Foreign direct investment in Bangladesh

3. A foreign direct investment is a controlling
ownership in a business enterprise in one
country by an entity based in another
country.

4.  GDP size $223.941 billion (2016)
 Expected GDP Growth Rate- 7.10% ( 2016)
 Per Capita Income- $1466 (April, 2016)
 Inflation Rate- 5.6% ( 2016)
 Investment Contribution to GDP- 13% ( July 2015-May 2016)
 FDI- $1.53 billion (2015)
 Export- 192.41Billion BDT (February 2016)
 Import- 239Billion BDT (February 2016)
 Gold Reserves 13.78 tones (apx)
 Remittance $1397.49 million
 Foreign currency reserve over $24billion.
Source: BOI and Bangladesh Bank

5.  Industrial low cost labor
Per hour labor cost in Bangladesh is $0.62 in 2014 the lowest among the developing
countries.
 Low cost of energy
 Water Supply : Tariff : 22.43 euro cents / cu-m.
 Gas Supply : Tariff : 6.45 euro cents / cu-m.
 Power Supply : Tariff : 6.11 euro cents / kwh.
 Good ranking in FDI magazine by CTG EPZ is 200 out of 700 global economic
zones
 Proven export competitor
Bangladesh is one of the top exporters of readymade garments to US and Europe.
Bangladesh also has some preferential treatment benefits in European countries.

6. Strategic Location

7.  Competitive Incentives
Fiscal and non-fiscal incentives
Tax Exemptions
Generally 5 to 7
years.
For power
generation
exemption is
allowed for 15 years
Double taxation can
be avoided on the
basis of bilateral
agreements.
Duty
No import duty for
export oriented
industry
For other industry it
is @ 5% ad valorem
Remittance and
Exit
Full repatriation of
invested capital,
profit and dividend
Wind up on
investment either
through a decision
of the AGM or EGM
Repatriation of the
sales proceeds after
securing proper
authorization from the
Central Bank
Export Processing
Zone (EPZ)
Eight EPZs so far
Directly supervised by
Prime ministers office
Specially allocated for
FDI of manufacturing
sectors

8.  Export and economic zones
Facilities Provided by Bangladesh Export Processing Zone Authority
(BEPZA)
 Duty free import and export of raw materials and finished goods
 GSP facility available
 Duty & quota free access to EU, Canada, Norway, Australia etc.
 Enjoy MFN (most favored nation) status
 No ceiling on foreign and local investment
 Foreign Currency loan from abroad under direct automatic route
 Non-resident Foreign Currency Deposit (NFCD) Account permitted
 Off-Shore banking available
 Relocation of foreign industries allowed
 Sub-contracting with export oriented Industries inside and outside EPZ allowed

9. Facilities Provided by Bangladesh Export Processing Zone Authority
(BEPZA)
Duration and rate of tax exemption for Chittagong, Dhaka, Comilla, Adamjee,&
Karnaphuli EPZ for the industries set up after January 01, 2012:

10.  Risk factors of FDI are the minimum in Bangladesh
 Since independence non of the governments of Bangladesh had imposed any
unfavorable policy against foreign investors.
 Stable exchange rate – Over the last few years Bangladesh managed to maintain
the foreign currency exchange rate at a stable position.
Exchange rate on 20.06.2015
British Pound = 122.9tk
Euro =87.88tk
American Dollar =78.39tk
 Low sovereign risk - Bangladesh has never defaulted in its debt repayment as
Bangladesh has over $24 billion of foreign currency reserve.
 Growing market
Increasing purchasing power with per capital income $1314.

11. 1. Pre-Investment Information and Counseling Service
2. Investor Welcome Service (faster immigration)
3. Registration /approval of foreign, joint-venture and local
project
4. Registration /approval of Branch/Liaison/Representative
Offices
5. Approving work permit for the Foreign Nationals
6. Facilitating utility connections (electricity, gas, water &
sewerage, telecom etc.)
7. Assistance in obtaining industrial plots
8. Pre-Investment Information and Counseling Service
9. Approving remittance of royalty, technical know-how and
technical assistance fees
10. Facilitating import of capital machinery & raw materials
11. Approving foreign loan suppliers' credit, PAYE scheme.

12.  Energy
 Infrastructure,
 Pharmaceutical
 Textiles
 Agriculture
 Healthcare
 Telecom
 Climate change
 Education
 Shipbuilding and light engineering

13. For the Import Registration Certificate (IRC) one needs to register with the
BOI and the Chief Controller of Imports & Exports. The following supporting
documents are needed:
 a. Trade License photocopy
 b. Valid membership of association (e.g. FBCCI)
 c. Passport photocopy of the Managing Director
 d. Bank solvency certificate (original)
 e. Original receipt (challan) of bank deposit for the fees

14. For the Export Registration Certificate (ERC) the following documents are
needed:
 a. Attested copy of:
 i. Trade License
 ii. Valid membership of association or chamber
 iii. AOA
 iv. MOA
 v. Incorporation certificate
 b. Original of Bank receipt (challan) for deposit of the fees