Bangladesh : a promising destination for Foreign Investment
Starting from early 1980, Bangladesh has established itself as a promising ground for foreign investment. Establishment of free trade zones (Export Processing Zones – EPZ), continuous reform of the economic system, liberalization of trade and investment regime, improvement of infrastructure, success in maintaining macro-economic stability, pursuance of consistent policy regime, favourable labour situation, growth of the banking system – all factors have contributed in attracting foreign investment to this country. Government’s privatization policy together with deregulation has also encouraged investment in the private sector. Last but not the least, a population of 145 million people, coupled with rise in per capita income, guarantees an effective demand that that rationalizes any investment project. Bangladesh’s FDI targets are USD 1 billion for 2007, USD 1.2 billion for 2008, USD 1.4 billion for 2009, and USD 1.6 billion for 2010. India's Tata Group has submitted a $3 billion plan to build a slew of industrial projects in Bangladesh.
Over time, cost of doing business in Bangladesh has gradually declined. Government offers a range of incentive package which include, among others :
· No ceiling on investment.
· Long term Tax-holidays .
· Tax-exemption and duty-free importation of capital machinery and spare parts for 100% export-oriented industries.
· Residency permits for foreign nationals.
· Capital, profit and dividend repatriation facilities.
· Hundred percent foreign equity allowed.
· Exemption of income tax upto three years for expatriate employees.
· Term loans and working capital loans from local banks
· Reinvestment of repatriable dividends treated as new investment.
· Avoidance double-taxation, as per bilateral agreements already concluded.
· Tax exemption on the interest payable on foreign loans and on royalties and technical know-how fees
· Open exchange controls.
· Legal protection to foreign investment against nationalization and expropriation.
Products of Bangladesh origin enjoy duty-free access to many countries including whole of European Union. Except for five sectors, namely, defense and defense production, nuclear energy, extraction from reserved forests, security printing and mint and air transportation (some domestic routes and international air cargo already opened for private investment.) and railways, all sectors of industry (except five) are open for private investment. The country's drive for fetching foreign investment is spearheaded by the Board of Investment (BoI). Please visit the website of BoI for more information on investment opportunities in Bangladesh ( http://www.boi.gov.bd ). If you have any specific question please eMail to This e-mail address is being protected from spambots. You need JavaScript enabled to view it or This e-mail address is being protected from spambots. You need JavaScript enabled to view it at your earliest convenience.
