Investment Opportunities in Bangladesh

Bangladesh has an open, market-based economy led by vibrant and innovative private sector which provides the main stimulus to its growth. With growing markets & innovative entrepreneurship, the country offers unique business opportunities Existing slacks in the economy of Bangladesh offers enormous opportunities of high return and low risk investments in infrastructures, utilities, manufacturing and in consumer goods industries. Risk factor for FDI are the minimum in Bangladesh. Bangladesh has never defaulted in its debt repayments, nor asked for rescheduling. Bangladesh has also not posted negative economic growth during the last 30 years. Most importantly, the country of Bangladesh has outstanding human rights records.

Key areas of opportunities:

GARMMENT DESIGN & PRODUCTION

Bangladesh garment industry is the 2nd largest in the world with $5 billion of earnings yearly in foreign exports - making it the highest earner in the sector amongst South Asian countries as it maintains high quality in garment production and low labor cost. From spinning to weaving, from knitwear to leisure wear and high street fashion. The textiles and clothing industry is Bangladesh's biggest export earner with over US 19 billion of export in 2014. The factories design and produce for the world's leading brand and retailers with quality product on time and reliably.

ICT AND BUSINESS SERVICES

From inbound call centres to the latest software development, widespread English helps make Bangladesh an emerging option for the global outsourcing business services industry. The promising ICT sector is ready to win any opportunities.

COMPETITIVE PHARMACEUTICALS

The WTO TRIPS agreement permits Bangladesh to reverse-engineer patented generics to sell locally and export to markets around the world. This has created a strong manufacturing and technically experienced base with growth of 12% a year and a potential for R&D. Recently Bangladesh has entered the regulated market with FDA approval.

AGRO PROCESSING

Over 90 varieties of vegetables are grown in Bangladesh. There are huge opportunities for investments in cold storage for export produce, vegetable preservation, production of fertilizers and seeds, eco-friendly jute products, shrimp farming, halal food, milk, value added foods for export.

LEATHER PRODUCTS

Bangladesh has a mature tanning industry, producing around 2-3% of the world's leather from a ready supply of raw materials. The finished goods sector is also taking its lead in parallel. With good export incentives plus tariff and quota free access to major markets such as the EU, Bangladesh is an unrivalled location to outsource the manufacture of finished leather products and a lot more.

INVESTMENT INCENTIVES:

Fiscal Incentives

  • Corporate tax holiday: 5 to 7 years for selected sectors and areas.
  • Tax holiday for investment infrastructure: up to 10 years.
  • Avoidance of double taxation under bilateral tax convention.
  • Reduced tariffon import of capital machinery.
  • Tariff concessions on import of raw materials for the export oriented industries.
  • Bonded warehousing facility for the export oriented industries.

Financial & Other Incentives

  • Cash incentives and export subsidies ranging from 5% to 20% on the FOB value of selected Products. Funds for export promotion, export credit guarantee scheme, permission for domestic sales up to 20% by export-oriented companies outside EPZ.
  • Remittance of royalty, technical know-how and technical assistance fees and many more.

Incentives on Vat (Value added Tax), Customs Duty and Corporate Tax:

  • 0% and 1% customs duty rate for the import of industrial capital machinery and spare parts.
  • Special concessionary customs duty rate for import of raw materials for Ship-Building Industry, Pharmaceuticals Industry, Textile Industry, Toys Manufacturing Industry, Telecommunication Industry, Handloom Industry Raw materials, machinery and spare parts of poultry and dairy farms, Solar Panel Manufacturing Plants are exempted from customs duty.

Garment Design & Production

ICT and Business Services

Competitive Pharmaceuticals

Agro Processing

Leather Products