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W h y a n d W h a t C a n a d i a n B u s i n e s s
s h o u l d v i e w i n B a n g l a d e s hT h e F e d e r a t i o n o f B a n g l a d e s h
C h a m b e r s o f C o m m e r c e & I n d u s t r y
Sheikh F. Fahim
President, FBCCI
Toronto, August 2019
2
We recall with due reverence, the
architect of modern Bangladesh,
Father of the nation
Bangabandhu Sheikh Mujibur
Rahman
for sacrificing his life for the freedom,
equitable growth, and well being of
the people.
3
"As we (Bangladesh) strive to materialize the goals of 'Vision 2021'
and 'Vision 2041', I request the international investors and
entrepreneurs to partner with us in investment, trade, profit sharing
and prosperity,". - H.E Sheikh Hasina, Hon’ble Prime Minister of
the Govt. of Bangladesh.
Since 2008, Hon’ble Prime Minister of the Govt. of Bangladesh
H.E. Sheikh Hasina's economic Vision 2021 and Vision 2041 to
transform Bangladesh from LDC to middle income to develop
nation has demonstrated remarkable progress and we are on a
proven trajectory towards sustainable development. Poverty
reduction, zero tolerance on acts of terror, focus on growth in exports
& foreign reserve, liberal investment policies are some of our
governance strategies that are now being benchmarked as, “how to
develop a LDC towards developing country within ten years in a
democracy”.
With a Pro-Business Govt. of Bangladesh implementing
Vision 2021 and working for Vision 2041 Bangladesh is
gradually moving towards the vision of an advanced
prosperous digital economy.
As one of the most investment friendly countries in the region, along with rapid development of 100 Planned Economic Zones,
the focus is to create an industrial ecosystem; facilitating
employment and growth opportunities.
As poverty continues to decline, improvement in purchasing power parity,
women empowerment and a young population is paving the way for a
thriving Bangladesh
In the power sector; Electricity Generation
Capacity has increased from 4500MW in 2009 to
21,169MW in 2019 with focus on energy efficiency
and development of renewable clean energy.
4
Socio-Economic Development of Bangladesh 2008-2018
Socio-Economic
Development of Bangladesh
2009-2019
5
Bangladesh is transforming into a tech andknowledge based economy with over 7%GDP growth in the last 3 years and over 6%GDP growth in the last decade. In FY 2019reaching a higher trajectory of 8.13%growth.
We are now the 31st economy in the worldas per the GDP (PPP) and 43rd largesteconomy in the world considering nominalGDP.
Rating agencies like Moody’s, Standard& Poor, Fitch has maintained positiverating for stable macro-economy andcredit position.
6
B a n g l a d e s h
T o d a y
According to Price Waterhouse Coopers-Bangladesh
will be the top 3 fastest growing economies by 2030,
along with India and Vietnam. 23rd largest economy
by 2050. An HSBC report on future growth
projections, Bangladesh could become 26th largest
economy by 2030.
IMF forecasted Bangladesh to be among the three
fastest growing economies in the world, and
Standard Chartered reported that the country’s per
capita income will grow nearly four times
throughout the 2020s.
Goldman Sachs put Bangladesh in the “Next 11”
countries to watch after BRICS & JP Morgan
included Bangladesh in ‘Frontier Five
Source: BBS, Bangladesh Economic Review, MoP
In the last decade; the GDP Growth
rate has increased from below 6% to
over 7% and reached 8.13% in FY
2019.
G D P G r o w t h
7
The GNI per capita of the country
increased from US$ 676 to US$ 1752 and
is estimated to reach US$ 1909 by FY
2019, confirming the eligibility to
graduate from an LDC into a MIC.
Income Threshold
6.076.71
6.23 6.01 6.126.55
7.11 7.287.86 8.13
GDP Growth (%) (at constant price)
751 816 840
10541184
13161465
16101751
1909
GNI per capita at Current Market Price (US$)
The economy is transitioning from an agriculture based economy towards
a more industrialized and knowledge based economy with emphasis on
research and innovation.
8Source: BBS, Bangladesh Economic Review, MoP
With strong rural development and an
entrepreneurial culture; poverty rate
has decreased from 35% in 2008 to
around 21.8% in 2019.
35.133.4
31.529.9
28.5 27.2 26 24.8 24.321.8
Poverty Rate (%)
20.29 20.01 19.4216.78 16.5 16 15.35 14.74 14.1 13.6
29.93 30.38 31.1329 29.55 30.42 31.54 32.42 33.71 35.14
49.78 49.6 49.4554.22 53.95 53.58 53.12 52.85 52.18 51.26
Sector Wise Contribution
Agriculture (%) Industry (%) Service (%)
15.6 16.2
22.9 24.327.0
30.2 31.234.2 34.9
36.740.5
Export (Billion US$)
A decade back export was below US$ 16 billion which has
more than doubled to US$40.53 billion in FY 2019 with an
annual growth of 10.55%. Export target for FY 2020 is set at
US$45b.5bn for goods and US$8.5bn for service.
9
With liberal investment policy framework and
environment and macro-economic stability, the net FDI
increased by 363% from 2008-2019 reaching
US$3.61billion in FY 2019.
Source: EPB, BB, Bangladesh Economic Review, MoP
779
1480
2455
3613
0
500
1000
1500
2000
2500
3000
3500
4000 Net FDI Flows (US$million)
The Foreign Exchange
Reserves has improved
drastically from US$7bn to
about US$32.28bn as of
August 2019.
Source: BBS, Bangladesh Economic Review, MoP 10
The level of remittance
has increased since 2008
with the highest record of
remittance inflow in FY
2019 at US$16.42 bn.
7.4710.75 10.91 10.36
15.3221.56
25.0230.14
33.49 32.99 32.28
Foreign Exchange Reserves (Billion US$)
9.6910.99 11.65
12.8514.46 14.23
15.31 14.9312.77
14.9816.42
Workers' Remittances (Billion US$)
N a t i o n a l B u d g e t ( C R T k . )
88064
110523
130011
161213
191738
216222
250506
295100
340605
400266
464000
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
11
The recently declared budget
was worth 4 lakh 64
thousand crore which was
just 89000 crore in 2008.
Since 1972, our budget has
increased by 600%.
Source: BTRC
I C T D e v e l o p m e n t
12
•With the launch of the Bangabandhu Satellite-1;
Bangladesh’s first communication satellite in 2018 has
positioned Bangladesh in the bandwagon of the 4th
industrial revolution becoming the 4th in South Asia and
57th Globally. (Preparation to launch a 2nd and 3rd
satellite.)
•5G Plans under the Vision of Building a Digital
Bangladesh;
•40% of Govt. Services have been digitalized under the
vision of Digital Bangladesh; 60% of the population now
have access to the internet with 92 million users and 95%
of the population are connected through a mobile.
•Bangladesh’s universal fiber optic connectivity projects
are underway, to connect the grass route unions of the
country with high speed broadband internet.0 10 20 30 40 50 60 70 80 90 100
2012
2013
2014
2015
2016
2017
2018
2019
26.63
35.63
37.92
48.35
63.29
73.35
80.483
94.44
Internet Users (million)
Mega Development Projects in BangladeshTop 10 priority projects are underway covering power and energy, roads &
communication including:•Padma Bridge,
•Rooppur Nuclear Power project,
•Paira Sea Port,
•the coal fired power projects of Matarbari and Rampal,
•Metro Rail and LNG terminal
7 of the 10 are being implemented at a cost of around US$40bn with a view to creating an enabling investment environment and developing an efficient industrial eco-
system.
13
S e c t o r a l S c a n : R M G
The RMG Sector is the largest export sector
of Bangladesh with US$34.4bn Export in
FY 2018-19.
US$50 bn by 2021 RMG Export Target
Employs about 3 lakh women
7 out of 10 top ranking RMG manufacturing
units in the world are located in Bangladesh.
Room for expansion in the Up-Market
Designer Labels and Textile Innovation.
14
E c o n o m i c S t r e n g t h s
Leather and footwear- Brands like Esprit, Tamaris, Armani and Hugo Boss are beingmanufactured in Bangladesh Export for the FY18 was $1.38 bn
Food products; Agri and Frozen fish- Export for the FY18 was $1.18 bn
Ceramics-Export for the FY18 $51.94mn
Jute goods- 205 Mills, Export for the FY-18: $1.03 bn;
Pharmaceuticals-Exported to about 110 countries worth $103.46mn in FY18
ICT- FY 18 (July-March)- Export was US$ 384.28mn (US$5bn export target by 2021)
In 2008 export was only 50mn.
15
16
B a n g l a d e s h L D C G r a d u a t i o n :
A n o t h e r S t e p F o r w a r d
❑ Bangladesh has officially received the
confirmation UN’s Committee for
Development Policy (CDP) about
attaining the three graduation criteria to
consider for graduation from the group
of least developed countries to a
developing one.
❑ Bangladesh is only country in the world
to meet all the three criteria for LDC
Graduation at the qualification stage.
❑ From the business community we
firmly believe that this will transform
the current trading relationship
UN’s Graduation
Criteria
GNI Per capita
Human Asset Index (HAI):
Economic Vulnerability Index (EVI)
Qualifying Score
$1,242 or above
66 or above
32 or below
Bangladesh’s Score
US$1,909
(FY 18-19)
72.9
24.8
17
• Our long proven relations with Canada since 1972 have been marked by dynamic
partnership. Bangladesh views Canada as a key development partner sharing a number of
multilateral interests in the WTO, support for international peacekeeping and as members
of the United Nations and the Commonwealth.
• Current assistance program of Canada includes gender equality and empowerment of
women and girls, health, skills training and support to the ready-made garment sector.
These development priorities are in line with Canada’s Feminist International Assistance
Policy.
• Bilateral Trade is growing on a positive note and Several flagship Canadian companies
from the aerospace, information and communication technology sectors are actively
looking into investment. The potential however, for substantial trade and investments have
yet to materialize.
0
200
400
600
800
1000
1200
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
994
1090 11001029
11131079
1119
441
614 586
765727
613
498
Export (US$ billion)
Export Import
18
Bangladesh and Canada’s
trade flows remain much
below potential,
characterized by
concentration of exports of
apparel and import of agro
products (pulses and wheat).
Bilateral Trade Flows
F u t u r e S t r a t e g i c C o o p e r a t i o n
•Joint High tech research, development and innovation including service sectorcooperation, sectoral scan, sectoral mapping and execution of best practices.
•Knowledge transfer to transition from 3rdIR to 4thIR- including service sectorcooperation in ICT, nanotechnology, robotics, IOT, cyber security, AI, quantumcomputing, quantum internet among others.
•Business process re-engineering of MSMEs, fisheries and agriculture.
•Joint collaboration for demand driven technical skills development/ TVETprogram for agro, manufacturing, Industry, service & quaternary economy,academia skill gap assessment and joint venture on blue economy.
•Knowledge transfer for developing STEAM (Science, Technology, Engineering,Arts, Mathematics) education curriculum, teaching modules and teacher’s training.
•Energy Sector Cooperation- Bangladesh a growing energy market could benefitfrom investment cooperation. In addition the blue energy economy remains largelyuntapped which could be of interest to Canada.
19
V i s i o n
2 0 4 1 -
F B C C I I C O N ( P r o p o s e d )
20
F B C C I V i s i o n 2 0 4 1
In line with our national vision 2041 and the 8th Five Year Plan with a view to achieving the SDGs andgetting on the bandwidth of the 4th Industrial Revolution; FBCCI has taken some medium and long terminitiatives to create an ecosystem of Public Private Partnership which is highly prioritized by the Govt. ofBangladesh.
•Establishment of “FBCCI Institute for Technical Vocation Education and Training” to conductdemand driven skillset for a diversified economic human resource.
•FBCCI Economic Institute for Economic Policy Planning and Design; is set to provide EconomicPolicy Planning and Design; on Trade and Economic issues with an emphasis on behavioral economicsthrough scientific methodology of global standards. FBCCI Economic Policy Institute’s knowledgepartner is Jacobs& Cordova, the global authority on policy planning and design.
•FBCCI University- with a emphasis on the delivery of STEAM (Science, Technology, Engineering,Arts, Mathematics) focused advanced academic programs; taking an interdisciplinary approach, andcreating a skill set for better addressing the interest of innovation and 4th industrial revolutionnecessary for our transitioning economy.
•FBCCI Arbitration center -is being set up for commercial ADR to help the businessmen to settletheir disputes (domestic and international) with a vision to create a trade facilitation eco-system and tominimize cost and time period in dispute resolution.
21
T h a n k y o u
22