2. Bangladesh: An Economic Stronghold in
Asia
• 2nd largest economy of South Asia
• 35th largest economy of the world
• Central South Asia, with easy access to all
Asian countries
• 169 million population
4. A Journey from Zero to a Developing
Nation
7.10% US$ 2793
Index:
115
52.08
Bn$
~ 6%
~ 32 Bn$
-5.48% US$ 128 Index: 29
0.55 Bn$
9.9%
0.27 Bn$
5. Emblem of Inclusive
Progress
Extreme
Poverty Down
to 10.5%
Self
Sufficient
in Food
3rd Largest Fish
Producer
2nd Largest
Vegetable
Producer
World’s
Dress
Maker
2nd Highest IT
Freelancers
100% Mobile
Phone
Penetration
100%
Electricity
Coverage
Smart Disaster
Management
“We are committed to providing all policy
support, including infrastructure, to create
an investment friendly environment”
Sheikh Hasina MP
Hon’ble Prime Minister
7. GROWING
ECONOMY
HIGH RETURN ON
INVESTMENT
VIBRANT
LOCAL MARKET
SKILLED,
LOW COST WORKER
AIR, WATER, ROAD
CONNECTIVITY
Investment Climate in Bangladesh
34 M medium & affluent (MAC)
population by 2025.
Consumption growing >6% p.a.
Industries Sector
growing 13% faster
than GDP
38% Urban Population
Growing @3.1% per year
108M young
population in
working age group
$608 Bn Investment
in Infrastructure till
2040
LOW
UTILITY COST Minimum wage
$100, (regional
average $ 381)
8. Business Facilitation and Reforms
Licensing Services
Online One Stop Service portals
of the IPAs provides most of the
services virtually, paperless and
virtually.
Investor Services
• Pre-investment consultation
• Investment facilitation
• Investment Aftercare
• Advocacy
Continuous Reforms
• Company incorporation made easier
• Profit/Dividend repatriation without any approval
• One time agreement approval of Royalty/ Franchise fee/
Technical Assistance fee
9. Investment Climate Reforms
Bangladesh Investment Climate Improvement Program (BICIP)
Launched to continue the reform initiatives under EoDB and also to align with the vision 2041.
Modified the earlier EoDB program
To be consistent with the socio-economic situation of Bangladesh
To match the context and perspective of Bangladesh
To be compatible with middle-income economy status and post-LDC
developing country status.
Adopt 50 reforms in the first 50 weeks; 100 reforms in the first 3 years.
Achieve a minimum 10% increase in investment registrations every year.
Implemented through the whole country instead of only 2 cities as was under EoDB.
10. BICIP Structure: 7 Pillars
1.Business Entry, Exit, and Technology Adoption
2. Industrial Infrastructure and Logistics
3.Cross Border Trade and Business
4.Commercial Dispute Resolution and Labor Regulations
5.Tax Regime
6.Financial and Non-financial incentives
7.Access to Finance
11. Investor Confidence in Bangladesh
28.31
70.42
1.27
Reinvestment
70.42%
Intra company loans
1.27%
Equity Capital
28.31%
14. Expanding Infrastructures for Better
Days
Deep Sea Port with 16 meter draft
New Terminal at Dhaka Airport
6.15 KM Long Padma Bridge 20 km Metro Rail in Dhaka Underwater Tunnel
2023 2025
Rooppur Neclear Power Plant
2025
15. Incentives for Investing in Bangladesh
FISCAL INCENTIVES
Tax Exemption/reduction on
• Corporate Income Tax
• Dividend Tax
• Tax on export income
• Tax on interest of foreign loans
• Remittance of Royalty and other fees
Non Tax Incentives
• Reduced or no Import Duty on Import of
Capital Machinery
• Special duty rate for import of raw materials
• Duty Drawback Facilities
• Double Taxation Avoidance
Subsidies
• Cash Incentives on export oriented industries
• Financing from Export Development Funds (EDF)
16. Incentives for Investing in Bangladesh
NON-FISCAL INCENTIVES
• 100% Foreign Ownership or Joint Venture Allowed
• No Minimum or Maximum limit on Investment
• Bonded Warehouse License
• Full Repatriation of Capital/ Profit/ Dividend
• Virtual Approval of Visa and Work Permits
• Prompt Immigration
• Permanent Residency/ Citizenship
17. Extra Incentives for Economic Zones
3 Years Exemption
on Income Tax of
Foreign Workers
Remittance of
Revenue Earned in
Local Currency to
Foreign Currency
Repatriation of
Disinvestment
Exemption of Capital
Gain Tax
18. Extra Incentives for Export Processing
Zones
Import and Sale of
10% Products to
Domestic Tariff
Area
19. Extra Incentives for High Tech Parks
Corporate Tax
Exemption for Park
Developers
VAT Exemption on
Utility Services
Exemption on
Stamp Duty and
Registration Fee for
Land Registration
20. Extra Incentives for PPP Projects
Exemption from
Security Exchange
Commission
Approval
Viability Gap
Financing from the
Government
Sponsored Fund
21. Modes of Investment
Export Processing
Zones
Export only
Economic Zones
(Public, Private,
Country Specific)
Export and
Local Sales
Hitech Parks for ICT
Industries
Specialized Industrial Zones
Bangladesh Export
Processing Zones Authority
Bangladesh Economic
Zones Authority
Bangladesh HighTech
Parks Authority
22. Modes of Investment
Privately Owned
Companies
Export and
Local Sales
Public Private
Partnership
Countrywide Industrial Areas
23. Economic Zones of Bangladesh
Economic Zone
Abdul Monem
Economic Zone
Hosendi
Economic Zone
Maheshkhali
Naf Tourism Park
Tourism SEZ
Sabrang
Economic Zone
Shirajganj Economic Zone
Araihazar
DHAKA
CHATTOGRAM
Economic Zone
Kishorganj
Bangabandhu Sheikh
Mujib Shilpa Nagar
Economic Zone
Cumilla
10
Zones Now
Operating
24. Economic Zones of Bangladesh
Factories have already
started to establish
Countries first Green, Smart
Economic Zone
BSMSN is strategically
located at Dhaka-
Chattogram industrial
corridor which serves as
the most crucial routes in
enabling movement of
goods from the
manufacturing hub in
Dhaka to the country’s
principal seaport city,
Chattogram.
25. Economic Zones of Bangladesh
To u r i s m P a r k s
N a f
To u r i s m Pa r k
293 Acres
S a b r a n g
To u r i s m Pa r k
1050 Acres
S o n a d i a E c o
To u r i s m Pa r k
9000+ Acres
27. High Tech Parks of Bangladesh
“ Government will Establish Hi-tech Parks in Every District ”
Sheikh Hasina, Hon’ble Prime Minister of Bangladesh
92 Government &
17 Private Hi-Tech Parks (HTP),
Software Technology Parks (STP)
and Incubation Centers are to
be established
Target
109 Parks
11 Government &
17 Private Hi-Tech Parks (HTP),
Software Technology Parks (STP)
and Incubation Centers are
operational
Reality
28 Parks
IT/ITES, Hardware
Manufacturing Companies and
R&D Centers are operational
from BHTPA Facilities
190
Companies
Startups Under Incubation
in Hi-Tech Parks and receiving
free space and utilities
151
Startups
28. HIGH TECH Parks
• Ready land and space for setting up new
industries
• Infrastructure and other facilities
• Mix of nature with technology
Bangabandhu Hi-Tech City, Kaliakoir
High Tech Parks of Bangladesh
SOFTWARE TECHNOLOGY PARKS
Rentable ready office spaces for IT/ITES
companies
Co-working facilities for startups
Software firms, e-commerce companies,
BPO’s are currently operating
29. Public Private Partnerships
Applicabilit
y
•Must fall within definition of Project under PPP Act
•Project cost must be more than or equal to BDT 1200 crore,
or
•If less than BDT 1200 crore, there must be a subsequent
project or program of projects costing more than or equal to
BDT 1200 crore
Linked
Projects
•Linked projects to be carried out by Government in similar
mechanism
•Alternatively, Investor or GoB may utilise projects as linked
projects that are financed by other Government.
30. Successful PPP Projects in Bangladesh
G2G Partner Platform Projects
Japan 1.Construction of Multimodal Hub at Kamalapur Railway Station
2.Construction of Outer Ring Road
3.Improvement of Chattogram to Cox's Bazar Highway through PPP
4.Upgrading of Nabinagar-Manikganj-Paturia Road (N5) into Expressway
5.Chattogram Metropolitan Sewerage Project for Patenga Catchment
6.Improvement of Local Bridges Program
Korea 1.Circular Railway Line
2.Improvement of Dhaka-Joydebpur-Mymensingh Road into Expressway with Service Lane on Both Sides
3.Construction of Bridge on Bhulta-Araihazar-Bancharampur road over the river Meghna
4.Expansion and Strengthening of Electrical Distribution System through Underground Network in Purbachal New
Town under DESCO
Singapore 1.Construction of Bay Terminal (One terminal)
Saudi Arabia 1.Equip, Operate and Maintain Patenga Container Terminal
31. Potential Sectors for Investment
Agro/ Food Processing and Machinery
• Manufacture of processed foods, vegetable/ fruit products, milk, dairy products, edible oil, etc.
• Manufacture of agricultural tools and machinery
• Development or upgrading of cold chain facility
1
Readymade garments
• Manufacture of high-end apparel items, clothing accessories, fabrics/yarns, and natural and synthetic fibers
• Bleaching, dying, printing and finishing service
2
Software & IT-enabled Service
• Offshore development hub and captive BPO centers (inc. call centers).
• High value-added ITES-BPO service
• High value software development
• Digital technology-based service
3
Healthcare and medical Equipment/ Devices
• Manufacture of generic, patented drugs for export, import-dependent drugs, API molecules and excipients.
• Development of bioequivalence test facility
4
32. Potential Sectors for Investment
Automobile
• Assembly of passenger automobiles and manufacture of parts and components for automobiles
• Service for parts forming and treatment, vehicle maintenance and repair.
5
Ship-building
• Development or expansion of shipyard
• Service of vessel maintenance
• Manufacture of parts and components.
6
Tourism
• Mangrove forest the Sundarbans, forests and swamp forests, hills and island, archaeological sites, religious
landmarks etc.
• Exclusive tourism park, eco-tourism parks bear potentials
7
Leather
• Manufacture of export-oriented leather products
• Tanning and leather-finishing service
• Design and product development service
8
34. • Bangladesh is suitable for production of a variety of crops,
fruits & vegetables, livestock and fisheries
• Agribusiness market valued at USD 6 billion, to reach USD
8 billion by 2023
• Agro-processed export value has grown with CAGR of
34.65% in last five years
• Agricultural export from Bangladesh has been growing at
a CAGR of 18% for last five years
• 50% of income derived from export is exempted from tax
• 15-100% tax exemption depending on crops
• 5-20% export subsidies/ cash incentives
Agribusiness
36. RMG & Textile: Weave the Way Forward
STRENGTH
• World’s 3nd largest RMG
exporter, exporting worth
US$ 31 billion to 167
countries
• Highest number of green
factories, with 150 LEED-
certified factories and
another 500 in pipeline for
certification
• Existing International
Buyers
OPPORTUNITIES
• High-end products, design
development, innovation
and end-to-end digital
manufacturing and
recycling
• Synthetic/manmade
fabric like lace, suit fabric
• Yarn for woven Denim
industries
CIRCULAR FASHION
• 250 thousand tons of waste
from RMG factories and fabric
mills is 100% pure cotton
waste, which can be recycled
and re-introduced into the
material flow.
• Value in recycling market
could be 100 million USD.
• Could decrease cotton imports
by around 15%, saving half a
billion USD of imports.
38. • 9th highest mobile phone subscribers in the world
• 9th highest internet users in the world
• 4th cheapest mobile data among South Asian countries and
18th cheapest mobile data in the world
• Highest level of 4G coverage by population (95%) in South Asia
• 39 Hi-Tech parks being established for IT/ITes Industries
• 4500 IT /ITES firms
• 750000+ ICT professionals, 650000+ Registered freelancers
$5 billion from IT exports by 2025
71% growth in BPO services 2012-2018
2500 million USD+ Ecommerce market size
Business Potentials
Powered By
IT & ITeS
40. • Medical devices market currently valued at USD 442
million
• Expected to reach approximately USD 820 million in
2025, growing at a CAGR of 13%
Healthcare, Medical Equipment and Devices
Bangladesh’s healthcare market to grow to
USD 14 billion by 2023
• > 4,000 types of medical devices & equipment used
• 85% are imported
• Import of medical equipment and devices increased
with the CAGR of 10.2% during the last five years.
• Currently 0.8 beds per 1,000 persons,
Scopes of huge extension
• More than 100 Medical Colleges with
enrolment capacity of more than
10,000
42. Automobile manufacturing, assembly, spare parts
Domestic market size: $14 billion
Average growth of 21% in last 5 years
Commercial vehicle market size $7.2 billion
Share of hybrid vehicles rose from 15% to
30% between 2017 and 2019
SUV sales growing at 28% per annum
Low penetration ratio:
2.5 passenger cars for every 1,000 people
53,000 four-wheelers registered in 2021
32,942 passenger vehicles sold in 2017
44. Blue Economy
Shipbuilding
• Upto 10,000 DWT sea going ships are exported. Average annual
growth rate of 5.39%
• Current share 0.84% of global US$400 Bn market
• Existing buyers from Germany, Netherlands, USA, New Zealand,
Turkey, Thailand, Taiwan.
• 10% export subsidy on export of ships
• 7,500 trained workers
Deep-sea fishing
- 664 kilometers of sea area. Bangladesh fishes within 60-70 kilometers
with trawlers and small boats.
- Currently no trawling or long-line fishing
- Currently no aquaculture at sea or coastal waters
- Tuna Fishing, bio-technology, fish oil, sea weed, neutraceuticals
45. Hospitality & tourism
• World’s longest beach in Cox’s Bazar, largest mangrove forest the Sundarbans, forests and swamp
forests, hills and island, archaeological sites, religious landmarks etc.
• In 2019, domestic tourists spent around $8 billion travelling within the country.
• International hotel chains expanding business in Bangladesh: Hotel Sheraton, Holiday Inn, JW Marriott,
Swissotel, Hyatt Regency, Element Hotel, Saint Regis Hotel and Dusit Hotels.
• Exclusive tourism park, eco-tourism parks bear potentials
47. Leather & Leather
Products
Growing domestic market of USD 2 Billion.
Footwear is the major product segment. Per capita consumption
is 3 pairs, up from 1.7 pairs 5 years back.
Country boosts 220 tanneries, 3500 SMEs, 105 Big Enterprises
12th highest cattle populatio in the world.
Bangladesh produces 310 million sq. feet of raw hides annually.
Scope of producing and exporting wet blue leather by
establishing appropriate industries.
48. Online Service Portals of IPAs
Paperless inter-
operable platform
COORDINATION
Various Service
Providing Agencies
Under one Roof
Legal obligation to
provide timely
service
Service
through
Online Portal
Service mapping and
required documentsre
made available online
Standard Operating
Procedure
ONLINE PLATFORM PAPERLESS ON TIME
53. REVISIT: Comparative Advantages of
Bangladesh
GDP $465 Bn
Fastest growing (>7%) in
South Asia
Malaysia - $415.375 Bn
Hong Kong - $472.395 Bn
Singapore - $379.071 Bn
Vietnam - $404.105 Bn
Per capita income is 2nd
Highest in Asia
35 million MAC population
Economic Strength is
Comparable
Lower cost of
production
• Lowest cost of power,
water and utilities in
Asia
• Lower cost of Managers
and Workers
• Per capita production is
among the highest
• Lower cost of logistical
operations
Socio Economic
Stability
• Stable political situation
• High women
participation in
workforce
• High life expectancy,
low sickness
• Homogenous
population
• English widely spoken
54. IPA Point of Contacts
Ms. Mohsina Yasmin
Executive Member
Mail: em3@bida.gov.bd
Phone: 01*********
Bangladesh Economic Zones
Authority (BEZA)
Bangladesh Export
Processing Zones Authority
(BEPZA)
Bangladesh High Tech Park
Authority (BHTPA)
Public Private Partnership
Authority (PPPA)