Why invest in Bangladesh?

• The people of Bangladesh irrespective of race and religion have been living in complete harmony and understanding for centuries.

• The country enjoys broad popular support for market economy reforms and offers the most investment-friendly regulatory regime in South Asia.

• Bangladesh owns a trainable, enthusiastic, hardworking and low-cost (even by regional standards) work force suitable for any labor-intensive industry.

• English is widely understood in Bangladesh and it is a common language in the public and private sectors.

• Even though Bangladesh’s per capita GDP is low, the present domestic consumption is significant. However, there is a growing middle class with significant purchasing power. In a country of 145 million people, a middle class may constitute a significant market and even though Bangladesh has large poor population, our growing middle income group constitutes about 50 million with adequate money to spend.

• Bangladeshi products enjoy complete duty and quota free access to EU, Japan, Canada, Australia, Norway and most of the developed countries. However, for apparel export to USA and Canada, Bangladesh’s trade volume is increasing.

 

Facilities and incentives

• Tax holiday from 5 to 10 years depending on location of industries.

• 15 years tax holiday for private power generation companies.

• Exemption of tax on interest on foreign loan.

• Tax exemptions on royalties, technical know-how   & technical assistance fees.

• Avoidance of double taxation on the basis of bilateral agreements.

• Six months Multiple Entry Visa for the Investors.

• Taka, the nation’s currency, is convertible for international  payments in the current account.

• Re-investment of repatriable dividend treated as new investments.

• Working capital loan as well as term loan from local commercial banks allowed to the industries set up with foreign capital.

• Citizenship by investing a minimum of US$ 500,000 or by transferring US$ 1,000,000 to any recognized financial institution (repatriable).

• Permanent residence by investing a minimum of US$ 75,000 (repatriable) 100% Foreign Equity allowed.

• Unrestricted Exit Policy.

 

Natural Resources and other facilities

• Bangladesh, the largest deltaic zone of the world is richly endowed with natural resources like vast easily trainable, low cost manpower, abundant supply of Gas, Coal, Stones, huge water bodies etc.

• Strategic geographical locations as the gateway to South East Asia (Asian Highway).

• Easy and preferential access to a market of about 1.45 Billion people of South Asia under South Asian Free Trade Area (SAFTA) from 2006.

• Duty free/ quota free access to all export items of LDCs like Bangladesh under “Everything But Arms (EBA)” initiative of E.U.

• Preferential market in EU, USA, Japan, Canada, Australia,  ROK, Thailand, China etc.

 

Strategy of Private Sector-led-Export

• Liberalization of import policy including simplification of procedures.

• Rationalization of the tariff structure.

• Items under quantitative restrictions have been reduced to only 65 (4 digit of code).

• Pursuing a floating rate of exchange of local currency Taka.

• Allowing IMF consistent facilities of re-export and entreport trade.

Export processing Zones

Export Processing Zones in the port city Chittagong and capital city Dhaka with necessary fiscal and infrastructure for export oriented     enterprises. Another Export Processing Zone, near the capital city (at Gazipur) is under implementation.

Courtesy Service

Board of Investment extends courtesy service such as airport reception, hold & transport booking and fixing appointments with the Government and Chamber Officials in accordance with the needs of foreign entrepreneurs visiting Bangladesh. For availing courtesy service, entrepreneurs need to contact BOI in advance.

Communication Facilities

Adequate Sea, Rail, Road and Air services facilitate both domestic and international transportation.

Telecommunication

Internet, Telex, Fax, International Direct Dialing services and email facilities.

Banking and Financing

Bangladesh offers adequate banking facilities to the investors for establishment of industries and to facilitate their business transactions. 14 private and 13 foreign commercial banks, 10 financing institutions and 3 nationalized commercial banks having network of correspondent and branches operation all other the country and abroad.

Preferential market access opportunities as an LDC

Bangladesh has been enjoying such access under GSP facility and concession of tariff from about 32 countries. These countries have extended duty free quota free access, zero tariff access, tariff preference on some specific number of products and sometime for all products. These countries are Austria, Canada, EC, Finland, Japan, New Zealand, Norway, Sweden, Switzerland, USA, Bulgaria, Czechoslovakia, Hungary, Poland, Russia, Australia, India, Thailand, Estonia, and Belarus. But all these preferential access are subject to various Rules of Origin (RoO).

 

Highest priority sector

The Highest priority sector will refer to the products that have high export potential.

 Products listed as highest priority sector

• Software and ICT products
• Agro-products and agro-processing products

• Light engineering products (including auto-parts & bicycles)

• Leather products
• High priced readymade garments

 Incentives and facilities for highest priority sectors

• Project loan with lower interest rate on priority basis
• Income tax exemption
• Financial incentives including cash assistance
• Export loan on easy term and lower interest rate
• Air transport facility with exempted transport fare
• Tax return / bond facility
• Assistance for setting up infrastructure and related units to reduce production cost
• Expansion of institutional and technical facilities for development product quality and quality control
• Assistance in marketing products
• Assistance in exploring markets abroad
• Assistance in foreign investment

 

Investment guarantee   

Foreign Private Investment (Promotion & Protection Act 1980) ensures legal protection to foreign investment in Bangladesh against nationalization and expropriation. It also guarantees repatriation of capital & dividend and equitable treatment with local investors. Adequate protection is available for intellectual property rights, such a patents, designs and trade marks and copyrights. Bilateral Investment Guarantee Agreements have been signed with a number of countries. Bangladesh is a signatory to MIG, OPIC of USA, ICSID and member of WIPO Permanent Committee on development cooperation related to industrial property.

 

Potential areas for investment

• Textiles and Clothing
• Leather and Leather Products Industry
• Electronics Industry
• Frozen Food & Fisheries Industry
• Light Engineering including Automobile Industries
• Pharmaceuticals
• Ceramics
• Hotel and Tourism Industries
• Infrastructure
• Building and Construction
• Computer Software Development and Data Entry Industry
• Oil and Gas
• Power
• Telecommunication
• Air Transportation
• Agro-based and agro Processing Industries
• Horticulture
• Commercial Plantation
• Furniture
• Jewelry and Diamond Cutting & Polishing
• Basic Chemicals

 

For Further information

Please see the business and investment related websites in useful links page.