Bangladesh Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in bangladesh, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Digital Economy
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Overview

Bangladesh’s ICT sector demonstrates substantial growth potential. According to the Bangladesh Association of Software and Information Services (BASIS), the domestic IT industry is primarily engaged in customized application development and maintenance, IT-enabled services, and e-commerce/web-based solutions. Despite significant growth, many local firms face challenges in scaling operations due to limited IT resources and infrastructure.

Internet and Digital Connectivity

As of June 2025, Bangladesh had approximately 133.61 million internet subscribers, including 119.29 million mobile internet users and 14.32 million fixed broadband subscribers, with an internet penetration rate of 54.18 percent. Approximately 16.94 million households have internet access. Grameenphone leads the mobile market with 86.51 million subscribers, followed by Robi Axiata, Banglalink, and Teletalk. Norway’s Telenor owns 55.6 percent of Grameenphone.

The country’s bandwidth capacity stood at 3,747 gigabits per second as of June 2022, with the Bangladesh Submarine Cable Company Ltd. expected to add another 13.2 terabits per second from the SEA-ME-WE 6 undersea cable by the end of 2026. 4G networks are widely available, and the government has announced plans to roll out 5G services by 2026, further enhancing the nation’s digital infrastructure.  The launch of Starlink in Bangladesh in May 2025 should serve to enhance internet connectivity, particularly in underserved rural areas. This development opens avenues for U.S. companies in sectors like cloud computing, remote education, and telemedicine to expand their reach.

IT and IT-Enabled Services

Bangladesh has emerged as a hub for IT and IT-enabled service outsourcing. The country’s vibrant freelance development community actively competes on global platforms, offering services including editing, proofreading, translation, data entry, web research, virtual assistance, web design, and software development.  Bangladesh currently ranks as the world’s second-largest provider of online labor and is among the top 10 countries in freelance earnings.

Investment Incentives and High-Tech Parks

The government encourages FDI in the ICT sector, with a range of incentives available. Industries engaged in producing essential electronic components—such as resistors, capacitors, transistors, integrated circuits, and multi-layer printed circuit boards as well as those involved in computer hardware, automation, robotics design and manufacturing, artificial intelligence (AI)-based system design, and nanotechnology-based product development, are eligible for reduced tax benefits for 5 to 10 years, depending on operating location.

Companies operating within designated High-Tech Parks enjoy additional incentives, including exemptions from import duties on capital machinery and raw materials, full repatriation of profits and dividends, and relief from double taxation under applicable bilateral agreements. They also receive a 50 percent income tax exemption on declared dividends, capital gains from share transfers, and fees related to royalties, technical know-how, and technical assistance for 10 years from the start of commercial operations.

The Bangladesh Hi-Tech Park Authority (BHTPA) aims to establish 28 hi-tech and software technology parks nationwide. As of September 2025, operational parks include: Kaliakoir Hi-Tech Park, Jashore Software Technology Park, Janata Tower Software Technology Park, Rajshahi Hi-Tech Park, and Sylhet Hi-Tech Park. These parks provide modern infrastructure and a business-friendly environment to attract both domestic and international ICT firms.

Regulatory Environment

There is a significant lack of awareness about data privacy rights among both consumers and businesses in Bangladesh.  Data breaches are becoming increasingly common, with reports indicating that both businesses and public institutions often operate with insufficient cybersecurity protections. Concerns over data misuse in Bangladesh are eroding trust in digital platforms, which in turn threatens the growth of e-commerce and online services.  

Personal Data Protection Ordinance (PDPO): Bangladesh is currently working to pass the Personal Data Protection Ordinance (PDPO) to create a more structured legal framework for data privacy. The rapid expansion of fintech, e-commerce, and social media has intensified the need for robust data protection measures. However, uncertainty and potential costs associated with the PDPO may discourage companies from continuing or expanding operations in Bangladesh.

Tech Security: The GOB established a dedicated authority under the Digital Security Agency Act of 2018 to monitor cyber vulnerabilities and implement preventive measures to mitigate potential security breaches.  In a recent development, the government announced plans to revise or replace the Digital Security Act with a new Cyber Security Ordinance, which came into effect on May 21, 2025. Key provisions of the ordinance include recognition of internet access as a civil right, a ban on online gambling, criminalization of online sexual harassment and violence against women and children, and explicit penalties for the misuse of AI in criminal activities.  

In July 2021, the Ministry of Posts, Telecommunications, and Information Technology published the Bangladesh Cyber Security Strategy 2021–2025. The strategy outlines a national vision and mission to strengthen cybersecurity, focusing on governance and regulatory frameworks, protection of critical infrastructure, capacity building and workforce development, promotion of research and innovation, public awareness, and education.

A draft Digital Transformation Roadmap is currently under development. It aims to integrate cybersecurity more comprehensively alongside emerging technologies such as AI, blockchain, and Digital Public Infrastructure. The roadmap proposes training a large pool of cybersecurity professionals, implementing institutional and regulatory reforms, including the Personal Data Protection Act, a National Cloud Policy, and secure digital identity verification systems.

In 2023, Bangladesh Bank (the BB) released the ICT Security Guidelines Version 4.0, establishing minimum control requirements for ICT risk management and information security across regulated financial institutions.  In July 2025, the BB issued a 17-point cybersecurity directive to banks, non-bank financial institutions, and mobile financial service (MFS) providers. The directive emphasized urgent risk mitigation measures in response to escalating cyber threats targeting the financial sector.

Bangladesh’s ICT Strategic Plan: Bangladesh is undergoing a significant transformation in its government systems through the implementation of a National Enterprise Architecture and an e-Government Interoperability Framework. This ambitious initiative is being led by the Bangladesh Computer Council (BCC) under the World Bank-funded project “Leveraging ICT for Growth, Employment, and Governance.” The primary goal of the project is to integrate e-government systems and harness digital technologies to improve the efficiency and effectiveness of public policy execution and service delivery.

Opportunities and Challenges

Cybersecurity and Data Protection

Bangladesh has a growing need for robust cybersecurity solutions to protect data and infrastructure.

FinTech and Digital Payment Systems

The rise of digital financial services presents opportunities to introduce secure and scalable fintech solutions.  Platforms like Google Pay, bKash, Rocket, and Nagad have significantly increased accessibility to financial services, particularly among Bangladesh’s unbanked and underbanked populations. Google launched its Google Pay application in Bangladesh in June 2025, in partnership with Mastercard, Visa, and a local bank.  

E-commerce

The growth of e-commerce in Bangladesh has been largely concentrated in Dhaka and is especially popular among young, educated consumers. Cash-on-delivery remains the dominant payment method; however, online payment options are steadily gaining traction. Most e-commerce platforms in Bangladesh now also offer mobile MFS and credit and debit card transactions. Online shopping activity typically spikes during religious festivals, reflecting seasonal consumer behavior and cultural trends. Bangladeshi consumers are now using smartphones and social media platforms such as Instagram and Facebook to discover and purchase products.

Despite the opportunities, rural areas still face connectivity issues, which can hinder online business operations. While mobile payment options are growing, lack of widespread credit card usage and concerns about transaction security present some limits to e-commerce growth. The market is becoming increasingly competitive with local and international players and understanding consumer preferences or differentiating offerings is crucial. A significant portion of the population lacks the necessary digital skills to engage fully with online services, which can limit the customer base. Efficient logistics are still developing, but issues like delivery reliability and poor infrastructure can pose challenges for e-commerce businesses.

Digital Marketing Services

Demand for digital marketing services in Bangladesh is rapidly increasing as more businesses transition to online platforms. This trend presents a significant opportunity for agencies specializing in search engine optimization, content marketing, and social media management.

Supply Chain Optimization

Digitizing supply chains can create significant savings opportunities for manufacturers and retailers in Bangladesh’s expanding market. As a global leader in the textiles and apparel industry, Bangladesh stands to benefit from digital trade, which can enhance export potential through online sales channels and more streamlined supply chain management.

Technology device production

Technology device manufacturing and promotion in Bangladesh are gaining significant momentum. Telecom operators are experiencing a shift in their revenue models as younger generations increasingly prefer internet-based products and services over traditional voice calls and text messaging. Bangladesh is now recognized as one of the fastest-growing mobile phone markets globally. According to the Bangladesh Mobile Phone Importers Association, handset demand continues to rise, with an estimated annual demand of approximately 35 million units. In recent years, the combination of more affordable smartphones and the rapid expansion of mobile broadband services have fueled substantial growth in smartphone adoption across the country. Several local and international brands, including Walton, Samsung, and Symphony, are currently manufacturing or assembling devices in Bangladesh. Samsung now assembles most of its locally purchased smartphones in Bangladesh, while VIVO and OPPO have also established domestic production. Nokia has announced plans to begin local manufacturing in the near future.

Tech Start-ups and Venture Capital

The GOB has established the Innovation Design and Entrepreneurship Academy project, along with Startup Bangladesh Limited, with the aim of providing training, mentorship, and financial support to tech entrepreneurs.

Web Resources

  • ICT Division
  • a2i (Aspire to Innovate)
  • Bangladesh Telecommunication Regulatory Commission (BTRC)
  • BHTPA
  • BCC
  • Department of Information and Communication Technology
  • BASIS

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