Investment opportunities in Bangladesh as well as prospects have been discussed here.

1. 1
Investment Opportunities
in Bangladesh

2. 2

3. 3
 GDP at current price US $133.504 billion, 6.03% growth
rate
 GDP Composition:
 Industrial Sector 31.98 percent
 Agriculture 18.7 percent
 Service Sector 49.32 percent
 Exports US $ 27.02 billion, Imports US$ 33.97 billion
 Remittance US $ 14.46 billion
 Foreign Exchange Reserve US$ 19.2 billion (March, 2014)
 FDI Inflow US$ 1.73 billion
 Government Revenue US$17.96 billion
 Gross Investment is 26.8% of GDP
Bangladesh Economy at a Glance (2012-13)
Source: Bangladesh Economic Review, Finance Division, Ministry of Finance, Bangladesh
FDI Survey, Bangladesh Bank

4. 4
With consistent economic growth figures of 6% annually and a
rapid export growth Bangladesh can be considered as an
emerging market offering business opportunities to all the
prospective investors. The way it has coped with the global
financial crisis is impressive, and it is increasingly benefiting
from economic relations with the nearby giant economies of
India and China. In addition, Bangladesh offers a huge
potential domestic market with a population of around 160
million and a growing middle class.
Bangladesh: An Emerging Tiger

5. 5
 Goldman Sachs include the country in its list of “The Next
Eleven (or N-11)” - economies that are expected to have a high
potential for driving the global growth in the 21st century.
 Citi Group has also included Bangladesh in its list of 3G (Global
Growth Generator) countries.
 JP Morgan has labeled Bangladesh as one of the ‘Frontier Five’
 Investor Chronicle has titled Bangladesh among the “Seven
Hottest Emerging Markets”
 The New York Times mentioned: “Bangladesh, Once Poor and
Irrelevant to the Global Economy is now an export Power House”
 MCKinsey & Company termed Bangladesh as the Next China
Outlook on Bangladesh by International Community

6. 6
 The Wall Street Journal (WSJ) dismissed the previous
branding of Bangladesh as a 'Basket Case‘. Now it has
higher growth rate, a lower birth rate, and a more
internationally competitive economy;
 Morgan Stanley has commented- “Bangladesh is at the
very early stages of an investment boom”
 New York Times has termed Bangladesh as “an unlikely
corner of Asia, strong promise of growth”...
 The International Monetary Fund (IMF) commented on the
economy of Bangladesh as Resilient export and remittance
flows that have bolstered growth and external stability of
the country.

7. 7
 Geographical location
The geographical location of the country is suitable for global trade,
with convenient access to international sea and air routes.
 Policy Reforms
Bangladesh is now trying to establish itself as the next rising star in
South Asia for foreign investment. The government has
implemented a number of policy reforms designed to create a more
open and competitive climate for private investment, both foreign
and local.
 Industrious Competitive Workforce
Bangladesh offers a well-educated, highly adaptive and industrious
workforce with the lowest wages and salaries in the region. 57.3%
of the population is under 25, providing a youthful group for
recruitment. The country has consistently developed a skilled
workforce catering to investors needs. English is widely spoken,
making communication easy.
Why Bangladesh….

8. 8
 Strong Local Market and Growth
Bangladesh has proved to be an attractive investment location with
its more than 160 million people and consistent economic growth
leading to strong and growing domestic demand.
 Low Cost of Energy
Energy prices in Bangladesh are the most competitive in the region.
Transportation on green compressed natural gas is less than 20% of
the diesel price.
 Proven Export Competitiveness
Bangladesh enjoys tariff-free access to the European Union, Canada,
Australia and Japan. In Europe, Bangladesh enjoys 60% of the
market share and is the top manufacturing exporter amongst 50
least developed countries.
Why Bangladesh….

9. 9
 Competitive Incentives
Bangladesh offers the most liberal FDI regime in South Asia, allowing
100% foreign equity with unrestricted exit policy, easy remittance of
royalty, and repatriation of profits and incomes.
 Export Processing Zones
Bangladesh offers export-oriented industrial enclaves with
infrastructural facilities and logistical support for foreign investors. The
country is also developing its core infrastructures, including roads,
highways, surface transport and port facilities for a better business
environment.
 Positive Climate
A largely homogeneous society with people living in harmony
irrespective of race and religion, Bangladesh is a democratic country
enjoying broad bi-partisan political support for private investment. The
legal and policy framework for business is conducive to foreign
investment.
Why Bangladesh….

10. Actual Flow of FDI to Bangladesh
10
(US$ In Million)
Source: FDI Survey Report 2012 & 13, Bangladesh Bank

11. 11
 Considering the country’s future energy security and low-carbon emission strategy, programs
have been undertaken to promote use of renewable energy. Government has formulated pro-
investment policy to encourage private sector investment in Renewable Energy (RE) Sector.
Bangladesh has the fastest growing Solar Home System (SHS) in the world with over one
million homes covered under the program being spear headed by IDCOL, a public
infrastructure financing entity. Other projects include: 1 MW solar hybrid system along with 5
MW by diesel in Hatia island, 8 MW Solar PV plant in Kaptai, Solar Street lights in six City
Corporation areas, replacement of diesel irrigation pump by Solar, 600 kW solar mini grid in a
remote area Sullah, 11 KW solar power to the CHT area, nearly 230 W solar power in
Angorpota and Dahagram Chitmahal Area. Solar PV with capacity of 21.2 KW at the Honble
Prime Minister's office has been installed as a demonstration project. Other line ministries
have also undertaken projects on solar lighting;
 Sustainable & Renewable Energy Development Authority Act-2012 has been enacted to set up
nodal organization for renewable and energy efficiency issues.

12. Top 10 Countries (FDI to Bangladesh)
FDI in Year July- June (2012-13)
Sl. No. Country Amount (in Million $US)
1. Malaysia 337.97
2. U.K. 159.49
3. Egypt 138.14
4. South Korea 124.94
5. Singapore 103.6
6. Japan 99.04
7. Hong Kong 86.34
8. Netherlands 84.96
9. U.S.A. 71.07
10. British Virgin Islands 68.24
12
Source: FDI Survey Report 2012 & 13, Bangladesh Bank

13. FDI Inflows by Sectors
13
Year/
Sector
2008-2009 2009-2010 2010-2011 2011-2012 2012-2013
Agriculture & Fishing 19.14 10.95 11.53 49.50 29.72
Mining and Quarrying 0 0 0 0 0.13
Power, Gas & Petroleum (Power,
Gas & Petroleum)
46.89 73.66 127.19 244.94 93.67
Manufacturing (Food Products,
Textiles & Wearing, Chemicals &
Pharmaceuticals, Metal &
Machinery Products
Vehicle & Transport Equipment,
Fertilizer, Cement, Leather &
Leather Products, Mfg Others )
183.96 233.74 330.25 414.98 712.88
Construction 0.68 0.19 0.36 1.01 6.85
Trade & Commerce (Trading,
Banking, Insurance, Leasing)
122.53 128.80 234.82 272.75 295.05
Transport, Storage &
Communication
(Telecommunication, Others)
579.62 445.99 54.50 179.04 527.09
Services (Hotel & Restaurant
Clinical, Computer Software & IT
Other Services)
7.77 19.68 20.39 32.60 65.18
Others 0 0 0 0.03 0.06
Total 960.59 913.01 779.04 1194.85 1730.63
Source: FDI Survey Report 2012 & 13, Bangladesh Bank

14. Investment Shares as percentage of GDP
14
Year Public Sector Private Sector
2002-03 6.2 17.2
2003-04 6.2 17.8
2004-05 6.2 18.3
2005-06 6 18.7
2006-07 5.5 19
2007-08 4.9 19.3
2008-09 4.7 19.7
2009-10 5 19.4
2010-11 5.6 19.5
2011-12 6.5 20.0
2012-13 7.8 19.0
0
5
10
15
20
25
Public Sector
Private Sector
Public & Private Sector Investment: Share of GDP
Source: FDI Survey Report 2012 & 13, Bangladesh Bank

15. Investment Climate
15
 Bangladesh is one of the top exporters of readymade
garments to US & Europe;
 Risk factors for FDI are the minimum in Bangladesh;
 Bangladesh never posted negative economic growth during
the last 30 years;
 Bangladesh has never defaulted in its debt repayments, nor
asked for their rescheduling;
 Bangladesh has an open market based economy led by a
vibrant and innovative private sector which provides the
main stimulus to its growth;
 Bangladesh is a homogeneous country with no
religious, ethnic or other forms of cultural conflicts;

16. Investment Climate
16
 Bangladesh has no web of intricate regulations and other
constraints which limit investment opportunities;
 Bangladesh has outstanding records in human rights;
 Movement of capital to emerging markets like the ones
represented by countries of south Asia is likely to be
profitable with no added risks;
 Existing slacks in the economy of Bangladesh offer
enormous opportunities of high return and low risk
investments in infrastructures, utilities, manufacturing and
consumer goods industries;

17. FDI Legislative Framework
17
Business Stage Policy & Regulation
General Bangladesh Industrial Policy (as undertaken from time to time)
Business start-up The Companies Act, 1994
Securities and Exchange Commission Act, 1993
Protection The Foreign Private Investment (Promotion & Protection) Act, 1980
Export Zones Bangladesh Export Processing Zones Authority Act, 1980
Bangladesh Private Export Processing Zones Authority Act, 1996
Facilitation The Investment Board Act, 1989
Corporate / Personal Taxation and
incentives
Income Tax Ordinance 1984 and related rules and SROs
National Budget
The Finance Act/Bill
International Trade (Export & Import) Bangladesh Export Policy (as undertaken from time to time)
Bangladesh Import Order (as undertaken from time to time)
Sector wise Bangladesh Energy Regulatory Commission Act, 2003 (BERC)
Bangladesh Telecommunication Regulatory Commission Act, 2001 (BTRC)
The National Drug Policy, 2005
SME Policy, 2005
National Tourism Policy, 2009
Renewable Energy Policy, 2009

18. Business Stage Policy & Regulation
Special Economic Zones Bangladesh Economic Zones Act, 2010
Procedural Law The Arbitration Act, 2001
Public Private Partnership Project Policy and Strategy for Public Private Partnership (PPP), 2010
Public Private Partnership (PPP) Act, 2013 (At its final stage of formulation)
Competition Competition Act, 2010
Banking, Insurance & Financial
Institutions
Banking Companies Act, 1991 (Amended, 2003 & 2013)
Financial Institutions Act, 1996
Insurance Act, 2010
Capital Market Securities and Exchange Commission Ordinance, 1969
Intellectual Property Patents and Design Act, 1911
Copyright Act, 2000
Trademark Act, 2009
Foreign Trade Foreign Exchange Regulation Act, 1947
Special Economic Zones Bangladesh Economic Zones Act, 2010
ICT Information and Communication Technology Act, 2006
Special Economic Zones Bangladesh Economic Zones Act, 2010
18
FDI Legislative Framework

19. Investment Environment - Tax and Policies
19
 Bangladesh in global context
 Duty and quota free access
 Duty and quota free access to EU plus Japan, US, Canada, Australia
and most other developed countries
 Tariff-free access to selected SAFTA markets
• Bilateral Investment treaties (BITs)
• Bangladesh has BITs with 29 countries and more 9 under process
• Double taxation treaties (DTTs) and other guarantees and bilateral
agreements with 28 countries and more 21 in process
“… Bangladesh foreign trade policy provides duty and quota
free access to many of the world’s major markets, for most
products… ”

20. Investment Opportunities - Incentives
20
 No ceiling on investment.
 Tax-holidays 5-10 years depending on location of Industries
 Tax-exemption and duty-free importation of capital
machinery and spare parts for 100% export-oriented
industries.
 Residency permits for foreign nationals.
 Capital, profit and dividend repatriation facilities.
 Hundred percent foreign equity allowed.
 Exemption of income tax upto three years for expatriate
employees.
 Term loans and working capital loans from local banks
allowed.

21. Investment Opportunities - Incentives
21
 Reinvestment of repatriable dividends treated as new
investment.
 Double-taxation avoidance, as per bilateral agreements
already concluded.
 Tax exemption on the interest payable on foreign loans
and on royalties and technical know-how fees.
 Open exchange controls.
 Multiple-entry visas for foreign investors.
 Investors can take advantage of the generalized system
of preference, which allows duty-free access to
American, European and Japanese markets.
 Taka is convertible for current account transactions.

22. Other Offers :
22
 Extremely competitive labour costs, perhaps the lowest in Asia.
 Easily trainable workforce of 56 million.
 A large domestic market, with disposable income growing especially
among the middle class.
 Strategic location as the bridge between South and East Asian high-
growth regions as well as links with other markets e.g.
India, Pakistan, Malaysia, Singapore etc.
 Low land and energy costs.
 Good road/bridge/rail infrastructure, which are being improved; two
sea-ports being further developed.
 Enjoys Most Favoured Nations status.
 Legal protection to foreign investment against nationalization and
expropriation.
 Equitable treatment with local investors regarding
indemnification, compensation etc.

23. Some of the foreign private investment opportunities are:
23
 Direct (100%) foreign investment or joint venture
investment in the Export Processing Zones (EPZs) or outside
EPZs (with the exception of the five industries mentioned
earlier).
 Portfolio investment by purchasing shares in publicly listed
companies through the stock exchange.
 Investment in infrastructure projects such as power
generation (private power generation policy announced);
oil, gas and mineral
exploration, telecommunication, ports, roads and highways.
 Outright purchase or purchase of shares of state-owned
enterprises, which are under process of privatization.
 Investment in private EPZ (Private EPZ Act recently passed).

24. List of potential investing sectors of Bangladesh:
24
Agro-based & agro-
processing industry
Textiles industry
Jute & jute-mixed goods Readymade garments industry
Flower cultivation High value added RMG
Commercial plantation Computer software & ICT goods
Horticulture Electronics
Silkworm & silk industry Light engineering incl. automobiles
Furniture Pharmaceutical goods
Handicrafts Leather and leather products.
Home Textiles Herbal medicines

25. List of potential investing sectors of Bangladesh:
25
Ceramics Basic chemicals/raw materials used
in industries.
Frozen Food Dye and chemicals used in textiles
industry.
Integrated shrimp cultivation Cosmetics and toiletries.
Infrastructure projects
(Power Generation, Gas and
Oil Exploration, Industrial
Parks, High-tech Parks, etc.)
Information & Communication
Technology
Jewellery and diamond
cutting polishing
Health care
Oil and gas Tourism industry

26. 26
Bangladesh has adopted a very liberal industrial policy to attract Foreign
Investment. No limitations pertaining to equity participation i.e. up to 100
percent foreign private investment allowed.
Except five reserve sectors, all industries are open for private investment.
Industries earmarked for public sector investment are in the reserve
sector namely :
(i) arms, ammunition and other defence equipment and machinery,
(ii) Production of nuclear energy,
(iii) Forest plantation and mechanized extraction within the bounds of
reserved forests,
(iv) Security printing (currency notes ) & minting and,
(v) Railways & air transportation (except certain domestic routes and air
cargo)
Reserved Investment Sector:

27. Investment Facilitation
27
Private investment in Bangladesh is facilitated by a host of agencies:
1.Board of Investment (BOI)
 Domestic and FDI (outside EPZs) – the apex Investment Facilitator
2.Bangladesh Export Processing Zones Authority (BEPZA)
 Domestic and FDI (only in EPZs)
3.Privatization Commission
 Privatization of State Owned Enterprises (SOE’s)
4.Sectoral regulatory bodies like BTRC, BERC
 Telecom Regulatory Commission & Energy Regulatory Commission
5.Line Ministries and Agencies
 Ministry of Power, Energy and Mineral Resources, Power Development
Board, etc.
6. DCCI Help Desk
o DCCI has set up a Help Desk namely “DCCI Help Desk” in its premise which
will act as a one stop shop. Investors of both home and abroad will get
their required information and guidelines regarding their investment.

28. Capital Market of Bangladesh
28
 Bangladesh Capital Market consists of the Dhaka Stock Exchange
(DSE) & the Chittagong Stock Exchange.
 Both are members of South ASIAN Federation of Exchanges
(SAFE), a forum in South Asia to promote the development of
securities markets in the region.
 The Bangladesh Securities & Exchange Commission (BSEC)
supervises the activities of the stock exchanges and its members.
 Automated trading facilities available at both stock exchanges since
1998.
 The Central Depository Bangladesh Limited (CDBL) introduced its
first electronic book entry in 2004.

29. Why Invest in Bangladesh Capital Market?
29
 100% repatriation of capital, dividend and investment
profits
 Reinvestment of repatriable dividend treated as new
investment
 No tax on capital gains
 10% of all IPOs are reserved for NRBs
 Bangladesh is in 22nd position in World’s Bank Investor
Protection Ranking, where the ranking for Pakistan is
34th , India 34th & Sri Lanka 52th.
 Easy access to ownership of Infrastructure Development
companies, high net worth private banks and companies
through Capital Market.

30. Requirements for NRBs & Foreign Investors to invest in
Bangladesh
30
 A Foreign Currency (FC) Account is needed for inward and
outward remittance.
 A Non-resident Investor’s Taka Account (NITA) is required for
converting foreign currency into Taka.
 All Capital Market investors are required to conduct trading
through a Stock Broking Account
 Maintained with any Stock Broker/Member of the respective
Stock Exchange.
 In order to trade dematerialized shares listed with the Stock
Exchanges, investors must have a Beneficiary Owners (BO)
Account with CDBL.
 NRBs & Foreign Investors may choose to appoint a Custodian
to ensure trade execution and safe custody of shares.

31. Trade License DCC
Industrial Registration
Application
BOI
Tax Privileges NBR
Import Registration Certificate
(IRC)
BOI & CCI&E
Export Registration Certificate
(ERC)
CCI&E
BOI Recommendation Letter
(For VISA)
BOI
VISA Application Embassy
Work Permit BOI
(Optional) Acquisition of Land BOI
Environment Clearance
Certificate
BOI & DOE
Social Compliance CIFE
Driving License BRTA
Steps for Company Registration and the Institutions
31
Preparation in the Home
Country
Home Chamber
Find and Screen a Local
Partner
Partner
Contact the BOI BOI
Select appropriate
Company Structure
BOI Website
Check with EU Trade
Section and Websites
EU
Clearance of Company
Name
RJSC
Opening a Bank Account Bank
Certificate of Incorporation
(Investment Permit)
RJSC
Business Registration BOI
Tax Identification Number
(TIN)
NBR
Value Added Tax (VAT)
Number
NBR
BOI= Board of Investment; EU= European Union; RJSC&F= Register of Joint stock Companies and Firms; NBR= National Board of
Revenue; DCC= Dhaka City Corporation; CCI&E= Chief Controller of Imports & Exports; CIFE= Chief Inspector of Factories and
Establishments ; BRTA= Bangladesh Road Transport Authority; DOE=Department of Environment

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33. Thank You
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