BOARD OF INVESTMENT ANNUAL REPORT - 2014bida.gov.bd/wp-content/uploads/2017/07/494.2015-Annual-Report-2014.pdfJiban Bima Tower (17th Floor), ... Board Management and Functions 11 a

BOARD OF INVESTMENT ANNUAL REPORT - 2014

Board of Investment Prime Minister's Office

Government of the People's Republic of Bangladesh www.boi.gov.bd

Drive/D/Personal/494.2015 Annual Report 2014

Board of Investment

ANNUAL REPORT

2014

Board of Investment Prime Minister's Office

Government of the People's Republic of Bangladesh www.boi.gov.bd


Annual Report 2014, Board of Investment, Bangladesh. References to and citations from this Report is allowed, but must be properly acknowledged. This report is prepared under the guidance of Dr. Syed A Samad, Executive Chairman, Board of

Investment, Prime Minister‟s Office.

The contents of this publication is contributed jointly by the wings of Board of Investment and compiled, summarized, edited and designed by the following team members:

1. Shamsunnahar Begum Director Convenor

2. Dr. Khandoker Azizul Islam Director Member

3. Md. Ariful Hoque Deputy Director Member

4. Umme Kulsum Deputy Director Member

5. Dr. Md. Nurul Alom Deputy Director Member

6. Jeb-un Nessa Deputy Director Member Secretary

7. Md. Abu Sayed Mahmud Assistant Director Member

For further information on this Annual Report, please contact: Director (Policy and Planning) Board of Investment, Prime Minister‟s Office Government of the People‟s Republic of Bangladesh Jiban Bima Tower (17th Floor), 10 Dilkusha C/A Dhaka-1000, Bangladesh Phone: +8802 957 7271-2, 956 1416, 955 2097 Fax: +8802 956 2312 Email: [email protected] Web: www.boi.gov.bd

mailto:[email protected]

http://www.boi.gov.bd/


Contents

CONTENTS PAGE

Acronyms 6

Map of Bangladesh 7

Honorable Prime Minister‟s Message 8

Executive Summary 9

BOI at a Glance 10

1. Board Management and Functions

11

a. The Board

11

b. Executive Council 13

c. BOI Offices: Head Office and Divisional Offices 14

2. BOI Investors Services 14

a. Investment Counseling

b. Industrial Project Registration

c. Approval of Foreign Commercial Offices (FCOs)

d. Work Permits in Industrial Projects and FCOs

e. Other Facilitations & Recommendations

f. Digital Automation of BOI Services

15

16

21

22

24

25

3. Actual FDI inflow in Bangladesh 26

4. Investment Promotion 28

a. Outward and Inward Investment Delegations

28

b. Seminars / Workshops 29

c. Publications 30

d. Other Promotional activities 30

5. Policy Advocacy & Consultations

30

6. Investment Agreements

31

7. Training & Capacity Development

31

8. Budget and Accounts 32


APPENDICES PAGE

I. BOI Staff Position (31 Dec, 2014) 33

II. Divisional Offices 33

III. BOI Budget 2014-2015 (Fiscal Year) 34

LIST OF TABLES PAGE

Table-1 : BOI services by major categories delivered: Jan-Dec 2014 15

Table-2 : Private investment proposals registered with BOI from CY 2006 to CY 2014 16

Table-3 : Private investment proposals registered with BOI from FY 2006-07 to FY 2014-15 17

Table-4 : Sources of the foreign and joint venture projects registered in 2014 18

Table-5 : Top 10 local investment projects in 2014 19

Table-6 : Top 10 Joint venture & 100% foreign investment projects in 2014 20

Table-7 : Country wise list of established liaison, branch & representative (new & extension) office in 2014

21

Table-8 : Country wise work permit employed in private sector for industrial enterprise in 2014

22

Table-9 : Country wise work permit employed in commercial offices in 2014 23

Table-10 : Extent of BOI facilitation/recommendation services in 2014 24

Table-11 : FDI inflows by major sectors (in million US$) 26

Table-12 : FDI inflows by major sources / countries (in million US$) 27

Table-13 : Outward and inward investment delegations in 2014 28

Table-14 : List of seminars/workshops/symposium organized/partnered by BOI in 2014 29

Table-15 : Summary of major policy reviews made by BOI in 2014 30

Table-16 : BITs concluded 31

Table-17 : List of major training programmes attended by BOI officials in 2014 31

Table-18 : BOI annual budgets since FY 2006-07 32

Table-19 : Audit objections and settlements (1989-90 to 2011-12) 32

Table-20 : BOI staff position on 31 dec 2014 33

Table-21 : BOI staff went into PRL in 2014 33

Table-22 : Function and authorities of the divisional offices 33

LIST OF EXHIBITS PAGE

Exhibit-1

: Monthly distribution of both local and joint & 100% foreign industrial projects registered in 2012 vs 2014 (million taka)

16

Exhibit-2 : Share of local vs joint venture & 100% foreign investment projects registered with boi from FY 2006-07- FY 2014-15 (in terms of nominal project value) (million taka)

17

Exhibit-3 : Sector wise distribution of projects registered with BOI (in terms of nominal project value)

18

Exhibit-4 : Recent trend in FDI inflow in Bangladesh (in million US$) 26

Exhibit-5 : FDI inflows by major sectors in 2014 26

Exhibit-6 : Foreign Direct Investment ( FDI) inflows by component in 2014 27

Exhibit-7 : Foreign Direct Investment ( FDI) inflows by component since 2008 27

Exhibit-8 : BOI Budget FY 2014-15 by major heads 32

Exhibit-9 : BOI Budget FY 2014-15 by major heads (revised) 32

Acronyms

ADP : Annual Development Plan IFC : International Finance Corporation

BCI : Bangladesh Chamber of Industries IPA : Investment Promotion Agency

BEPZA : Bangladesh Export Processing Zones Authority

IPR : Intellectual Property Rights

BEZA : Bangladesh Economic Zones Authority IRC : Import Registration Certificate

BICF : Bangladesh Investment Climate Fund IT : Information Technology

BITs : Bilateral Investment Treaties JBC : Jiban Bima Corporation

BOI : Board of Investment JV : Joint Venture

BOOT : Build, Own, Operate and Transfer Km : Kilometer

BOST : BOI Online Service Tracking System KPI : Key Performance Indicator

BOT : Build, Operate and Transfer LP : Land Permit

BSCIC : Bangladesh Small and Cottage Industries Corporation

MIDA : Malaysian Investment Development Authority

CBD : Central Business District MNCs : Multinational Corporations

CEPZ : Chittagong Export Processing Zone MOPTs : Ministry of Post And Telecommunications

CIS : Commonwealth of Independent States NBR : National Board of Revenue

CPA : Chittagong Port Authority NCBs : Nationalized Commercial Banks

CY : Calendar Year NCID : National Council for Industrial Development

DEPZ : Dhaka Export Processing Zone NOC : No Objection Certificate

DITF : Dhaka International Trade Fair NRB : Non-Resident Bangladesh

DTA : Domestic Tariff Area ORS : Online Registration System

DTTs : Avoidance of Double Taxation Treaties OPIC : Overseas Private Investment Corporation

EC, BOI : Executive Council, Board of Investment PMO : Prime Minister‟s Office

EPB : Export Promotion Bureau PPP : Public Private Partnership

FBCCI : Federation of Bangladesh Chambers of Commerce & Industries

PI : Private Investor

EPZs : Export Processing Zones PSIG : Private Sector Infrastructure Guideline

FDI : Foreign Direct Investment SEZ : Special Economic Zones

FY : Fiscal Year TRIPs : Trade Related Aspects of Intellectual Property Rights

GDP : Gross Domestic Product UNCTAD : United Nations Conference on Trade and Development

GNP : Gross National Product UNIDO : United Nations Industrial Development Organization

GOB : Government of Bangladesh VAT : Value Added Tax

ICSID : International Center for Settlement of Investment Disputes

VOA : Visa on Arrival

IP : Import Permit WTO : World Trade Organization

P#6


Map of Bangladesh

P#7


P#8


Executive Summary Since time immemorial, the spirit of free enterprise, competition and innovative entrepreneurship

have been the dominant driving forces in the economic life of Bangladesh which has always

encouraged external trade and investment. Being a plural, open, globally oriented society, Bangladesh always welcomes foreign investment in its economy. It is now being considered as the most liberal

and business friendly economy in this region and an attractive destination for foreign private business

and investment. Its investment climate offers generous and attractive packages of incentives to investors. There is no discrimination between local and foreign investors. Prevailing laws and

practices fully guarantee the safe investment returns.

Increasing global integration and trade internationalization are economic trends certain to characterize

the world economy to an even greater degree in the future. Bangladesh is well-positioned to take

advantage of these trends, including in attracting foreign direct investment (FDI). In recent years

Bangladesh has experienced a surge in FDI. Foreign investors were attracted by abundant resources,

skilled and cheap labor, effective monetary and fiscal policy, infrastructure improvements and long-

term strategic planning. From an FDI inflow of $0.7 billion in 2009, effective government policy has

encouraged FDI inflow to rise to $ 1.53 billion in 2014.

The Board of Investment (BOI) has an important role in creating a favorable investment climate.

Established in 1989 with a mandate to encourage investment in the private sector, identify hindrances

to investment and provide necessary facility and assistance in the establishment of industrial units, the

BOI offers investors a wide range of services including promotion, support, advice and aftercare.

Coupled with the activities of the BOI, generous private investment opportunities under the

government's liberalized industrial policy and export-oriented, private-sector-led economic growth

strategy have strengthened ties with developed countries. It can yield cost advantages in the form of

the positive externalities resulting from technology transfer.

The present government of Honorable Prime Ministry Sheikh Hasina is committed to strengthening Board of Investment (BOI) services and encourages investors for safe and win-win investments to

achieve the Vision 2021 which would see Bangladesh as a middle income country.

Board of Investment (BOI) had a busy schedule in 2014 with numerous activities and events related to investment both from local and foreign sources. In 2014, BOI registered a total of 1555 projects

(local, joint venture and 100% foreign investment) with proposed investment of Tk.721387.194

million. Board of Investment (BOI) also undertook various reform initiatives to make its services more client-

friendly. These include: (i) regularizing monthly executive council meeting and fortnightly inter-

ministerial committee meeting, (ii) introducing online service tracking system, (iii) online visa and

work permit for the expatriates (iv) operating online registration system, (v) establishing a

comprehensive website as a real e-gateway to BOI, (vi) publishing and distributing various

investment promotional materials, (vii) organizing and participating in the conferences, meeting,

seminars, workshops, road shows etc. and (viii) providing expert inputs to the formulation and review

of national policies.

The ‘’ Annual Report 2014 ‘’ is a part of series of publications made annually by BOI with a view to

disseminating comprehensive investment-related information primarily to the prospective investors,

researchers and interested readers. It presents facts and issues pertaining to the investment scenario of

Bangladesh. This report would assist the investors and the stakeholders to get a preliminary idea about

the prevailing investment climate of the country.

P#9


BOI at a glance

1. Official Name : Board of Investment (BOI)

2. Controlling office : Prime Minister‟s Office

3. Established on : 1 January, 1989

4. Mandated by : The Investment Board Act, 1989

5. Board composition

: 17 Board members headed by Honorable Prime Minister and Chairman

6. Chairperson : Sheikh Hasina, Honorable Prime Minister

7. Chief Executive : Dr. Syed Abdus Samad, Executive Chairman

8. Human Resources

: a. Approved: 293 persons in 2014. b. Existing : Total 126 (Appendix-1) (Class I-45; Class III-55; Class IV-26)

9. Offices : Headquartered in Dhaka and 5 divisional offices in Chittagong, Rajshahi, Khulna, Sylhet and Barisal.

10. Key Functions : BOI encourage private investment and provide necessary assistance to industries. More than 15 types of functions under following three categories:

a. Investment promotion; b. Investment facilitations; & c. Policy advocacy.

In addition, BOI has also been mandated to function as secretariat for foreign commercial offices approved & work permits etc.

11. Investment services

: BOI provides 27 types of services to both local and foreign private investors from initial investment counseling to business start up.

12. Remarkable activities in 2014 (Jan-Dec)

: a. Investment Registration: Total 1555 projects with proposed investment of Tk. 721387.194 million (US $ 9244.077 million) registered.

b. Undertaking various reform initiatives to make BOI services more client-

oriented and simplified. These include:

Organizing monthly Executive Council meeting and fortnightly Inter-Ministerial meeting.

Introducing Online Service Tracking System (BOST) to ensure transparency in service delivery process.

An online business law database named “Business Law Website” has been created for the investors and business community.

Online Registration Service (ORS) has been created to receive registration application online.

Establishing a comprehensive website with latest info base and making it a real e-gateway to BOI.

Publishing and distributing investment promotion materials like newsletters, brochure, workshops & seminars proceedings and fact sheet with up-to-date information.

Organizing and participating in the conferences, meetings, round table dialogues, seminars, expo fairs, business fair, workshops, road shows etc. in home and abroad to generate interests and awareness on investing in Bangladesh.

Providing expert inputs to the formulation and review of national policies related to private sector investment and industrialization.

P#10


1. BOARD MANAGEMENT AND FUNCTIONS

BOI has a 3-tier management structure namely, the Board, Executive Council and the Office. The

Board is chaired by the Honorable Prime Minister of the country, while the Executive Council and the

Offices of BOI are headed by the Executive Chairman. This Chapter describes the structure, functions

and performances of BOI management.

a. The Board

The Board of Investment was established in 1989 under the Investment Board Act 1989 to encourage investment in the private sector and to provide necessary facilities and assistance in the establishment

of industries.

Composition

Originally, the Board chaired by the Honorable Prime Minister with 18 members including four (4) co-opted members. With the merger of Ministries of Jute and Textile in 2004, the current memberships are 17. BOI Executive Chairman is the member-secretary ex-officio of the Board. Here is a list of the present Board members:

1. Honorable Prime Minister, Chairman.

2. Minister, Ministry of industries who is also Vice-Chairman, ex-officio.

3. Minister, Ministry of Finance, ex-officio.

4. Minister, Ministry of Power, Energy and Mineral Resources, ex-officio.

5. Minister, Ministry of Commerce, ex-officio.

6. Minister, Ministry of Textiles and Jute ex-officio.

7. Minister, Ministry of Planning, ex-officio;

8. Governor, Bangladesh Bank, ex-officio.

9. Secretary, Ministry of Industries, ex-officio.

10. Secretary, Finance Division, ex-officio.

11. Secretary, Internal Resources Division, ex-officio.

12. President, Federation of the Bangladesh Chambers of Commerce and Industries, ex-

officio.

13. President, Bangladesh Chamber of Industries, ex-officio.

14. Chairman, Executive Council, who is also its Secretary, ex-officio.

The Board also co-opted four additional members, namely:

15. Minister, Ministry of Foreign Affairs.

16. Minister, Ministry of Expatriate Welfare and Overseas Employment

17. Minister, Ministry of Post and Telecommunications.

18. Minister, Ministry of Science and Information & Communication Technology.

P#11


Composition of the Board

Name and Designation Position Name and Designation Position

Sheikh Hasina Honorable Prime Minister Government of The People‟s Republic of Bangladesh

Chairman

Architect Yeafesh Osman Honorable State Minister Ministry of Science and Information & Communication Technology Government of The People‟s Republic of Bangladesh

Member

Amir Hossain Amu Honorable Minister Ministry of Industries Government of The People‟s Republic of Bangladesh

Vice- Chairman

Nasrul Hamid Honorable State Minister Ministry of Power, Energy & Mineral Resources Government of The People‟s Republic of Bangladesh

Member

Abul Maal Abdul Muhith Honorable Minister Ministry of Finance Government of The People‟s Republic of Bangladesh

Member Dr. Atiur Rahman Governor Bangladesh Bank

Member

Md.Emaz Uddin Pramanik Honorable Minister Ministry of Textile & Jute Government of The People‟s Republic of Bangladesh

Member Md. Mosharraf Hossain Bhuiyan ndc Secretary Ministry of Industries Government of The People‟s Republic of Bangladesh

Member

AHM Mustafa Kamal Honorable Minister Ministry of Planning Government of The People‟s Republic of Bangladesh

Member Mr. Mahbub Ahmed Senior Secretary Finance Division Ministry of Finance Government of The People‟s Republic of Bangladesh

Member

Honorable Minister Ministry of Posts and Telecommunications Government of The People‟s Republic of Bangladesh

Member Md. Nojibur Rahman Secretary Internal Resources Division Government of The People‟s Republic of Bangladesh

Member

Engineer Khandaker Mosharraf Hossain Honorable Minister Ministry of Expatriates Welfare and Overseas Employment Government of The People‟s Republic of Bangladesh

Member Kazi Akram Uddin Ahmed President The Federation of Bangladesh Chambers of Commerce & Industries (FBCCI)

Member

Tofail Ahmed Honorable Minister Ministry of Commerce Government of The People‟s Republic of Bangladesh

Member A K Azad President Bangladesh Chamber of Industries (BCI)

Member

Abul Hassan Mahmood Ali Honorable Minister Ministry of Foreign Affairs Government of The People‟s Republic of Bangladesh

Member Dr. Syed A Samad Executive Chairman Board of Investment

Member -Secretary

P#12


Board Functions:

The key function of BOI categorized in the following areas : 1. Investment promotion; 2. Investment facilitation; and 3. Policy advocacy.

Briefly BOI functions are: a. Providing of all kinds of facilities in the matter of investment of local and foreign capital for the

purpose of rapid industrialization in the private sector.

b. Implementation of the Government policy relating to the investment of capital in industries in the private sector.

c. Preparation of investment schedule in relation to industries in the private sector and its implementation.

d. Preparation of area-schedule for establishment of industries in the private sector and determination of special facilities for such areas.

e. Approval and registration of all industrial projects in the private sector involving local and foreign capital.

f. Identification of investment sectors and facilities for investment in industries in the private sector and giving wide publicity thereof abroad.

g. Invention of specific devices for the purpose of promotion of investment in industries in the private sector and their implementation.

h. Creation of infrastructural facilities for industries in the private sector.

i. Determination of terms and conditions for employment of foreign officers, experts and other employees necessary for industries in the private sector.

j. Formulation of policies relating to transfer of technology and phase-wise local production in the private sector and their implementation.

k. Financing and providing of assistance in the financing of important new industries in the private sector.

l. Adoption of necessary measures for creation of capital for investment in industries in the private sector.

m. Collection, compilation, analysis and dissemination of all kinds of industrial data and establishment of data-bank for that purpose.

n. Doing such other acts and things as may be necessary for the performance of the above functions.

b. Executive Council

Composition & Functions

Having delegated authority from the Board, Executive Council is the decision making body of BOI which works successfully. It consists of a Chairman and other members not exceeding six in number. Currently, there are four (04) members of the Executive Council. The Chairman of the Executive Council is the Executive Chairman and acts as the Chief Executive of BOI. The Executive Council advises and assists the Board in the efficient performance of its functions, is responsible for implementation of the decisions of the Board, and exercises such powers and performs such functions as delegated to it by the Board. Generally, Executive Council undertakes decisions in meetings and the meetings are held under the directives of the Executive Chairman.

P#13


Executive Council's Performance

Executive Council's meeting generally held on monthly basis. From 1 January 1989, the establishment of BOI till 31 December 2014, the Executive Council held 582 meetings. Among these, 10 meetings were held in 2014.

C. BOI Offices

The headquartered of BOI is in Dhaka and its five (5) divisional offices are in Chittagong, Rajshahi, Khulna, Sylhet and Barisal. The Divisional offices are delegated with some authorities to register projects, recommend services and provide counseling and facilitations.

C.1. Head Office

Board of Investment head office known as BOI office, Located at Dilkuska - the Central Business District (CBD) of Dhaka. All the functions and services of BOI are carried out at the head office. The Executive Council and senior management of BOI office are housed here.

C.2. Divisional Offices

The Divisional offices are delegated some authorities to register projects, recommend services and provide counseling and facilitations. The function, authority level and the mailing address are shown at Appendix -II.

2. BOI INVESTORS SERVICES

Being an Investment Promotion Agency BOI services that are available for the investors, could be categorized in three stages.

Stage 1: Pre-investment Information and Counseling

At this stage, BOI provides all sorts of information required by an investor to undertake initial investment move. Professional Investment & Business Counselors provide cordial assistance upon visit to the BOI office, over phone, by email & fax and express mailing. It also assists in getting BOI registration.

Stage 2: Special Welcome Service to Foreign Investors

BOI has Welcome Service Desk at Hazrat Shahjalal International Airport, Dhaka. It assists in obtaining necessary immigration and Visa on Arrival (VOA), Landing Permit (LP), hotel accommodation. It also provides necessary courtesy services and first hand investment counseling at the airport.

Stage 3: Investment Implementation and Commercial Operation

Once the investor decides to invest and forms a company, BOI provides following specific facilities and comprehensive services:

a. Industrial registration;

b. Recommendation of industrial Plot (if available)/ in any designated industrial area other than

BSCIC, BEPZA & BEZA;

c. Recommendation of utility connections (Gas, Electricity, Water & Sewerage, Telephone etc.);

d. Terms and conditions of foreign loan, supplier‟s credit, deferred payment, PAYE scheme, etc.;

e. Recommendation for industrial IRC to CCE&I (Adhoc & Regular);

f. Permission/approval of branch office/liaison/representative office;

g. Import permit (IP) for import of capital machineries against foreign equity;

P#14


h. Import duty exemption and concession certificate on capital machinery clearance;

i. Work Permit (Technical, Commercial & Industrial);

j. Remittance of royalty, technical know-how and technical assistance fees;

k. Miscellaneous.

Table-1: BOI services by major categories delivered in 2014

Sl no

Service Category Unit 2014

(Jan-Dec)

1. Investment Counseling No. 2899

2. Project Registration No. 1555

3. Airport Welcome Service Person 41

4. Work Permit (New & Extension) Person 5694

5. Remittance Approval (Cases) No. 215

Million Tk. 7725.483

6. Foreign Loan Approval No. 116

Million US$ 1697.858

7. IRC Recommendation No. 1477

8. Import Permit and Capital Machinery Clearance No. 547

9. Visa on Arrival/Landing Permit Recommendation No. 442

10. Visa Recommendation (E/E1/PI) No. 3239

11. NOC for Industrial Plots Transfer No. 27

12. Branch Office Approval (New & Extension) No. 127

13. Liaison Office Approval (New & Extension) No. 245

14. Representative Office Approval (New & Extension) No. 13

15. Providing Information to applicant reporter No. 3

16. Press Release No. 10

Source: Policy and Planning wing, Board of Investment

a. Investment Counseling

The BOI offers investment counseling to the investors aiming to help them in investment decision

making. During the counseling the BOI officials advice the investors in choosing investment alternatives - from a host of potential sectors. Counseling process also highlights the regulatory procedures, costs of doing business, investment incentives, specific market access opportunities, comparative and competitive advantages of the sectors etc. So, counseling is the first step of direct services given by BOI to the investors.

Generally, the counseling is provided at the BOI offices. The Director ( Investment Facilities and Services) is the focal point for specialized counseling. However, other related desks also provide investor counseling when requested.

Besides, counseling is also provided through regular responses to emails, letters, faxes and telephone enquiries. Frequently, BOI extends outside counseling services to investors at the seminars, workshops, road show, symposium and exhibitions organized at home and abroad. In 2014, BOI has arranged 4 seminars/workshops, 1 launching programme and provided 2899 persons counseling in office to the prospective and existing investors.

P#15


b. Industrial Project Registration According to the mandate given to the BOI, industries intend to be set up in the private sector, other than those falling within the jurisdiction of the Bangladesh Export Processing Zones Authority (BEPZA) or of the Bangladesh Small and Cottage Industries Corporation (BSCIC) and textile industries, have to be approved by the board and registered in the prescribed manner. The BOI, since established, has been registering industrial projects as per clause 10 (1) of the Investment Board Act, 1989. It may be noted that registration is the prerequisite for getting services from the BOI at the implementation level and post-implementation of a project. In calendar year 2006 a total of 2,076 projects amounting Tk. 2,45,508.557 million was registered with the BOI which grew to 1555 projects in Calendar year (CY) 2014 with a total proposed investment of Tk. 721387.194 million. Table-2 presents the private investment proposals registered with BOI from CY 2006 to CY 2014.

Table-2: Private Investment Proposals Registered with BOI from CY 2006 to CY 2014

Calender Year

Local Investment Proposals Registered

Foreign /JV Investment Proposals Registered

Total Investment Proposals Registered Total

Employment opportunity

(Person) Projects

Project Value

(Million Taka)

Projects Project Value (Million Taka) Projects

Project Value (Million Taka)

2006 1,905 218,361.336 171 132,501.332 2,076 245,508.557 456,970

2007 1,482 133,018.057 152 44,707.709 1,634 177,725.766 375,477

2008 1,613 215,545.669 145 178,088.619 1,758 393,634.288 393,877

2009 1,395 181,321.715 129 46,896.015 1,524 228,217.694 287,782

2010 1,600 437,717.679 185 220,626.009 1,785 658,343.688 448,736

2011 1,755 546,067.600 219 485,008.252 1,974 1,031,075.852 503,983

2012 1,655 500,780.603 202 212,912.696 1,857 713,693.299 364,930

2013 1197 424887.312 181 204075.899 1378 626627.610 211695

2014 1432 647960.579 123 73406.615 1555 721387.194 253856


A month wise analysis indicates that there were a mixed growth experiences in 2014 in comparison

with 2013 (Exhibit-1).

Exhibit-1: Monthly Distribution of both Local and Joint & 100% Foreign Industrial Projects Registered in 2013 VS 2014 (Million Taka)

34462

41864

69625

44447

19548

49987

12344

164707

40821

55874

41573

27550 76213

64495

35378

60457

63640

81468

55385

77482

62642

65478

51376

51194

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

CY 2013 CY 2014


P#16


BOI registered projects are dominated by the local investors both in terms of value and units. Among all the projects registered since FY 2006-07 about 72% are local and 28% Joint venture & 100% foreign investment projects (Table-3 & Exhibit-2).

Table-3: Private Investment Proposals Registered with BOI from FY 2006-07 to FY 2014-15(up to December)

Fiscal Year

Local Investment Proposals

Registered

Foreign /JV Investment Proposals

Registered

Total Investment Proposals

Registered

Total

Employment

opportunity

(Person) Projects

Project Value (Million Taka)

Projects Project Value (Million Taka)

Projects Project Value (Million Taka)

2006-07 1,930 196,580.902 191 119,251.081 2,121 315,831.983 458478

2007-08 1,615 193,530.073 143 54,328.849 1,758 247,858.922 410,744

2008-09 1,336 171,174.916 132 147,496.092 1,468 318,671.008 308,037

2009-10 1,470 274,136.882 160 62,607.587 1,630 336,744.469 330,663

2010-11 1,746 553,690.466 196 365,242.771 1,942 918,933.237 503,662

2011-12 1,735 534,769.057 221 344,168.157 1,956 878,937.214 451,150

2012-13 1457 446148.388 219 220721.295 1676 666869.683 309709

2013-14 1308 497593.245 124 185318.034 1432 682911.279 224943

2014-15 609 349431.535 57 56666.29 666 406097.800 99125

Total: 13,206 3,217,055.464 1443 1,555,800.156 14,649 4,772,855.595 3,096,511


Exhibit-2: Share of Local VS Joint venture & 100% Foreign Investment Projects Registered with BOI from

FY 2006-07- FY 2014-15(up to December) (in terms of nominal project value) (Million Taka)

Source: Policy and Planning wing, Board of Investment *Provisional

Shar

e of

Loca

l V

S F

ore

ign/J

V

Inves

tmen

t

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

2011-1

2

2012-1

3

2013-1

4

2014-1

5

Local Foreign

P#17


Sector wise Distribution

Textile is the major sector of local investment projects and Engineering is the major sector of JV & 100% foreign investment projects. Besides these Agro-based, Chemical, Service, Food & allied important sectors both in local & foreign investment. Following exhibit-3 presents a comparative scenario of the sector wise distribution of local and JV & 100% foreign projects in CY 2014:

Exhibits – 3: Sectorwise distribution of projects registered with BOI (in terms of nominal project value)

Sector wise Break-up: Local Projects Sector wise Break-up: JV & 100% Foreign Projects

Textile

23.72%

Glass &

Ceramic

1.45%

Engineering

14.88%

Chemical

17.20%

Tannery &

Leather

1.44%

Printing &

Publishing

0.39%

Service

17.38%

Misc

1.74%

Agro Industry

17.49%

Food & Allied

3.95%

Food & Allied

0.08%

Agro Industry

14.46%

Misc

0.30%

Service

12.65%

Printing &

Publishing

0.39%

Tannery &

Leather

2.65%

Chemical

9.44%

Engineering

43.89%

Glass &

Ceramic

0.23%

Textile

15.25%

Source: Policy and Planning & Investment Monitoring wing, Board of Investment

Sources of Foreign Investment Projects

Bangladesh has proved to be a resilient and attractive investment destination even in the thick of a severe global economic downturn. New opportunities are emerging for foreign investors in Bangladesh everyday. As a result, the sources of new foreign and joint venture projects registered with BOI in 2014 received from 24 countries from different regions of the world. The South Asia is the largest source in terms of investment amount followed by East and South East Asia, North America, European Union and CIS region. Table-4 presents the source-wise distribution of the BOI registered new projects in CY 2014.

Table-4: Sources of the Foreign and Joint Venture Projects Registered in 2014

Sl no.

Country name Projects Investment

(Million Tk.) Investment

(Million US$)

1 Australia 2 506.339 6.493

2 Canada 3 136.585 1.758

3 Chaina 21 1619.129 20.811

4 Finland 1 43.420 0.556

5 France 1 62.860 0.806

6 Germany 2 276.760 3.532

7 Hong Kong 3 675.180 8.655

8 India 15 3234.257 41.470

9 Italy 3 163.000 2.067

10 Japan 17 1015.257 12.985

11 Malaysia 6 592.476 7.646

12 Nigeria 1 47.500 0.614

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13 Pakistan 1 49.633 0.638

14 South Africa 1 282.925 3.627

15 South Korea 8 460.533 5.902

16 Singapore 9 2104.462 27.085

17 Switzerland 3 1153.970 14.900

18 Taiwan 2 439.000 5.648

19 Thailand 8 2657.560 34.094

20 The Netherlands 2 39.290 0.506

21 Turkey 1 27.663 0.354

22 UAE 1 4068.494 52.160

23 UK 6 4525.213 57.894

24 USA 6 9320.520 119.908

Total 123 33502.026 430.109

Source: IM wing, Board of Investment

NB: The Difference between the figure shown in table-2 & 3 represents the addition of foreign investment in the existing projects.

Particulars of Local & Foreign Investors In 2014, BOI gave registration 1555 industrial project Local and Joint Venture & 100% Foreign. BOI registered projects are dominated by the local investors both in terms of value and units. Among all the projects registered by BOI top 10 local and top 10 Joint venture & 100% foreign investments particulars are shown in the following two tables 5 & 6.

Table 5: Top 10 Local Investment Projects

Name Sector/Products Proposed Investment

(Million Tk.)

1. Akiz Particle Board Mills Ltd. Particle Board 50700.00

2. Abul Khair Strip Coating Ltd. Steel Mills 20760.880

3. Aman Steel Mills Ltd. Steel Products 16456.566

4. Neptune Commercial Ltd. Power Plant 14280.000

5. Mahim Real Estate Ltd. Real Estate 11522.009

6. Orion Pharma Ltd. Pharmaceuticals 9710.000

7. King Fisher Cox‟s Bay Resorts Ltd. Hotel 6364.360

8. Sister Denim Composite Ltd. Textile (Woven) 5391.647

9. Titas Refinery Company Ltd. Petroleum Products 5384.388

10. Aman Cotton Fibres Ltd. Spinning mill 4539.075

Source: R&I-2 wing, Board of Investment

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Table 6: Top 10 Joint venture & 100% Foreign Investment Projects

Name Sector/Products Country Proposed Investment

(Million Tk.)

1. US-DK Green Energy (BD) Ltd Engineering

USA & Bangladesh

8930.000

2. S.M.Spinning Mills Ltd. Textile

UAE, Labanon & Bangladesh

4068.494

3. HMCL Niloy Bangladesh Ltd. Engineering

India & Bangladesh

2059.140

4. Magnum Steel Industries Ltd. Engineering

UK & Bangladesh

1666.923

5. Elcon Bangladesh Ltd. Service

UK & Bangladesh

1576.040

6. Tongwel Feed Mill Bangladesh Ltd.

Agro - based Singapore 1208.130

7. Unilever Bangladesh Ltd.(Khulna Unit)

Chemical UK &

Bangladesh 1172.000

8. Beximco Communication Ltd Service

Switzerland &

Bangladesh 999.000

9. Sung Shing Packaging Industries Ltd.

Chemical Hongkong 550.740

10. First Auto Bricks Ltd. Service

China & Bangladesh

489.636

Source: IM wing, Board of Investment

Thrust Sectors (As per National Industrial Policy-2010) The thrust sector means those industries/industrial sub-sectors which have already been able to successfully contribute to the country‟s industrialization and poverty alleviation by increasing GDP, creating employment opportunities and increasing export income. The List of thrust sector has been given below: 1. Agro-based and agro-

Processing industry 2. Human Resource Export 3. Ship Building

4. Renewable Energy (Solar Power, Windmill)

5. Tourism 6. Basic chemicals/dye and chemicals

7. ICT and ICT based service

8. Readymade garment industry 9. Active Pharmaceuticals Ingredient (API) Industry and Radio Pharmaceuticals Industry

10. Herbal medicinal Plant 11. Radio-active (diffusion) Application Industry (e.g. developing quality of decaying polymer/preservation of food/disinfecting medicinal equipment)

12. Development of Polymer Industry

13. Jute and Jute products 14. Leather and leather products 15. Hospital and Clinic

16. Light Engineering Industry

17. Plastic Industry 18. Furniture

19. Handicrafts 20. Energy Efficient Appliances/Manufacturing of Electronic goods/Development of Electronic materials

21. Frozen Fish Industry

22. Tea Industry 23. Home Textiles 24. Ceramics

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25. Tissue Grafting and Biotechnology

26. Jewellery 27. Toy

28. Container Service 29. Warehouse 30. Innovative and import substitute Industry

31. Cosmetics and toiletries

Reserved Sectors

Those industries that are necessary to be kept reserved by the government in the interest of national security and are sensitive had been identified as reversed industries. The List of reversed industries has been given below:

1. Arms and ammunition and other military equipment and machineries 2. Nuclear power 3. Security printing and minting 4. Aforestation and Mechanized Extraction with the boundary of reserved forest.

c. Approval of Foreign Commercial Offices Based on the Investment Board Act 1989, on 27 October 2003 by an executive order BOI was made the secretariat of an Inter-ministerial Committee responsible for approving the branch, liaison and representative offices of the foreign commercial undertakings and work permits to the foreign staff working in those offices. These branches, liaison and representative offices of the foreign-owned commercial undertakings are known as foreign commercial offices

In 2014, the Committee approved 89 new branch/liaison/representative offices and extended the term of 296 such offices. Those foreign commercial undertakings originate from 41 countries of different regions (Table-7).

Table-7: Country wise list of established Liaison, Branch & Representative (New & Extension) Office in 2014

Sl. no.

Name of the country Branch office Liaison office

Representative office Total

New Extension New Extension New Extension

1. Australia 4 5 - 3 - - 12

2. Belgium - - - 1 - - 1

3. Bhutan - 3 1 1 - - 5

4. Bermuda - 3 - - - - 3

5. Bahrain - 1 - - - - 1

6. Canada 1 1 - 3 - - 5

7. China - 5 2 3 - - 10

8. Denmark 1 1 - 1 - - 3

9. France 2 4 - 4 - 1 11

10. Germany 1 - 2 4 - 1 8

11. Hong Kong 1 6 14 61 - 1 83

12. India 5 20 8 19 1 1 54

13. Iceland - 1 - - - - 1

14. Italy - - 2 1 - - 3

15. Ireland - 1 1 - - - 2

16. Japan - 6 3 6 - - 15

17. North Kotea - 1 - 1 - - 2

18. Kuwait - 1 - 1 - - 2

19. Malaysia - 2 - 3 - - 5

20. Mauritius - - - 2 - - 2

21. Malagasy - 1 - - - - 1

22. Norway - - - 1 - - 1

23. Pakistan - - 2 4 - - 6

24. Panama - 1 - - - - 1

25. Poland - - 1 - - - 1

26. Qatar - - - 1 - - 1

27. Russia 3 3 - 1 - - 7

28. Singapore 2 4 4 13 - 2 25

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29. Spain 4 3 2 2 - - 11

30. South Korea 5 5 4 8 - - 22

31. Sri Lanka 1 1 - - - - 2

32. Sweden - - - 2 - - 2

33. Switzerland - - - 3 - 1 4

34. Taiwan - - 1 7 - - 8

35. Turkey - 1 1 1 - - 3

36. Thailand - 1 - 1 - - 2

37. The Netherlands - - 1 2 - 1 4

38. United Arab Emirates - 1 2 5 - - 8

39. United Kingdom 1 5 1 9 - - 16

40. USA 2 7 1 17 2 2 31

41. Uruguay - - - 1 - - 1

Total 33 94 53 192 3 10 385

Source: R&I-1, Commercial wing, Board of Investment

d. Work Permits in the Industrial Projects and Commercial Offices Foreign experts wanted to work in Bangladeshi factories/industries (outside EPZ areas) need to take permission from the BOI. In Bangladesh the investors are allowed to employ foreign experts/skilled technicians, managers in their commercial and industrial undertakings. Allowing of the foreign experts in the local industries aimed at ensuring proper technology and knowledge transfer from those experts. However, if the expertise is available locally, no foreign employment is permitted.

In 2014, BOI approved 5694 work permits. Among these, 43.05% were in the commercial offices and rest 56.95% were in the industrial projects. Besides, 41.08% were new and 58.92% were extension of the existing permits. Following two tables, 8 & 9 present the distribution of work permits in the industrial and commercial projects approved in 2014.

Table-8: Country wise Work permit employed in private sector for industrial enterprise in 2014

Sl. No. Country New Extension Total Work permit

1. Algeria 1 0 1

2. Argentina 2 0 2

3. Australia 2 7 9

4. Bosnia & Herzegovina 1 0 1

5. Canada 4 7 11

6. China 183 222 405

7. Colombia 4 1 5

8. Czech Republic 0 2 2

9. Denmark 2 1 3

10. Dominican 1 1 2

11. Egypt 1 3 4

12. Finland 5 0 5

13. France 7 9 16

14. Germany 4 11 15

15. Greece 5 0 5

16. Honduras 4 2 6

17. Hungary 5 0 5

18. India 484 686 1170

19. Indonesia 8 14 22

20. Italy 5 3 8

21. Ivory Coast 0 2 2

22. Japan 8 15 23

23. Lebanon 0 1 1

24. Madagascar 0 1 1

25. Malaysia 9 9 18

26. Mauritius 2 19 21

27. Morocco 3 6 9

28. Mozambique 0 1 1

29. Nepal 2 5 7

30. Netherlands 0 1 1

31. New Zealand 0 1 1

32. North Korea 7 3 10

33. Norway 1 1 2

34. Pakistan 147 260 407

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35. Portugal 1 3 4

36. Serbia 0 1 1

37. Singapore 1 8 9

38. Slovenia 0 1 1

39. South Korea 31 81 112

40. Spain 5 4 9

41. Sri Lanka 232 253 485

42. Sweden 0 3 3

43. Switzerland 3 0 3

44. Syria 0 1 1

45. Taiwan 14 17 31

46. Thailand 63 84 147

47. The Netherlands 0 1 1

48. The Philippines 40 98 138

49. Turkey 18 23 41

50. U.K. 16 9 25

51. U.S.A. 10 12 22

52. Ukraine 2 1 3

53. Uzbekistan 0 1 1

54. Vietnam 3 1 4

55. Yemen 0 1 1

Total: 1346 1897 3243

Source: R&I-1, Industrial wing, Board of Investment

Table-9: Country wise Work permit employed in private sector for Commercial Offices in 2014

Sl. No Country Name New Extension Total Work permit

1. Australia 23 26 49

2. Algerian 3 2 5

3. America 28 42 70

4. Brazil 5 4 9 5. Bhutan 2 3 5

6. Balarus 5 3 8

7. Colombia 0 2 2 8. China 61 88 149 9. Canada 26 23 49 10. Cameroon 5 2 7 11. Egypt 5 13 18 12. Ecuador 5 1 6 13. France 18 30 48 14. Germany 5 10 15 15. Italy 9 19 28 16. Indonesia 12 17 29 17. Irish 4 3 7 18. India 210 348 558 19. Iran 5 3 8 20. Japan 35 43 78 21. Jamaica 2 1 3

22. Kuwaiti 2 4 6

23. Keniya 2 1 3

24. Malaysia 19 17 36 25. Mauritius 1 3 4 26. Moxico 2 0 2 27. New Zealand 2 2 4 28. Norway 2 4 6 29. Nepal 4 3 7 30. Pakistan 45 68 113 31. Portugues 3 2 5 32. Portugal 3 2 5 33. Russia 4 5 9 34. Romania 3 5 8 35. South Africa 9 10 19

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36. Sri Lanka 28 104 132 37. South Korea 29 37 66 38. Singapore 7 14 21 39. Switzerland 2 1 3 40. Swedan 10 14 24

41. Spanish 18 9 27

42. Saudi 2 2 4 43. Thailand 120 77 197 44. Taiwan 4 2 6 45. The Philippines 33 58 91 46. Turkey 17 32 49 47. U.S.A. 27 56 83 48. U K 45 75 120 49. Ukraine 60 19 79 50. Uzbekistan 15 145 160 51. Venezola 2 1 3 52. Yemen 5 3 8

Total 993 1458 2451

Source: R&I-1, Commercial wing, Board of Investment

e. Other Facilitations and Recommendations Other BOI services as mentioned above, include mostly recommendations in nature - for import, utility connectivity and visa matters. Following table-10 presents the extent of BOI services in those categories.

Table-10: Extent of BOI Facilitation/Recommendation Services in 2014

Services 2014

Remittances for Royalty, Technical Assistance Fee, etc. 215 cases

Tk. 7725.483 million

Recommendations-

1. IRC ( Adhoc & Regular) 1477

2. Import Permit & Capital Machinery Clearance

(i) Import permit (IP) for import of capital machinery against foreign equity

83

(ii) Import duty exemptions and concessions certificate on capital machinery clearance

464

3. NOC for Industrial Plot Transfer 27

4. Industrial plot/Land Acquisition 11

5. Gas Connection 03

6. Power Connection 00

7. Telephone Connection 00

8. E/EI/PI Visa Recommendation 3239

9. Visa on Arrival/Landing Permit 442

10. Courtesy Service 41

Total 6002 Source: Board of Investment

BOI Organogram Based on the decision of 25th board meeting of BOI, an Organogram with 293 staff strength was approved. This approved Organogram is now under the process of implementation.

BOI Building

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Board of Investment (BOI), one of the most important organizations of Bangladesh, is now carrying out its day-to-day functional and service oriented activities from a rented building situated in Jiban Bima Tower, 10, Dilkusha Commercial Area, Dhaka-1000. Considering the necessity of present and future requirements of this organization, Government of Bangladesh has initiated a project for strengthening its full-fledged functional and service capabilities by constructing one 14-storied building with three basements at Agargaon, Sher-e-Banglanagar, Dhaka-1207. Honorable Prime Minister Sheikh Hasina has laid down foundation stone on 18 June, 2011 for the purpose of the construction of BOI own office building. The estimated cost of the project is 9834.85 lac taka will be met entirely from GOB fund and the building will have 36,298 sqm floor area along with other ancillary facilities under the execution of the Public Works Department (PWD) from July 2011 to June 2014.

f. Digital Automation of BOI Services

To digitalize BOI following digital services were implemented:

Online Registration System

The Board of Investment (BOI) has introduced Online Registration System (ORS) to help investors get their proposals approved faster and with less paper work.

BOI Online Service Tracking (BOST):

Board of Investment (BOI) is the first government agency to implement online service tracking system in Bangladesh, named BOI Online Service Tracking System (BOST). This service tracking system provides status update on any service requested by investors to BOI. Upon entering the service request ID, the status can be tracked online at the BOI website. The status report indicates the approval status, file location, process duration and further instructions to applicants, if any. BOI service desks are being brought under effective monitoring through BOST for speeding up the process. On the other hand, investors are in no need for frequent visits to BOI offices in order to follow up the latest status of their requested services.

Business laws: e-library: www.business/ors.gov.bd

The e-Library of business laws is a website containing all the business-related laws, rules and regulations, licensing/permit instructions, procedures and forms. Investors can search for relevant regulatory information from a single window with universal accessibility.

BOI Website: www.boi.gov.bd

Board of Investment (BOI) has a new and fully featured website, “www.boi.gov.bd” to provide local and foreign investors with the information, contact points and service commitments that they need. The main focus of the newly developed website is centered on a strong country marketing aspects. It marks a further step in the implementation of government‟s Digital Bangladesh policy.

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3. Actual FDI inflows in Bangladesh The actual FDI Inflow (Up to 2014) statistics are collected and compiled by Bangladesh Bank through half-yearly Enterprise Survey. The survey recognized three components of FDI - equity capital, reinvested earnings and intra-company loan.

The following Exhibit-4 presents the recent trend in actual FDI inflow in Bangladesh since 2006.

Exhibit-4: Recent Trend in FDI Inflow in Bangladesh

Source: Statistics Department, Bangladesh Bank

Exhibit-5: FDI Inflows by Major Sectors in 2014 Total FDI was US$ 1526.70 million)

Textiles & wearing alone

consists of the 26% of the

FDI followed by Banking

20%, Power, Gas and

Petroleum 3%,

Telecommunication 15% ,

Agriculture 3% & Fishing

2%.

15%

20%

26%

3%

3%

2%

31%

Telecommunication

Banking

Textiles & Waving

Pow er, Gas & Petroleum

Food Products

Agriculture & Fishing

Others

Source: Statistics Department, Bangladesh Bank *Provisional

A more detailed sector wise data is available at the following Table-11 Since 2006 Telecommunications remained to be the top sector (highest in 2008, 2009, 2010 & 2012 and marginally second in 2007) but Textile & Wearing become the top sector in 2011 , 2013& 2014.

Table -11: FDI inflows by major sector’s (in Million US $)

Sector 2006 2007 2008 2009 2010 2011 2012 2013 2014

Telecommunication 346.50 201.90 641.39 250.14 359.82 180.99 374.97 324.89 226.79

Banking 117.67 79.96 141.76 142.57 163.07 249.37 136.47 327.48 311.87

Textiles & Wearing 70.11 102.34 126.36 133.97 145.19 272.04 307.48 421.63 390.92

Power, Gas & Petroleum 208.25 215.94 101.02 51.15 92.06 238.20 126.63 98.88 49.84

Food Products 8.98 9.84 22.89 24.54 12.77 22.97 74.55 40.13 53.19

Agriculture & Fishing 1.26 7.33 14.43 11.79 13.63 5.59 60.85 31.04 31.58

Others 39.71 49.06 38.46 86.00 126.78 167.22 142.36 355.11 462.51

Total FDI Inflows 792.48 666.37 1086.31 700.16 913.32 1136.38 1292.56 1599.16 1526.70

792 666

1086700

9131136 1293 1599 1527

2006 2007 2008 2009 2010 2011 2012 2013 2014

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Exhibit-6: Foreign Direct Investment ( FDI) Inflows by component

in 2014

Reinvestment earnings alone

consists of the 65% of the FDI

followed by Equity Capital

18% and Intra-company Loan

17%.

18%

65%

17%Equity Capital

Reinvestment earnings

Intra-company Loans

Exhibit-7: Foreign Direct Investment (FDI) Inflows by components since 2008

Million US$

21

8.5

5

51

9.9

8

43

1.8

5

49

7.6

6

54

1.0

6

28

0.3

24

5.7

3

36

4.9

4

36

4.6

2

48

9.6

3

58

7.5

1

69

7.1

1

98

8.8

31

.33

11

6.6

7

28

.72

21

4.9

20

7.4

36

0.9

9

25

7.6

80

9.2

5

2008 2009 2010 2011 2012 2013 2014

Equity Capital

Reinvestment earnings

Intra-company Loans

Source: Statistics Department, Bangladesh Bank *Provisional The inward FDI, 2014 was originated from 55 economies/countries of the world with UK top in the list. Among the top 10 countries which constitute about 70.88% of the total inflow UK, South Korea, USA, Switzerland, Saudi Arabia, Mauritius, The Netherlands has only a few projects of higher value. However, the sources like Australia, Thailand and Egypt had many smaller FDI projects (Table-12).

Table 12: FDI Inflows by major sources / Countries (In million US$)

Country 2007 2008 2009 2010 2011 2012 2013 2014

Australia - - 0.22 13.95 72.80 39.81 9.69 11.02

Egypt 75.17 373.4 72.71 3.01 152.30 126.62 94.42 0.27

Mauritius - - 0.26 3.09 4.71 20.58 26.39 14.40

Netherlands 18.67 31.67 49.62 64.92 116.75 79.82 116.61 78.70

Saudi Arabia 1.73 2.66 2.62 11.91 8.24 27.69 0.97 25.19

South Korea 27.68 44.64 46.00 40.00 113.06 97.59 110.96 134.70

Switzerland 13.39 69.25 29.06 5.89 10.75 44.67 26.74 25.57

Thailand 0.07 0.04 0.67 0.82 7.44 54.88 9.67 10.51

UK 142.55 130.57 88.08 105.68 116.32 136.94 191.35 180.98

USA 120.36 40.92 42.89 56.95 117.74 43.80 75.95 33.67

Others 266.74 393.16 368.03 607.1 416.27 620.16 936.41 1011.69

Total FDI 666.36 1086.31 700.16 913.32 1136.38 1292.56 1599.16 1526.70

Source: Statistics Department, Bangladesh Bank *Provisional

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4. INVESTMENT PROMOTION Investment promotion is nothing but a multipurpose activity whose objective is to attract a host of potential local and abroad investors to invest. It starts with dissemination of information to prospectus all the investors. As an Investment Promotion Agency, BOI attempts investment promotion activities through advertising, developing promotional materials (Handbook, Brochures, Flyers and Newsletter), hosting website, organizing seminars, Road show, inward and outward delegations, attending fairs/expositions and speaking in various investment events etc. The following two tables-13 & 14 present the outward and inward investment delegations and seminars/workshops organized/partnered by BOI in 2014.

a. Outward and Inward Investment Delegations

In 2014, BOI organized and/or attended numerous outward and inward investment delegations. Among those the major delegations were:

Table-13: Outward and inward investment delegations in 2014

Outward and Inward Investment Delegations Venue Date 1. A Delegation of Japanese university facaulty

BOI, Dhaka 2 February,

2014

2. A Delegation of China BOI, Dhaka

16 February, 2014

3. A Delegation of Deblin group BOI, Dhaka

25 February, 2014

4. A Delegation of Bangladesh –Myanmar Chamber of Commerce & Industries

BOI, Dhaka 30 March, 2014

5. A Delegation of Jobs and competitiveness non-leading Technical Assistance Mission, World Bank

BOI, Dhaka 31 March, 2014

6. A Delegation of JICA BOI, Dhaka 09 April, 2014

7. A Delegation of Thailand BOI, Dhaka 21 August, 2014

8. A Delegation of Netherlands BOI, Dhaka

08 September, 2014

9. A Delegation of China BOI, Dhaka

06 November, 2014

10. A Delegation of European Union BOI, Dhaka

11 December, 2014

Source: Board of Investment

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b. Seminars/Workshops

To promote investment locally and internationally, BOI organized and partnered a number of seminars/workshops in 2014. These include following major events:

Table-14: List of Seminars/Workshops/Symposium Organized/Partnered by BOI in 2014

Seminars and Workshops Venue Date 1. Round Table Dialogue on „State of the Economy‟ BOI , Dhaka 30 April, 2014

2. Launching Ceremony of World Investment Report, 2014 BOI, Dhaka 24 June, 2014

3. Round Table Dialogue on „State of the Economy‟ BOI, Dhaka 13 July, 2014

4. Round Table Dialogue on „Blue Economy of Bangladesh‟ BIAM Auditorium 26 August, 2014

5. Seminar on International Investor‟s Forum, 2014 Hotel Sonargaon, Dhaka 17 September, 2014

6. Harmonization of Economic Policy in Bangladesh BIAM Auditorium 14 December, 2014


Round Table Dialogue on State of the Economy at

BOI, Dhaka

Launching ceremony of UNCTAD’S World Investment

Report, 2014 at BOI, Dhaka

Seminar on International Investor’s Forum, 2014 at Hotel Sonargaon, Dhaka

Seminar on International Investor’s Forum, 2014 at Hotel Sonargaon, Dhaka

Harmonization of Economic Policies in Bangladesh, 2014 at

BIAM Auditorium, Dhaka

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c. Publications

To promote and facilitate better service BOI website always invites and manages investment queries. The role of promotion through website in the time of e-communications cannot be avoided. www.boi.gov.bd is the new and fully featured website of BOI. This website is being managed by a team of devoted staff and enthusiastic external technical.

A number of promotional publications are being circulated and distributed by BOI. These include Investing in Bangladesh Handbook & Guidelines, cost of doing business, BOI corporate brochure, quarterly newsletter, fact sheet and booklets. BOI also brought out Annual Report 2009, 2010 , 2011, 2012 & 2013.

d. Other Promotional activities

Besides, above activities BOI also attempted several types of programs and initiatives to promote investment in Bangladesh such as meeting, seminar, work-shop, Road-show etc.

5. POLICY ADVOCACY & CONSULTATIONS

The intention of the policy advocacy and consultations functions of BOI is to abate the authoritative burdens on the investors and promote a simpler, easier and hassle-free (effortless, smooth, uncomplicated and manageable) policy and regulatory environment. BOI executes this important function through:

a. Analyzing investment policies and suggesting for changes; b. Participating/performing in the review process initiated by others and suggesting changes.

Some of the important policy reviews/comments made by BOI in 2014 are presented below:

Table-15: Summary of major Policy Reviews Made by BOI in 2014

Sl. Policy Ministry/Agency

1. Investment Policy Review (IPR) Ministry of Industries

2. Import Policy Order (2015-2018) Ministry of Commerc e

3. Special Package Incentives Policy Ministry of Industries

4. Export Policy (2015-2018) Export Promotion Bureau

5. Textile Policy, 2014 Ministry of Textile & Jute

6. Bangladesh Textile Industry (Registration & Control Act, 2014)

Ministry of Textile & Jute

7. National Industrial Policy, 2015 Ministy of Industries


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6. BILATERAL INVESTMENT AGREEMENTS

Foreign Private Investment Promotion and Protection Act, 1980 proposes equal and impartial treatment to foreign private investment. Equel national treatment is also mentioned in bilateral investment treaties (BITs) for the promotion and protection of foreign investment.

Bilateral Investment agreements which was concluded with 30 countries listed below in Table-16:

Table-16: BITs Concluded with Bangladesh:

1. Australia 2. Korea, DPR 3. Thailand

4. Belgium 5. Korea, ROK 6. UK

7. Canada 8. Malaysia 9. USA

10. China 11. Pakistan 12. Uzbekistan

13. France 14. Poland 15. Vietnam

16. Germany 17. Romania 18. Singapore

19. Indonesia 20. Switzerland 21. Denmark

22. Iran 23. The Netherlands 24. India

25. Italy 26. The Philippines 27. UAE

28. Japan 29. Turkey 30. KSA

7. TRAINING & CAPACITY DEVELOPMENT

In the field of human resource development, the most fundamental key is training of the officials on the latest strategies, tools and techniques. BOI organizes the training to its officials through various approaches- bilateral and multilateral partners, govt. agencies and self-sponsored etc. Here is a list of major training programs attended by different levels of BOI officials in 2014.

Table-17: List of Major Training Programs attended by BOI Officials in 2014

Training Programs Venue Date

1. Agri-business Investment Summit Myanmar 21-22, January, 2014

2. Advanced Certificate Course in foreign Trade,

International Business & Office Productivity India 17 January - 27 March, 2014

3. Leadership & Strategic Planning Course NAPD 05-09 Januray, 2014

4. Office Automation Training Course NAPD 09 February - 04 March, 2014

5. 8th Computer Training Course BCS Academy 16 February – 13 March, 2014

6. Business Process Reengineering BCS Academy 23-27 February, 2014

7. Basic IT Course of the selected BOI officers IFC 16 March – 25 May, 2014

8. Strengthening Government through capacity development SLIDA 22 May, 2014

9. Strengthening Government through capacity development Malaysia 27 May – 10 June, 2014

10. Investment Climate Improvement Malaysia & Vietnam 28 May – 5 June, 2014

11. Investment Climate Improvement Indonesia & Vietnam 28 May – 5 June, 2014

12. Plugging into Global Value Chains: Role of Trade and Investment Policy

Malaysia 03 June – 06 June, 2014

13. Capacity Development for Export and Investment Promotion

JICA, Japan 01 September – 04 October, 2014

14. World Investment Forum, 2014 UNCTAD 13-16 October, 2014

15. 5th Edition International Development Investment and Facilitation Summit

UAE 27-30 October, 2015

16. Multimedia Application Development NAPD 12 October- 13 November, 2014

17. 9th Training Program for Officials of Investment promotion agencies Malaysia investment promotion

model for IDB and OIC member countries

Malaysia 12-21 November, 2014


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8. BUDGET & ACCOUNTS

a. BOI Budget 2014-15

For the current FY 2014-15, BOI has a non-development revenue budget of Tk. 92900 thousand and revised budget Tk.106665 thousand which includes pays of officers and establishments, allowances, supplies and services, repairs and maintenance (Table-18).

Table-18: BOI Annual Budgets since FY 2006-07

Fiscal Year Budget

(Thousand Taka) Revised Budget

(Thousand Taka)

2006-07 52404 54846

2007-08 54921 61568

2008-09 64296 64306

2009-10 64736 76219

2010-11 73747 76652

2011-12 70000 79720

2012-13 72500 77689

2013-14 85000 90575

2014-15 92900 106665

Source: Finance wing, Board of Investment

Exhibit-8: BOI Budget FY 2014-15 by Major Heads

Exhibit-9: BOI Budget FY 2014-15 by Major Heads (Revised)

Allowances

26%

Supplies &

Misc

37%

Pays

30%

Oth

ers

7%

Oth

ers

7%

Pays

32%Supplies &

Misc

38%

Allowances

23%


b. Audit

From 1989-90 to 2011-12, there have been 127 audit objections against BOI out of which 51 objections have been settled. BOI has been working with the Audit Department to settle the rest 76 audit objections. A summary of the status of the audit objections is given below:

Table-19: Audit Objections and Settlements (1989-90 to 2011-12)

Subject Number Amount (Million Taka)

Objections 153 711.518

Settlement 51 24.271

Remaining 102 687.247


P#32


Appendix I: BOI Staff Position (31 Dec 2014)

Table-20: BOI Staff Position on 31 Dec 2014

Staff Category Approved Existing Male Female

Class I 79 45 36 9

Class II -

Class III 135 55 48 7

Class IV 79 26 19 7

Total 293 126 103 23

Source: Personnel wing, Board of Investment

Table-21: BOI Staff went into PRL in 2014

Staff Category Went into PRL in 2014 Male Female

Class I 1 1 -

Class II -

Class III 11 11 -

Class IV 3 3 -

Total 15 15 -

Source: Personnel wing, Board of Investment

Appendix II: Divisional Offices of BOI

Table-22: Function and Authorities of the Divisional Offices of BOI

Sl. Divisional Office Function and Authority Contact

1. Chittagong Registration of Local & Foreign

Projects Unlimited

Board of Investment Chittagong Division

Government Office Building No-1 (3rd Floor), Agrabad, Chittagong.

Phone: 031-2520608 031-2520904

2. Rajshahi Registration of Local & Foreign

Projects Unlimited

Board of Investment Rajshahi Division, Rajshahi

Prime Minister‟s Office Hia Bitan, C&B Mour

Kazihata, Rajshahi. Phone: 072-772047

3. Khulna Registration of Local & Foreign

Projects Unlimited

Board of Investment Khulna Division

BDBL Bhaban (9th Floor) 25-26 KDA C/A

Khulna-9000. Phone: 041-72007

4. Sylhet

Registration of Local Projects up to

Tk. 500 million. No Foreign Projects

Board of Investment Sylhet Division, Sylhet Prime Minister‟s Office

Probaho -18, Taltola, Sylhet. Phone: 0821-724306

5. Barisal

Registration of Local Projects up to

Tk. 100 million. No Foreign Projects

Board of Investment Barishal Divisional Office

90/87, Jordan Road, Barishal. Phone: 0431-54797

P#33


Appendix- III: BOI Budget 2014-15

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P#34

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P#35


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P#36


Board of Investment

Prime Minister‟s Office Government of the People‟s Republic of Bangladesh

Jiban Bima Tower (19th Floor), 10 Dilkusha C/A, Dhaka-1000, Bangladesh. Phone: +88 02 716 9580-3 Fax: +88 02 956 2312

Email: [email protected], Web: www.boi.gov.bd

mailto:[email protected]

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