Bangladesh - Country Commercial Guide
Defense/Security Equipment and Services

This is a best prospect industry sector for this country.  Includes a market overview and trade data.

Last published date: 2021-09-17

Overview

The Government of Bangladesh is actively seeking to upgrade its military and security capabilities and has allocated increasing amounts to its defense and security-related budget.  Terrorist attacks, including attacks on Bangladeshi security forces, have also increased the demand for security and defense services and equipment. 

Bangladesh’s $71.0 billion national budget in fiscal year 2021-22 included a 6.2 percent ($4.4 billion) allocation for defense and 3.6 percent ($2.5 billion) allocation for public security.  These allocations had grown steadily over the years, but growth slowed after the outbreak of the COVID-19 pandemic.  According to analysis from research consultancy Strategic Defense Intelligence (SDI), the Bangladeshi defense industry is largely underdeveloped with only limited domestic suppliers.  As a result, most of Bangladesh’s defense and security equipment and service needs are met through tenders of government contracts with foreign suppliers.  However, sales of defense-related material generally require a local company to act as the primary bidder.

The Directorate General of Defense Procurement (DGDP) manages procurements for the Ministry of Defense and the various armed forces, including the Army, Navy, and Air Force.  The Ministry of Home Affairs procurement office manages the Ministry’s procurements, governed by the Public Procurement Act of 2009.  Tenders for security and defense equipment and services are frequently open only to international bidders.  The low prices for items which can be procured regionally remain an issue for U.S. bidders.

Leading Sub-Sectors

Cyber security

Opportunities

Personal protective equipment; surveillance equipment; communication equipment; aircraft; helicopters; naval vessels; security consulting services.

Resources

Ministry of Home Affairs

Ministry of Defense

Directorate General of Defense Procurement (DGDP)