Bangladesh a Success - eias.org · © Bangladesh Investment Development Authority 2017 2 Bangladesh is going ahead. 36626688-cms.jpg

© 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 2

Bangladesh is going ahead

BIDA AV.mov


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Big name in Business World already in Bangladesh


Vibrant Economy


Access to Market of 3 Billion People

6


Political Stability


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 (%)


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


Sustained Growth from a Humble beginning…

10

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)


Growth Has Followed an Upward Trend

since Liberation


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 million & 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


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


Pro Business Government with commitment and support at all

levels of political leadership

Bangladesh Investment & Policy Summit(0).mp4


Pro Business Government

Investing in Human Capital


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 Serves)• Developed investors ECO Services and Link gases and

• Improve Investment and Business Climate

24

BIDA


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….

25

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 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

26


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.

27

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)


We have educated, dynamic and young workforce with more

than 50% of the population below 25 years of age

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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

30


Beautiful Bangladesh - Land Of Stories final Cut-1.mp4


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.


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;


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


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


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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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


FDI Inflows & Outflows of Belgium

33

(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 – 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

39

bangladesh.gov.bd bida.gov.bd pppo.gov.bd beza.gov.bd


Thank You

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Bangladesh a Success - eias.org · © Bangladesh Investment Development Authority 2017 2 Bangladesh is going ahead. 36626688-cms.jpg