Dhaka: The flagship project of the Ministry of Commerce, 'Export Competitiveness for Jobs (EC4J),' has emerged as one of Bangladesh's most successful export diversification initiatives. It has transformed non-RMG manufacturing industries, created nearly 180,000 new and improved jobs, and strengthened the country's position in global value chains.
According to Bangladesh Sangbad Sangstha, the project, implemented by the Ministry of Commerce with financial support from the World Bank's International Development Association (IDA), was launched in July 2017. Its aim was to reduce Bangladesh's heavy reliance on the ready-made garments (RMG) sector by enhancing the competitiveness of four high-potential industries: leather and leather goods, footwear, plastics, and light engineering. With Bangladesh preparing for LDC graduation and facing increasing competition in international markets, policymakers identified export diversification as a national priority.
At the time of the project's inception, RMG accounted for more than four-fifths of the country's export earnings, posing concentration risks to the economy. The EC4J project was designed to address this structural challenge by helping promising industries meet international standards, improve productivity, and access new export destinations.
Speaking to BSS, Sheikh Mohammad Abdur Rahman, Joint Secretary and Project Director of EC4J, stated that the project has exceeded nearly all of its key performance targets, establishing a sustainable foundation for long-term industrial competitiveness. He emphasized that the project's objective was not merely to increase exports but to create quality jobs by making Bangladeshi industries globally competitive. The results demonstrate that targeted support to export-oriented firms can significantly accelerate industrial transformation.
One of the project's most impactful interventions was the Export Readiness Fund (ERF). Under the matching grant program, 570 firms, including women-led enterprises, received financial and technical support to improve environmental, social, and quality (ESQ) compliance, skill development, modernize production facilities, obtain internationally recognized certifications, and expand into new overseas markets.
Project data reveals that beneficiary firms secured 260 international compliance certifications, while the ERF mobilized more than US$18 million in private sector co-investment, creating a multiplier effect beyond public financing. The supported companies recorded a 59 percent sales growth, significantly surpassing the project's original target of 15.4 percent, while successfully entering 22 new international markets. Export participation among beneficiary firms increased dramatically from 59 percent before the project to 95 percent, with their average export volume growing by 192 percent.
The project also enabled 73 Bangladeshi companies to participate in 14 international sourcing exhibitions, creating new business partnerships and export opportunities. Besides financial support, EC4J invested heavily in developing industrial infrastructure and technological capacity. The Bangladesh Institute of Plastics Engineering and Technology (BIPET) has been fully established and is currently providing industry-focused training programs.
Construction has also been completed for the Centre of Excellence for Engineering and Technology (CEET) at Bangladesh Hi-Tech City in Kaliakoir and the Design and Technology Centre for Leather Goods and Footwear (DTCLF) in Kashimpur, Gazipur. To sustain future industrial growth, land acquisition and site development have been completed for the proposed Institute of General Engineering and Technology (IGET) in BSCIC Chemical Industrial Park, Sirajdikhan, Munshiganj, and the International Institute of General Engineering and Technology (IIGET) in National Special Economic Zone (NSEZ), Mirsarai, Chattogram.
These institutions are expected to provide advanced technological services, product development support, testing facilities, and skilled manpower for export-oriented industries. The project director highlighted employment generation as one of the project's most significant achievements. The EC4J project directly benefited more than 107,000 people, of whom 38 percent were women, through skills development, workplace safety training, and compliance education, according to the World Bank's report.
Overall, the World Bank reported that the initiative contributed to nearly 180,000 new and improved jobs, almost three times higher than the original target of 60,000. Regarding the World Bank's report on the project, Abdur Rahman noted that the development partner has described EC4J as an example of successful collaboration between the government and the private sector to promote export diversification and job creation.
According to the World Bank, exports from the targeted non-RMG sectors increased by around 83 percent between 2016 and 2023, substantially exceeding the initial program target. The Bank also highlighted the project's innovative grant management system, under which an internationally recruited third-party agency independently assessed beneficiaries, monitored implementation, and released funds against verified milestones. This transparent mechanism ensured accountability while encouraging greater private sector investment.
The World Bank further noted that the program's success demonstrates the importance of combining financial incentives with technical assistance, skills development, and awareness programs to help firms meet increasingly stringent global compliance requirements.