"The market is here in Asia and we will pursue our 'Look East policy' to further strengthen ties with the countries of Southeast Asia, but mind you, not at the expense of our good ties with other countries," Foreign Minister Morshed Khan told the news agency in an interview at his office.

"The Asian markets have tremendous potential compared to any other market now and we cannot sit idle as to be static means going backward," he said.

Khan, a businessman turned politician, said other markets like Europe and the United States would not be ignored.

The European Union is currently Bangladesh's biggest trading partner, with trade worth 2.5 billion dollars in 2002-2003.

Bangladesh exports mainly tea, jute and jute products, readymade garments, knitwear, food including shrimps.

Khan also said South Asia, with a fifth of the world's population, was a huge market for each of the seven countries which make up the region -- Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

"If we can live harmoniously and build confidence among ourselves it will open new avenues," he said.

Khan, who was previously a roving ambassador for Bangladeshi Prime Minister Khaleda Zia during her first five years in office in 1991-1995, is one of Bangladesh's top entrepreneurs and credited with introducing the country's first mobile phone service in 1993.

"The time has come for Bangladesh to have a self-drive economy and we need to expand our market," he said.

Commerce Secretary Suhel Ahmed said the Look East policy had already started to reap benefits.

"The policy has already started to pay dividends and we are very hopeful as the response from Southeast Asian countries has been very encouraging," he said.

"We expect that trade with the countries of Southeast Asian region will go up."

Bangladesh is seeking to enter the Asian Regional Forum, the first step in becoming a dialogue partner of the Association of South East Asian Nations (Asean), while a high-powered Bangladeshi business team toured Singapore, Vietnam and Cambodia in November to draw investors to the cash-strapped country.

Ahmed said a trade pact with Myanmar was almost ready to be signed, while ties with Thailand had been boosted "immensely" this year.

This month Thailand agreed to construct a 517 million dollar express highway in Dhaka to ease traffic congestion.

Trade between Bangladesh and Thailand was worth 260.7 million dollars in 2002-2003.

Foreign affairs analysts said ties with neighbouring Myanmar were now warmer than at any time since the country's independence in 1971, with several visits being exchanged, while Vietnam reopened its embassy in Dhaka in August.