Bangladesh: the land of opportunities your assured destination for investment

Bangladesh is a vibrant economy that has, despite the recent global economic meltdown, maintained a consistent growth rate of around 6%. With a population of close to 150 million people, Bangladesh boasts of an efficient and entrepreneur workforce that is changing the profile of the economy.
Bangladesh's seaports, historically, had been 'ports of call" of ancient traders, and hub of economic activity connecting the West and the Far East. Today we are witnessing Bangladesh's resurgence as a regional hub. Bangladesh occupies a strategic location as a bridge between South and South-East Asia and beyond.
Despite the recent global economic crisis, Bangladesh's undisturbed and consistent growth over the past decade has proved the resilience of its economy. Its favourable investment climate has been lauded by many around the world. Bangladesh has listed in Goldman Sachs' 'Next II' and J.P. Morgan's 'Frontier Five." Standard and Poor (S & P) as well as Moody's have placed Bangladesh ahead of all countries in South Asia, except India.
WHY BANGLADESH?
INDUSTRIOUS LOW-COST WORKFORCE: Bangladesh offers a well-educated, highly adaptive and industrious workforce with the lowest wages and salaries in the region. 57.3% of the population is under 25, providing a youthful group for recruitment. The country has consistently developed a skilled workforce aiming to cater the need of investors. English is widely spoken, making communication easy. Thousands of Bangladesh nationals who have wide work experience abroad add to the national reservoir of skill.
Strong Local market and growth: Bangladesh has proved to be an attractive investment location with its approx. 150 million population and consistent economic growth leading to strong and growing domestic demand. Its policy is to establish a strong regional connectivity among the immediate neighbours. Already agreement on connectivity has been reached between Bangladesh, India, Nepal and Bhutan which opens the great opportunities in the huge next door markets. Its close proximity to China and India also opens doors to a vast market which is projected to grow to 3 billion by 2050.
Low cost of energy and land: Energy prices in Bangladesh are most competitive in the region. Transportation on green compressed natural gas is less than 20% of the diesel price. Many a multinational companies have already invested in gas exploration in Bangladesh. The cost of land is also lowest in the region.
Proven export competitiveness: Bangladesh enjoys quota and tariff-free access to the European Union, Canada, Australia and Japan. It enjoys GSP facilities as LDC country for export to USA. Her annual export growth has been recorded recently 19.6% which is a testimony to its export competitiveness.
Competitive incentives: Bangladesh offers the most liberal FDI regime are in fiscal and non-fiscal incentives South Asia, allowing 100% foreign equity with unrestricted exit policy, remittance of royalty and repatriation of profits and income.
Special Economic Zones: Bangladesh offers export-oriented industrial enclaves with infrastructural facilities and logistical support for foreign investors. The country is also developing its core infrastructures, including roads, highways, surface transport and port facilities for a better business environment. A billion dollar credit has been inked with India recently for infrastructure development including communication and transport sectors and facilities at sea ports.
Positive climate: Bangladesh has a largely homogenous society with people living in harmony irrespective of race and religion. Bangladesh, having a democratic country enjoying broad bi-partisan political support for private investment, now boasts for its political stability, containment of extremism. It offers 100% foreign equity or ownership in industrial investment. Foreign exchange regulations have been relaxed to the maximum limit and its currency Taka has been made convertible. Repatriation of foreign capital along with profit/dividends has been made easy and simplified. There is no restriction on issuing Work Permit to a foreign national. Board of Investment (BOI) offers one stop service to the investors.
Direct supervision of Prime Minister's Office (PMO): All the major organisations dealing with investment, such as BOI, BEPZA, etc, have been kept under direct supervision of the Hon'ble Prime Minister in order to ensure timely services, easy process and one-stop service for investment and to address directly any problems therein.
Legal Protection: An Act of Parliament passed in 1980 guarantees legal protection against nationalisation and expropriation. Non-commercial risks of investment are also covered by the Multilateral Investment Guarantee Agency (MIGA). Bangladesh is also a party to Overseas Private Investment Corporation (OPIC), USA ; International Center for Settlement of Investment Disputes (ICSID); World Intellectual Property Organisation (WIPO). Agreements on Avoidance of Double Taxation have been signed with many countries (28) including Japan, UK, Italy, Canada, Sweden, Malaysia, Singapore and the Republic of Korea. Some more such agreements (9) are being negotiated.
Furthermore, Bangladesh offers some competitive Investment Incentives Corporate tax holiday (Outside EPZs) : 5 to 7 years for selected sectors; Accelerated depreciation on cost of machinery for new industry in lieu of tax holiday;
--- Reduced Corporate Tax for 5 to 7 years in lieu of tax holidays and accelerated depreciation;
--- Tariff concessions on import of capital machinery, tariff concessions on import of raw materials of the export oriented industries, bonded warehousing facilities, etc;
--- Cash incentives and export subsidies ranging from 5% to 20 % on the FOB value of selected products;
--- Funds for exports promotion, exports credit guarantee scheme, permission for domestic sales up to 20% by export-oriented companies outside EPZ;
--- Remittance of royally, technical know-how and technical assistance fees;
--- Citiezenship by investing a minimum of US$5,00,000 and permanent resident permits on investing US$75,000.
--- The special incentives offered to business located in 8(eight) EPZs include:
--- 10 years tax holiday;
--- Concessionary tax for 5 years, after 10 years;
--- Duty and tax free exports from the EPZ;
--- Readymade factory building;
--- Excellent infrastructure logistics;
--- Duty free import of Machinery, raw and construction materials;
--- Business and administrative support services;
It offers also special incentives for investment in power sector. Power sector is on the forefront of all infrastructure projects. Special incentives in this sector include 15 years tax holidays; exemption of import duties, value added tax (VAT), surcharges and import permit fees on imports of plants, equipments and spare parts up to ten percent of the original value of total plant and equipment within a period of twelve years of commercial operation. Incentives also include exemption of tax on foreign lending, foreign loan interest, royalties, technical know-how and assistance fees, free repatriation of equity and dividends, etc.
Kew Sectors for investment
--- Power Industry
--- ICT and Business Services
--- Garments and Textiles
--- Life Sciences (Pharmaceuticals)
--- Agribusiness
--- Frozen Foods
--- Ceramics
--- Electronics
--- Light Engineering
For details and specific information on the key sectors please visit the website of Board of Investment, at https://boi.gov.bd/key-sectors