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Corporate Update

Bangladesh’s Chemical Gap Is Getting Costly

• By  Textile Excellence
• August 15, 2026

Bangladesh’s export machine is running on chemicals it largely imports. Its domestic chemical market is worth an estimated US$ 6-8 billion, yet the country imported around US$ 6.2 billion of chemicals in FY2025. Now, industry leaders are demanding something more concrete than another policy discussion: a time-bound roadmap to build the domestic chemical industry.

At a Dhaka Chamber of Commerce and Industry (DCCI) seminar, business leaders, researchers and government officials pointed to chemical backward linkage as an urgent priority for the country’s major export industries - RMG, textiles, pharmaceuticals and leather.

Taskeen Ahmed, President, DCCI, said export competitiveness depends heavily on reliable and price-competitive domestic chemical supplies. He flagged tariff complexities, lengthy environmental clearances, infrastructure gaps and logistics bottlenecks as major barriers.

The import bill tells the story

The opportunity is enormous. A growing domestic market is already there, but local production has struggled to keep pace. That leaves exporters exposed to currency movements, freight disruptions and global supply shocks.

Industry leaders also pointed to energy shortages as a major roadblock. Chemical manufacturing is energy-intensive, and unreliable gas and electricity can make local production far less attractive than imports.

The message from the seminar was clear: fix energy, tariffs, infrastructure and logistics - or import substitution will remain a slogan.

Can chemicals follow RMG?

Md. Moniruzzaman, Director, BKMEA, suggested that Bangladesh’s experience in developing RMG backward linkages could offer a model for chemicals. Sustained policy support helped build domestic textile and garment capabilities; a similar approach could attract investment into chemical manufacturing and create jobs.

Meanwhile, Salim Ullah, Director General, Bangladesh Institute of Management, said the ongoing reform of the National Industrial Policy provides an opportunity to address the sector. The industry must decide whether chemical backward linkage needs a standalone policy or a dedicated section within the revised industrial policy.

BCSIR also called for stronger industry-research collaboration to turn locally developed technologies into commercial products and import substitutes.

But the next step cannot be another seminar.

Bangladesh needs a roadmap with targets, timelines, investment incentives, reliable energy and accountable agencies. Its garment industry built a global export powerhouse by developing its ecosystem. The chemical industry now needs the same urgency.

Bangladesh needs a roadmap with targets, timelines, investment incentives, reliable energy and accountable agencies. Its garment industry built a global export powerhouse by developing its ecosystem. The chemical industry now needs the same urgency.