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
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
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).
Padma, Meghna, Jamuna, Brahmaputra, Teesta, Surma and Karnaphuli
Political System :
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.