Bilateral trade between the US and Bangladesh reached over $14 billion in 2022, a testament to the strengthening economic relationship between the two nations. While the Ready-Made Garment (RMG) sector remains a cornerstone of this partnership, other sectors such as energy, technology, healthcare, and education are playing increasingly important roles in driving mutual growth and innovation. This piece explores how these key areas are advancing the collaboration between the two countries, creating opportunities for shared prosperity.

Energy: Powering Bangladesh’s Future

The energy sector is one of the most significant areas of cooperation between the US and Bangladesh, with US companies playing a vital role in meeting the country’s energy demands and supporting its economic growth.

• Chevron’s Contribution to Bangladesh’s Natural Gas Supply: As one of the largest foreign investors in Bangladesh’s energy sector, Chevron produces approximately 1200 million cubic feet of natural gas per day, roughly 60% of Bangladesh’s total output. The company has invested over $2 billion in Bangladesh since 1990, contributing significantly to government revenue through taxes and royalties, estimated to be hundreds of millions of dollars annually.

• Excelerate Energy’s Role in LNG Infrastructure: Excelerate Energy , a US-based provider of integrated LNG solutions, operates two Floating Storage and Regasification Units (FSRUs) in Bangladesh. These terminals provide over 1 billion cubic feet of natural gas daily, accounting for a significant portion of imported LNG. This infrastructure has helped reduce energy shortages and supports about 10% of Bangladesh’s electricity generation in recent years.

• SLB and Halliburton’s Support for Bangladesh’s Energy Infrastructure: US-based oilfield service companies such as SLB (formerly Schlumberger) and Halliburton provide essential services in drilling, reservoir management, and field operations, ensuring the continued development and maintenance of the country’s oil and gas fields.

• Climate Change and USAID Investments: The US and Bangladesh have collaborated extensively on climate change, with USAID investing over $200 million in resilience and clean energy projects. Key initiatives include the Bangladesh Clean Energy Program, which aims to add 500 MW of renewable energy capacity by 2025, and the installation of over 100,000 solar home systems in rural areas.

Chevron Bangladesh – Committed to Bangladesh’s energy future

Technology: Bangladesh’s Growing Digital Hub

Bangladesh is emerging as a key player in the global technology and freelancing sectors, with the US playing an essential role in supporting the country’s digital transformation.

• Booming Freelancing Sector: The growth of Bangladesh’s Information and Communication Technology (ICT) sector, valued at over $1 billion, is a significant contributor to the country’s economic development. Bangladesh is now one of the world’s largest outsourcing destinations, with over 650,000 registered freelancers, generating over $100 million in annual revenue. Platforms like Upwork and Fiverr have seen a significant increase in Bangladeshi freelancers.

• Venture Capital Investments in Bangladeshi Startups: US-based venture capital firms have invested an estimated $200-300 million in Bangladeshi startups in recent years. Notable investments include ShopUp (e-commerce) and Pathao (ride-sharing), both of which have created thousands of jobs and fostered growth in the local tech ecosystem.

• US High Tech Firms Expanding Operations in Bangladesh: US tech companies like Augmedix (employing over 1,000 people) and Optimizely have established operations in Bangladesh, tapping into the country’s growing pool of skilled tech talent. These partnerships are driving the development of innovative tech solutions and contributing to the country’s rise as an emerging hub for global tech innovation.

Bangladesh Startup Ecosystem

Healthcare: Improving Access and Enhancing Healthcare Solutions

The US and Bangladesh have a long history of collaborating in healthcare, with numerous initiatives aimed at improving healthcare access, particularly for marginalized communities.

• USAID’s Impact on Rural Healthcare: USAID provides healthcare services to over 10 million people annually, focusing on maternal and child health. Its contributions have led to a significant reduction in infant and child mortality rates in areas where it operates, as well as supporting vaccination campaigns that have reached millions of children across Bangladesh.

• Pharmaceutical Partnerships: With collaboration from US companies, Bangladesh’s pharmaceutical industry now meets over 97% of the country’s domestic demand for essential medicines. It exports pharmaceuticals to over 100 countries, generating over $1 billion in annual revenue. US partnerships inlcuding the one with Renata PLC have helped increase local production capacity for critical medicines, including vaccines and affordable treatments for common diseases.

• Telemedicine and Remote Healthcare Initiatives: The US has supported the expansion of telemedicine in Bangladesh, providing essential healthcare services to remote and underserved areas. US-funded projects have helped establish telemedicine infrastructure, enabling rural populations to access healthcare consultations via digital platforms, thereby improving service delivery and reducing regional disparities.

U.S. Chamber’s U.S.-Bangladesh Business Council Delivers Essential COVID-19 Supplies to Bangladesh

Education: Strengthening Academic Ties and Research Collaboration

Education is another vital area of collaboration between the US and Bangladesh, with joint initiatives focused on research, student exchanges, and capacity building.

• Record Number of Bangladeshi Students in the US: In 2023, the US Embassy in Dhaka celebrated a record number of 14,000 Bangladeshi students who pursued higher education in the US, contributing an estimated $500 million annually to the US economy through tuition and living expenses. This highlights the growing educational exchange between the two countries.

• University Partnerships and Research Initiatives: US universities have long collaborated with Bangladeshi institutions to strengthen academic ties. The University of California and University of Dhaka have joint initiatives focused on areas like climate change, engineering, and public health, aiming to develop solutions to Bangladesh’s pressing challenges.

• STEM Education and US Institutional Support: Prestigious US institutions, including MIT, have shown interest in supporting STEM education in Bangladesh. These collaborations focus on improving education quality, providing research resources, and preparing students for careers in high-demand sectors such as engineering and technology.

• The American Institute of Bangladesh Studies (AIBS): AIBS plays a pivotal role in fostering academic cooperation between the US and Bangladesh, offering grants, fellowships, and organizing seminars to deepen mutual understanding between both countries.

Pre-departure orientation session at the EMK Centre in Dhaka for 120 Bangladeshi students who will begin their higher studies in the United States

Bangladeshi Diaspora: Driving Further Collaboration and Growth

The Bangladeshi diaspora in the U.S. plays a crucial role in fostering deeper ties between the two countries. By engaging in business, academia, and community development, the diaspora is helping to drive innovation and economic growth in both nations. Additionally, their active support for the July Revolution has amplified global awareness of Bangladesh’s push for democratic reform and stability, further strengthening international solidarity and collaboration.

Bangladeshi Americans are increasingly involved in promoting bilateral trade and investment, while also advocating for increased cooperation in key sectors like energy, technology, healthcare, and education. Their contiunued support is going to be instrumental in furthering the US-Bangladesh partnership and building on existing successes.

A Shared Path to Unity and Prosperity

US-Bangladesh economic relationship is thriving across multiple sectors, with energy, technology, healthcare, and education serving as pillars of growth and innovation. As both countries continue to deepen their collaboration, these partnerships will unlock new opportunities, drive sustainable development, and foster a brighter future for both nations especially Bangladesh.

“Assistant Secretary Lu (Assistant Secretary of State for the Bureau of South and Central Asian Affairs Donald Lu) has been in Dhaka. He met with key advisers to the Bangladeshi interim government to discuss how the United States can support Bangladesh’s economic growth, financial stability, and governance and development needs,” – Spokesperson at the US Department of State Matthew Miller told reporters during a routine briefing on 16 September, 2024.

With the active support of the Bangladeshi diaspora and continued investment from US companies, the potential for further growth and shared prosperity is limitless 🚀

Contributor: UBUI Board Members