Bangladesh advances further in logistics competence

Infographics: TBS

Bangladesh has demonstrated further progress in the logistics sector, advancing two positions to claim 33rd place among the 50 most promising emerging logistics markets worldwide, according to the 2024 Agility Emerging Markets Logistics Index.

This positive development is attributed to the country's performance in domestic logistics opportunities, digital readiness, and business fundamentals.

The gain follows a four-position improvement achieved in the previous year's index, where Bangladesh reached the 35th position.

However, Bangladesh remains the lowest-ranked among the four emerging South Asian economies assessed in the 15th edition of the index, released on Tuesday by Agility, a Kuwait-based global logistics company.

India, positioned second overall, presents significant opportunities for foreign investors as it emerges as a more attractive alternative to China for production and sourcing, the report reads.

Among other South Asian countries, Sri Lanka and Pakistan occupy the 26th and 29th positions, respectively.

Bangladesh has been languishing at the lowest position among the four emerging South Asian economies in the index since 2019.

Syed Ershad Ahmed, president of the American Chamber of Commerce in Bangladesh, lauded the improvement in logistics performance, noting its contribution to the country's competitiveness.

He further emphasised the need for a National Logistics Policy and improvements in customs clearance processes as key areas for further advancement.

The index ranked the world's 50 leading emerging markets for overall competitiveness based on four metrics: domestic logistics opportunities, international logistics opportunities, business fundamentals and digital readiness – factors that make them attractive to logistics providers, freight forwarders, air and ocean carriers, distributors and investors.

This year, Bangladesh's overall score in these metrics stands at 4.61 out of 10.

China held its spot at the top in the overall ranking with the highest overall score of 8.61, followed by India, the UAE, Malaysia and Indonesia.

Global logistics executives, still worried about a recession, said they are battling higher costs, reducing dependence on sourcing from China, and planning to boost investment in Africa despite seeing emerging markets investment overall as somewhat riskier.

Half of the 830 industry professionals surveyed for the 2024 Agility Emerging Markets Logistics Index expect a global recession in the coming year – down from nearly 70% a year ago.

Bangladesh's performance in the metrics

Bangladesh's overall performance was backed by its better performance in all metrics except international logistics opportunities.

Within the index, Bangladesh achieved a one-position jump to rank 16th in the domestic opportunities category, signifying stronger performance in meeting domestic demand for efficient logistics services.

However, the nation witnessed a three-position decline to 36th place in the international logistics opportunities metric, indicating challenges in facilitating cross-border logistics operations.

While China and India remain at the top in both these categories, Bangladesh did register advancements in two other key areas.

The country improved its standing by two positions in the business fundamentals metric, now occupying the 42nd position denoting progress in areas like openness, market independence, and the rule of law.

The top three emerging markets in this category are located in the Arabian Gulf – the UAE, Saudi Arabia, and Qatar.

Additionally, Bangladesh made a significant five-step leap to 30th place in the digital readiness category, highlighting positive developments in its digital infrastructure and skillsets.

Notably, Bangladesh also climbed 12 positions in the World Bank's Logistics Performance Index 2023, ranking 88th out of 139 countries, compared to 100th in 2018. This further underscores the country's ongoing efforts to improve its logistics sector.