Business culture of Bangladesh

If you want to do business in Bangladesh, you first need to become familiar with the country's rich business culture. Bangladesh is a rapidly developing nation and its economy has grown significantly in recent years, facilitating business development and business activity.

Business culture of Bangladesh

Greeting

Bengali, known locally as Bangla, is the official state language and is spoken by over 98% of the population. However, due to the popularity of Western and Indian media, many Bangladeshis can also speak English and Hindi.

In business situations, most Bangladeshis can speak English. Interaction usually begins with the words “Hello,” “How are you?” or "Salam". A typical Bengali greeting — “As-salamu alaikum”, which in Arabic means “peace be upon you,” to which they answer “Wa alaikum s-salaam,” which means “peace be upon you too.” The greeting of the Hindu population usually begins with the palms folded together at chest level and the saying “Namaste.”

Touching in the form of a soft handshake is more common among members of the same sex, while members of the opposite sex usually exchange polite nods. A polite nod followed by placing your hand over your heart may be the most appropriate nonverbal greeting, regardless of gender. The right hand should be used to give and receive business cards.

Business dress code

Business attire in Bangladesh is generally conservative. Business style includes formal suits in dark colors for both sexes. Business casual attire for men includes a button-down shirt with slacks or khakis, and for women — salwar kameez (traditional women's clothing), blouse with a skirt or classic trousers. Jeans are just starting to enter the "business casual" realm, so it's best to avoid wearing them in a business setting.

Mentality

Bangladeshi people have a positive and welcoming attitude towards foreigners and show hospitality. Personal relationships — it is the basis of how everything is done in the country. Be interested in family affairs, attach great importance to a colleague or client, engage in small talk — the best way to gain trust and relax a business partner.

The country has a traditionally hierarchical society. People here are respected because of their age and position. Older people are considered wise and respected. Bangladeshis expect the most senior man in age or position to make decisions that are in the best interest of the group. This also applies to companies, most of which are family owned.

Employees do not question decisions made. Managers or those in authority will make decisions, while their subordinates will typically wait to be told what to do.

In Bangladesh, as in other hierarchical societies, managers may be somewhat paternalistic towards their employees. They can demonstrate concern for employees that goes beyond the workplace and purely professional issues.

Business meetings

Business meetings in Bangladesh should be scheduled in advance to avoid scheduling conflicts. The country's holidays fall on Friday and Saturday. An interpreter can be useful in business meetings to ease the language barrier and ensure that both parties fully understand all the details of the conversation.

Bangladeshis generally prefer face-to-face (and often lengthy) meetings to telephone or email contacts. They also usually like to discuss business over dinner.

First of all, do not schedule any meeting at 1:00 pm as Bangladeshis will pray at 1:15 pm and eat after prayer.

A meeting in Bangladesh begins with small talk. It is necessary to start with establishing rapport, this may include personal issues about health, family, etc. To formally begin, the oldest person in the group usually initiates or leads the conversation about the purpose and content of the meeting. Also, keep in mind that punctuality is not very common and meetings often do not start on time and can also last well beyond the scheduled finish time.

An agenda usually serves only as a guide to determine the goals that the meeting should achieve. Don't rush the meeting because you first need to make the potential business partner feel comfortable with you, and being too pushy can send a rude signal.

Meetings may be interrupted, for example, by phone calls or staff arriving to sign documents. Don't be confused by the fact that Bangladeshis answer the phone during meetings. They consider answering the call immediately as their priority because they consider it impolite to refuse a call, and those who make telephone calls consider it impolite if their call is not answered immediately since the recipient will know who is calling. This is a common practice in the country.

Compared to Western business norms, negotiations in Bangladesh can be slow.

The process of concluding a deal here can also be quite lengthy. Be prepared to attend several meetings as Bangladeshis rarely make business decisions based on just one meeting.

A referral through a mutual partner will help you establish initial contact with future business partners.

Business cards

A good time to exchange business cards — after meeting. Be sure to use your right hand when giving and receiving business cards and treat them with respect.

Do not take any notes or write on the card. Instead, review them briefly, give a nice comment, and put the card in your business card holder.

Communication

Bangladeshi tend to communicate in long sentences, which sometimes only make sense given the context and body language. Thus, it is important to carefully observe the context in which your Bangladeshi colleague is speaking and consider visual cues, pauses, body language, and what is not said in addition to what is already said. For example, the answer is “yes” may only indicate understanding and not actual agreement, so it is best to check with your Bangladeshi counterpart to see if you have reached agreement on the deal.

The ability to listen carefully — one of the remarkable characteristics of Bangladeshis. They are courteous in communication and also love flattery. It is also acceptable to talk about their education, since they sincerely value it. Just make sure you speak humbly without sounding superior. Since indirect communication is an integral part of Bangladesh's business culture, learn not to be harsh and express your thoughts without using absolutes.

For example, if your colleagues forward an invitation to you and you cannot accept it, do not immediately decline the invitation. Learn to use euphemisms. It's better to use phrases like:

  • I/We will try
  • It may be difficult for us to come
  • Please give us time to think about this.
  • We need to discuss this

Building relationships through verbal communication is critical. However, you should also be familiar with the nonverbal cues that Bangladeshis use.

Bangladeshi take business very seriously and showing any emotion is considered unprofessional.

As for facial expressions, Bangladeshis smile less, which can be taken as a sign of unfriendliness. In fact, they maintain a serious atmosphere to demonstrate their maturity and professionalism.

The concept of “face”

The concept of “face” plays a crucial role in the business culture of Bangladesh. Its essence lies in respect for a person’s social status, honor and reputation. For this reason, it is extremely important to remain diplomatic and protect your business partner from any embarrassment.

Here are some tips on how not to lose “face” your Bangladeshi colleague:

  • Always be tactful. This will help you maintain a calm and professional atmosphere in the meeting. Maintaining tact throughout the conversation will prevent you from saying anything that might embarrass your business partner.
  • Maintain a high level of professionalism. Since Bangladeshis adhere to a formal, hierarchical structure of business meetings, you must display professionalism at all times.
  • Be aware of your behavior and body language. Be sure to avoid disrespectful behavior or body language. For example, crossing your legs or using the thumbs up gesture. may be impolite here.
  • Above all, make your business partners feel heard and respected. If you lose face with your future business partners, it will lead to a bad business deal.

Dining etiquette

If your meeting is shortly before lunch, your Bangladeshi business partners may invite you to stay for lunch. If you are invited but cannot attend, do not show up directly. You can express this indirectly by using phrases such as "I need to check" or “I’ll try,” since it is considered impolite to immediately decline an invitation.

At a typical business lunch or dinner in Bangladesh, guests are served first, then the oldest, and in order of their arrival. Be sure to let the oldest person eat before you begin. It is also common practice in the country to eat with your bare hands, although asking for utensils and utensils is not considered offensive. Be sure to eat, drink, and pass food with your right hand.

Eat as much food as you can eat, and expect those around you to encourage you to eat more food. You can say, “I'm full,” to politely decline.

Gifts

It is common to offer and understand the value of gifts, especially when closing a deal. Here are some things to remember when giving a gift to a Bangladeshi:

  • Use both hands when offering a gift.
  • Do not give white flowers as Bangladeshis usually use them at funerals.
  • Abstain from alcoholic beverages.
  • If you are going to give food, the safest option is — give sweets or chocolate.
  • Do not open a gift in front of the giver.
  • Note that Bangladeshis often find the thought more meaningful than the material gift itself. In addition, if you have a good relationship with your colleagues, they may ask to take a photo together.

Holidays and observances affecting business activities

Doing business in Bangladesh requires understanding the numerous holidays and customs that may affect work schedules. They range from national public holidays to regional holidays, each of which is deeply rooted in the country's rich cultural heritage and legal framework.

Bangladesh recognizes a significant number of national holidays as provided for in the Bangladesh Labor Act (2006). Some key holidays that lead to business closures:

  • Pohela Boishakh (Bengali New Year): This colorful festival, celebrated in mid-April, marks the beginning of the Bengali financial year. Businesses may be closed for one to two days. According to custom, people exchange holiday greetings.
  • Eid al-Fitr and Eid al-Adha: These are Islamic holidays that mark the end of Ramadan and the Hajj pilgrimage, respectively. Businesses typically close for a few days, with the possibility of longer closures depending on the company and location.
  • Victory Day (26 March) This national holiday commemorates the 1971 Bangladesh Liberation War. Most businesses are closed on this day.

During religious holidays such as Eid al-Adha, Muslims attend special prayers and family gatherings.

In addition to national holidays, business activities may also be affected by regional holidays specific to certain ethnic or religious groups.

  • Durga Puja. This is a major Hindu festival celebrated over several days in the fall. Companies with a majority Hindu workforce may face reduced activity or closure.
  • Christmas Businesses serving Christian clientele have modified operating hours.

Bangladesh Labor Law requires paid leave for employees on most national holidays. Employers should be aware of these rules and plan work schedules accordingly.

The frequency and duration of closing holidays may vary by industry, company size, and location.

  • Government offices generally observe all statutory holidays and may extend closures for major religious holidays.
  • Private companies may have slightly more flexible schedules, but most observe national holidays. Regional regulations may result in partial closures or adjustments to operating hours.
6/17/24
Julia Taraday, REAB Consortium
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