2. Bangladesh has been listed in the “Next 11 after BRIC” (Goldman Sachs
analyst report).
“Frontier Five” economies (JP Morgan)
Bangladesh ahead of all countries in South Asia, except India (S&P and
Moody)
Business climate in Bangladesh is on an upswing.
The economy has been growing at over ~ 6% for the last 5 years.
The FDI into Bangladesh was 913 million USD in 2010, almost doubling
in the last 7 years.
Bangladesh is also the world’s 2nd largest exporter of apparels and RMG.
Bangladesh is the 42nd largest economy in the world (In 2010, it was
48th largest economy) according to IMF in terms of purchasing power
parity.
Government of Bangladesh has estimated GDP growth rate at 7% in the
budget for the current fiscal year. In 2012-13 the projected GDP growth
is 7-8.2%.
3. GDP (2010-11) : US$ 113.50 Billion
Per Capita GDP (2010-11) : US$ 818
GDP Growth Rate (2010-11) : 6.66%
Sectoral Share of GDP (2010-11) : Industry - 30.33%,
Agriculture-9.45%, Service - 49.72
Contribution of Manufacturing to GDP: 18.41%
Exports- 22.92 bn. US$ (2010-11)
Imports- 33.65 bn. US$ (2010-11)
Export Contribution to GDP : 16.4%, RMG to GDP : 12.2%
FDI : In 2010 : US$ 913 Million, In 2009 : US$ 700 million
Export Growth : 5.4 % to 16.4 % of GDP between 1986-
2010
8. Countries
Percentage hold among
Total Export of
Bangladesh
USA 22.28
Germany 15
UK 9.01
France 6.7
Netherlands 4.83
Canada 4.33
Italy 3.78
Belgium 2.9
India 2.3
Japan 1.9
Source: Export Statement 2010-11, EPB
Share of Total Export of Bangladesh byCountries
0
5
10
15
20
25
USAGerm
any
UK
France
Netherlands
Canada
ItalyBelgium
Japan
India
Percentage
Country
Share
About 80% of export are concentrated
to only four markets like USA-22.28%,
E.U-52.14%, Canada-4.34%, India-2.3%
9. Items Share of Total
Export
Knitwear 41.36%
Woven Garments 36.78%
Jute Goods 4.86%
Frozen Foods 2.73%
Raw Jute 1.56%
Leather 1.3%
Chemical 0.46%
Total 89.05%
Total Export items of
Bangladesh are about
700. But these seven
items contribute about
89.05% of our total
export in the FY 2010-
11 where share of first
two items is 78.14%.
So, it’s a must to go for
product diversification.
Source: Export Statement 2010-11, EPB
10. Canada's primary imports from
Bangladesh include ready-made
garments, fish, bicycles, textile
fabric and yarn, footwear and
ceramics etc.
So, there is huge potentials of
increasing export to Canada through
Product Diversification amongst
those 200 Export items.
11. Bangladesh's primary imports
from Canada include cereals,
vegetables, miscellaneous
grain and seed, iron and
steel, wood pulp, and
machinery etc.
13. Canada’s commercial relationship with Bangladesh has grown
dramatically in the last few years. The value of bilateral merchandise
trade has more than tripled from $487.0 million in 2005-06 to $1570
million in 2010-11 .
Bilateral relationship between
Bangladesh And Canada
Bangladesh’s Export to and Import from Canada (In M US$)
Year Bangladesh’s
Export to
Canada
Bangladesh’s
Import from
Canada
Total Trade
2005-06 407 80 487
2006-07 458 156 614
2007-08 533 362 895
2008-09 663 287 950
2009-10 667 453 1020
2010-11 994 576 1570
The Trade balance has been in Bangladesh’s favor. During the last six
years the value of merchandise export has grown by 144 % where
merchandise import has grown by 620 %.
14. Canada established bilateral relations with Bangladesh
after independence in 1971. Built upon shared values of
democracy and pluralism, relations are focused on
development cooperation, trade and investment,
regional security, immigration and people-to-people
links.
Establishment of Bangladesh-Canada bilateral relations
15. Bilateral development assistance is central to Canada's
relationship with Bangladesh. Development assistance is
concentrated in three areas: health, education and economic
growth. In 2009, as part of Canada's new aid effectiveness
agenda, Bangladesh was selected by CIDA as one of
20 countries of focus.
There are more that 50 development project with
Bangladesh. These projects focused several areas like
health, education, Business Services for Small Enterprises,
technical support, disaster management, poverty reduction,
Research etc.
16. Power and Alternative Energy will be the need of the future and
crucial to the country's development. As a key sector it offers
huge scope for investment and development.
Developing infrastructure in urban areas as well as all over the
country will be a growing sector for years to come. It also
includes infrastructure related to environment, water treatment
and sanitation.
17. About 46 countries designated as LDC beneficiaries for
duty free entry for all products. As a result Bangladesh
enjoys GSP facilities for all products. But the bulk of the
products were not significant for Bangladesh.
Most of the products did not able to take the advantage of
GSP, Only RMG can avail the GSP opportunity.
In order utilize the full benefit of Canadian GSP ,
Diversification of products is necessary.
18. Bangladesh offers an unparalleled investment climate
compared to the other South Asian economies.
Bangladesh is a largely homogeneous society with no major
internal or external tensions and a population with great
resilience in the face of adversity (e.g. natural calamities).
Bangladesh is a liberal democracy. The population of this
country irrespective of race or religion have been living
in harmony and understanding for thousands of years.
Broad non-partisan political support for market oriented
reform and the most investor-friendly regulatory regime in
South Asia.
Trainable, enthusiastic, hardworking and low-cost (even by
regional standards) labor force suitable for any labor-
intensive industry.
19. The geographic location of the country is ideal for global trade,
with very convenient access to international sea and air routes.
Bangladesh is endowed with abundant supply of natural gas,
water and its soil is very fertile.
Although Bengali (Bangla) is the official language, English is
generally used as a second language. The majority
of the educated population can read, write and speak in English.
As a result of low per capita GDP, present domestic consumption
is not significant. However, it should always be considered that
there exists a middle class with over 10% of the population. As
economic growth picks up, the purchasing power will also grow
substantially.
20. Bangladeshi products enjoy duty free and quota free access to almost all the
developed countries. This access to the global market is further helped by the
fact that the policy regime of Bangladesh for foreign direct investment is by far
the best in South Asia. Most Bangladeshi products enjoy complete duty and
quota free access to EU, Canada, Australia and Norway. Though in limited scale,
Bangladesh products already found their access with lower duty in the markets
of Thailand, India and Pakistan. However, talks are underway with China,
Russia, Malaysia and other neighbouring countries in this regard.
Investors of Canada might take the opportunity to establish 100% foreign
investment of joint venture projects. We welcome investors from Canad to
invest in Bangladesh
The government of Bangladesh has provided various opportunities
and a unique package of incentives to foreign investors. Most potential
sectors for investment in Bangladesh are: Agro-based sectors like food and fruit
processing, paper and pulp from Jute, gas-based industries, power, fertilizer,
renewable energy, backward linkage of RMG including composite Textile Mills, IT
sector, leather and leather goods, Ceramics, Pharmaceuticals, Electronics, Light
Engineering, Steel, infrastructure development, Hospitals, Education, Tourism &
Hotels, shipbuilding etc.