Bangladeshi firms lead 26 markets in supply chain shifts, 91% confident on trade expansion: HSBC survey

Bangladesh ranks first among 26 markets surveyed for supply chain realignment, with 91% of local business leaders confident about expanding international trade over the next two years, according to HSBC’s Global Trade Pulse Survey 2026.

The survey found that Bangladesh leads globally in reshoring, with 55% of businesses having already taken steps to bring operations closer to home, compared with the global average of 36%. It also leads in the Chinese mainland +1 diversification strategy, with 57% of firms taking such steps against the global average of 36%.

An overwhelming 91% of Bangladeshi business leaders remain confident about expanding international trade over the next two years, while 56% describe themselves as very confident.

The survey also found that mitigation efforts are proving effective for 90% of local firms, with 81% reporting improvements in cash flow and working capital.

However, rising energy and operational costs, alongside liquidity pressures, continue to pose challenges for businesses.

Energy is the biggest cost pressure for Bangladeshi firms, affecting 50% of respondents, followed by raw materials at 49%. Overall, 70% of local businesses reported higher costs, while 76% expect expenses to increase further over the next two years.

These pressures have increased working capital requirements for 64% of businesses since 2025, prompting 96% of respondents to identify commercial banks as vital partners in sustaining cross-border operations.

The findings are part of HSBC’s Global Trade Pulse Survey 2026, which captures the views of 10,000 senior business leaders across 26 markets on trade, tariffs, supply chains and technology. The survey was conducted between 18 September and 6 October this year.

Globally, energy has emerged as the leading cost pressure, with 44% of businesses identifying it as the most significant factor affecting their cost base over the past six months. Tariffs followed at 43% and freight costs at 41%.

While 68% of businesses worldwide have already experienced higher overall costs, 72% expect expenses to rise further over the next two years. Supply chain uncertainty has also increased financial pressure, with 59% reporting higher working capital requirements since 2025.

In response, businesses are prioritising operational efficiency, renegotiating supplier arrangements, securing energy supplies and expanding their international networks.

Trade uncertainty weighs on revenue

The survey found that tariffs and trade uncertainty have already negatively affected the operations of 31% of Bangladeshi businesses, while 32% reported a resulting decline in revenue.

Looking ahead, 37% expect further revenue reductions over the next two years, compared with the global average of 28%.

Although 96% of Bangladeshi businesses reported using at least one Free Trade Agreement (FTA), 97% of those using such agreements identified barriers to their wider utilisation. The corresponding global figure is 92%, highlighting difficulties in fully benefiting from preferential trade arrangements.

AI adoption gains momentum

Technology is playing an increasingly important role in reshaping global trade, with artificial intelligence (AI) adoption gaining momentum across business operations.

In Bangladesh, 86% of businesses have deployed AI in at least one trade-related function, while 80% expect investments in global technology infrastructure to drive demand for their products.

However, the survey also highlighted the need for stronger governance and oversight as businesses integrate AI into their operations.

The average share of 10 identified AI governance measures implemented by Bangladeshi firms stands at 40%, compared with the global average of 35%.

The survey covered 26 markets, including Bangladesh, with 250 respondents each from Australia, Bangladesh, Brazil, Egypt, France, Germany, Indonesia, Italy, Japan, Malaysia, the Philippines, Saudi Arabia, Singapore, South Korea, Spain, Taiwan, Thailand, Türkiye, the United Arab Emirates and Vietnam.

It collected 500 responses each from Hong Kong and Mexico, and 1,000 each from India, Chinese mainland, the United Kingdom and the United States, bringing the total to 10,000.

Among the respondents, 14% reported global annual turnover of more than $2 billion over the past 12 months, while the remaining businesses had turnover ranging from $50 million to $2 billion.

The survey was commissioned by HSBC and conducted by Savanta, a British Polling Council-accredited research agency.