As the world recalibrates economic alliances amidst technological disruption, climate insecurity and shifting geopolitics, Bangladesh's relationship with the Nordic countries -- Denmark, Finland, Iceland, Norway and Sweden -- merits renewed attention. Often eclipsed by ties with major economies in Asia and Western Europe, Nordic engagement stands out as a blend of historical solidarity, development cooperation and burgeoning commercial exchange. This partnership, rooted in early recognition and sustained by shared values, offers a blueprint for equitable and sustainable growth in the decades to come.
The diplomatic relationship between Bangladesh and the Nordic region traces back to the earliest days of Bangladesh's independence. In the wake of the Liberation War of 1971, several Nordic states were among the first to recognise the newly sovereign nation. Sweden, for instance, formally recognised Bangladesh on 4 February 1972, quickly establishing diplomatic relations that would evolve into a multifaceted partnership.
Denmark and Norway followed suit with early engagements in development assistance and political cooperation. Norway established formal ties on 14 April 1972, becoming a significant development partner and one of Bangladesh's key aid benefactors through the late 20th century.
This early solidarity created a foundation of trust that transcended transactional diplomacy. The Nordic countries stood not only as political supporters of Bangladesh's sovereignty but also as partners in projects spanning agriculture, rural development, fisheries, water management and human rights. Through the Cold War era and the post-Cold War economic expansion, these ties endured, rooted in mutual respect and shared interest in promoting inclusive development.
Collectively known as the Nordic countries, Denmark, Finland, Iceland, Norway and Sweden constitute a unique regional configuration in Northern Europe characterised by strong social welfare systems, robust human development indices, and consistent leadership in innovation and sustainability. Though modest in combined population relative to global giants, they wield outsized influence in international governance, environmental policy and ethical investment. Their economic models emphasise equitable growth, digital transformation and green technologies -- areas where Bangladesh is actively seeking to expand capabilities.
Over the past decade, economic exchange between Bangladesh and the Nordic region has gradually expanded, driven by both traditional merchandise trade and growing corporate engagement across sectors.
According to the Nordic Chamber of Commerce and Industry in Bangladesh, the collective annual trade volume between Bangladesh and the Nordic countries amounted to roughly $750 million in recent reports, with more than half of that figure representing Bangladeshi exports.
More comprehensive data from the NCCI Annual Report 2023 highlights trade flows over several years. Between fiscal years 2017-18 and 2021-22, Bangladeshi exports to the Nordic region nearly doubled -- from approximately $1.22 billion to about $1.96 billion -- while imports from Nordic countries remained modest at around $297 million in 2021-22.
This growing trade surplus underscores Bangladesh's strong export position. Nordic markets increasingly absorb Bangladeshi ready-made garments (RMG), textiles, footwear and home textiles. Denmark and Sweden are the largest Nordic destinations, with exports to Denmark alone surpassing $1 billion by 2021-22, and substantial shipments also directed toward Sweden and Norway.
Sweden's own trade figures corroborate this trend: Swedish imports from Bangladesh -- principally ready-made garments -- rose to SEK 6,776 million in 2024, up significantly from earlier in the decade.
Import flows in the opposite direction, while smaller, reflect Nordic industrial strengths: Bangladesh sources machinery, electrical and electronic equipment, paper products and technical apparatus from Sweden, Finland and Denmark. For example, Bangladesh imported goods valued at approximately BDT 22,587 million from Denmark in 2023 and BDT 7,422 million from Finland in the same year, according to national statistics.
Trade with Iceland remains quite modest, with Bangladesh's exports to Iceland at under $1 million in 2022-23, and imports similarly limited, though there is potential for diversification into products like pharmaceuticals and furniture.
These figures point to two broad economic truths: (1) Bangladesh enjoys a significant trade surplus with the Nordic bloc, and (2) while export volumes are considerable given the region's relatively small population, there remains significant room for deepening and diversifying bilateral trade.
Beyond official development cooperation and merchandise trade, Nordic companies have established meaningful footprints in Bangladesh's commercial landscape. Telecommunications giant Telenor, operating through its Grameenphone brand, stands out as a transformative player in digital connectivity, serving tens of millions of subscribers.
Other prominent Nordic and Nordic-linked firms active in Bangladesh include Novo Nordisk, LM Ericsson, Nokia, Volvo (Swedish Motors), Wartsila, Ikea Supply, Arla Foods, ABB, H&M and Bestseller -- a roster reflecting engagement across sectors from telecommunications and industrial machinery to retail and logistics.
According to investment data, Nordic inflows into Bangladesh -- though modest compared with global investors -- show meaningful contributions. Denmark and Norway together accounted for a notable portion of Nordic FDI into Bangladesh from 2019 to 2022, particularly in telecommunications, energy and manufacturing.
More than 100 Nordic companies operate in Bangladesh, illustrating not merely a roster of foreign investors but an ecosystem of commercial relationships rooted in long-term engagement.
At its core, the Bangladesh-Nordic relationship exemplifies how values-based diplomacy and commerce can coexist with pragmatic economic interests. For Bangladesh, Nordic engagement aligns with several strategic priorities:
Market diversification: As global garment industry competition intensifies, strengthening trade ties with Nordic markets offers a hedge against over-dependence on traditional Western European or North American buyers.
Sustainable transitions: Nordic expertise in renewable energy, waste management, climate resilience and urban planning aligns with Bangladesh's own development trajectories -- especially given its vulnerability to climate change.
Governance and inclusion: Nordic emphasis on human rights, inclusivity, and labour and environmental standards dovetails with Bangladesh's commitments to improving labour conditions and environmental stewardship in export industries.
For the Nordic countries, Bangladesh represents a rapidly growing South Asian market with a young workforce, expanding consumer base and pivotal role in regional value chains. Engagement here is not purely altruistic; it is strategic, offering Nordic firms footholds in manufacturing, ICT, logistics and green technologies.
To unlock the full potential of Bangladesh-Nordic cooperation, both sides must pursue a few strategies beyond existing trade flows and diplomatic goodwill.
Bangladesh should invest in quality compliance mechanisms that meet Nordic regulatory standards -- especially in sustainable and ethical production -- enabling exporters to command higher value in Nordic markets.
Negotiating targeted bilateral investment treaties or double taxation agreements with individual Nordic states can de-risk investment flows and catalyse deeper commercial integration.
Joint research and technology transfer initiatives in renewable energy, climate adaptation and digital transformation can yield shared dividends. Nordic institutions could partner with Bangladeshi universities and research centres to deliver cutting-edge solutions adapted to local contexts.
Expanding institutional channels like the Nordic Chamber of Commerce and Industry in Bangladesh can facilitate business-to-business linkages, joint ventures and sector-specific matchmaking.
Economic ties flourish when societies understand each other. Scholarship programmes, cultural festivals and academic collaboration can nurture mutual appreciation, building trust beyond commerce.
Bangladesh's ties with the Nordic countries are rooted in history, sustained by shared values and increasingly manifested through trade and corporate engagement. This relationship has evolved from early diplomatic recognition to a complex tapestry of economic and developmental cooperation. Today, with exports nearing $2 billion and a growing roster of Nordic firms active in the country, the partnership stands at a promising threshold.
Yet this is not the time for complacency. The true potential of Bangladesh-Nordic ties lies not just in current trade surpluses, but in a broader vision of sustainable, equitable growth and cross-continental cooperation that benefits citizens on both sides. By strategically expanding trade, investment, and people-to-people collaboration, Bangladesh and the Nordic region can forge a model partnership for the 21st century -- one built on mutual respect, shared prosperity and collective commitment to a greener, fairer world.
mirmostafiz@yahoo.com