Prof: Ganpat Prajapati
Pooja V. Desai
Stevie X. Vales
Pooja A. Desai
Jigar M. Solanki
Deepika V. Jethwani
Bangladesh Textile Mills Association
Opportunities in Bangladesh
Tremendous industrial growth
Availability of lowest manpower
Sourcing world class fabrics and finished
To promote trade in textile and apparels
To expand market access
To establish a market information system
To promote the development of policies
supportive to trade
To provide an institutional framework for the
development of textile industry
To enhance private sector involvement in
regional policy formulation and implementation
Ready Made Garments
•Largest exporting industry.
•Contribution towards GDP.
•The RMG started exporting to new market.
•WTO listed Bangladesh as 5th clothing exporter.
•Highest RMG exporting country.
•Competitive pricing is the unique revenue strategy.
•Competitive advantage on cost of labor.
•EPZ manufacturing and lower cost of energy.
• back-end bottlenecks
• supply of gas for electricity generation
• welfare schemes and participatory decision
• technology and skill upgrading
• EU GSP rules
• Governsment policies for Foreign Investments
•48th largest economy
•Economy growth rate by 6-7%
•Deposit rate 9.65%
BANGLADESH CORPORATE TAX POLICIES
Standard rate of corporate tax in Bangladesh is
Publicly Traded Company 27.5%
Non-publicly Traded Company 37.5%
10% rebate on tax
National science and technology policy
It gives direction to Science and technology
The National Council for Science and Technology
The sector share of RMG export
In 1980 EPZ was established
76% of country’s export earning from textile and
export worth nearly $5billion p.a.
6th largest apparel supplier to US and EU
Year Approx %
45% of all industrial employment
Contribute 5% to the total national income
4 million people are employed mostly women
Textile and apparel firms in Bangladesh are mostly
concentrated around the capital city of Dhaka
Why in Dhaka Region ?
•International Communication available
• Easy for buyers to visit, inspect etc.
•Trained technical manpower easily available
• All financial institutions H.Q in Dhaka
•Five to six hours travel time to Chittagong by road
•Utilities such as gas, electricity, water availability better
The Stand Out Factors
• The world's second biggest exporter of clothing
• Excellent transportation
• Availability of raw materials
• Adequate sources of energy
• EPZ- primary objective, 8 EPZ’s, benefits and BEPZA
• Market coverage's – duty free access to Canada,
Norway, Japan, New Zealand and Australia
• Cheapest labour force
8.Duty Free Access to US
9. Investment Guarantee : Foreign Private
Investment (Promotion and Projection) Act 1980 ,
OPIC"s (Overseas Private Investment
Corporation, USA) , Multi-national Investment
Guarantee Agency (MIGA)
10. The International Centre for Settlement of
Investment Disputes (ICSID)
11. FDI- in 2011, FDI was $1136.38m.. 13.75%
up in 2012
12. Bank interest@ 7% for financing exports