Nazmul Islam

Ambassador of Bangladesh

Bangladesh: A Land Of Immense Potentials

Bangladesh Embassy, Stockholm

Area 147,570 sq km

Population 160 million

Father of the Nation Bangabandhu Sheikh Mujibur Rahman

Independence Day 26 March

Language State language is BanglaEnglish is used as second language

Population Density 1077 per sq km (2015)

Life Expectancy 70.9

Bangladesh at a glance

Literacy Rate 74%

Key Industries Ready-made Garments, Pharmaceuticals, Cements, Chemicals, Jute, Ship-Building, Leather & Leather Goods

Major Exports Ready-made Garments, Frozen Foods, Leather & Leather Goods, Jute & Jute Products, Tea, Ceramic Products, Light Engineering

Major Imports Crude Oil & Petroleum Products, Cement Clinker, Fertilizer, Edible Oil, Iron, Steel, Cotton

Natural Resources Natural gas, Coal, Lime, White Clay, Granite, Glass & Sand

Bangladesh at a glance

Dream of ‘Sonar Bangla’

Vision 2021Digital Bangladesh

Vision 2041

Growth Story of Bangladesh

Parameters What We Were What We Are

Per capita (USD ) 129.71 (1971-72) 1610 (2016-17)

GDP growth 4.62% (1976) 7.28% (2016-17)

Export (USD ) 0.4bn (1976) 34.85 bn (2016-17)

FDI (USD ) 7 million (1977) 2.33 billion (2016)

Forex Reserve (US$) 0.27 bn (1972) 32.694 bn (2018)

Electricity Gen. Capacity 3362 MW (2009) 15755 MW (2017)

Progress in Development Goals

Poverty Reduction

Progress in Development Goals

Healthy Living and Well-being

Progress in Development Goals

Access to water and sanitation

Bangladesh: An Emerging Economy

11 Source: PricewaterhouseCoopers

Bangladesh: An Emerging Economy

Bangladesh among the ‘’next eleven’’ countries

likely to emerge as economic successes.

(Goldman Sachs) Bangladesh is listed in the

‘Emerging Five’ by JP Morgan

Inclusive Social Development: Leaving no one behind

Poverty rate has come down significantly

Bangladesh has topped the South Asian countries in gender equality for the third

consecutive year, ranking 47th among 144 nations

Ranked 34th in the WEF’s Inclusive Development Index's list of emerging

economies (2018) – being way ahead of her peers

Bangladesh towards Sustainability

Bangladesh towards Sustainability

• The economy grew at an average rate of 6.20% over the last one decade; last year it was 7.28%

• Per capita income of in Bangladesh has almost tripled over the last ten years and stands now at US$ 1610

• Foreign currency reserve has also for the first time crossed US$ 33 billions- the 2nd highest in South Asia

• 08 fully operational ‘Export Processing Zones’ (EPZs) exclusively for 100% export oriented industries

• Establishment of 100 ‘Economic Zones’ (EZs) is ongoing to promote more industrialization and economic growth

• Developing a number of Hi-tech Parks, that offers competitive incentive packages for the investors

Bangladesh Economy: Transformative and sustained growth

• An estimated 12.9 million additional jobs will be created by 2020

• Around 1.3 million ICT professionals, along with, 10,000 ICT entrepreneurs

• The total size of the ICT market in Bangladesh was merely $26 million in 2008 which now has reached to $600 million

Human Resource Development: A Priority Area

Bangladesh towards Sustainability

Bangladesh and SwedenBilateral Relations

• Extended support during our war of liberation in 1971.

• Recognized Bangladesh on 04 Feb 1972.• Helped Bangladesh’s war ravaged economy

through Sida. • Visit of Hon’ble Prime Minister of

Bangladesh to Sweden in June 2017.• Exchange of high level visits in recent years.• Graduation of BD-Sweden relations where

trade & investment has taken a front seat.• Political and financial commitment for the

ongoing Rohingya crisis.

• Sweden has been a development partner of Bangladesh since 1972. Swedish International Development Cooperation Agency (Sida) has remained invested in socio-economic developments of Bangladesh since then.

• Development cooperation is also set to enter a new phase as Sweden is going to take up a project interlinking Trade and Development Cooperation.

Bangladesh and SwedenDevelopment partner

Bangladesh and SwedenTrade and Investment partner

• At present, Bangladesh and Sweden enjoy excellent trade relationship although it is yet to realize full potentials.

• The bilateral trade in 2015-16 was 557 million US dollar.

• FDI net inflows from Sweden in 2015 was 20.68 million US dollar.

Investment Prospects & Facilities

• Geo-Strategic Location

• Low Cost & Competitive Workforce

• Low Cost of Energy

• Proven Export Competitiveness

• Positive Investment Climate

• Export & Economic Zones

Bangladesh is going ahead

Bangladesh a Success Story…

Big name in Business World already in Bangladesh

Vibrant Economy

Access to Market of 3 Billion People

23

Macro Economic Stability

-0,5

4,5

9,5

14,5

GDP Growth of South Asian CountriesIndia Pakistan

Bangladesh

24

GDP Growth Trend (5 years moving average) Poverty headcount rate (%)

Per Capita income & Inflation

0

2

4

6

8

10

12

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

6,19

7

7,54

8,78

10,33

8,15

5,43

8,949,07

6,777,03

7,62

5,59

3,37

1,932,39

6,31

8,27

5,19

2,42

10

Inflation rate of Bangladesh

Growth Has Followed an Upward Trend since Liberation

Sectors Growth

COMPARATIVE STATEMENT ON EXPORT OF RMG OF BANGLADESH

YEAR EXPORT OF RMG (IN MILLION US$)

2010-11 17914.462011-12 19089.732012-13 21515.732013-14 24491.882014-15 25491.402015-16 28094.162016-17 32100.20

Data Source Export Promotion Bureau

Bangladesh Pharmaceutical Market •Total market size >$3.00 billion (IMS 2015)

• Nearly self sufficient; 98% demand met by local production

• Historically good growth maintained (>10%; last 3 yrs ~15%)

• Declared as the thrust sector owing to huge export potential

• Largest white collar labor intensive employment sector

• Registered pharmaceutical companies: 257

Electronics Sector Profile A large and Increasing domestic market contributing to the

steady reduction of Poverty Employment Direct 0.1 mil- lion & Indirect 0.4 million Approx. USD 1.9 bn market demand Local Production approx. USD 1 bn Level of Technology-low to intermediate Included in Priority Sector in the Industrial policy Investment Opportunity for assembling plant is high. Only few

local brands are operating widely. Massive expansion would required is investment and

competition with global brands and major Advertisement/ brands globally

Kay Facts – Shipbuilding No. of shipyards: 100+ International standard shipyards: 10+ Standard approval: IACS (i.e. LR, GL, BV, NKK, RINA) Capacity: 10,000-15,000 DWT ships Employment: 100,000 skilled workers / 150,000 semi-skill Most cost-effective human resources in comparison with

other shipbuilding nations Simple importation & green channel facility of raw materials Govt. declared thrust sector for provision of maximum

benefits

Sectors Growth

Leather & Leather Goods

Sectoral heads of leather and Leather goodsPresent scenario

Employment 1m

Local :Import(source of leather products) 80:20shoe making units the domestic market 3500+Export oriented production Unit 110+

Market size(Local +Overseas) $ 1.5Bn (.5+1)Finished Leather production Unit(Tannery) 250+

Export Volume $ .93 BnExport growth of leather sector 37%

Hide and leather Quality ranking 2nd (After France)Export Growth 37%

finished leather production 220-300 m SQFValue Addition Possibility 90%Investment Opportunity(Indigenous raw material source ) $ 3-5 Bn

Agro Processing Industry

Pro Business Government with commitment and support at all levels of political leadership

Building strong institutions to ensure

accountability & transparency

NIS(National Integrity Strategy)

HRC(Human Rights Commission)

IC (Information Commission)

APA (Annual

Performance Agreement)

ACC (Anti

Corruption Commission)

RTI (Right to

Information)

Institutional Development for Transparency, Accountability and Improvement of Investment and Business Climate

16

Development of Infrastructure Bridge

Development of Infrastructure Roads

Development of Infrastructure Ports

Development of Infrastructure Power

Development of Infrastructure Zones

Development of Infrastructure Corridor

“The Future ofBangladesh is

Exciting!"

Investment Promotion Agencies in Bangladesh

Prime Minister’s OfficeKey Services• Investment promotion• Investment facilitation• Policy Advocacy

• Match-making• Sector briefings• Project Structuring• Transaction Advisory

Key Services• Counseling/ Advisory • Regulatory Approvals• Visas & Work Permits• Foreign borrowing• Investors aftercare

• Promote, Protect and Facilitate FDI • Offer extensive Investors Support

• Ensures Investors Services (Single window One-stop Service)• Developed investors ECO Services and Link gases and

• Improve Investment and Business Climate24

BIDA

Getting ElectricityCommercial/ Industrial Power connectionare obtained by 28 days

Construction Permit Construction permits are issuedwithin 60 days

Company Act Ministry of Commerce proposed amendments to the Company Act 1994 for a better business and

investment friendly regime in Bangladesh.

Major Achievement in 2017 on Ease of Doing Business Index

Investment Promotion and Protection

Foreign investment in Bangladesh is secured by law against nationalization and expropriation. Local and Foreign investment is given equal

treatment 100% foreign equity is allowed along with

unrestricted exit. All industrial sectors are open for foreign

investors for investment except 4 reserve sectors for the government Risk factors for FDI are the minimum in

Bangladesh Bangladesh never posted negative economic

growth during the past 30 years Bangladesh is a signatory to ICSID,

UNCITRAL, OPIC, MIGA, WAIPA, WIPO and WTO.

Bilateral and multilateral investment agreements ensures protection of investment….

40

Bilateral Investment treaties (BITs) signed with 31 countries:Austria, DPR Korea , Thailand, Belgium, Republic of Korea, UK, Canada, Malaysia, USA, China. Pakistan Uzbekistan, France, Poland, Vietnam, Germany, Romania, Singapore, Indonesia, Switzerland, Denmark, Iran, The Netherlands, India, Italy, The Philippines, UAE, Japan, Turkey, Belarus)

Double taxation treaties (DTTs) with 28 countries:Canada, Poland, Norway, China, Romania, Turkey, Denmark, Singapore, Vietnam, France, Republic of Korea, Philippines, Germany, Sri Lanka, Indonesia, India, Sweden, Switzerland, Italy, Thailand, Oman, Japan, The Netherlands, Malaysia, UK

Opportunities UnboundedIn this growing economy of Bangladesh,

investment opportunities are diverse across all sectors

Efficient ServicesIT & ITES, BPOs Logistics, Health

Appropriate Skills

Education, Training, HR

development

Enabling Infrastructure

Communication, Energy, Power,

Ports, Economic Zones

Competitive Manufacturing

Competitive Manufacturing

supporting global value chains

All Modes of Investments

100% FDI Joint Ventures Partnerships PPPs Non-equity modes

(Technology transfer, licensing Franchising, Contracting etc)

• Foreign borrowing

27

Opportunities UnboundedAlmost all the sectors are open to FDI

Reserved Sectors

1. Arms & ammunitions

2. Nuclear Power 3. Security printing

and minting 4. Afforestation and

Mechanize Extraction within the boundary of reserved forest. 28

Agribusiness & Food processing

Agro-based & agro-processing

Jute & Jute goods

Flower cultivation

Commercial plantation

Horticulture

Silkworm &Silk Industry

Furniture

Handicrafts

Integrated shrimp cultivation

Frozen Food

Textile &Clothing

Home Textiles Textiles industry Readymade garments

industry High value added RMG

ICT & Electronics

ICT and ITES Computer software &

ICT goods Electronics Light engineering incl.

automobiles

Energy & Infrastructure

Power Ports and Logistics Economic Zones Oil and gas Tourism Transport

Infrastructure

Pharmaceuticals Herbal medicines Plastics • Ceramics Leather & leather goods

Textile Dye & chemicals Basic chemicals

Pharma & Chemicals

Health care Footwear Cosmetics and

toiletries Jewelry and diamond

cutting polishing

Healthcare& Others

15 m

Bangladesh

Myanmar

Vietnam

Population

29

111

677

345

262

346

192

217

260

208

582

1881

1712

1345

1478

979

1713

1593

1251

56

273

223

295

245

169

159

130

0 8001

000

1200 1800 2000

Dhaka

Beijing

Kulalampur

Manila

Bangkok

Hanoi

NewDelhi

Mumbai

Karachi

200 400600

Legal minimumwage Manager'ssalary

1400

1600

Workers wages

27th Investment cost survey JETRO 2017

Cost of Wages and Salaries in Dhaka Relative to Peer Cities:

(US Dollar)

We have educated, dynamic and young workforce with more than 50% of the population below 25 years of age

30

Most Competitive and Attractive Incentive

Bangladesh offers most competitiveinvestment incentives across sectors and

locationsFiscal & Tax IncentivesTax holiday • Up to 10 yrs for selected

sectors• Up to 10 yrs for

infrastructure• Up to 12 years for

Economic Zones & IT Park

Accelerated depreciation • in lieu of tax holidayDouble tax avoidance under

DTTs

Tariff concessions• capital machinery• import of raw materials

Bonded warehousing

Financial Incentives

Cash incentives • Exporting selected

products

Export Development Fund

Equity Entrepreneurship Fund

Access to infrastructure fund facilities (IPFF)

and many more

Investment

Incentives

OthersFast Track Approvals

Citizenship

Permanent Residency

Quick Immigration

Skilled Work Permits

NRB Preferences

31

FDI of Bangladesh(In million USD)

Year Total Equity capital

Reinvested

earnings

Intra-company loans

2011 1136.38

431.85 489.63 214.9

2012 1292.57

497.63 587.54 207.4

2013 1599.16

541.06 697.11 360.99

2014 1551.28

280.3 988.81 282.17

2015 2235.39

696.67 1144.74 393.98

2016 2332.72

911.38 1215.39 205.95

0 500 1000 1500 2000 2500

2011

2012

2013

2014

2015

2016

1136,38

1292,57

1599,16

1551,28

2235,39

2332,72

431,85

497,63

541,06

280,3

696,67

911,38

489,63

587,54

697,11

988,81

1144,74

1215,39

214,9

207,4

360,99

282,17

393,98

205,95

Intra-company loans

Reinvested earnings

Equity capital

Total

Global Competitiveness Rankings- Bangladesh Enters Club of Top 100 Countries

Bangladesh Will be Amongst Top 3 Fastest Growing Economies Globally Through 2050; PwC

Bangladesh – a winning combinationBangladesh is a country with a winning combination for anyinvestor. A business friendly government, competitive skilledworkforce, ever expanding infrastructure and improvingbusiness climate and friendly and welcoming people.This is the place to be in, invest and develop your business andproudly create and happily share the prosperity of Bangladesh

Invest in Bangladesh and also with Bangladesh

Be a partner in Bangladesh’s exceptional progressbangladesh.gov.bd ♦bida.gov.bd ♦ pppo.gov.bd ♦

beza.gov.bd

Thank You