1.
Subject:
Business envoirnment
Prof: Ganpat Prajapati

2.
Group members
Name
Pooja V. Desai
Stevie X. Vales
Pooja A. Desai
Jigar M. Solanki
Deepika V. Jethwani

3.
Bangladesh Textile Mills Association
(BTMA)
Presents
Opportunities in Bangladesh
Textile Industry
for
Investment
From
MNC’s

4.
Introduction
 Tremendous industrial growth
 Availability of lowest manpower
 Sourcing world class fabrics and finished
clothes

5.
Objectives
 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

6.
Ready Made Garments
Industry
•Growth oriented.
•Largest exporting industry.
•Contribution towards GDP.
•Employment generation.
•Social development.

7.
New Markets
•The RMG started exporting to new market.
•Growth opportunity.
•WTO listed Bangladesh as 5th clothing exporter.

8.
Uniqueness
•Highest RMG exporting country.
•Competitive pricing is the unique revenue strategy.
•Competitive advantage on cost of labor.
•EPZ manufacturing and lower cost of energy.

9.
• 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
GOVERNMENT

10.
•48th largest economy
•Economy growth rate by 6-7%
•Deposit rate 9.65%
ECONOMIC

11.
BANGLADESH CORPORATE TAX POLICIES
 Standard rate of corporate tax in Bangladesh is
27.5%
 Publicly Traded Company 27.5%
 Non-publicly Traded Company 37.5%
 10% rebate on tax

12.
Technological
 National science and technology policy
 It gives direction to Science and technology
 The National Council for Science and Technology
(NCST)

13.
Export policy
 The sector share of RMG export
 In 1980 EPZ was established
 76% of country’s export earning from textile and
apparel.
 export worth nearly $5billion p.a.
 6th largest apparel supplier to US and EU
countries.
Year Approx %
1995 17
2003 40

14.
Human Resources
 45% of all industrial employment
 Contribute 5% to the total national income
 4 million people are employed mostly women

15.
Geography
 Textile and apparel firms in Bangladesh are mostly
concentrated around the capital city of Dhaka

16.
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

17.
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

18.
 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