© Bangladesh Investment Development Authority 2017
Bangladesh a Success
Story…
Kazi M Aminul Islam
Executive ChairmanBangladesh Investment Development Authority
April, 2017
© Bangladesh Investment Development Authority 2017
© Bangladesh Investment Development Authority 2017 4
Big name in Business World already in Bangladesh
© Bangladesh Investment Development Authority 2017
Macro Economic Stability
-0.5
4.5
9.5
14.5
2008 2009 2010 2011 2012 2013 2014P2015P2019P
GDP Growth of South Asian CountriesIndia Pakistan
Bangladesh
8
GDP Growth Trend (5 years moving average) Poverty headcount rate (%)
© Bangladesh Investment Development Authority 2017 9
Per Capita income & Inflation
0
2
4
6
8
10
12
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
1.93
2.39
6.31
8.27
5.19
2.42
10
Inflation rate of Bangladesh
© Bangladesh Investment Development Authority 2017
Sustained Growth from a Humble beginning…
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Parameters What We Were What We Are
Per capita (USD ) 129.71 (1971-72) 1628 (2016-17)
Literacy Rate 29.23% (1981) 71%
Female Literacy Rate 27% (1971) 82%
GDP growth 4.62% (1976) 7.28%
Export (USD ) 0.4bn (1976) 34.84 bn (2016-17)
FDI (USD ) 7 million (1977) 2454.81 million (2016-17)
Forex Reserve (US$) 0.27 bn (1972) 32.25 bn (May’ 2017)
Electricity Gen. Capacity 3362 MW (2009) 15379 MW (Feb’17)
© Bangladesh Investment Development Authority 2017 11
Growth Has Followed an Upward Trend
since Liberation
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Sectors Growth
COMPARATIVE STATEMENT ON EXPORT OF RMG OF
BANGLADESH
YEAREXPORT OF RMG (IN MILLION
US$)
2010-11 17914.46
2011-12 19089.73
2012-13 21515.73
2013-14 24491.88
2014-15 25491.40
2015-16 28094.16
2016-17 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
© Bangladesh Investment Development Authority 2017 13
Leather & Leather Goods
Sectoral heads of leather and Leather goods
Present
scenarioEmployment 1m
Local :Import(source of leather products) 80:20
shoe 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 Bn
Export growth of leather sector 37%
Hide and leather Quality ranking 2nd (After France)
Export Growth 37%
finished leather production 220-300 m SQF
Value Addition Possibility 90%
Investment Opportunity(Indigenous raw material
source ) $ 3-5 Bn
Sectors Growth
Agro Processing Industry
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Pro Business Government with commitment and support at all
levels of political leadership
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Pro Business Government
Investing in Human Capital
© Bangladesh Investment Development Authority 2017
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
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© Bangladesh Investment Development Authority 2017
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 Serves)• Developed investors ECO Services and Link gases and
• Improve Investment and Business Climate
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BIDA
© Bangladesh Investment Development Authority 2017
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….
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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
© Bangladesh Investment Development Authority 2017
Opportunities Unbounded
In this growing Bangladesh, investment opportunities are unbounded, diverse and long-term
EfficientServices
IT & ITES, BPOs Logistics, Health
Appropriate Skills
Education, Training, HR development
Enabling InfrastructureCommunication, 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 Lending
▪ NRB preferences
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© Bangladesh Investment Development Authority 2017
Opportunities Unbounded
Almost 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.
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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
Bangladesh Investment Development Authority 2017
A large domestic market with competitive workforce
15 m
Bangladesh
Myanmar
Vietnam
Population
28
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 800100
0
1200 1800 2000
Dhaka
Beijing
Kulalampur
Manila
Bangkok
Hanoi
NewDelhi
Mumbai
Karachi
200 400600
Legal minimumwage Manager'ssalary
14001
600
Workerswages
27th Investment cost survey JETRO 2017
Cost of Wages and Salaries in Dhaka Relative to Peer Cities:
(US Dollar)
© Bangladesh Investment Development Authority 2017
We have educated, dynamic and young workforce with more
than 50% of the population below 25 years of age
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© Bangladesh Investment Development Authority 2017
Most Competitive and Attractive Incentive
Bangladesh offers most competitiveinvestment incentives across sectors and locations
Fiscal & 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
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© Bangladesh Investment Development Authority 2017 32
Bangladesh–Belgium Bilateral Trade Statistics
Year Export Import
2007-08 488.392 72.74
2008-09 409.78 138.85
2009-10 390.54 95.67
2010-11 666.24 105.31
2011-12 741.96 143.39
2012-13 730.81 88.00
2013-14 970.540 127.59
2014-15 975.134 129.34
2015-16 1015.331 134.75
2016-17 918.85 192.83
Value in million US $
Major Export Items :Frozen Food, Agri-Products, RawJute, Jute goods, Knitwear, WovenGarments.
Major Import Items:Live animals; animal products;tobacco and manufactured tobaccosubstitutes, Products of the chemicalor allied industries, Plastics andarticles thereof; rubber and articlesthereof, Base metals and articles ofbase metal, Machinery andmechanical appliances; electricalequipment; parts thereof; soundrecorders and reproducers, televisionimage and sound recorders andreproducers; and parts andaccessories of such articles, Vehicles,aircraft, vessels and associatedtransport equipment.
© Bangladesh Investment Development Authority 2017 33
Highlights
▪ Global competitiveness rankings - Bangladesh enters club of top 100
countries;
▪ Petrobangla to form joint ventures for LNG import;
▪ The Government plans to dredge 10 rivers in haor region - BIWTA
initiates Tk 47.61m scheme to carry out feasibility study;
▪ DataSoft to build 10,000 smart homes in Tokyo;
▪ Leather products may get 15 percent cash incentive for next five years
▪ bKash (Bangladeshi mobile banking operator) ranked 23rd on Fortune's
'Change the World' list;
▪ Bangladesh Bank elected as vice chair of Alliance for Financial Inclusion;
© Bangladesh Investment Development Authority 2017
FDI of Bangladesh
34
(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
© Bangladesh Investment Development Authority 2017
Belgium FDI in Bangladesh
30
(In million USD)
Year Total FDIFDI from Belgium
2011 1136.38 0.61
2012 1292.57 1.31
2013 1599.16 0.98
2014 1551.28 0.51
2015 2235.39 0.82
2016 2332.72 0.09
© Bangladesh Investment Development Authority 2017
Belgium Investment in Pipeline
Share-Equity wise Joint venture/100% Foreign Investment Projects Registered with Bangladesh Investment Development Authority upto February- 2018
Belgium No. of UnitProposed Investment
(TK. In million) Proposed Investment
(USD In million) Proposed Employment
100% Foreign Investment 0 0.000 0.000 0
Joint venture Investment 8 2510.370 44.722 1143
TOTAL 8 2510.372 44.722 1143
Sector wise Joint venture/100% Foreign Investment Projects Registered with Bangladesh Investment Development Authority upto February- 2018
Sector No. of Units Investment Investment Employment(Tk. in million) (US$ in million)
Agro-based 0 0.000 0.000 0Food and Allied 1 2.000 0.036 16Textile 1 18.75 0.326 79Tannery & Rubber Products 0 0.000 0.000 0Chemical 1 5.602 1.179 49Glass & Ceramics 2 131.687 2.334 560Engineering 1 9.400 0.163 55Printing & Packaging 0 0.000 0.000 0Service 2 2342.933 40.684 384
TOTAL 8 2510.372 44.722 1143
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© Bangladesh Investment Development Authority 2017 37
FDI Stock of Belgium in Bangladesh
(In million USD)
FDI Stock
Year Value
2011 1.11
2012 1.91
2013 2.99
2014 0.98
2015 1.82
2016 1.40
© Bangladesh Investment Development Authority 2017
FDI Inflows & Outflows of Belgium
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(In million USD)
YearFDI
inflowsFDI
outflows
2011 78258 46371
2012 6516 33821
2013 25125 29484
2014 -8958 -2701
2015 21244 30356
2016 33103 18269
© Bangladesh Investment Development Authority 2017
Bangladesh – a winning combination
Bangladesh is a country with a winning combination for any investor.A business friendly government, competitive skilled workforce everexpanding infrastructure and improving business climate and friendlyand 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 BangladeshBe a partner in Bangladesh’s exceptional progress
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bangladesh.gov.bd bida.gov.bd pppo.gov.bd beza.gov.bd