On IPAs of Bangladesh (For IBA Class On 29 September 2020) Version 3

Business Opportunities in Bangladesh
AND
Investment Promotion Agencies of Bangladesh
Md Ariful Hoque, Director, Bangladesh Investment Development Authority

A.S.M. Zahidur Rahman, Ex Deputy Director and PS to EC of BIDA
For questions and queries:
You can send sms to this number: 01819-264800

Through whatsapp: same number (01819-264800)
©Bangladesh Investment Development Authority 2

Bangladesh :A journey to development and prosperity
Development Developed Rise to Apex

Junction year Country in Developing
Middle Income Country Peaceful Delta
SDG 2041 Bangladesh
by 2100
2030 2071
2021 Delta Plan
100th year of independence
50th year of independence
©Bangladesh Investment Development Authority

Economic and social performance of Bangladesh in decades:
Parameters What we were We are now

Literacy Rate 29.23% (1981) 73% (2019 Est.)
Per Capita (USD) 129.71 (1971) 2,065 (June, 2020)
GDP Growth 4.62% (1976) 8.13% (2019)
FDI (USD) 7 Million (1977) 2,853 Million (2019)
Forex Reserve (USD) 7.5 Billion (2009) 37 Billion (July, 2020)
Electricity Gen. Capacity (MW) 3,362 (2009) 21,419 (Sep, 2019 )

Accolades of Bangladesh…
 One of the fastest growing economy in South Asia

 Bangladesh is among the 10 fastest growing economies in the world with commendable human
development
 The apparel industry, employer of 40 million workers, mostly rural women, contributed 83.49%
to Bangladesh’s total export
 Bangladesh is now the 3rd largest producer of vegetables, the 4th largest producer of rice, and the
3rd largest producer of inland fisheries in the world
 ICT sector is thriving on 136 million mobile phone users, 73 million of them using mobile data
 Bangladesh has a vision to become a middle income country by 2021 and a developed country by
2041
 Bangladesh classified as a "Next 11" emerging market identified by Goldman Sachs

Opportunities Unbounded: Sectors…
Infrastructure Manufacturing
Communication, Energy, Power, Competitive manufacturing

Ports, Economic Zones supporting global value chains
Competitive Services Skills
IT & ITES, BPOs Logistics, Health Education, Training, HR

development
 100% FDI  Non-equity modes (Technology

All Modes of  Joint Ventures transfer, licensing Franchising,
Investments  Partnerships Contracting etc.)
 PPPs  Foreign Lending

Competitive Edge of Bangladesh in Investment Segments
Export Abundance of competitive work-force, Lowest Wage in Asia, Duty

Oriented Free Market Access, Bond Facilities, EZs/EPZs
Population of more than 160 Million, Middle & Affluent Class
Consumer
Market/ Finance (MAC) from 12 Mn in 2015 to grow to 19 Mn in 2020 and 33 Mn in
2025
Infrastructure/
Energy Number of Mega Projects, Volume of ODA, external finance
High Mobile Density, Internet Density, Tech Savvy Young

Start-Ups /
Generation, conducive Digital Bangladesh Policy, Digital financial
IT
services, Fintech,

Sectors Open for FDI
 Power  Oil and gas

Energy &
 Ports and Logistics  Tourism
Infrastructure  Economic Zones  Transport Infrastructure
 ICT and ITES  Electronics

ICT & Electronics  Computer software & ICT  Light engineering incl. automobiles
 Home Textiles  Readymade garments industry

Textile & Clothing  Textiles industry  High value added RMG
 Agro-based/processing  Silkworm & Silk Industry

Agribusiness & Food  Jute & Jute goods  Furniture & Handicrafts
processing  Flower cultivation  Integrated shrimp cultivation
 Commercial plantation  Frozen Food & Horticulture
 Pharmaceuticals  Leather & leather goods

Pharma &  
Herbal medicines Textile Dye & chemicals
Chemicals  Plastics & Ceramics  Basic chemicals
 Jewelry and diamond cutting

Healthcare  Health care
polishing
& Others  Footwear
 Cosmetics and toiletries
Reserved Sectors: Arms & ammunitions, Nuclear Power, security printing and minting, afforestation and mechanize extraction within the
boundary of reserved forest

Market size of sectors:
Sector Market Size Growth (%)

(Billion USD)
Agriculture Sector 37.9 9.6
Manufacturing Sector 56.6 19.1
Service Sector 158.1 12.7
Light Engineering Sector 3.1 30.0
Food-processing Sector 4.8 15.0
Consumer Goods Sector 3.6 9.0

Some Potential Sectors: Present Status
Readymade Garments (RMG)

accounting for 84% of overall exports and 16% of GDP in 2018.
 contributes huge FOREX and provides employment of 4 million workers.
Growing at annual rate of 9.8%.
During FY 2019-20 exports stood at USD 28 billion,
At present, the industry consists of over 4,621 factories.


Pharmaceuticals Industry
meets 97% of the domestic demand and contributed 1.83% to the GDP in 2018.
The domestic market size as of June 2019 was USD 2.64 billion with the market growing at a CAGR
of 16.7% during last five years.
exporting drugs to more than 140 countries including the USA, Australia, and EU.

Healthcare services
Growing at 5% per annum since 2013.

The size of the healthcare sector is USD 5.975 billion at the end of 2017, represented 2.27% of GDP.
provides employment to around 170,000 health professionals.
The per capita spending on healthcare was only USD 36

Medical Equipment
 Per annum growth of 14.6% between 2016-19
During 2018-19, USD 416 million medical equipment imported, YOY increase 26%, exports contributed
USD 21 million.

Information technology
IT industry generated an estimated annual revenue of USD 1.1 billion.
For the period 2018-2019 with export revenue accounting for US$530 million, including the freelance
outsourcing segment.
Today, it accounts for more than 4,500 registered IT/ITes service provider employing over 750,000 ICT
professionals.
Software industry contributes more than 1 percent in GDP of Bangladesh.

Agro & food processing Industry

employs around 40.6% of the labor force and contributes 14.23% to GDP.
The agro-food processing industry contributes 1.7% to GDP and employs about 250,000 people.
In FY2018-19, the export earnings worth $ 1.41 billion, share of total exports stands at around 3.5%
Domestic agro-processed products market stood at USD 2.8 billion in 2019. The market estimated at
growing at an average rate of 7.7%.

Jute and jute products
there are 22 jute mills in the public sector and around 200 in the private sector.
In FY18, the country exported jute and related products worth $1.026 bn, up 6.56% from FY17.
Currently 25 million people are dependent on jute and related activities in various levels of production.

Leather and footwear

Leather and footwear industry contributing to 0.6% to GDP in 2019.
providing direct and indirect employment to over 850,000 people.
A large and growing domestic market of USD 2 billion, is supplemented by exports worth over USD 1
billion.
In FY 2018-19, the leather industry accounted for 3.2% of Bangladesh’s annual exports, contributing
$1.29 billion.
During 2019, Bangladesh produced 461 million pairs of footwear.
Leather and footwear industry has been growing at 10-15% per annum.
Bangladesh produces 310 million sq. feet of raw hides annually.
Bangladesh occupies about 3.0% of the world’s leather and leather products market.

Light engineering
In 2019, the total light engineering market was estimated to be USD 12 billion.
At present, there are around 50,000 light engineering companies operating in the country providing employment to
more than a million people and producing more than 10,000 products.
Automotive spares market is around US$ 600 million.
Demand for motorcycle has been growing at a CAGR of 30% since 2015.
 The bicycle export industry is contributing about USD 84 million in 2018-19. Bangladesh manufactures around 2
million bicycles every year of which 1.2 million are exported.
Electronics & Electrical Equipment

The market size of the electronics industry both industrial and consumer electronics was estimated to be around
USD 5.29 billion at the end of 2019.
expected to grow at rate of 15% per annum and reach around USD 12 billion by 2025.
The size of the consumer electronics market to be around USD 2.38 billion in 2019.
There are about 2500 electrical and electronics enterprises in Bangladesh employing more than 100,000 people.
Plastic
The domestic plastic market size stood at USD 2.95 billion as of June 2019.
There are more than 5,000 plastic enterprises in Bangladesh, employing about 1.2 million people.
Plastic is the 12th highest earning export sector in Bangladesh with export of USD 120 million in FY 2018-19.
Indirect exports to garment factory stood at USD 467 million.
Plastic exports from Bangladesh has been growing at a rate of 4.5 % per annum.
Automobile
The current domestic market size for the Automobile industry is approximately $13.89 billion with an average
positive CAGR of 21 percent in the last five years.
The commercial vehicle market holds the highest market share worth more than $7.2 billion.
The private vehicle is placed second with a total market size worth $6 billion.
The market size of the motorcycle and three-wheelers are $656 million and $78 million respectively.
There are approximately 5,000 employees directly connected to the factory level work and 50,000 employees
in the post-production process such as retailing, repair shop.
Shipbuilding
In Bangladesh around 100 ship builders and over 120 registered shipyards of varying size, located mostly on the
riverbanks.
Annual gross production reaches 250,000 GT at present, of which 185,000 GT are said for domestic orders.
Annual building capacity for export orders is estimated as more or less 20 vessels currently.
Currently, the domestic market is valued at around $2.14 billion and increasing every year.
The global market sized at $400 billion and Bangladeshi shipyards are expected to grab 1% of the market
Bangladesh exported 43 ships till date sized at approximately $170 million. But the CAGR remained negative 5.9% in
last seven years.
Ceramic
In the last ten consecutive years (2008-2018), the industry of Bangladesh has achieved approximately 200% growth in
production capacity.
At present, there are over 65 percent ceramic manufacturers in the country
The industry has started its journey in 1958 and currently caters to 87% of domestic demand, worth $668.5 million.
In FY 2018-19, ceramics export earnings were at USD 68.97 million, ranked 7 th in the most exported item. The
consistent growth in exports - about 26% in the last 3 years.
At present the sector employs around 5,00,000 people, including 55,000 direct employees and those from the backward
linkage industry.

Bangladesh FDI Statistics
FDI Inflow
In USD Millions
Source: Enterprise Survey, Bangladesh Bank

Reforms by Bangladesh in Doing Business 2020
• In the ‘Starting a Business’ 3 reforms reducing

time and cost, to obtain trade license, and
reducing steps in incorporation
• In the ‘Dealing with Construction Permits’ 20
reforms are made.
• In the ‘Getting Electricity’ 11 reforms are
implemented making the procedures much more
convenient. These includes reducing multiple
stages of approval.
Our target within 2 • In ‘registering property’ 5 reforms are made
digit ranking in making the registration process simpler and user
EoDB within 2021 friendly.
• In ‘Getting Credit’ 1 reform is made by increasing the coverage of Credit Information Bureau.
• In terms of ‘Protecting Minority Investors’ 5 reforms are made in the areas of ownership, disclosure, transparency,
shareholder rights and director liability.
• In the areas of ‘Trading across Borders’ 8 reforms are undertaken in the areas of Border compliance’ and
‘documentary compliances’ thus improving the exporting and importing of goods and services timing.
Investment Climate
Incentive Schemes
One Stop Service (OSS)

Investment Climate of Bangladesh
Secured by law Local and Foreign 100% foreign equity is Almost all industrial
against nationalization investments are given allowed along with sectors are open for
and expropriation equal treatment unrestricted exit foreign investors
Bangladesh is a
Bilateral Investment Double taxation signatory to ICSID, All laws, regulations
treaties (BITs) signed treaties with 28 UNCITRAL, OPIC, are conducive to
with 32 countries countries MIGA, WAIPA, WIPO investment
and WTO
reforms undertaken
to attain double digit
ranking by 2021 in
Ease of Doing
Business (EoDB)

Attractive Incentive Schemes to Investors
Tax Holidays Tariff Concessions Avoidance of Double

Taxes 5 – 10 Years for some sectors and up
to 10 Years for Infrastructure and
for Capital Machines and import of Raw
Tax under DTIs
Economic Zones Materials
Export Equity Accelerated

Cash
Financial Incentives
Development Entrepreneurship Depreciation
Fund Fund In lieu of tax holidays
Fast Track Permanent Quick

Citizenship
Approvals Residency Immigration
Skilled Work Bonded NRB

Permits Warehousing Preferences

Competitive Factor Cost among the Peer Cities: Utilities
In USD
Source: 27th Investment cost survey JETRO 2017

Inbound Investment (In million US$)
Categories 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Equity 233.84 528.03 505.55 1006.74 614.76
Reinvested earnings 795.78 1141.34 1154.45 1253.00 1253.44
Intra-company loans 450.72 164.50 343.53 195.07 712.24
Total 1480.34 1833.87 2003.53 2454.81 2580.44

Outbound Investment
Currently there is less outbound investment marked from Bangladesh.

There is no specific guideline for outbound investment.
Recently a small number of investors have started some investment outside Bangladesh in power
sector and RMG which is not very significant.
Case to case approval is given by the Central Bank (Bangladesh Bank) based on the modality and
the pertinence of the investment.
Now Bangladesh government is planning to go for a ‘feasibility study’ in some Middle-east and
African countries specially in ‘Agriculture sector.’

One Stop Services (OSS) for the Investors
Overview:
Almost all client services will be delivered online from OSS;
Apply for a service and Response or communication from a single point;
All the back-end approval process will be carried out electronically;
One Stop Services (OSS) in required to render the above with world class standard
• 150 services of 34 agencies will be offered through OSS;

• 21 services of 7 agencies are delivered from OSS;
• 28 serves are under integration;

Roadmap to Investment in Bangladesh
Setting up Setting up of
of Industry Commercial Offices
Submit application for approval online
Opening a Bank Account
Company Formation and incorporation
Obtain TIN, VAT Certificate from NBR
Trade License from Local Govt. Bodies
Opening a Bank Account
Obtain TIN, VAT Certificate from NBR
Documentation Required
Land purchase or lease
 Company’s decision for opening of office in Bangladesh
Application for BIDA Registration  Proposed organogram of the office
 Detail activities of the principal company & activities to be performed
Import of Machinery Open Letter of Credit in Bangladesh
(LC) or as Equity Investment  Name and nationality of the Directors/owners of the principal
company
Industrial ad-hoc IRC from CCI&E being recommended  Memorandum and Articles of Association of the principal company
 Certificate of Incorporation
by BIDA for raw material and spare parts  Audited Accounts of the last financial year of the principal company
DoE Clearance
License from Department of explosives

Investment Promotion and Facilitating Agencies:
Prime Minister’s Office
BIDA
Key promotional
Key facilitation
Services
 Investment
Services
Investment promotion
promotion
 Counseling/ Advisory
 Investment
Investment facilitation
facilitation
 Regulatory Approvals
 Policy
Policy Advocacy
Advocacy
 Foreign borrowing
 Match-making
Match-making
 Investors aftercare
 Sector
Sector briefings
briefings
 Project
Project Structuring
Structuring

Bangladesh Investment Development Authority (“BIDA”)
BIDA created under Bangladesh Investment Development Authority Act 2016 as the
apex IPA of the country
Vision Mission
To be a leading agency contributing towards To promote and support pro-growth private
Bangladesh’s achievement of high income sector investment and foster a world-class
status investment ecosystem
 Promoting Investment in home and at abroad

 Investment Facilitation (approval, recommendations and
Functions aftercare)
of  Policy advocacy
BIDA  Improving investment climate ‘Ease of Doing Business’
 Facilitate creating entrepreneurs and skill for industry needs
 Facilitate private investment focusing Bangladesh becoming
MIC by 2021 and developed country by 2041

BIDA: Services to Investors
Guidance on doing business in Bangladesh Registration of new industries
Responding to investment-related queries Facilitation of utility services
Investment guidance and advice in Support for importing machineries and raw
specific sectors materials
Support in forming statutes policies Support for obtaining external financing
and regulations
Supporting potential foreign investors to Approval of royalty and technical assistance
match with local investors fees
Organize visits, meetings with various govt. Facilitation of setting up commercial offices
and private agencies
Addressees Issues relating to individual Visa recommendation and work permit issue
companies on their smooth operation
Organize seminar, roadshow, showcasing Dedicated official to facilitate potential
related with investment at home and abroad investing country
EPZs & EZs under BEPZA
Uttara - EPZ
Dhaka - EPZ
Ishwardi - EPZ
Comilla - EPZ
Adamjee - EPZ
Mongla - EPZ Chittagong - EPZ

Karnaphuli - EPZ

Competitive Advantages
in the EPZs of Bangladesh
Congenial investment Peaceful working Win win Good infrastructure

Demographic
climate & Industrial environment & better ventures facilities
Dividend
friendly atmosphere law & order situation
Business
Business support
support
Reduction of Less cost of doing Attractive incentives services
Customs clearance at services : :Courier,
Courier,C &CF
and friendly policy of
lead time business factory site &Agent,
F Agent,
Banks, Banks,
Shipping
the government
Shipping Agent etc.
Agent etc.

Services of BEPZA
Allotment of Fully serviced Plots/SFB Connection of Water and Electricity
Duty Free Import of raw materials, 24/7 security service

Machinery, Construction Materials and
duty free export of finished goods
One Stop Service center

Expeditions services including Import &
Export Permit through Automation
Administrative support services:

Issuance of Work Permit for Foreign
Commissariat, Medical Center,
Expatriate
Investors Club, Health Club, etc

Incentives (Fiscal)

Incentives (Non-Fiscal)
100% foreign ownership permissible
No ceiling on foreign investment
Full repatriation of capital & dividend
BEPZA accords recommendation for

Residentship / Citizenship

Type of Investment &
Number of Industries
Enterprises in Under
Types of Enterprises Category Total %
Operation Implementation
Foreign
A 268 31 299 54%
Ownership(100%)
Joint Venture B 59 14 73 13%
Local Venture (100%) C 148 33 181 33%
Total - 475 78 553 100%

Investment
Year Inv.(Mill. US$)
2007-08 302.19
2008-09 148.03
2009-10 221.99
2010-11 313.23
2011-12 339.26
2012-13 328.53
2013-14 402.58
2014-15 406.35
2015-16 404.36
2016-17 343.71
2017-18 339.54 Total Actual Investment
2018-19 333.38
2019-20(June’20) 275.65
$ 5,289.87 million
Export
Year Exp (Mill. US$)
2003-04 1354.00
2004-05 1548.68
2005-06 1836.18
2006-07 2063.67
2007-08 2429.58
2008-09 2581.70
2009-10 2822.54
2010-11 3697.62
2011-12 4210.80
2012-13 4,856.68
2013-14 5,525.31
2014-15 6,113.49
2015-16 6,676.32
2016-17 6,549.37
2017-18 7,208.27 Total Export
2018-19 7,524.11
2019-20 (June’20) 6,489.12 $ 80,578.34 million
Year No of Employment Employment
2006-07 23,360
2007-08 17,130
2008-09 16,394
Total
2009-10 28,064 Employment
2010-11 43,666 4,66,307 nos
2011-12 33,598
2012-13 33,987
2013-14 15,009
2014-15 31,084
2015-16 33,551
2016-17 26,638
2017-18 21,726
2018-19 19,548

Product Wise Enterprise
Sl Product Enterprise (Nos.) Sl Product Enterprise (Nos.)

1 Garments 136 13 Service Oriented Industries 7
2 Garment Accessories 91 14 Caps 6
3 Textile 36 15 Furniture 4
4 Knitting & other Textile Products 28 16 Paper Products 3
5 Footwear & Leather goods 27 17 Bags & Luggage 2

6 Electronics & Electrical goods 20 18 Toys 2
9 Tent 14 19 Power Industry 2

10 Plastic goods 13 20 Ropes 2
7 Terry towel 9 21 Sports goods 1

8 Metal Products 9 22 Fishing Reel & Golf Equipment 1
11 Agro Products 8 Miscellaneous ( Comb, Brush,
23 44
12 Chemical 8 Bracelet, Cosmetic Bag, Medal etc)

Bangladesh Economic Zones Authority (BEZA)
Bangladesh Economic Zones Authority (BEZA) was officially instituted by the government on
9 November 2010. BEZA aims to establish economic zones in all potential areas in
Bangladesh including backward and underdeveloped regions with a view to encouraging rapid
economic development through increase and diversification of industry, employment,
production and export.
Incentives for Developer:
Income Tax exemption for 10 years
VAT Exemption on electricity
VAT Exemption on local purchase excluding petroleum products
Exemption from custom/excise duties
Exemption of stamp duty and registration fees for land registration
Exemption of stamp duty for registration off loan/credit document
Exemption from dividend tax

Bangladesh Economic Zones Authority
100 Economic Zones 10M New

$40Bn worth of
production
by 2030 Jobs
Special attention to Direct or Indirect job Significant portion of

industrially backward creation for realizing GDP will come from
region demographic these EZs
dividend.

Notable Current Offerings
Duty free import facilities for
capital machinery and
construction material
Bond Facilities including Home

Consumption Bond for domestic market
Corporate Tax exemption for up to 10 years

and 12 years respectively for Unit investors
and Zone Developers
Exemption from Value Added Tax

on Utility Services

Notable Current Offerings
100% Tax exemption for 10 years on

Royalty Fee, Capital Gain & Dividend
Payment
Foreign residents working in EZs get

tax waiver for half of their income in
first three years
EZ Investors can now remit royalty, technical assistance up

to an amount of 6% of their capital investment or their
previous years sales. If the amount exceeds 6%, then they
only require permission from BEZA.

BEZA OSS Centre
125
37 88
29 32
BANGABANDHU SHEIKH MUJIB SHILPANAGAR
30000 Acres
Land
4000
Acres
Ready
Land
Designated
Sea-Port

BEZA Services
 Identify and select sites

 Acquire land for economic zones
 Appoint economic zone developer
 Prepare infrastructure development plans of economic zones for implementation and
management of own establishment and submit it to the Governing Board for approval;
 Allot or lease or rent of land, building or site
 Ensure infrastructure development of economic zones
 Create opportunities for employment through establishing backward linkage industries within
or outside economic zones by promoting local and foreign investment including development of
skilled labour force;
 Ensure efficient use of land
 Encourage more efficient management
 Take steps to establish backward linkage industries

BEZA Services (Contd)
 Encourage business organizations to relocate polluting and unplanned industries from

metropolitan cities through establishing separate economic zones for different industries;
 Encourage public-private partnership to take necessary steps to implement social and
economic commitments;
 Establish the due rights of workers
 Take appropriate steps to implement poverty reduction program;
 Expedite implementation of industrial policy
 Convert the areas declared as economic zones into economic centers by developing industrial
cities, agro-based industrial zones, trade zones and tourism zones through investment of banking
sectors and to facilitate availability of skilled labour and efficient service provisions.

Bangladesh Hi-Tech Park: Where to Invest
Ready Parks for Parks to be Ready by

Projects Underway
Investments 2020
 Bangabandhu Sheikh
 Bangbandhu Hi-Tech City, Mujib Hi-Tech Park,  12 IT project
Kaliakoir Rajshahi  Sheikh Hasina Institute of
 Sheikh Hasina Software  Sheikh Kamal IT Business Frontier Technology
Technology Park, Jessore Incubator, CUET (SHIFT)
 Janata Tower Software  Khulna IT Incubation and  Sheikh Kamal IT Incubator
Technology Park, Dhaka Training Center, KUET & Training Center in 11
 Bangabandhu Hi-Tech  8 IT Incubation and districts
Park, Sylhet Training Centers in 8  Bangladesh Digital Service
 Sheikh Kamal IT Incubator districts and Employment Training
& Training Center,  Software Technology Park, Center (BDSET)
Rajshahi Chittagong
28 Hi-Tech & Software Technology Parks and

64 IT Training & Incubation Centers

Bangladesh Hi-Tech Park:
Investment, Employment and Revenue
Oryx-Biotech, Samsung, Aamra Group,

(million USD)
Techno Mobile, Datasoft, BJIT, Symphony,
Total Invested by BHTPA 59 Axiata, Leo Cables, Vibrant, Kemon Cables,
Total Invested by Private Ulkesemi, Advance software Technology
Gaming Development, Arrodex, Marketing
Companies (2016-2019)(mill USD) 40 Nomards, RTM International,
Companies Operating in BHTPA 110
Proposed Private Investment by
2023 575
Total Employment by 2023 50,000

Bangladesh Hi-Tech Park: Incentives for Investors
Hi-Tech Park will be

treated as a
10 years tax 12 years tax bonded
exemption for
100% 100 % profit
exemption for ownership for repatriation for
warehouse. No
IT/ITES foreign investors custom duty will be
investors
Companies developers applicable for
export.
Duty free 10 years income tax 50% income

Income Tax import exempted for tax exempted for
of capital Developer for profit , capital
exemption for gain from share
machineries declared profit/bonus
foreign experts and construction of Share transfer and
materials Royalties

Challenges: Ranking of Bangladesh in EoDB (by WB)
 Starting a business
 Dealing with construction permits
 Getting electricity
 Registering property
 Getting credit
 Protecting investors
 Paying taxes
 Trading across borders
 Enforcing contracts
 Resolving insolvency

More Challenges
 Insufficient infrastructure
 Bureaucratic inertia (time taken for processing various regulatory approvals is very high).
 Separate approvals have to be taken from various ministries and departments.
 Most of the databases are of ‘Silo nature’.
 Civil courts take very long time to settle industrial disputes. Also no special court for expeditious settlement of
trade disputes.
 Outdated Companies Act.
 Inadequate intellectual property rights protection.
 Congested ports and customs restrictions.
 Long time for setting up industries.
 Frequent changes in policies on import duties for raw materials, machinery and equipment etc.
 Partial “One Stop Service”.
But the good news is the government, ministries and agencies are trying
their best to address the challenges collectively.
Thank You!
Bangladesh Investment Development Authority (BIDA)
Peoples Republic of Bangladesh
Prime Ministers’ Office
Government of the People's Republic of Bangladesh
Email: arif@bida.gov.bd , zrahmanbuet@gmail.com

Web: www.bida.gov.bd

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Business Opportunities in Bangladesh

Md Ariful Hoque, Director, Bangladesh Investment Development Authority

You can send sms to this number: 01819-264800

©Bangladesh Investment Development Authority 2

Development Developed Rise to Apex

50th year of independence

©Bangladesh Investment Development Authority

Parameters What we were We are now

Electricity Gen. Capacity (MW) 3,362 (2009) 21,419 (Sep, 2019 )

©Bangladesh Investment Development Authority 4

 One of the fastest growing economy in South Asia

©Bangladesh Investment Development Authority 5

Communication, Energy, Power, Competitive manufacturing

IT & ITES, BPOs Logistics, Health Education, Training, HR

 100% FDI  Non-equity modes (Technology

©Bangladesh Investment Development Authority 6

Export Abundance of competitive work-force, Lowest Wage in Asia, Duty

High Mobile Density, Internet Density, Tech Savvy Young

©Bangladesh Investment Development Authority 7

 Power  Oil and gas

 ICT and ITES  Electronics

 Home Textiles  Readymade garments industry

 Agro-based/processing  Silkworm & Silk Industry

 Pharmaceuticals  Leather & leather goods

 Jewelry and diamond cutting

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Sector Market Size Growth (%)

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Readymade Garments (RMG)

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Growing at 5% per annum since 2013.

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Agro & food processing Industry

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Leather and footwear

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Electronics & Electrical Equipment

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Source: Enterprise Survey, Bangladesh Bank

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• In the ‘Starting a Business’ 3 reforms reducing

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Tax Holidays Tariff Concessions Avoidance of Double

Export Equity Accelerated

Fast Track Permanent Quick

Skilled Work Bonded NRB

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Source: 27th Investment cost survey JETRO 2017

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Categories 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

Equity 233.84 528.03 505.55 1006.74 614.76

Reinvested earnings 795.78 1141.34 1154.45 1253.00 1253.44

Intra-company loans 450.72 164.50 343.53 195.07 712.24

Total 1480.34 1833.87 2003.53 2454.81 2580.44

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Currently there is less outbound investment marked from Bangladesh.

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• 150 services of 34 agencies will be offered through OSS;

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License from Department of explosives

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