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Bangladesh. Investment opportunities In Bangladesh. Nabhash Chandra Mandal Executive Member, Board of Investment. March 29, 2014. CHINA. INDIA. INDIA. SYLHET. RAJSHAHI. INDIA. DHAKA. BARISAL. INDIA. KHULNA. CHITTAGONG. Bangladesh at a Glance.
Nabhash Chandra Mandal
Executive Member, Board of Investment
March 29, 2014
Bangladesh at a Glance
(Avg FY September, 2012)
Rajshahi, Sylhet, Barisal, Rangpur
Source: Bangladesh Economic Review, 2013, BBS, EPB, Bangladesh Bank
and Inclusive Bangladesh
To achieve the status of a middle income country by 2021:
Required growth rate : 7.5%- 8% every year
Per Capita Income : US$ 1,300 (World Bank Report)
: US$ 1,100 (current)
[Bangladesh Bureau of Statistics (BBS)]
Share of Investment : 30% instead of 26.84%
‘‘… a peaceful society and stable .. .. ..’’
Bangladesh maintains a very promising economy with stable growth rate 6%+
Per Capita Income US$ 1044
BD reduced MDG targeted poverty rate to 25% in 2012, before the targeted yr. (2013)
Generated electricity 10,000 MW in December, 2013
BD is one of the top exporters of RMG to US & European countries
Has never posted negative economic growth rate during the past 30 yrs.
Maintains a open, market based economy
Leasing & buying a private land by foreign investors in BD is easier than India, Pakistan and Srilanka (World Bank Report)
Bangladesh is an emerging country for FDI and (World Bank Report)
Sectoral Contribution to GDP since 1947:
Goldman Sachs branded as Bangladesh is in ‘Next 11’ list after the BRICS nations
The International Monetary Fund (IMF) commented on the economy of Bangladesh as Resilient export and remittance flows have bolstered growth and external stability
The Wall Street Journal (WSJ) dismissed the previous branding of Bangladesh as commented Bangladesh, 'Basket Case' No More - with a higher growth rate, a lower birth rate, and a more internationally competitive economy,
JPMorganChase commented Bangladesh The country ranks fourth in growth in economically active population.
Morgan Stanley has commented Bangladesh is at the very early stages of an investment boom…
New York Timeshas termed Bangladesh as “an unlikely corner of Asia, strong promise of growth”…
COFACE (Economic & Insurance Institution of France) termed among the 10 countries including Bangladesh have promisinggrowth prospects, business friendly environment- after Goldman Sachs ‘Next 11’ list like the BRICS nations
COFACE countries: 1st 5: Peru, Philippine, Indonesia, Colambia & Srilanka , 2nd 5: Kenya, Tanzania, Zambia, Bangladesh & Ethiopia07. What is told about Bangladesh
The areas are a) economic management, b) structural policies, c) policies for social inclusion and d) public sector management and institutions
Bangladesh scores 3.5 out of a maximum 6 points
Developing countries average point is 3.3 (BD score 0.2% higher)
Basic requirements for sound investment are a) good macroeconomic statistics, b) accurate financial statements, c) stable regulatory framework and d) clear understanding of corporate governance structure
Bangladesh possesses all of the above at the present time and the quality of macroeconomic statistics is improving gradually.
Bangladesh is the most convenient destinations for FDI for its investment friendly facilities & regulations
Leasing & buying a private land in BD by foreign investors is much easier than India, Pakistan and Srilanka
”World Bank’s latest report on Investing Across Boarder 2010 covering 87 countries lists BD as one of the most convenient destinations for FDI”..08. World Bank AssessmentWorld Bank on Bangladesh as an FDI destination:
According to the World Bank’s New Business report- 2013:
Source: World Bank’s New Business Report- 2013
The National Industrial Policy- 2010 of Bangladesh is one of the best and liberal policies in South Asia. The main features of the policy are:
a) Private sector is treated as the engine of growth
b) 100% foreign equity is allowed along with unrestricted exit.
c) All industrial sectors are open for foreign investors for investment except 4 *reserve sectors for the government.
c) No upper ceiling for foreign investors
d) Equal treatment for both local and foreign investment
e) Export oriented industries are given top priority
f) J/V with local partner either private or public is allowed but not mandatory.
g) Foreign private investment in Bangladesh is secured by law.
Reserve Sectors: 1. Defense and defense production, 2. nuclear energy, 3. extraction from reserved forests, 4. security printing and mint and air transportation (some domestic routes and international air cargo already opened for private investment.) and railways.
The broader FDI policy & regulatory framework include, among others, the following:
Foreign Private Investment (Promotion and Protection) Law, 1980
Bangladesh is a signatory to ICSID, UNCITRAL, OPIC, MIGA, WAIPA, WIPO and WTO.
Intellectual Property right is protected by Law.
Bilateral investment treaty with India signed in 6 May, 2009
The avoidance of double taxation treaty with India was signed
Active presence of Bangladesh India Bangladesh Chamber of Commerce and Industry.16. Promotion and Protection of Investment in Bangladesh
Bangladesh at a Glance
Source: Ministry of Finance, others
Source: Bangladesh Bureau of Statistics Bangladesh Economic Review 2013
2013*Jan.-June FDI inflow has increased by 88% from 2012 (Jan. June)
Malaysia, British Virgin Islands, and Thailand has shown their interest
* Data till June 2013
Source: Enterprise Survey, Bangladesh Bank
2. Jute & jute-mixed goods
3. Flower cultivation
5. Commercial plantation
7. Silkworm & silk industry
10. Home Textiles
11. Textiles industry
12. Readymade garments industry
13. High value added RMG
14. Computer software & ICT goods
16. Light engineering incl. automobiles
18. Pharmaceutical goods
19. Leather and leather products.
20. Herbal medicines
22. Frozen Food
23. Integrated shrimp cultivation
25. Jewellery and diamond cutting polishing
26. Oil and gas
27. Tourism industry
28. Basic chemicals/raw materials used in industries.
29. Dye and chemicals used in textiles industry.
30. Cosmetics and toiletries.
31. Information & Communication Technology
32. Health care22. Prospective areas for Investment (as per the National Industrial Policy- 2010)
IP = Import Permit; IRC= Import Registration Certificate
The objectives of this Policy and Strategy are to:
Economic Zones under implementation…
Mongla, Sirajganj, Anowara, MirershoraiMaulvibazar
Indian Investment Projects registered with BOI
[Source: June , 2013
Board of Investment]
Actual FDI from India (Fiscal year basis)
The trend of actual inflow from India to Bangladesh is increasing…
[Source: Enterprise Survey, Bangladesh Bank, World Investment Report , UNCTAD]
Prime Minister’s Office, Government of the People's Republic of Bangladesh, Jiban Bima Tower (19th Floor), 10 Dilkusha C/A, Dhaka 1000, Bangladesh
Phone: (880-2) 7169580 Fax: (880-2) 956 2312
Email: email@example.com Web: www.boi.gov.bd