangladesh as a forward-looking economic partner for ASEAN.
Utilise regional platforms: As a member of the ASEAN Regional Forum (ARF) and BIMSTEC, Bangladesh has avenues to build trust and familiarity with ASEAN processes. Active participation in these forums could lay the groundwork for deeper collaboration.
Advocate multilateral solutions: Issues like the Rohingya crisis should be framed as regional challenges requiring collective action. Engaging ASEAN member states in advocacy efforts would align with the bloc鈥檚 ethos and generate broader support for Bangladesh鈥檚 position.
Invest in connectivity: Accelerating projects like the Trans-Asian Railway and Matarbari port would enhance Bangladesh鈥檚 logistical capabilities, making it indispensable to ASEAN鈥檚 connectivity agenda.
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Why ASEAN matters more than ever
FOR Bangladesh, ASEAN is not just an economic opportunity 鈥� it is a strategic imperative. In a rapidly shifting global order, regional alliances are the key to resilience and relevance.
ASEAN offers Bangladesh a platform to diversify its economy, amplify its diplomatic voice, and position itself as a bridge between South and Southeast Asia. But realising this vision requires bold leadership, forward-thinking policies and a willingness to embrace change.
The question is not whether Bangladesh should align with ASEAN, but how soon it can. The clock is ticking and the future waits for no one.
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Dr Rakib Al Hasan is a young physician, author, activist and international award-winning youth leader of Bangladesh. He is the founder and executive director of the Centre for Partnership Initiative.