Why Bangladesh?

Bangladesh is the hub (first investment destination) for the foreign investors and entrepreneurs to invest in Bangladesh, saying that this country could be their because of Bangladesh’s investment-friendly policy and existing congenial atmosphere, including political stability.

The government of Bangladesh is providing various facilities for foreign investment in the country ensuring 100 percent security to the foreign investors in Bangladesh. Apart from political stability, a very congenial atmosphere for investment is prevailing in Bangladesh. Besides, smooth supply of electricity, availability of cheap manpower, vast domestic and international market, transportation facilities, tax holiday and other incentives are currently prevailing in Bangladesh. Foreign investment is increasing in Bangladesh  and the country received the highest ever US$1730.65 million worth Foreign Direct Investment (FDI) in fiscal year 2012-13.

.There are enormous opportunities for investment in power generation, gas and oil exploration, infrastructure development, ship-building, textile, leather industry, ICT and agriculture-based industry.

The followings are the glaring instances of why Bangladesh is the first destination of foreign investment:

  • All Bangladeshi products (other than armaments) enjoy complete duty and quota free access to EU, Japan, Canada, Australia and most other developed countries.
  • Bangladesh is a signatory to the Multilateral Investment Guarantee Agency (MIGA); Overseas Private Investment Corporation (OPIC), USA; International Center for Settlement of Investment Disputes (ICSID); World Intellectual Property Organization (WIPO).
  • Bilateral agreements to avoid double taxation have been signed with 28 countries with a further nine countries under negotiation.
  • Bangladesh inherits a largely homogeneous society, in which people live in harmony and peace, irrespective of race and religion. It is a democratic country, providing broad and non-partisan political support for market-oriented reforms and for active encouragement of foreign investors.
  • The Foreign Private Investment (Promotion & Protection) Act 1980 provides protection for investments made in Bangladesh.
  • Unlike older industrialized societies with growing legions of ageing dependents, Bangladesh has a very youthful demographic.
  • 3 % of the population are economically active (15 years and over).
  • The country is young too,  40 years old.
  • Bangladesh has 31 public universities, 54 private universities, 60 teacher training colleges and 1,143 technical and vocational institutions.
  • Typical of the sub-continent, vocational training and professional qualifications are highly respected.
  • Thousands of Bangladeshis who have wide work experience abroad add to the national reservoir of skill.

 English Widely Spoken

  • The national language is Bengali or ‘Bangla’.
  • Yet our second language, English, is widely spoken, understood and written.
  • More than 90% of staff at management level is fluent in English.

Bangladesh offers some of the world’s most competitive fiscal non-fiscal incentives. BOI can advise further on this matter.

In summary and in most cases, these amount to the following:

  • Remittance of royalty, technical know-how and technical assistance fees.
  • Repatriation facilities of dividend and capital at exit.
  • Permanent resident permits on investing US$ 75,000 and citizenship on investing US$ 500,000.
  • Tax holidays
    • In the Dhaka & Chittagong Divisions: 100% in first two years: 50% in the year three and four: and 25% in the year five.
    • In theRajshahi, Khulna, Sylhet, Barisal Divisions and three Chittagong Hilly Districts: 100% for first three years, 50% for next three years, 25% for year seven.
  • Depreciation allowances
    • Accelerated depreciation for new industries is available at the rate of 50%, 30% and 20% for the first, second and third years respectively, on the cost of plant and machinery.
  • Cash and added incentives to exporting industries
    • Businesses exporting 80% or more of goods or services qualify for duty free import of machinery and spares, bonded warehousing.
    • 90% loans against letters of credit and funds for export promotion.
    • Export credit guarantee scheme.
    • Domestic market sales of up to 20% is allowed to export oriented business located outside an EPZ* on payment of relevant duties.
    • Cash incentives and export subsidies are granted on the FOB** value of selected exports ranging from 5% to 20% on selected products.
*EPZ=Export Processing Zone
**FOB=Free on Board