Investment Opportunities In Bangladesh.
Bangladesh is among the top ten fastest growing economies of the world, with impressive domestic savings and investment propelling investment and growth inside the country. Sound economic fundamentals, democratic governance, robust domestic savings, enterprising people, big pool of skilled, semi-skilled, and easily trainable manpower, young and energetic work force, preferential market access to most of the developed economies have been behind robust investment and export growth in recent years. Investment climate in Bangladesh is highly conducive to foreign direct investment. Following are some features that make Bangladesh a standout investment destination for foreign investors:
Enabling legal regime
– Rules based investment regime. Bangladesh is a signatory to ICSID, UNCITRAL, OPIC, MIGA, WAIPA, WIPO, and WTO
– All laws, regulations are conducive to investment.
– Investments are secured by law against nationalization and expropriation
– 100% foreign equity is allowed with provision of unrestricted exit.
Competitive Sectors for investment
Infrastructure
Liberal Investment Regime
– All modes of investment, including 100% FDI, joint ventures, partnerships, PPPs, non-equity modes (technology transfer, licensing franchising, contracting etc), foreign lending are allowed
– Local and foreign investments are given equal treatment
– Provision of unrestricted exit
– Most of the sectors are open for foreign investment
Power
Sound and conducive environment
– Sound economic fundamentals
– Robust and continued economic growth
– Largely homogeneous society with no ethnocentric tension
– Liberal democracy resulting to stable political situation
– Broad non-partisan support for trade and investment
– Resilient people
– Abundance of competent and easily trainable work force at competitive wage
– English is widely spoken and understood
ICT & Telecommunication
Incentives for foreign investors
– 5-10 years of tax holidays for some sectors
– Up to 10 years of tax holiday for investing in infrastructure
– Up to 10 years of tax holiday for investing in special economic zones
– Avoidance of double taxation under treaties with 28 countries
– Fast track approvals
– Quick immigration, provision for permanent residency and citizenship
– Bonded warehousing
Textile and Clothing
Investment facilitation
– Special facilitation for establishment of business through government agencies like Bangladesh Investment Development Authority (BIDA), Bangladesh Special Economic Zone Authority (BEZA), Bangladesh Export Processing Zones Authority (BEPZA), Bangladesh Hi-Tech Park Authority (BHTPA), Bangladesh Public-Private Partnership Authority (PPPA)
– Have bilateral investment treaties with 32 countries and avoidance of double taxation treaties with 28 countries.
Pharma & Chemicals
Market
– Large domestic market of 160 million people
– Large regional market
– Strategic location in between South Asia and ASEAN with sea, land and air connectivity offers opportunity to establish production and distribution hub in Bangladesh
– Preferential/duty-free quota-free (DFQF) market access to almost all of the developed economies of the world
Agribusiness & Food Processing
Competitive Sectors for investment
– Infrastructure: Communication, Energy, Power, Ports, Transport, Hospitality an Tourism, Economic Zones, Transport Infrastructure, ICT & Telecommunication
– Manufacturing: Textile and Clothing, Pharma & Chemicals, Agribusiness & Food Processing, ICT & Electronics, Leather and Leather goods, Healthcare, Cosmetics and Toiletries, light engineering
– Services: IT & ITES, BPOs, Logistics, Health.
– Skills: Education, Training, HR development
This Consulate will be happy to entertain investment related queries from Australian investors and guide them to explore investment opportunities in Bangladesh.
