Abstract: Reducing neonatal mortality is a particularly important issue in Bangladesh. We employ a competing risks model incorporating both observed and unobserved heterogeneity and allowing the heterogeneity terms for various causes to be correlated. Data come from the Health and Demographic Surveillance System (HDSS), Matlab. The results confirm the general conclusion on levels, trends and patterns of causes of neonatal deaths in the existing literature, but also reveal some remarkable socioeconomic differences in the risks of causespecific deaths. Deaths due to low birth weight and other causes (sudden infant death, unspecified or specified) are better explained from the socio- economic covariates than deaths due to neonatal infections or obstetric complications. The analysis highlights the role of maternal and child health interventions (particularly tetanus toxoid immunization for pregnant women, nutrition programs, and high coverage health services: distance to nearest health centre). Policies that increase quality and equity in child births may help to further reduce neonatal mortality.