About the country

Bangladesh emerged as an independent and sovereign country in 1971 following a nine month war of liberation. It is one of the largest deltas of the world with a total area of 147,570 sq. km. With a unique communal harmony, Bangladesh has a population of more than 160 million, making it one of the densely populated countries of the world. The majority (over 88%) of the people are Muslim. Over 98% of the people speak in Bangla. English, however, is widely spoken. The country is covered with a network of rivers and canals forming a maze of interconnecting channels. Being an active partner, Bangladesh plays vital role in the international and regional forum, particularly in the UN, Commonwealth and South Asian Association of Regional Cooperation (SAARC).





The Land of Investment

  • Industrious low-cost work force
  • Energy cost is lowest among neighboring countries
  • Lucrative incentive policies
  • FDI friendly EPZ’s & Economic Zones
  • Easy access to local & Global Market
  • Steps taken for continuous energy supply to the EZs
  • Cost of doing business in Bangladesh is lower than 29 major cities in Asia
  • Treaties with 28 countries to avoid double taxation
  • Easy internet & telecom service worldwide
  • Positive attitude of Government for enhancing economic growth
  • Special duty, tax benefit and reimbursement of remittance



Investment Prospects

  • The government has set its economic growth target to 10% in 2021 with an average of 7.3%, in its SIXTH FIVE YEAR PLAN
  • To fulfill above vision the Government is encouraging manufacturing sectors that would eventually contribute 30% to national income
  • Stable GDP growth from last decade
  • Annual export USD 34.24 billion in FY 2015-2016
  • Export grew 10.7%
  • Planning to export USD 5 billion leather goods in the next decade
  • Predicted RMG export up to USD 40 billion within 2021

Fiscal and Non-Fiscal Incentives in Economic Zones

  • Tax Holiday : l00% for lst three years of operation; 80% for 4th year; 70% for 5th year: 60% for 6th year; 50% for 7th year: 40% for 8th year: 30% for 9th year and 20% for 10th year.
  • Customs Duty : Duty free import of raw materials, construction material & capital machinaeries..
  • Dividend Tax Exemption : Exemption from income tax on dividend for lst 10 years from the start of Commercial Operation.
  • VAT on Local Purchase : All purchases excluding petroleum product from Domestic Tarift Area (DTA) shall be exempted from VAT, sales tax, etc.
  • Backward Linkage : l00% backward linkage raw—materials and accessories to sell for Export Oriented Industries in Domestic Tariff Area.
  • Stamp Duty : 50% exemption on stamp duty and registration fees for registration of leasehold land/factory space.
  • Exemption on VAT on utilities : 80% exemption of VAT on all utility services consumed inside the zone..
  • Export Duty Exemption : Duty exemption on Export.
  • Local Sale : 20% sale of finished product to Domestic Tariff Area.
  • Duty Free Vehicles : Exemption of Customs Duty for import of 2 vehicles within lst 5 years for foreign investors (for one time).
  • Avoidance of Double Taxation : Exemption of double taxation, subject to Double Taxation Treaty Agreement.
  • Repatriation : Full repatriation of capital and dividend.
  • Exemption of lncome Tax on Expatriates : 50% Rebate of income tax on salary income of expatriates for 5 years.
  • Bonded Warehouse : E2 is considered as custom bonded area.
  • Foreign Loan : Foreign loan availability (to ease business activity).
  • Foreign Exchange : FC Account for Non— Resident.
  • Joint Venture : Investors can establish fully foreign owned orjoint venture company.
  • Royalty and Technical Fees : Exemption of income tax on Royalty & technical fees for lst lO yeas from the start of Commercial Operation.
  • Tax on Capital Gains : Exemption on capital gain tax arising from share transfer for lstl 10 years of the start of Commercial Operation.
  • Share Transfer : Share transfer allowed.
  • Work Permit for Expatriates : Can be issued for up to 5% of the total number of employees.
  • Reinvestment : Reinvestment of remittable dividend to be treated as new foreign investment.
  • Resident Visa : Resident visa for investment of US$ 75,000 or more.


General Information

Official name :
The People’s Republic of Bangladesh
Population :
160 million +
Capital :
Dhaka
Major Cities :
Dhaka, Chittagong, Khulna, Rajshahi, Sylhet, Barisal, Rangpur, Mymensingh
Principal Rivers :
Padma, Meghna, Jamuna, Brahmaputra, Teesta, Surma and Karnaphuli
Political System :
Parliamentary Democracy
Time Zone :
GMT + 6 hours
Principal Industries :
Readymade garments, pharmaceuticals, cements, garment accessories, chemicals, fertilizers, newsprint, leather and leather goods, paper, sugar, jute, ship building
Principal Exports :
Readymade garments, frozen foods (shrimps), leather,leather products, jute, jute products, tea, ceramic, textile fabrics, home textile, chemical product, light engineering products including bi-cycle.
Gross Domestic Product :
For almost two decades, Bangladesh has experienced a solid economic growth. A gradual structural transformation is primarily stirring the agricultural Gross Domestic Product (GDP) share, yet this trigger is also making an impact to the service sector and slightly to the industry sector.On one hand, there is a middle-class on the rise, and on the other hand, there is a working poor decline. This does not mean they are ahead of the rest of the South Asia region’s average. As they experience a weakness in both their environment of doing business and governance structures; in a similar stand, law enforcements have not been strengthen. As a result, Bangladesh faces a period of turmoil due to various trade union right violations.
GDP Growth Rate :
7.3% (2017)
GDP Per Capita Income :
$1,508.493 (2016)
Inflation Rate:
5.44% (2017)
International Reserve:
$33.02 billion (2017)
GDP:
$285.817 billion (nominal, 2017), $751.949 billion (PPP, 2017)
GDP Rank:
43rd (nominal, 2017), 30th (PPP, 2017)
Export:
$34.02 billion (2016-2017)
Import:
$43.49 billion (2016-2017)


Utilities Infrastructure Overview

Seaports:
Chittagong, Mongla and Potuakhali
Inland River Ports:
Dhaka, Chandpur, Barisal, Khulna, Baghabari, Sharishabari, Narayanganj, Bhairab Bazar, Ashuganj
International Airports:
Dhaka, Chittagong and Sylhet
Domestic Airports:
Dhaka, Chittagong, Jessore, Sylhet, Cox's Bazar, Saidpur, Rajshahi and Barisal
Land ports:
Benapole, Teknaf, Banglabandha, Hilli, Sonamasjid, Darshana, Birol, Burimari, Tamabil, Haluaghat, Akhaura, Bhomra and Bibirbazar.
Waterways:
Length of Inland Waterways - 24,000 km
Annual Quantum of Silt - 2.5 bn tons
Least available depth range - 3.9 to 1.5 meter