Bangladesh has the most competitive industrial sector in South Asia after India, according to a report by the United Nations.
The country climbed three notches up to rank 67th in the world in the United Nations Industrial Development Organisation's 2021 Competitive Industrial Performance (CIP) Index report.
This indicates further strengthening of industries and the business environment in Bangladesh.
With an overall score of 0.036, Bangladesh was placed in the CIP "Middle" quintile while the global average score is 0.068.
The 2021 report provides a global overview of the competitiveness of countries' industrial performance around the world.
It ranked 152 countries using a composite index based on three dimensions – capacity to produce and export manufactured goods, technological deepening and upgrading, and world impact.
Although Bangladesh's position is in the middle on the index, it ranked poorly on several sub-indices.
It ranked 109th in manufacturing value added per capita and 113th in manufacturing export per capita.
Bangladeshi exports are heavily based on primary products and manufactured goods, the report said.
Almost all the manufactured products (96.2%) in Bangladesh are low-technology-based and only 0.4% are high-technology-based.
Besides, 1.9% of the manufactured products are resource-based.
More than 37% of the manufactured exported products in India, which ranked 38th on the index, are resource-based.
Besides, almost 26% are low-tech products, 25.6% are medium-tech, and 11% are high-tech.
In South Asia, the Maldives is at the top in resource-based production. Almost 99% of the island nation's manufactured products are resource-based.
India is the top country in South Asia in high-technology-based production (11%). In low-tech-based production, Bangladesh leads (96.2%) South Asia.
Germany once again achieved the highest rank on the index while China secured the second position followed by the United States and Japan.
The report shows industrialised economies continue to dominate most of the dimensions of industrial competitiveness.
The 2021 edition differs from previous CIP reports as the Covid-19 pandemic has had an uneven impact across countries and sectors.
There has been a significant impact on international trade as production and consumption shrank across the globe.