In the process of covering regular conversations and thoughts of different diplomats recently team Textile Focus had a conversation with H. E. Mr. Christian Brix Moller, Ambassador of Denmark to Bangladesh. In the conversation, H. E. Mr. Christian Brix Moller talked about the Economic growth of Bangladesh and the bilateral relations between Bangladesh & Denmark. Key discussion points are mentioned below for our readers-
Textile Focus: How do you see the economic growth of Bangladesh?
Ambassador: Bangladesh’s economic growth has been impressive and resilient, fuelled by its dominant position in the global garment industry and now a nascent economic diversification into sectors like information technology, pharmaceuticals, shipbuilding, and agriculture. The country is also experiencing rapid urbanization, which has led to the emergence of a growing middle class, further boosting domestic consumption and economic growth. In fact, a recent HSBS Global Research report shows that by 2030 Bangladesh is expected to be the ninth-largest consumer market globally.
However, despite these positive trends, we still observe some significant challenges, including governance issues, labour rights concern, including in the garment sector, and of course the more challenging external factors like global trade tensions.
Having said so, I firmly believe that the future economic outlook for Bangladesh remains positive. This will of course depend on Bangladesh’s ability to effectively address the challenges, and create a level playing field to attract more foreign investment. It is also essential to address very difficult issues such as the crisis in the democratic system while maintaining political stability, the issue of corruption, and enhance efforts to ensure sustainable and inclusive growth.
Textile Focus: Bangladesh achieved an impressive growth in garment exports to Denmark especially knitwear, sportswear and woven. How can Bangladesh export more to the Danish market?
Ambassador: Yes, the recent years have seen impressive growth in garment exports to Denmark from Bangladesh. According to BGMEA, Bangladesh´s export of apparel to DK grew by 16.21 % in 2023. Also, based on our figures, Denmark annually imports approx. 1.5 billion USD in RMG from Bangladesh, which I believe is the highest per capita among all EU countries and also globally.
To penetrate the Danish market even more, it is important to ensure high product quality, adopt sustainable manufacturing practices, and diversify into new product lines like eco-fashion. As there is a growing consumer base in Denmark that is more environmentally aware, our production and supply chain practices must be in line with the new demands. I believe it is essential to keep up with the times.
In addition, building strong relationships with Danish buyers, participating in European trade shows and investing in effective branding and marketing strategies can also boost the image and brand of the Bangladeshi garment industries. Last but surely note the least, compliance with EU regulations on labour and product standards is crucial. In Denmark, we very much adhere to the EU regulations. And if Bangladesh succeeds in ensuring compliance with these regulations, it will help meet the expectations of the Danish market and build consumer trust — potentially increasing market share. Digitalization of the garment sector also becomes important in this regard, as it could help ensure transparency in the supply chain.
Bangladesh has shown determination in becoming a leading sustainable production hub in the world. And I am hopeful with new changes and increased sustainable practices, the trade volume between Denmark and Bangladesh will go up, not least in the garment sector. It is Denmark’s ambition to support Bangladesh´s move from a “production hub” to a future “Sustainable production hub”.
Textile Focus: Bangladesh’s export basket is heavily dependent on apparel products. How can Denmark help with diversification?
Ambassador: Yes, indeed Bangladesh´s export basket is quite dependent on apparel products — 84% of Bangladeshi export revenues come from apparel alone. I firmly believe that a diversification is needed to withstand and overcome economic shocks.
We continue to engage with Bangladesh especially in promotion of sustainable practices. For example, at our Embassy´s Trade Council, we create opportunities for Danish businesses to familiarize themselves with the business climate and industries in Bangladesh, thus facilitating more investments beyond RMG, i.e. technology, renewable energy and agriculture. Another impactful way of supporting Bangladesh in diversifying its export basket is by sharing expertise and technology in areas where Denmark has the strength and experience, such as renewable energy, agriculture and food processing, logistics including shipping, and pharmaceuticals, to name some. This is further amplified through training programs, technical assistance and investment to help Bangladesh transition to a greener supply chain, improving quality and value-addition of exports.
Moreover, the joint partnership between Denmark and Bangladesh can play an important role here. Together we are working on green transformation and an open rule-based multilateral trading system. This includes improving conditions for the establishment of Bangladeshi and Danish enterprises in the two markets – which will eventually help Bangladesh access new markets and establish new trade partnerships.
Textile Focus: How many Danish development projects are going in Bangladesh, especially in the RMG sector?
Ambassador: Denmark has been a very longstanding development partner for Bangladesh. In fact, Bangladesh is Denmark’s – or “Danida’s – second largest development partner globally over the past 50 years, only after Tanzania. In our partnership with Bangladesh we are keen on advancing a growth process that generates greener and better opportunities for more people. We have some notable initiatives for sustainable development in Bangladesh, including in the areas of locally-led climate adaptation, green technology, agriculture, water, sanitation and hygiene and decent work.
I will elaborate a bit on green growth and decent work. We aim to enable best practices for sustainable industry and responsible value chains by advancing environmentally friendly production and promoting responsible labour practices. Today, many Danish garment brands source from Bangladesh – to be very precise from around 600 factories – but there have been concerns about negative environmental and social practices. As a result, decent work has been high on our agenda, especially since Rana Plaza. We are working with the Bangladesh government, the private sector, garment brands, trade unions and development partners to ensure occupational safety. I will highlight two examples of our development cooperation. First, the Danish and Bangladeshi Labour Inspectorates are working together to strengthen the enforcement of occupational health and safety related laws and provide the labour market with the necessary information to enable factories and other work places to work on prevention. Second, we support the ILO´s Advancing Decent Work Project and we are an integral part of the ‘Team Europe Initiative on Decent Work’ – which brings EU and several member states together for work safety based on international standards.
These initiatives directly link to Bangladesh’s roadmap for continued preferential access to the European Market, while enabling a more sustainable and socially just garment supply chain.
Textile Focus: What are the challenges in bi-lateral trade between Bangladesh and Denmark?
Ambassador: The bilateral trade relationship between Bangladesh and Denmark has significant potential for mutual growth, but like any relationship it also has its own challenges. As Bangladesh moves to integrate into the global economy, some level of reforms and liberalization is important, which includes ensuring rule of law to underpin the implementation of transparent taxation, efficient import regulation, repatriation of capital, and mechanisms supportive of international trade.
Compliance, as I have mentioned before is highly important. But we must also note that compliance with stringent European Union regulations on product standards, environmental sustainability, and labour rights can be challenging for Bangladeshi exporters. To penetrate the Danish market, Bangladeshi exporters must meet Danish standards for imports which can be particularly high with regards to quality, safety, and environmental impact. The variances in regulatory standards and compliance between the two countries must be reduced to remove obstacles to growing bilateral trade. Like any other country that wishes to attract investments, Bangladesh could benefit from making its regulatory environment more aligned with international labour standards, transparent, just and business-friendly.
Some of these challenges can be addressed in the short run and some need a longer term solution, but a good start to achieving a prosperous bilateral relation lies in effective communication as well as understanding each other’s´ business etiquettes, values and enabling a level playing field for all actors involved in facilitating trade between the two countries. With that note, I truly welcome all stakeholders to come forth and engage in dialogue, interact with each other and most importantly ask questions!
