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Investing

in

bangladesh

HANDBOOK

&

GUIDELINES

Board of Investment

Inves ng in Bangladesh : Handbook & Guidelines 4th Edi on, April 2011 Board of Investment Prime Ministers Oce, Bangladesh

Designed & Printed by Tradex BD, a concern of ROOT Marke ng Services (www.rootbd.com) Photographs are taken from the BOIs Archive and the Internet

Cita ons from and references to this Handbook is permissible, but must be properly acknowledged. ISBN 984-32-3656-4

For Detailed and further informa on:

Board of Investment
Prime Ministers Oce, Government of the Peoples Republic of Bangladesh Jiban Bima Tower (19th oor), 10 Dilkusha C/A, Dhaka-1000, Bangladesh Phone : 880-2-7169580, Fax : 88 02 9562312 Email : service@boi.gov.bd, Web : www.boi.gov.bd

Online version of this Handbook is available at www.boi.gov.bd/publica ons.htm

Disclaimer Inves ng in Bangladesh : Handbook & Guideline provides a roadmap and necessary informa on guidance to the intending private investors in Bangladesh. However, prior to taking any investment decision, investors are encouraged to make further independent check from BOI and other relevant authori es to be sure of the up-to-date informa on and legisla on. BOI does not accept any liability in rela on to the contents of this Handbook.

THE FATHER OF THE NATION

Bangabandhu Sheikh Mujibur Rahman (1920-1975)

PRIME MINISTER
GOVERNMENT OF THE PEOPLES REPUBLIC OF BANGLADESH

28 Poush 1417 11 January 2011

Message
I am happy to learn that Board of Investment (BOI) is going to publish a handbook styled, 'Investing in Bangladesh: Handbook and Guidelines', incorporating all necessary information for the prospective investors. Bangladesh is now being considered as one of the most preferred destinations for Foreign Direct Investment (FDI) following creation of an ideal investment climate in the country by our democratic government. We are pursuing an open, non-discriminatory industrial and investment policy. We offer the most attractive package of incentives for the investors. In the last two years, we have successfully reduced the overall costs of doing business in Bangladesh. The World Bank in its latest FDI-friendly index report has ranked Bangladesh as one of the most convenient and profitable destinations among 87 countries for investment. I hope this book will help the investors in making decision and doing business smoothly in Bangladesh. I wish the initiative all out success. Joi Bangla, Joi Bangabandhu May Bangladesh Live Forever

Sheikh Hasina

Prologue
Bangladesh has been achieving steady economic growth for decades. Despite the recent global nancial turmoil, Bangladesh retains the growth momentum, placing the highest emphasis on augmen ng investment which is recognized as the key drive for economic growth of the country. In our economic development vision the Vision 2021, we envision raising economic growth rate to 8% by 2013 and raising the rate to 10% in 2017 & sustaining it ll 2021. Increasing investment is considered as a key variable for a aining such overall development. The Bangladesh Economy is poised for accelerated growth, with the private sector playing a lead role. More than 100 Companies have invested in Bangladesh in recent years. Bangladesh oers the most liberal investment climate in South Asia. The Foreign Private Investment (Promo on and Protec on) Act, 1980, which deals with promo on and protec on of investment in Bangladesh, ensures equal treatment for local and foreign investors. Bangladesh oers a compe ve loca on for doing business in terms of costs, inputs, human resources, market access, facilita on, etc. Inves ng in the appropriate sector in Bangladesh would yield higher returns than most other compe ng loca ons, with lesser risks. Authori es in Bangladesh makes all possible eorts to reduce the costs of doing business in Bangladesh and minimize risks and uncertain es. Recognizing the rising role of the private sector as a key actor in the economy, Bangladesh is keen to ensure a sustained conducive business climate. Implementa on of private sector led growth strategies, undertaking pragma c reforms and enhancing the facilita ve role of the regulatory agencies and ins tu ons are the prime agenda of the government. The Board of Investment has simplied the procedures for processing investment proposals and projects and renders con nuous regulatory reforms counseling to the government for achieving the stated objec ves. We recognize that the mul plica on of agencies/ins tu on only add to the problem of overcrowding in the public sector. They also make bureaucracy dysfunc onal. Recent policy changes in Bangladesh make bold and innova ve a empts to deal with such issues. The new industrial policy 2010 is an example. We believe that business is a ra onal enterprise which can be reduced to rules that promote and do not s e.

Contents
1. BANGLADESH: COUNTRY INFORMATION 1.1 Country Overview a. Geography & Climate b. Demographics c. Resources d. History & Government e. The Economy f. Air, Sea and River Ports 1.2 People and Society a. Educa on and Health b. Governance and Policies c. Social Development Indicators 1.3 Economy and Business a. Economic Performance b. Trade and Investment 1.4 Major Sectors of the Economy a. Agriculture b. Industry c. Power and Energy d. Banking and Finance e. Transport and Communica on 1.5 Private Sector Investment Scenario a. Conducive Investment Climate b. Investment Sta s cs c. Private Investment Registra on d. Import of Capital Machinery e. Growth in Manufacturing Sector f. Private and Public Investment g. Employment Opportuni es and Poten als 1.6 Bangladesh Vision 2021 1.7 Digital Bangladesh 2. INVESTMENT CLIMATE AND INCENTIVES 2.1 Investment Climate & Incen ves a. General Features b. Why Bangladesh? c. Legal Framework for Foreign Investment d. Bilateral Investment Agreements e. Credit Ra ng and Country Risks 1-37 03

07

10

12

19

29 34 38-67 39

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2.2 Infrastructure Readiness a. U li es b. Transporta on c. Communica on / Digital Bangladesh 2.3 Facilita on and Promo on a. Bangladesh Small & Co age Industry Corpora on (BSCIC) b. Bangladesh Export Processing Zones Authority (BEPZA) c. Board of Investment (BOI) 2.4 Investment Incen ves a. Tax Holiday & Concessions b. Duty Exemp ons and Concessions on Machinery c. Avoidance of Double Taxa on d. Remi ancs e. Exit f. Ownership g. Incen ves to Non-Resident Bangladeshis (NRBs) h. Corporate Tax Rates i. Other Incen ves j. Incen ves to Export-Oriented and Export-Linkage Industries 2.5 FDI Policy Framework and Incen ves 2.6 CIP (NRB) Policy 3. BOARD OF INVESTMENT : PROFILE & PROCEDURES 3.1 Structure and Objec ves a. Forma on of BOI b. Objec ves of BOI 3.2 Func ons and Facili es a. Func ons of BOI b. Services Available from BOI 3.3 Procedural Mapping : First Contacts 3.4 BOI Partnerships with Private Sector a. Advocacy for Private Sector Development b. Ins tu onal Partnership Ini a ve: CSDC 4. BUSINESS SETUP ROADMAP 4.1 Business Set up at a Glance 4.2 Info Searching 4.3 Physical Verica on a. Immigra on Procedures b. BOI Counseling 4.4 Ge ng Structured a. Selec ng a Business structure b. Incorpora ng a Company c. Opening of Branch or Liaison or Representa ve Oce d. Securing Trade License viii

43

45

49

63 65 68-75 69

70

72 74

76-101 77 77 80

81

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4.5 Opera onal Set up for Industries a. Registra on with BOI b. Obtaining Industrial Plot c. Approval of Foreign Loan, Suppliers' Credit, PAYE Scheme etc. d. Obtaining U lity Connec ons e. Import of Raw Materials f. Work Permit g. Registering with Factories Act h. Registering with Environmental Legisla on i. Remi ance of Royalty, Technical Know-How and Technical Assistance Fees 4.6 Commercial Opera on 4.7 Human Resources and Employment 4.8 Foreign Exchange Transac on 5. COSTS OF DOING BUSINESS 5.1 Typical Costs of Doing Business a. Arrival and Ge ng Started b. Industrial Land and Factory Building c. Business Setup d. U li es: Electricity, Gas, Water, Sewerage e. Telecommunica on f. Human Resources g. Transporta on h. Living Costs 5.2 Taxa on in Bangladesh 5.3 Customs Tarrif 5.4 Compara ve Costs in compe ng loca ons 5.5 Visa Policy 6. COMPETITIVE SECTORS FOR INVESTMENT 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13

87

94 94 95

102-123 103

118 119 119 120 124-155 125 126 127 129 131 133 137 139 141 144 148 150 153

Bangladesh: Stable Outlook Agro-based Industry Ceramics Tableware Sanitary ware Insulator Electronics Home Appliances Telecommunica on Equipment Semi-Conductor Frozen Foods Frozen Shrimp Frozen Fish Other Items Informa on Technology Data Processing So ware Development Hardware Manufacturing Leather Light Engineering Machinery Parts Bicycle Other Consumer Items Natural Gas-based Industries Electricity Fer lizer Petrochemicals CNG Distribu on Network Pharmaceu cals Shipbuilding Spinning Tex les Ready Made Garments Tex les Composite Tex les ix

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7. SETTLING IN BANGLADESH 7.1 Harmonious Living 7.2 Cultural Orienta on 7.3 Adap ng to Life 7.4 Aordable Living Costs 7.5 Schooling & Healthcare 7.6 Entertainment and Recrea ons 7.7 Tours and Travels 7.8 Workdays and Business Hours 7.9 Flight Schedules 7.10 Useful Bangla Words 8. IMPORTANT CONTACTS AND INFORMATION SOURCES 8.1 Government Bodies 8.2 Trade & Chamber Bodies 8.3 Joint Chambers 8.4 Specialized Associa ons 8.5 Board of Investment (BOI)

156-165 157 158 159 159 160 161 162 164 164 164 166-182 167 173 175 178 180

9. APPENDICES

183-320

I. Applica on Forms for BOI Services 183 a. Applica on form Registra on of Industrial Investment Project 183 b. Applica on form Extension of Branch or Liason/Resenta ve oce 195 II. Relevant Legisla on and Highlights a. Bangladesh Economic Zone Act 2010 b. Investment Board Act 1989 c. Foreign Private Investment (Promo on & Protec on) Act 1980 d. Visa Policy 2007 e. Baggage Rules 2010 f. Policy and Strategy for Public - Private Partnership (PPP), 2010 g. Na onal Industrial Policy 2010 200 200 208 216 219 221 228 255

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Acronyms
Asian Development Bank Annual Development Program Ar cle of Associa on Associa on of South East Asian Na ons BAS : Bangladesh Accoun ng Standards BBS : Bangladesh Bureau of Sta s cs BCIC : Bangladesh Chemical Industries Corpora on BEPZA : Bangladesh Export Processing Zones Authority BGFCL : Bangladesh Gas Fields Company Limited BGSL : Bakhrabad Gas System Ltd. BIDS : Bangladesh Ins tute of Development Studies BIMSTEC : Bay of Bengal Ini a ves for Mul sectoral Technical and Economic Coopera on BIN : Business Iden ca on Number BITs : Bilateral Investment Trea es BMPP : Barge Mounted Power Plant BOI : Board of Investment BOT : Build Operate Transfer BPDB : Bangladesh Power Development Board BR : Bangladesh Railway BSCIC : Bangladesh Small and Co age Industries Corpora on BTRC : Bangladesh Telecom Regulatory Commission BTCL : Bangladesh Telephone Company Limited BTV : Bangladesh Television C&F : Cost and Freight CBI : Confedera on of Bri sh Industry CDC : Commonwealth Development Corpora on CDS : Central Depository System CEPZ : Chi agong Export Processing Zone CIF : Cost-Insurance-Freight
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ADB ADP AOA ASEAN

: : : :

: Chief Inspector of Factories and Establishments CP : Clearance Permit CPA : Chi agong Port Authority CRF : Clean Report of Findings CSDC : Chi agong Skill Development Centre CSE : Chi agong Stock Exchange DA : Documentary Acceptance DEG : Deutsche Inves ons und Entwicklungsgesllscha Gmbh (German Investment Bank) DEPZ : Dhaka Export Processing Zone DESA : Dhaka Electricity Supply Authority DFID : UK Department for Interna onal Development DSE : Dhaka Stock Exchange DTA : Domes c Tari Area DTTs : Avoidance of Double Taxa on Trea es DOE : Department of Environment ECA(s) : Export Credit Agency(ies) EIU : Economist Intelligence Unit EPB : Export Promo on Bureau EPZ(s) : Export Processing Zone(s) EXIP(s) : Export Insurance Policy(ies) FDI : Foreign Direct Investment FMO : Nederlandse FinancieringsMaatschappij voor Ontwikkelingslanden GDP : Gross Domes c Product GIS : Geographical Informa on System GNP : Gross Na onal Product GOB : Government of Bangladesh GSM : Global System for Mobile GSP : Generalised System of Preferences GIZ : Deutsche Gesellscha fr Interna onale Zusammenarbeit (GIZ) GmbH ICAB : Ins tute of Chartered Accountants of Bangladesh xi

CIFE

: Interna onal Chamber of Commerce ICSID : Interna onal Center for Se lement of Investment Disputes IDA : Interna onal Development Agency IDCOL : Infrastructure Development Company Limited IFC : Interna onal Finance Corpora on IIFC : Infrastructure Investment Facilita on Center ILO : Interna onal Labor Organiza on IMF : Interna onal Monetary Fund IPA : Investment Promo on Agency IP : Import Permit IPDC : Industrial Promo on and Development Company of Bangladesh Ltd. IPO(s) : Ini al Public Oering(s) IPP(s) : Independent Power Producer(s) IPR : Intellectual Property Rights IRC : Import Registra on Cer cate ISO : Interna onal Organiza on for Standardiza on IT : Informa on Technology JBC : Jiban Bima Corpora on JGTDSL : Jalalabad Gas Transmission and Distribu on System Ltd. JICA : Japanese Interna onal Coopera on Agency JV : Joint Venture Km : Kilometer L/C : Le er of Credit LCAF : Le er of Credit Authoriza on Form LIBOR : London Interbank Oered Rate MFA : Mul -Fibre Agreement MIGA : Mul lateral Investment Guarantee Agency MNC(s) : Mul na onal Corpora on(s) MOA : Memorandum of Associa on MOU : Memorandum of Understanding MOPT : Ministry of Post and Telecommunica on NBR : Na onal Board of Revenue NCB(s) : Na onalized Commercial Bank(s) xii

ICC

: Na onal Council for Industrial Development NEMAP : Na onal Environment Management Ac on Plan NIE : Newly Industrialized Economies NRB : Non-Resident Bangladeshi OECF : Overseas Economic Coopera on Fund OPIC : Overseas Private Investment Corpora on PCs : Personal Computers PICOM : Private Infrastructure Commi ee PSIG : Private Sector Infrastructure Guidelines PSCs : Produc on Sharing Contracts PSI : Pre-Shipment Inspec on REB : Rural Electrica on Board RJSC&F : Registrar of Joint Stock Companies & Firms RMG : Ready Made Garments ROI : Return on Investment ROO : Rules of Origin SAARC : South Asian Associa on for Regional Coopera on SAPTA : South Asian Preferen al Trading Arrangement SAFTA : South Asian Free Trade Area SEC : Securi es and Exchange Commission SOE(s) : State-Owned Enterprise(s) SRO : Statutory Regulatory Order TIN : Tax Iden ca on Number TGTDCL : Titas Gas Transmission and Distribu on Company Ltd. Tk. : Taka TNC(s) : Transna onal Corpora on(s) TRIPs : Trade Related Aspects of Intellectual Property Rights UNCTAD : United Na ons Conference on Trade and Development VAT : Value Added Tax VSAT : Very Small Aperture Terminals WIPO : World Intellectual Property Organiza on WTO : World Trade Organiza on
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NCID

Bangladesh Map

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Bangladesh
Country Information

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1.1 Country Overview


a. Geography & Climate
Ocial Name : The People's Republic of Bangladesh In Short : Bangladesh Acronym : BD or BGD : .bd : North-Eastern part of South Asia, Coordinates Between 2034' and 2638'North la tude and Between 8801' and 9241' East longitude

Internet Domain Geographical Loca on

Interna onal Boundaries : North - India (West Bengal & Meghalaya) West - India (West Bengal) East - India (Tripura & Assam) and Myanmar South -The Bay of Bengal Area : 147,570 square km (Territorial water - 12 nau cal miles) (Exclusive Economic Zone - 200 nau cal miles) : Mainly consists of at fer le alluvial land : Dhaka (Metropolitan Area 522 sq km.) : GMT + 6 hours : Sub-tropical monsoon : Winter : November - February Temperature : Average maximum 29 C Average minimum 11 C Summer : March - June Temperature : Average maximum 32 C Average minimum 21 C Monsoon : July - October 80% of rainfall occurs during monsoon : 1,194 mm to 3,454 mm : Highest Lowest : 99 percent (July) : 36 percent (December & January)

Land Type Capital City Standard Time Climate Climate Varia ons

Rainfall Humidity Vegeta on

: Grassland mixed evergreen and evergreen

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b. Demographics
Popula on Male-Female Ra o Popula on Growth Rate Popula on Density Adult Literacy Rate Ethnic Groups Language : : : : : : : : : 151.41 million (Projected 2011) 104.0 1.32% per annum 990/sq.km. 53.68% Predominantly mixed group of Proto Austroloids/ Dravidian, Mongloids and Aryans. Bangla : 95% Dialects : 5% English : Widely spoken in all parts of Bangladesh Muslim : 88.3% Hindu : 10.5% Buddhist : 0.6% Chris an : 0.3% Animists and believers in tribal faiths: 0.3% - A substan al trained and skilled human resource with a lot of poten als for further skill forma on. - Professionals include engineers, technicians, lawyers, doctors, social scien st, administra ve and managerial personnel - Low-cost, easily trainable and adaptable, hard working, intelligent and youthful labour force. Public Universi es : 31 Private Universi es : 56 Interna onal Universi es : 02 Colleges, general : 3,192 Polytechnic Ins tute : 171 Madrasha : 9,376 Medical College Govt. : 18 Medical College Private : 41 Dental College Govt. : 3 Dental College Private : 11 Secondary School : 18,771 Govt. Secondary School : 356 Primary School : 82,218 Total : 53.7million Male : 40.2 million Female : 13.5 million Agriculture : 48.4% Industry : 24.3% Service : 14.2% Others : 13.1%

Religion

Human Resources

Educa onal Ins tu ons

Labour Force

Sector Distribu on of Labour Force

Source: Sta s cal Pocket Book Bangladesh 2009, BANBAIS, University Grants Commission, Directorate General of Health, Bangladesh Economic Survey, 2010 (Bangla Version).

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c. Resources
Food Principal Crops Principal Rivers : Rice, vegetables, pulses, sh and meat. : Rice, wheat, jute, tea, tobacco and sugarcane. : Padma, Brahmaputra, Jamuna, Meghna, Karnaphuli, Surma, Dheleshwari, Teesta, etc. Total 230 rivers including tributaries. : Natural gas, limestone, hard rock, coal, lignite, silica, sand, white clay, radio-ac ve sand, etc.

Mineral Resources

d. History & Government


History : Recorded history traceable to the 4th century B.C. with clear evidence of ourishing civiliza on consis ng of ci es, palaces, temples, forts, seats of learning and monasteries. 1200 : Advent of Islam, enjoying periods of prosperity under Muslim rule ll 1757. 1757 : Beginning of Bri sh colonial rule. 1947 : End of Bri sh colonial rule. Present Bangladesh territory (East Bengal) became East Pakistan as part of Pakistan. 1971 : Emergence of the sovereign state of Bangladesh through protracted struggles for freedom and a 9-month long war of na onal libera on. : Parliamentary form of Government headed by the Prime Minister. The President is the cons tu onal head of the state.

Government

e. The Economy
Currency : GDP at Current Price : Per Capita GNI at current price : GDP Growth : Industrial Growth : Ina on Rate : Investment Rate : Na onal Savings Rat : Exports : Imports : Taka, In short: Tk. Tk. 6148.0 billion US$ 750 6.3% 5.9% 6.7% 24.4% of GDP 32.4% of GDP US$: 16,204.65 million US$: 23,738.4 million

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Exchange Rate (average) : : : : : : : US$ Euro Bri sh Pound Australian Dollar Japanese Yen Saudi Riyal US$ (million) = = = = = = Tk. 72.80 Tk. 105.01 Tk. 118.99 Tk. 76.38 Tk. 0.87 Tk. 18.5415

Foreign Exchange Reserve

= 10,382 (January 2011)

Source: Sta s cal Pocket Book Bangladesh 2009, Bangladesh Economic Review, 2010, Bangladesh Bank Annual Report 2008.

Major Industries

Tradi onal Export Items

Non-tradi onal Export Items

Major Imports

Major Trading Partners

Tex les, Garments, Basic Chemical, Paper, Newsprint, Fer lizer, Leather and Leather Goods, Sugar, Cement, Fish Processing, Pharmaceu cals, Jute, Tea, etc. Raw jute, jute manufactures (hessian, sacking, carpet backing, carpets), jute products, tea, leather, leather products etc. Garments, frozen shrimps, other sh products, newsprint, paper, naphtha, furnace oil, urea, ceramic products etc. Wheat, oil, seeds, crude petroleum, raw co on, edible oil, petroleum products, fer lizer, staple bers, yarn, iron & steel, capital goods, etc. USA, EU Countries, India, China, Japan, South Korea, Australia, Malaysia, Hong Kong, Taiwan, Indonesia, Pakistan, Thailand, Kuwait, Saudi Arabia, UAE.

f. Air, Sea and River Ports


Interna onal Airports : : : : Hazrat Shahjalal (R) Interna onal Airport, Dhaka Shah Amanat Interna onal Airport, Chi agong Osmani Interna onal Airport, Sylhet. Dhaka, Chi agong, Sylhet, Syedpur, Coxs Bazar, Rajshahi, Jessore and Barisal. : Chi agong and Mongla. : Dhaka, Chandpur, Barisal, Khulna, Jhalokathi, Nalsity, Baghabari, Chirirbandar, Narayanganj, Sirajganj, etc.

Domes c Airports Sea Ports Inland River Ports

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1.2 People & Society


a. Educa on and Health
Five years of primary educa on is compulsory for all. As a result, enrollment rate has risen to near 100%. Besides this, government encourages female educa on oering free educa on up to Higher Secondary level, scholarships for female students, establishment of female universi es etc. As half of our popula on is female, their par cipa on would substan ally inuence womens contribu on in the economy and ensure gender equity. The present Government has framed a new Educa on Policy 2010. The salient features of this policy are: Introduc on of pre-school educa on. Extension of primary educa on from class ve to class eight. Merging of secondary with higher secondary educa on. Integra on of Madrasha educa on and Voca onal educa on into the general educa on. Establishing mandatory core subjects for primary level educa on: Bangla, English, Mathema cs, Bangladesh Studies, Social Environment and Climate Change, and IT and Science. Arrangement of common public examina on at class ve, eight, ten and twelve. Emphasis on voca onal educa on. Mandatory library equipped with necessary books in schools. More scholarship for the poor.

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w w w. b o i . g o v. b d Prohibi on of physical punishment. Educa on to indigenous students in their mother tongues. Facili es for the disabled. Standardizing qualica ons for the teachers and providing more training for the teachers, etc.

Government has con nued Sector Wide Approach (SWAP) of Health, Nutri on and Popula on Sector Program (HNPSP). In achieving Millennium Development Goals (MDG) of universal primary educa on by 2015, Government has given Priority in educa on by giving the highest alloca on from budget. Over 80% of the countrys children are immunized against six killer diseases polio, diphtheria, whooping cough, tetanus, tuberculosis and measles. Use of contracep ves has increased from about 20% in early 80s to about 52.6% in 2008.

b. Governance and Policies


Bangladesh is a mul party democra c country where people of dierent religions and faiths live in harmony. It is a cons tu onal republic with a mul -party parliamentary democracy. Regular free and fair parliamentary elec on is held under a neutral and non-par san caretaker government system. The President is the head of the state elected by the members of the parliament for a ve year term, while execu ve power is exercised by the Prime Minister. The President appoints the Prime Minister, and, on the recommenda on of the Prime Minister, other Ministers. Bangladesh has a four er local government system. Following table presents administra ve units at dierent levels.

Table: 1.1: Administra ve Units of Bangladesh Administra ve Units Division District Upazila (Sub-district) Union Council (Rural Local Govt. Unit) City Corpora on (Urban Local Govt. Unit) Municipali es Thana/Police Sta on Number 7 64 509 4498 6 309 483
Source: Sta s cal Pocket Book Bangladesh, 2009

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w w w. b o i . g o v. b d Ensuring good governance and promo ng socio-economic development are important areas of concern and the government has ini ated various suppor ve policy reforms to achieve these objec ves. These include: High and sustained economic growth Poverty Reduc on Strategy (PRS) Market-driven scal reforms Liberal monetary policy Total literacy movement Comprehensive health services Friendly foreign policy Export diversica on Increased private sector par cipa on Conducive investment regime

c. Social Development Indicators


Bangladesh has made substan al progress in social development. The Government undertook ambi ous schemes to improve general literacy in general and female literacy in par cular, started crea ng conducive environment for investment and above all established the rule of law in the country. Improvement in various social development indicators during the last recent past is an adequate tes mony of all these eorts.
Nobel laureate Amartya Sen lauded the success of Bangladeshs achievements in these sectors : rural development, educa on and health. We have many things to learn from Bangladesh. Bangladesh has made much progress in literacy campaign. Womenfolk have advanced much in Bangladesh. Bangladesh has also made remarkable progress in popula on control. In a family once six children used to be born, now it has come down to three, he said and called upon the Indian government to follow the Bangladesh path of popula on control.

At all levels, womens awareness of dierent issues and their par cipa on in poverty allevia on program as well as other programs has increased. Legisla on against dowry, discrimina on and other forms of viola on against women has been put in place, and are being strictly implemented.

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1.3 Economy & Business


a. Economic Performance
Bangladesh is in the process of transi on from a predominantly agrarian economy to an industrial and service economy and here private sector is playing an increasingly ac ve role in the economic life of the country, while the public sector concentrates more on the physical and social infrastructures. Notably, state-owned enterprises have been undergoing rapid restructuring. Macroeconomic Highlights A steady average annual GDP growth of 5% and above during the last decade. Ina on has been kept in low single-digit. Exports have been gradually shi ing from tradi onal goods to more value added and non-tradi onal items. Emphasis has been put on manufacturing sector. Sound macroeconomic fundamentals with stable exchange and interest rates, low debt and high foreign currency reserves.
Ci group on Bangladesh and its Economy On growth poten al based on measures of domes c saving / investment, demographic prospects, health, educa on, quality of ins tu ons and policies, and of trade over the next four decades, the countries that are most promising in terms of their growth poten al are Bangladesh, China, Egypt, India, Indonesia, Iraq, Mongolia, Nigeria, Philippines, Sri Lanka, and Vietnam
Source: Global Economics View-21 February, 2011 Ci Investment Research & Analysis

In line with the development priori es, the Government has been providing necessary incen ves and assistance to selected sectors of the economy, including the agents who are vulnerable and can not compete at the market place.

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Table- 1.2: Overview of Economic Indicators 2006 to 2009 Indicators 1. Na onal Accounts GDP (at constant price) billion Tk. GDP Growth (do) (a) Agriculture (b) Industry (c) Services 3. Savings and Investment (as % of GDP) (a) Na onal Savings (b) Total Investment (c) Public Investment (d) Private Investment 26.61 24.97 6.30 18.67 28.7 24.5 5.5 19.0 30.2 24.2 5.0 19.2 32.4 24.2 4.6 19.6 % 2. GDP Break up (as % of Total GDP) 21.77 29.01 49.22 21.4 29.4 49.2 20.8 29.7 49.5 20.6 29.7 49.7 3029.7 3217.3 6.43 6.19 3402.0 5.74 3606.1 6.00 Unit 2006 2007 2008 2009

Source: Sta s cal Pocket Book, Bangladesh 2009, Bangladesh Economic Review, 2010

b. Trade and Investment


The volume of interna onal trade surpassed US$ 16204 million in FY 2009-10. Government has been pursuing an export led economic development strategy to s mulate export earnings. Promo onal campaign and industry assistance are being given under Export Diversica on Program. Three more EPZs have also been established in Dhaka, Comilla and Chi agong. Recently a new law has been enacted crea ng special economic zones to give further llip to export growth.
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Exhibit 1.1
Trend in the export earnings of Bangladesh since 1991-92
16204 15565 14111 12178 10526 8655 7603 5172 3884 1993 5752 6467 6548

9 19

1-

92 9 19

5-

96 9 19

7-

98 19 99

20

00 0 20

0-

01 0 20

2-

03 0 20

3-

04 0 20

4-

05 0 20

5-

06 0 20

6-

07 0 20

7-

08 0 20

8-

09 0 20

9-

10

Sources: Bangladesh Economic Review 2009, Ministry of Finance, GOB & BBS.

In South Asia, Bangladesh oers the most liberal and open FDI regime with no prior approval requirements or limits on equity par cipa on and repatria on of capital, dividends, prots and income.

1.4 Major Sectors of the Economy


Industrial growth is expected to rise to 7.5% in FY2011, reec ng higher produc on for exports and domes c capacity expansion a er the previous years higher investment. Export performance was buoyant recording 40.3% growth with all major items growing strongly. Rapid growth in imports of raw materials and capital machinery also point to a be er industrial performance. An improvement in the power supply and a rise in business condence, too, are likely to boost ac vity. In FY2012, industry is expected to grow strongly at 7.8%, reec ng a rise in external demand and higher domes c capacity.
Sources: Asian Development Outlook 2011

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a. Agriculture
Sector Highlights Agriculture contributes 20.16% of GDP and 43.6% of work force are engaged in this sector. Government is keen to implement a Na onal Agricultural Policy. Given the sectors importance, agricultural goods contribute the second highest export earning. In 2009-10, agriculture experienced a growth of 4.6%. The Government con nues to support the agriculture sector through a number of well designed and comprehensive policy interven ons, with the ul mate intent to achieving food self-suciency as envisaged in the Fi h Five Year Plan (1997-2002). Fisheries and livestock/poultry sectors have grown rapidly during recent mes. Table- 1.3: Growth in the Agricultural Sub-sectors of Bangladesh (2005 to 2008) Sector/Sub-sector GDP Growth (%) 1. Agriculture (a) Crop (b) Livestock (c) Forestry 2. Fisheries 2005 6.6 4.9 5.0 6.2 5.2 3.9 2006 6.4 4.9 4.4 5.5 5.2 4.1 2007 6.2 4.6 2.7 2.4 5.5 4.2 2008 5.9 3.2 5.0 3.5 5.5 4.0

Source: Bangladesh Bank Annual Report 2008-2009

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b. Industry
Sector Highlights Government is keen to expand industrial base of the economy and encourage both domes c and foreign investment. In 2009-10, growth in the industrial sector was about 5.9%. The Quantum Index of Produc on in medium and large industries stood at 413.42 in 2008-09, from 294.72 in 2004-05. Since 1990s, Government has been pursuing a market-oriented industrial strategy. The industrial policy in place now emphasize the following: Exports Set up export processing zones for local and foreign investors Incen ves and dierent facili es for export oriented products Industries based on indigenous resources or raw materials Quality enhancement, marke ng and capacity building of exis ng industries and Labor intensive, technology-oriented capital-intensive industries.

A new Industrial Policy has just been approved and announced by the government. Table- 1.4: Growth of Industry Sector and Share to GDP (%) Sector/Sub sector GDP Growth Industrial Growth Sub sectors (a) Mining and Quarrying (b) Manufacturing (c) Construc on (d) Power, Gas and Water Industry Share to GDP Sub sectors (a) Mining and Quarrying (b) Manufacturing (c) Construc on (d) Power, Gas and Water 1.07 15.76 8.41 1.51 1.16 17.05 9.15 1.65 1.2 17.8 9.1 1.6 1.3 17.8 9.1 1.6 4.53 5.48 8.61 7.63 26.75 8.73 10.45 8.37 7.7 29.01 8.9 7.2 5.7 --29.7 9.4 5.9 5.7 -29.7 2002 4.2 6.53 2006 6.71 9.56 2008 6.2 6.8 2009 5.9 5.9

Source: Bangladesh Bank Annual Report, 2008-09

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c. Power and Energy


Sector Highlights Energy and Power play a key role in aiding growth and achieving compe veness of industry. Energy sector is one of the largest recipients of foreign direct investment in Bangladesh. The combined share of gas and power sectors in total FDI was about 60% during the period 1994/95 through 1998/99. Iden ca on and u liza on of alterna ve indigenous sources of energy are crucial to achieving energy requirements of the country. Demand for electric power in Bangladesh is enormous and increasing by the day. There is substan al gap between supply and demand. So, Government is keen to ensure be er performance of this sector by increasing public sector investment, a rac ng mul lateral investment on a sustainable basis, ra onalizing tari rates and improving tari collec on performance. A private sector power genera on policy has been brought into opera on and currently several IPPs are in full scale opera on with high standards of performance. Table-1.5: Produc on Capacity and Produc on of Electricity (2004-05 to 2009-10) Capacity/Produc on Installed Produc on Capacity (MW) Maximum Produc on 5275 3812 5262 3718 5262 4130 5803 4162 6033 4606 2005-06 2006-07 2007-08 2008-09 2009-10

Source: Bangladesh Economic Review 2010 and Bangladesh Power Development Board

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w w w. b o i . g o v. b d The government has taken a plan to produce 9426 MW (without quick rental) addi onal electricity by 2015. The following table (1.6) indicates the year wise planned produc on of electricity. Table- 1.6: Year wise addi onal produc on sta s cs of electricity Year 2010 2011 2012 2013 2014 2015 Total Govt. sector (in MW) Private sector (in MW) 360 920 505 725 1170 -----3680 432 ----1764 950 --2600 5746 Total (in MW) 792 920 2269 1675 1170 2600 9426
Source: Power Division

Considering future economic development with present trend of demand of electricity, the government has taken a comprehensive plan for produc on and distribu on of electricity. The following table (1.7) shows year wise probable demand and supply of electricity. Table-1.7: Year wise probable demand and supply of electricity 2009 Probable demand MW Capacity re red MW Probable supply MW (without quick rental) Probable supply MW (with quick rental) Shortage/surplus MW (without quick rental) Shortage/surplus MW (with quick rental) -1277 -699 65 1851 2055 1822 2789 -1277 -852 -1121 197 617 846 1813 4289 5109 6363 8683 9764 10527 12601 4289 4956 5177 7029 8326 9545 11625 5566 -2010 5808 48 2011 6298 -2012 6832 -2013 7709 448 2014 8699 378 2015 9812 --

Source: Power Division

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w w w. b o i . g o v. b d Gas is the main energy resource in Bangladesh fullling about 75% of commercial al energy demand. Total numbers of explored gas elds in the country are 23 and es mated gas reserve is 28.85 TCF of which es mated recoverable reserve is 20.605 TCF. Substan al amount of coal reserve is also discovered in northern area, which is an alterna ve source of energy. Per capita electricity produc on has increased to 230 kilowa -hours in 2009-2010 from 154 KWH in 2003-04. The na onal energy policy aims to increase the availability of sustainable sources of commercial energy. The Energy Regulatory Commission Act has been enacted in order to accelerate long-term development in energy and gas sector in a compe ve environment, encourage private sector investment, protect consumer interest and curb abuse of monopoly and ensure environmental protec on.

d. Banking & Finance


Sector Highlights The banking system dominates the nancial sector accoun ng for about 97% of the market in terms of assets. Government has undertaken major reform ini a ves to improve the performance levels, regulatory and legal environments for banks. Several specialized development nancial ins tu ons have been providing long-term debt, equity nancing and leasing. Banking and nancial sector in Bangladesh is under intensive monitoring of the government to improve performance and eciency. The Bangladesh Bank has been given reasonable func onal autonomy to bring dynamism in this sector. The Banking Companies Act 1991, the Financial Ins tu ons Act 1993, the Nego able Instruments Act 1881, the Public Demands Recovery Act 1913 and the Securi es and Exchange Commission Act 1993 have been amended. To provide more securi es to the depositor, Bank Deposit Insurance Act, 2000 has been passed.

e. Transport & Communica on


Both public and private sector eorts are present to enhance the performance of the sector substan ally. Recent adop on of Public Private Partnership Guidelines (PPPG) and establishment of Public Private Partnership Oce (PPPO) have brought a new momentum in this sector.

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w w w. b o i . g o v. b d Sector Highlights Almost all parts of Bangladesh, even the remote areas, are today connected by road network. Bangladesh has the best water transport system in the region, which accounts for two-thirds of cargo transport within the country. Bangladesh Telecom Regulatory Commission (BTRC) has been formed to enhance the services eciency & accountability. Government has opened up the telecommunica on to private sector par cipa on. Public Private Partnership brought new momentum in transport, u li es, public goods and communica on sector. Table 1.8: Share of Transport and Communica on Sector in GDP (in %) Sub Sector Land Transport Water Transport Air Transport Associated Services Post & Telecommunica on Total 2001-02 6.86 1.08 0.14 0.37 1.16 9.61 2005-06 6.69 0.89 0.11 0.30 2.11 10.10 2007-08 6.42 0.82 0.11 0.33 2.76 10.44 2008-09 6.38 0.79 0.12 0.34 3.02 10.65

Source: Bangladesh Economic Review 2010

The largest road bridge of the country and 12th largest road bridge in the world is the Bangabandhu Bridge, which has connected the west and east region of the country crea ng lots of economic opportuni es. Very soon construc on of the Padma Bridge is going to commence (2011). This bridge will open a new economic arena between the southern and other parts of the country.

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w w w. b o i . g o v. b d

1.5 Private Sector Investment Scenario


Private sector in Bangladesh has been playing the crucial role in the economic development of the country. Specically, in the recent years, private sector ac vi es have expanded enormously in diversied economic elds. Government of Bangladesh has taken the strategy of private sector led growth. The Industrial growth and manufacturing growth is showing steady growth in recent years. In a recent study it was men oned that the 11 countries which have the most promising growth prospects are Bangladesh, China, Egypt, India, Indonesia, Iraq, Mongolia, Nigeria, Philippines, Sri Lanka and Vietnam. They are the Global Growth Generators (3G) countries which can be translated as those over the next 5, 10, 20 and 40 years are expected to deliver high growth and protable investment opportuni es.
Source: Global Economics View-21 February, 2011 Ci Investment Research & Analysis

The robust economic growth achieved in Bangladesh has resulted from investment-friendly policy and improved investment climate. Moreover, Bangladesh has gradually been transforming to an a rac ve, compe ve and protable des na on for foreign direct investment (FDI). In 2009, the FDI reached to US$ 700 million. Besides, remarkable growths in investment registra on, import of capital machinery, Industrial raw materials and exponen al growth in export have been achieved in recent years.

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w w w. b o i . g o v. b d Bangladeshs success in a rac ng private investment and achieving remarkable industrial growth has been presented in the following eight sec ons: a. b. c. d. e. f. g. h. Conducive Investment Climate Investment Sta s cs Private Investment Registra on Import of Capital Machinery Growth in Manufacturing GDP Private Investment as Percentage of GDP Employment Opportuni es and Poten al Con nued Interests of Foreign Investors

a. Conducive Investment Climate


Doing Business in Bangladesh today is easier than many developing economies. A report en tled Doing Business 2011 published jointly by the World Bank and IFC ranked Bangladesh in the 107th posi on in terms of Ease of Doing Business, among 183 economies (Exhibit 1.2). In case of protec ng investors, Bangladesh is ranked in 20th posi on, 72nd posi on in arranging credit, 93rd in payment of taxes and 79th in star ng business.

Exhibit 1.2
Ease of Doing Business - Global Rank
167 134 116 107 83 85

sh

al

ve

or

di

sta

de

ap

In

di

ki

ng

al

la

Pa

Si

ng

Ba

Source: Doing Business 2010, IFC, The World Bank and Bangladesh Economic Review 2010

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fg

ha

ni

sta

ep

w w w. b o i . g o v. b d Based on 39 indicators grouped in 10 categories, the above ranking recognizes Bangladesh as one of the easiest loca ons for doing business in South Asia, be er than India, Nepal, Bhutan and Afghanistan. Besides, persistent growth in business par cularly in the private sector is the best tes mony of a conducive business climate now prevailing in Bangladesh. The US and Japanese ambassadors accredited to Bangladesh have in separate statements men oned categorically that the investment climate in Bangladesh is the most congenial at the present me and it is possible for Bangladesh to post aggregate GDP growth rate of 10 percent or more, muta s mutandis.

b. Investment Sta s cs
The Actual FDI inow sta s cs are collected and compiled by Bangladesh Bank through half-yearly Enterprise Surveys. The Survey recognized 3 components of FDI-equity capital, reinvested retained earnings and intra-company borrowings. The Exhibit 1.3 presents the recent trend of FDI inow in Bangladesh since 2005. In 2009, total FDI inow in Bangladesh was US$ 700.16 million.

Exhibit 1.3
Trend of FDI inow Bangladesh since 2005
1086.31 845 792.50 666.30 700.16

2005

2006

2007

2008

2009

Source: Bangladesh Economic Review 2010 and Enterprise Survey, Bangladesh Bank

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w w w. b o i . g o v. b d A component-wise analysis of FDI inow in 2009 shows that about 31% of FDI came as equity, 52% as reinvestment, and the rest as intra-company borrowing (Table 1.9). The higher reinvestment rate indicates unwavering condence of foreign investors in the overall investment climate of the country.
Table-1.9: Year and Component wise Foreign Direct Investment Inow in Bangladesh (in million US$)

Item/Year FDI Inow Equity Capital Reinvested Earnings Intra-company Loans

2005 845.3 425.6 247.5 172.2

2006 792.5 503.7 264.7 24.1

2007 666.3 401.6 213.2 51.5

2008 1086.31 809.25 245.73 31.33

2009 700.16 218.55 364.94 116.67

Source: Bangladesh Bank Survey Report, 2008, Bangladesh Economic Review 2010 and Enterprise Survey, Bangladesh Bank

A sector-wise analysis of FDI inow in 2009 demonstrates that FDI in Bangladesh have been widely spread among the key business sectors concentra ng on telecommunica on (36%), banking (20%), tex les and wiring (20%), power, gas and petroleum (7%) and others (17%). Table 1.10 presents a sectoral analysis of FDI inow during 2005 to 2008. Table-1.10: Major Sector-wise FDI Inow During FY 2005-2009 Sector/FY Total Telecommunica on Banking Power, Gas & Petroleum Tex les & Wearing Others 2005 803.77 261.89 94.88 198.38 74.98 173.64 2006 744.62 267.97 129.96 209.31 73.53 63.85 2007 792.87 304.71 91.93 229.95 105.45 60.83 2008 1086.33 641.39 141.76 101.02 126.36 75.8 2009 700.16 250.14 142.57 51.15 136.38 119.92

Source: Bangladesh Bank Survey Report, 2008. Enterprise Survey, Bangladesh Bank

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w w w. b o i . g o v. b d A component-wise analysis of FDI inow in 2009 shows that about 31% of FDI came as equity, 52% as reinvestment, and the rest as intra-company borrowing (Table 1.11). The higher reinvestment rate indicates unwavering condence of foreign investors in the overall investment climate of the country. Table-1.11: FDI inow in 2008 & 2009: Distribu on by Countries (in million US$) Source Country Egypt UK UAE Malaysia Japan South Korea USA Hong Kong Norway Netherlands Others Total FDI Inow 2008 373.40 130.57 102.19 70.72 57.15 44.64 40.91 39.85 33.47 31.68 161.73 1086.31 2009 72.71 88.08 67.08 43.84 17.47 46.00 42.89 75.60 45.63 49.62 151.24 700.16
Source: Enterprise Surveys, Bangladesh Bank

c. Private Investment Registra on


Generally, private investment project proposals are submi ed to BOI a er the legal forma on of the company. Registra on is the rst formal commitment for an investment project based on primary project feasibility study. Following Table 1.12 presents year-wise data since FY 1991-92 on the projects registered with BOI. In FY1991-92, about 258 private investment projects with proposed investment of Tk. 660crores were registered with BOI that reached to 1,630 projects in FY2009-10 with proposed investment of Tk. 33,674 crores. Table 1.11 below presents details of projects registered with BOI since FY 1991-92

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w w w. b o i . g o v. b d

Table-1.12:Year-wise details of the Private Investment Projects registered with BOI from FY1991-92 to 2009-10

FY

Local No. of projects Investment: million US$

Total Growth of No. of Foreign/Joint Total No. projects Investment: of projects investment investment million US$ million US$ in %

1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

233 353 846 1113 1211 1247 1448 1535 1428 1778 2875 2101 1624 1469 1754 1930 1615 1336 1470

91 90 457 846 1171 1108 1137 1183 1324 1420 1531 2027 2356 2319 2730 2825 2827 2467 3931

25 28 100 145 127 138 140 161 135 80 89 104 130 120 135 191 143 132 160

74 53 804 730 1516 1054 3440 1926 2119 1271 302 359 460 864 3794 1711 785 2123 890

258 381 946 1258 1338 1385 1588 1696 1563 1868 2964 2205 1754 1589 1889 2121 1758 1468 1630

165 143 1261 1576 2687 2162 4577 3109 3443 2691 1833 2386 2816 3183 6524 4536 3612 4509 4821

00 -13 +783 +25 +76 -17 +120 -27 +15 +14 -29 +30 +18 +19 +125 -27 -21 +27 +6

Source: Policy and Planning, BOI

Registra on Sta s cs of Local Investment Projects: From FY1991-92 through FY2009-10, 27376 local investment projects worth US$ 31,840 million were registered at BOI. Most of those local investment projects have either been implemented or are at various stages of implementa on.

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w w w. b o i . g o v. b d

Exhibit 1.4
Trend in Registra on of Local Investment Projects of BOI (Crore Taka)
27413

18370

19658

19553

8821

4838

385

380

1827

19

In the nancial year 2009-10, total local investment registered with BOI was worth taka 27,413 crore of which tex le sector contributed 32.71%, chemical 28.26%, engineering 10.71%, services 9.57%, agriculture 8.48%, food & allied 7.87%, prin ng & publishing 1.00%, leather & leather products 0.80%, glass & ceramics 0.27% and others 0.35%.

d. Import of Capital Machinery


Nearly half of the import payments of Bangladesh are spent for impor ng capital machinery and industrial raw materials. The import trend of capital machinery is one of the most important indicators for industrializa on of a country. In rst 9 months of FY 2009-10 around US$ 1167 million of capital machinery have been imported which may surpass the import gure of the last year (exhibit 1.5).

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-9 19 5 95 -9 19 6 96 -9 19 7 98 -9 19 9 99 -0 20 0 00 -0 20 1 01 -0 20 2 02 -0 20 3 03 -0 20 4 04 -0 20 5 05 -0 20 6 06 -0 20 7 07 -0 20 8 08 -0 20 9 09 -1 0

-9 3

-9

-9 4

92

91

93

19

19

19

94

3383

4748

5081

7809

8809

11853

13548

14005

Source: Policy & Planning, BOI

17117

25

w w w. b o i . g o v. b d

Exhibit 1.5
Trend in Import of Capital Machinery (Million US$)
1929 1664 1458 1211 786 482 562 568 1420 1167

20 02 -0

20 00 -0

20 04 -0

20 05 -0

20 01 -0

20 06 -0

20 07 -0

20 03 -0

20 08 -0

Source: Bangladesh Economic Review 2010 (Bangla version), *FY 2009-10 shows the period from July09 to March10

e. Growth in Manufacturing Sector


Manufacturing sector has shown a growth of 6.68% in FY 2008-09. Manufacturing is the single largest contributor to GDP (17.90%) and has overtaken agriculture (15.91%). This clearly shows that the economy of Bangladesh has been transforming quickly from agrarian to industrial. To uphold and support this unprecedented growth of manufacturing sector, BOI has strengthened its facilita ng services with transparent, easier and customer-oriented processes. A one stop service window now exists with permission from the honorable Prime Minister who is the chair of the Board of Investment. Relentless eorts are on for simplica on of other procedures and processes including online payments for registra on and other services.

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20 09 -1

0*

w w w. b o i . g o v. b d

Exhibit 1.6
Trend in Manufacturing Growth since 1992
10.45% 9.70% 8.21% 6.75% 5.64% 5.48% 7.10% 8.43% 7.20% 5.90%

1992-1996

1997-2001

2002

2003

2004

2005

2006

2007

2008

2009

Sources: Bangladesh Economic Review 2010

f. Private and Public Investment


Table-1.13: Private and Public Investment during FY 2003 to 2009(in billion Tk) Investment Type 2003 Private Public 2004 2005 679.2 230.1 2006 775.5 249.3 2007 898.6 257.3 2008 1050.9 270.4 2009 p 1203.5 284.9

517.2 593.7 186.3 206.2

Source: Bangladesh Bank Annual Report 2008-09, (p= provisional).

Investment as percentage of GDP remained unchanged at 24.2 in FY2009. While the private sector component as percentage of GDP increased from 19.3 in FY2008 to 19.6 in FY2009, the public sector component of investment as percentage of GDP, however, decreased from 5.0 in FY2008 to 4.6 in FY2009. The declining share of public investment in GDP in FY2009 resulted apparently from slow implementa on and eventual downsizing of Annual Development Program (ADP), necessitated by lower disbursement of Overseas Development Assistance (ODA) provided by mul lateral and bilateral development partners.

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w w w. b o i . g o v. b d

g. Employment Opportuni es and Poten als


Poverty reduc on in a densely populated and geographically small country like Bangladesh largely depends on employment genera on. Accelerated investment in labor-intensive manufacturing sector increased. Recent surge in manufacturing ac vity in Bangladesh has not only nearly doubled our export earnings, but also created plenty of new jobs.

Exhibit 1.9
Poten al Employment Opportuni es in BOI-Registered projects # of jobs
425232 373625 319518 273754 308037 330663 418529 458478 410744

02 100 2

03 200 2

04 300 2

05 400 2

06 500 2

07 600 2

08 700 2

09 800 2

10 900 2

Source: Policy and Planning, BOI

During th la v years (2005-06 During the last ve year (200 06 to 2009-10), around 2.00 million new jobs have he as 05 20 -1 ar nd .0 llio ne jobs av on During the last ve years (2005-06 to 2009-10), around 2.00 million new jobs have be been created in the BOI-registered projects alon reated th BOI-regist ed ated ject alone. been created in the BOI-registered projects alone.

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w w w. b o i . g o v. b d

1.6 Bangladesh Vision 2021


The government is commi ed to building a country whose ci zens are able to live prosperous and happy lives. The year 2021 will mark the golden jubilee of Bangladeshs independence, while the year 2020 will be the hundredth anniversary of the birth of the father of the na on, Bangabandhu Sheikh Mujibur Rahman. We envision a democra c system where people choose their government freely and get services from it without hassle, enjoy freedom from fear and intolerance, live with dignity; where every ci zen is assured of social jus ce, environmental protec on, human rights and equal opportuni es; and where the rule of law and good governance ourish. We envision a liberal, progressive and democra c welfare State. Simultaneously we envision a Bangladesh which by 2020/2021 will be a middle income country where poverty will be dras cally reduced, where our ci zens will be able to meet every basic needs and where development will be on fast track, with ever-increasing rates of inclusive growth.

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w w w. b o i . g o v. b d

Bangladesh as we want to see it in 2021


1. Democracy and eec ve parliament Democracy and strong democra c ins tu ons will be established for holding reliable elec on at regular intervals, with accountability of government and eec ve Parliament. All necessary steps will be taken for making Parliament eec ve. 2. Poli cal framework, decentraliza on of power & peoples par cipa on Local government will be given due importance with a view to eec ng radical change of the poli cal system. The local government ins tu ons will play a cri cal role in development programmes. Self-reliant local self-government ins tu ons will be established at the grassroots upazila and zila levels to ensure representa ve, responsive and func onal governance at the sub-na onals levels. 3. Good governance through establishing rule of law and avoiding poli cal par sanship Human rights will be established on a strong foo ng with a view to ensuring the rule of law. Independence of the judiciary will be ensured and the ins tu ons of the state and administra on will be freed from par san inuence. The basis of appointments and promo ons will be merit, eciency, seniority, honesty and loyalty to the Republic; poli cal connec ons will have no relevance. 4. Transforma on of poli cal culture Terrorism, corrup on and use of religion for poli cs will be eliminated. Steps appropriate to the me will be taken to establish democra c principles in the poli cal par es, transparency of poli cal funding, civility and tolerance. 5. A society free from corrup on The ins tu ons of the State will be made more eec ve along with an independent and strong An -corrup on Commission for curbing corrup on. Social and Poli cal resistance to corrup on will be promoted along side legal steps. All possible steps will be taken to stop corrup on, such as charter of ci zens rights, automa on of public delivery system, right to informa on, computeriza on of ocial documents, and decentraliza on of power. Adequate checks at every level of public spending would be built into the nancial management system of the government.

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w w w. b o i . g o v. b d 6. Empowerment and equal rights for women The dra Womens Policy 2010 is prepared for ensuring equal right and access for women to the state and social space; laws which discriminate against women will be amended and 100 seats will be reserved in the parliament for women for direct elec on. 7. Economic development & ini a ve a. Mee ng basic needs: With a view to providing food, clothing, shelter, educa on and healthcare to the ci zens in accordance with Ar cle 15 of the Cons tu on, gross domes c product growth will be raised to 8% by 2013 and 10% by 2021 which will be sustained therea er. b. Popula on and labour force: Popula on in 2021 is es mated at 165m, and labour force at 105m. Programmes will be taken up for full employment. c. Allevia on of poverty: We aim not at reduc on of poverty, but removal of poverty, through which we shall try to achieve the Millennium Goals declared by UN, by 2015, and by 2017 latest. Beginning in 2021, poverty will be reduced to 15% from 45% now, progressively. d. Food & nutri on: Food deciency will be removed and self-reliance in food produc on achieved by 2012, which will enable us to meet the nutri on needs of 85% of the popula on. e. Healthcare: By 2021, a minimum daily intake of 2,122 kilo calories of food, elimina on of contagious disease, primary health care and sanita on for all will be ensured. Average longevity will be raised to seventy years, and eorts will be made for the reduc on of child and maternal mortality. f. Educa on: Enrolment at the primary level will be increased to 100% net by 2010. Elimina on of illiteracy by 2014, improvement in the quality of educa on, crea on of a genera on educated in science and technology, gradua on degree level educa on made free by 2013 and ensuring higher salary for teachers are the other educa onal goals. g. Industry: A strong founda on for industrializa on will be established by 2021. Contribu on of the industrial sector to na onal GDP will be doubled. Primacy will be given to agro and labour intensive industries and the highest emphasis will be given to the informa on technology sector. The investment
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w w w. b o i . g o v. b d policy will be geared to implemen ng a strategy for a rac ng both domes c and foreign investment. h. Energy security: An energy policy will be adopted tapping all sources of tradi onal and non-tradi onal energy to ensure an accelerated rate of economic development and industrializa on. A three year crash programme will be taken up to meet the exis ng crisis which is a legacy of the past. By 2015, electricity produc on will be increased to 8,000 megawa . By 2021, demand for electricity is projected to increase to 20,000 megawa . We will take all possible ac ons aiming at enhancing our genera on capacity. To increase gas produc on, regular survey of gas resources and work on well development will be undertaken. To meet energy demand, eorts will be undertaken for regional energy security through mutual coopera on in addi on to exploring internal sources. i. Infrastructural development: Road, rail, river and air transport and telecommunica on systems will be expanded. Construc on of bridges and tunnels for Padma and Karnaphuli rivers, connec ng Bangladesh with the Asian highway and Asian railway, improvement of port facili es, building of a deep sea port to open up Bangladesh's ports to countries of Asia will be implemented. In Dhaka, construc on of a metro tunnel, elevated rail and circular rail to remove trac jams and to solve public transport problems will be studied forthwith in order to undertake feasible projects. The projects will then be implemented on a priority basis. j. Housing: By 2015, housing for all will be ensured. In every union and upazila, growth center centric village housing and in towns housing with modern ameni es will be implemented. Bangladesh has been adversely aected as a consequence of global warming. Food security, housing and biodiversity face serious threats because of climate change. Though our share of carbon gas emissions is negligible yet we are its worst vic ms. Increasing severity and frequency of oods, cyclones, droughts and other natural disasters, caused by this phenomenon, are crea ng havoc in terms of the lives lost, resources destroyed. As a result the task of a aining the millennium development goals is becoming a more dicult challenge. Climate migrants are already crowding our ci es, pu ng a great stress on our limited infrastructural facili es and causing social disorders. The situa on would become catastrophic with a meter rise of the sea level due to global warming, inunda ng a quarter of the total land area of Bangladesh which 32
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w w w. b o i . g o v. b d would directly impact 11 per cent of our popula on leading to mass migra on. But we have made prepara ons for dealing with the losses and adversi es, by adop ng 134 adapta ons and mi ga on ac on plans. They include dredging of major rivers to restrict ooding, recovering cul vable lands for se ling displaced persons and increasing the capacity to produce more foodgrains. Other plans include aoresta on and use of green technology. k. Environment: All measures will be taken to protect Bangladesh, including planned migra on abroad, from the adverse eects of climate change and global warming. Facing natural calami es, planned reduc on of air pollu on, preven on of industry and transport related air pollu on and disposal of waste in scien c manner will be ensured. Steps will be taken to make Bangladesh an ecologically a rac ve place through reten on of forests and water bodies and preven on of river erosion. l. Water resources: Bangladesh will take the ini a ve to formulate a comprehensive regional water policy along with India, Nepal and Bhutan for regional water security in a true spirit of co-riparian collabora on. In addi on, in keeping with comprehensive water policy, ar culated earlier by Bangladesh, measures will be taken for development of our water resources and their ra onal use. m. Growth Targets: In Quest of a Happy, Prosperous and Inclusive Bangladesh, Medium Term (2013) and Long Term Economic Growth Targets (2021) are: Medium Term: Raising average compound economic growth rate to 8% per annum Reducing poverty rate to 25% Reducing absolute poverty rate to 15% Enhancing electricity supply to 7,000 MW

Long Term: Boos ng economic growth rate to 10% in 2017 and sustaining it ll 2021 Reducing poverty rate to 15% Enhancing electricity supply to 20,000 MW Raising the economy to the level of a middle-income country

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w w w. b o i . g o v. b d 8. Bangladesh in the global arena a. Achievements of na onal independence and libera on: Mul -pronged measures will be taken to uphold the glorious history and the fruits of our na onal independence and libera on, to energize the new genera on with the spirit of libera on, struggle, patrio sm and love for humanity. Highest priority will be given to the development of an innova ve spirit in the younger genera ons and opportunity will be provided for them to par cipate in na on building ac vi es. b. Culture: Measures will be taken to remove obstacles in the development of Bengali culture, literature, art, music and sports and to provide all opportuni es by the state to enable the younger genera ons to a ain interna onal standards and to contribute to the task of na on building. c. Foreign policy: In interna onal aairs Bangladesh will follow the policy of friendship towards all and malice towards none.

1.7 Digital Bangladesh


The use of informa on and communica on technology has been playing a vital role in the 21st century due to globaliza on. The democra c government has declared the Vision 2021 in the elec on manifesto which targets establishment of a resourceful and modern country by 2021 through eec ve use of informa on and communica on technology, a "Digital Bangladesh". Digital Bangladesh does not only mean the broad use of computers, perhaps it means the modern philosophy of eec ve and useful use of technology in terms of implemen ng the promises in educa on, health, job placement, poverty reduc on etc. Therefore, the government underscores a changing a tude, posi ve thinking and innova ve ideas for the success of Digital Bangladesh. The philosophy of Digital Bangladesh comprises ensuring peoples democracy and rights, transparency, accountability, establishing jus ce and ensuring delivery of government services in each door through maximum use of technology-with the ul mate goal to improve the daily lifestyle of general people. Governments Digital Bangladesh includes all classes of people and does not discriminate people in terms of technology. Hence, government have emphasized on the four elements of Digital Bangladesh Vision which are human resource development, people involvement, civil services and use of informa on technology in business. 34
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w w w. b o i . g o v. b d Digital Bangladesh Promotes the use of informa on and communica on technology (ICT) in all walks of life to provide the goods and services needed for human subsistence and growth. Comprises the philosophy of peoples democracy, basic rights, transparency, accountability, equity, jus ce and an op mal public delivery system of services, including public goods. Includes all classes of the ci zens on the principles of non discrimina on and non exclusion. Ensures equal access to technology and knowledge based services.

BOI in Implemen ng Digital Bangladesh Online service tracking: Board of Investment (BOI) is the rst government agency to implement online service tracking system in Bangladesh, named BOI Online Service Tracking System (BOST). This service tracking system provides status update on any service requested by investors to BOI. Upon entering the service request ID, the status can be tracked online at the BOI website. The status report indicates the approval status, le loca on, process dura on and further instruc ons to applicants, if any. BOI service desks are being brought under eec ve monitoring through BOST for speeding up the process. On the other hand, investors are in no need for frequent visits to BOI oces in order to follow up the latest status of their requested services. Business laws: e-library: The e-Library of business laws is a website containing all the business-related laws, rules and regula ons, licensing/permit instruc ons, procedures and forms. Investors can search for relevant regulatory informa on from a single window with universal accessibility. Key Features Comprehensive and updated business laws, rules, regula ons and licensing informa on. Downloadable gaze e no ca ons of rules and regula ons.

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w w w. b o i . g o v. b d Comprehensive repository of the rules and regula ons with their amendments and repeals. Licensing/permit informa on with downloadable forms, guidelines and procedures. Links to every regulatory agency website for further services. User-friendly interface for all level of users. Strong search capabili es like full text search with easy brows ability.

Benets to the Users/ Investors: Easy and Universal Access: The e-Library provides access to regulatory informa on, business rules, regula ons and licensing informa on for all business en es and the ci zens. Reduced Regulatory Costs: Availability of all legal measures and their substan ve informa on from a single source reduces the transac on costs of business. Reducing Regulatory Risks: It provides latest business-related regula ons to keep investors updated and enables informed decision making.

Benets to the BOI: Improved Public-Private Interfacing: The e-Library is a universal virtual one stop shop for the business sector. Improved Transparency: e-Library can improve and supplement transparency of legal process by adding or including informa on about the regula on in force. Basis for Regulatory Review: The e-Library pla orm provides opportuni es for comparing the regula ons against generally accepted criteria for good regula ons and reviewing them. Con nuous Monitoring: It encourages regula ng agencies to establish a prior check and con nuous monitoring system for jus ca on and adequacy of the degree of discre on and scope of interpreta on by them.

BOI Website: www.boi.gov.bd: Board of Investment (BOI) has a new and fully featured website, www.boi.gov.bd, to provide local and foreign investors with the informa on, contact points and service commitments that they need. The main focus of the newly developed website is centered on a strong country marke ng aspects. It marks a further step in the implementa on of governments Digital Bangladesh policy.

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w w w. b o i . g o v. b d Benets to the Investors: Contains detailed informa on, policies, sector briefs and guidelines to the local and foreign investors supported by numerous business and related government website links, videos, downloadable documents, reports and forms. An updated interac ve map, used for the rst me by any investment promo on agency, to show comprehensive investment informa on in respect of geographical loca ons in Bangladesh. It highlights Bangladeshs top companies, referenced by industry sector, business loca on and even stock market registra on. Special focus has been placed on presen ng the countrys top ci es, transport infrastructure and academic ins tu ons, so that investors can get a complete picture of the investment environment in Bangladesh. Provides access to BOI online tracking (BOST) facility so that investors can obtain real- me updates on their service applica ons submi ed to BOI. Also links to the BOIs new e- Library of business laws, rules and regula ons as an easy, one-stop access to informa on about laws, rules and regula ons governing business ac vi es in Bangladesh. Invites and manages investment queries to promote and facilitate be er investor service.

Benets to BOI: Provides a virtual pla orm for BOI to reach out to the investors, locally and globally, more eec vely than ever before. Recognizes quality investment leads from around the world through the enquiry forms. Encourages implementa on of a complete e-Governance ini a ve at BOI. S mulates to keep updated informa on on inves ng in Bangladesh.

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Investment

Climate & Incentives

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2.1 Investment Climate & Incentives


a. General Features
Bangladesh oers a conducive investment climate compared to the other South Asian economies. Bangladesh is a largely homogenous society with no major internal or external tensions and a popula on with great resilience in the face of adversity (e.g. natural calami es). Bangladesh is a liberal democra c country. The people irrespec ve of race and religion have been living in harmony for centuries. It enjoys broad non-par san poli cal support for market-oriented reform and oers the most investor-friendly regulatory regime in South Asia. Bangladesh owns a trainable, enthusias c, hardworking and low-cost (even by regional standards) labor force suitable for any labor-intensive industry. Labour cost in Bangladesh is the cheapest (at 22 cents) in the world. Geographical loca on of the country is ideal for global trades with very convenient access to interna onal sea and air routes. Bangladesh is the bridge between ASEAN and SAARC na ons. The natural endowments of Bangladesh includes gas, coal, water, other mineral resources and very fer le soil. Bangla is the ocial language but English is widely spoken as a second language. As a result of low per capita GNI (at current price) of only US$ 750, present domes c consump on is not signicant. However, it may be considered that there exists a middle class with signicant purchasing power. As economic growth picks up, the purchasing power will also grow substan ally. And in a country of more than 144 million people, even a small middle class may cons tute a signicant market. All Bangladeshi products other than armaments enjoy complete duty and quota free access to EU, Japan, Canada, Australia, Norway and most of the developed countries. However, for apparel export to USA, Bangladesh had a quota regime which ended on 1st January 2005. Despite quota phase out, Bangladeshi apparel has successfully taken up a be er posi on in US market and is experiencing substan al growth in an ever compe ve market.

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b. Why Bangladesh?
Bangladesh is a winning combina on with its compe ve business-friendly environment and cost structure that can give you best returns: Industrious low-cost labour force. Strategic loca on, regional connec vity and worldwide access. Strong local market and growth. Low cost of energy. Proven export compe veness. Compe ve incen ves. Export and Economic Zones. Posi ve investment climate. Bangladesh is one of the top exporters of readymade garments to US and Europe. Risk factors of FDI are the minimum in Bangladesh. Bangladesh has never defaulted in its debt repayments, nor asked for their rescheduling. Bangladesh has an open, market based economy led by a vibrant and innova ve private sector which provides the main s mulus to its growth. Bangladesh is a homogeneous country with no religious, ethnic or other forms of cultural conicts. Bangladesh has outstanding records in human rights. Bangladesh is one of the largest contributors to UN peacekeeping forces and missions and the records of the forces have been exemplary and laudable. More stable and developed markets have a web of intricate regula ons and other constraints which limit investment opportuni es. Growing markets, with innova ve entrepreneurs, oer greater business opportuni es vis--vis old markets with stagnant demand and high taxes. Movement of capital to emerging markets like the ones represented by countries of south Asia is likely to be protable with no added risks. Exis ng slacks in the economy of Bangladesh oer enormous opportuni es of high return and low risk investments in infrastructures, u li es, manufacturing and consumer goods industries. Large and lumpy investments against this backdrop would not be ina onary and would expand the produc ve capacity of the economy oering a variety of new goods and services which would further promote sustained economic growth and social development. Goldman Sachs has iden ed Bangladesh as one of the next big eleven emerging markets.

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c. Legal Framework for Foreign Investment


Investment in Bangladesh is well protected by law and by prac ce. Major laws related to private investment-both foreign and local-are: The Foreign Private Investment (Promo on and Protec on) Act of 1980 The Bangladesh Export Processing Zones Authority Act of 1980 The Investment Board Act of 1989 The Companies Act 1994 The Bangladesh Private Export Processing Zones Authority Act of 1996 The Import Policy Order 2009-2012 Export Policy 2009-2012 The Industrial Policy 2010 Policy and Strategy for Public-Private Partnership (PPP), 2010

In addi on, foreign investors are required to follow the regula ons of the Bangladesh Bank and the Na onal Board of Revenue for taxa on and customs ma ers. To see the legal infrastructure of Bangladesh for business and Investment please visit www.businesslaws.boi.gov.bd

d. Bilateral Investment Agreements


The Foreign Private Investment (Promo on and Protec on) Act 1980 includes guarantee of fair and equitable treatment to foreign private investment. Such na onal treatment is also provided in bilateral investment trea es (BITs) for the promo on and protec on of foreign investment which was concluded with 29 countries listed below: BITs Concluded with 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Austria Belgium Canada China France Germany Indonesia Iran Italy Japan 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Korea, DPR Korea, Republic of Malaysia Pakistan Poland Romania Switzerland The Netherlands The Philippines Turkey 21. 22. 23. 24. 25. 26. 27. 28. 29. Thailand UK USA Uzbekistan Vietnam Singapore Denmark India UAE

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w w w. b o i . g o v. b d Nego a ons on concluding BITs have also been going on with 9 other countries i.e. Oman, Egypt, Russia, Sri Lanka, Maldives, Sudan, Qatar, Bahrain and Saudi Arabia. Separate bilateral agreements for avoidance of Double Taxa on Trea es (DTTs) have been signed with 28 countries as listed below: DTTs Concluded with 1. 2. 3. 4. 5. 6. 7. 8. 9. Belgium Canada China Denmark France Germany India Italy Japan 10. 11. 12. 13. 14. 15. 16. 17. 18. Malaysia Pakistan Poland Romania Singapore Republic of Korea Sri Lanka Sweden Thailand 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. The Netherlands UK USA Norway Turkey Vietnam Philippines Indonesia Switzerland Oman

Nego a ons on DTTs are also progressing with the following 18 countries: DTTs under Nego a on 1. 2. 3. 4. 5. 6. 7. 8. 9. Austria Australia Byelorussia Cyprus Finland Greece Hong Kong Iran Saudi Arabia 10. 11. 12. 13. 14. 15. 16. 17. Mayanmar Nepal Nigeria Norway South Africa Spain Tunisia Uzbekistan

In addi on, Bangladesh is a signatory to Mul lateral Investment Guarantee Agency (MIGA), Overseas Private Investment Corpora on (OPIC) of USA, Interna onal Center for Se lement of Investment Disputes (ICSID) and a member of World Intellectual Property Organiza on (WIPO) permanent commi ee on development coopera on related to industrial property. Bangladesh ensures adequate protec on for intellectual property rights, such as patents, designs & trademarks and copyright.

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e. Credit Ra ng and Country Risks


Recently Bangladesh has been rated by Standard & Poor, and Moody, placing it at number 2 in South Asia. The creditworthiness of Bangladesh is regularly quan ed on monthly basis by the various Export Credit Ra ng Agencies (ECAs). These ECAs are members of the Berne Union. Detailed ac vity proles are available at Berne Union website www.berneunion.org.uk/ members.html. Some of these ECAs could be contacted and viewed from following websites: Web Addresses of some ECAs www.oekb.co.at www.ecgd.gov.uk www.isace.it www.ekf.dk www.hermes-kredit.com www.ekn.se www.cofac.com www.nnvera.

Regular country risk analysis is also conducted and reported by most of investment banks and economic research agencies like Economist Intelligence Unit (EIU) of the Economist etc. Under the Credit Ra ng Companies Act 1996, two companies were established to conduct corporate credit ra ng in Bangladesh namely Credit Ra ng Informa on and Services Ltd. and Credit Ra ng Agency of Bangladesh Ltd. Please visit www.crislbd.com and acraa.com for detail services of these companies.

2.2 Infrastructure Readiness


a. U li es
U lity provisions for industrial undertaking include gas, electricity, water, waste management, sewerage etc. In EPZs, all kind of u lity facili es and supports are pre-installed and ready for u liza on. There is no disrup on in power, gas and water. Industrial waste management and sewerage system do suciently ensure a conducive environment. BSCIC Industrial Estates provide u lity facili es including plot allotment. Other industrial areas are also being brought under the uninterrupted and sucient coverage of u lity services.

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w w w. b o i . g o v. b d BOI One Stop Service Cell provides one window service to the investors. Private investors can avail u lity services through BOI One Stop Service Cell. Senior Ocials from the respec ve u lity service oces of the Government provide counseling, accept applica ons and facilitate full services within a s pulated period.

b. Transporta on
Since the mid 80s, construc on of road network all over the country has been massively undertaken. Today, almost all parts of the na on are networked with road connec on. Roads are well supported by sucient numbers of bridges and culverts. The longest bridge of the country and 12th longest road bridge in the world, Bangabandhu Mul purpose Bridge, has connected the east and west both by road and rail network. Well-developed navigable waterways in the country also provide transporta on facili es even to the low remote areas. Both passengers and domes c freight are carried over at cheaper cost. Proverbially, Bangladesh is known as the land of thousand rivers. Regular interna onal ights from world business des na ons of South, East and South East Asia, Middle East and Europe are directly connected to Bangladesh by 17 Interna onal Airlines. Besides, Biman Bangladesh Airlines Ltd., the na onal airline of the country, is also networked to 18 interna onal and 3 domes c des na ons. Number of private sector airways are connec ng to domes c des na ons, while one of them is also opera ng on interna onal route. Private Helicopter Services are also available to reach any place of the country. Between two interna onal seaports-Chi agong and Mongla, Chi agong is the gateway of both exports and imports serving more than 80% of all interna onal sea freights. Chi agong port is also well connected to domes c road, rail and air routes. The government is trying to enhance the eciency of the ports and invites private sector par cipa on in port management and establishment. Most of the interna onal shipping and freight-forwarding companies / agents are present in the country providing transporta on services to the investors.

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c. Communica on / Digital Bangladesh


In August 2002, Government opened up the telecom sector (xed line) to the private sector par cipa on. Government has already given license to private sector for xed line opera ons. Such market-oriented move for telecom sector would enhance the telecommunica on service of the country to a desired level. A number of Internet Service Providers (ISPs) are in the Internet market. Divisional ci es and major industrial areas have been brought under Internet servicing. Bangladesh has joined the consor um of SEA-ME-WE-4 submarine cable, which started its commercial ac vi es from 21st May, 2006. This helps prosperous data entry and so ware sectors. With about 9,859 domes c postal sta ons including 164 Guaranteed Express Post (GEP) providing sta ons and Express Mail Service (EMS) agreement with 49 countries, postal service in Bangladesh has been serving the na on well. Interna onal courier service companies like DHL, FedEx, UPS etc. are also present to serve the investors.

2.3 Facilitation & Promotion


The role and importance of private sector investment in accelera ng industrial development of Bangladesh were signicantly iden ed and outlined and put into the policy framework of the Government in early 1980s. Formal legisla ve move was made through enactment of the Foreign Private Investment (Promo on and Protec on) Act, 1980 (Appendix-II) and the Bangladesh Export Processing Zones Authority Act, 1980. With the changing global economic scenario, the need for specialized ins tu ons in promo ng private investment, both foreign and domes c, had emerged. As a result, BOI was established in 1989 (Appendix II: The Investment Board Act 1989). Following are the four key investment promo on and facilita on agencies of Bangladesh.

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Investment Promo on & Facilita on Agencies


Communica on in Bangladesh Agency Areas of Concern Investment Type Domes c Domes c & FDI a. Bangladesh Small & Co age Small and co age industries Industries Corpora on (BSCIC) b. Bangladesh Export Processing Zones Exported Oriented Authority (BEPZA) industries located in EPZs. c. Board of Investment (BOI)

All other industries including Domes c & FDI promo on of the above.

To facilitate and promote private sector infrastructures, two other GOB owned Companies Infrastructure Investment Facilita on Center (IIFC) and Infrastructure Development Company Limited (IDCOL) are serving.

a. Bangladesh Small & Co age Industry Corpora on (BSCIC)


Back in 1957, BSCIC was established by parliamentary legisla on, which was amended in 1992 to match the industrializa on and macroeconomic policies of the soverign Government. It provides comprehensive services to development and expansion of small and co age industries (SCIs). The major func ons of BSCIC include: promo on and registra on of small and co age industries; conduc ng advisory and industrial promo on services including scou ng and training of entrepreneurs, skill development of ar sans and cra sman and crea on of job opportuni es; construc on and development of industrial estates with necessary infrastructural facili es for the SCIs; development of linkages between SCIs and other medium and large industries;

Development of small and medium enterprises (SMEs) has been encouraged by the Government with a view to crea ng a cluster of reliable, quality and compe ve supply source to the large foreign investments. An ini a ve to establish an SME Founda on has been undertaken conver ng the SME Cell of Ministry of Industries. SME Founda on is now in place and func oning at full capacity.

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b. Bangladesh Export Processing Zones Authority (BEPZA)


Under the BEPZA Act 1980, it was established to set up and operate export processing zones in Bangladesh with a view to providing a congenial investment climate free from procedural complica ons. EPZs are export-oriented industrial enclaves that provide infrastructural facili es, administra ve and support services to the investors along with rewarding incen ves.

Major Incen ves & Facili es provided by BEPZA


Fiscal Incen ves Tax Holiday for 10 Years Concessionary Tax for 5 years a er comple ng ini al 10 years. Duty free import of machinery & raw materials Avoidance of Double Taxa on based on DTTs Non-Fiscal Incen ves 100% foreign equity allowed Unrestricted exit policy Full repatria on facili es of dividend and capital at the event of exit Import of raw materials allowed on Documentary Acceptance basis. Intra and Inter-zone export is allowed. Subcontrac ng within EPZs permi ed. Infrastructure & Facili es Fully Serviced Plots Ready Factory Building All Types of U li es Warehouse and Secured Bonded Area Business Support Services Administra ve Services Customs Clearance at Plant Site Workers Dormitory Enclave Recrea onal Ameni es

All other incen ves as provided by BOI

For details on se ng up at EPZs, its incen ves, facili es and ameni es, please contact BEPZA

The rst EPZ in Bangladesh was established in 1983 in Chi agong and the second one in Dhaka in 1993. Six (06) more EPZs in Mongla, Ishwardi, U ara (Nilphamari), Comilla, Adamjee (Narayanganj) and Karnaphuli in Chi agong are in opera on at the present me. Three types of ownership prevail in the EPZs - 100% foreign ownership (A-type), Joint ownership (B-type) and local ownership (C-type), Exis ng investments in EPZs represent 30 countries like South Korea, China, Japan, USA, Germany, Pakistan, Malaysia, Taiwan, India, Singapore, Panama, Denmark, Thailand, France, UAE, Sweden, Italy, Belgium, the Netherlands and Canada etc. At present 242 industries are opera ng and producing dierent famous brand products, which are being exported throughout the world.

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Inves ng in EPZ: Requirements


Requisites / Steps a. b. c. d. e. f. Project Proposal Form Bank Solvency Cer cate Memorandum of Associa on Ar cles of Associa on Cer cate of Incorpora on Joint Venture Agreeement Fees and Rentals Items Applica on Form Registra on Fee 6-month Rental(Land) a) Dhaka, Chi agong Comilla, Adamjee Karnaphuli b) Mongla, Ishwardi, U ara (Nilphamari
Fees in US$

45 250

2200

1000 6-month Rental (Factory Building for 1,500 m.) a) Dhaka, Chi agong Comilla, Adamjee Karnaphuli b) Mongla, Ishwardi, U ara (Nilphamari

4125 2500

c. Board of Investment (BOI)


As enacted in 1989, BOI was established to encourage investment in the industry in private sector and to provide necessary facili es and assistance in the establishment of industries. Details on BOI, its structure and objec ves, func ons and services and procedures have been cited in BOIs publica on named BOI Prole & Procedures. For details, please visit BOI website: www.boi.gov.bd.

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2.4 Investment Incentives

FDI Policy Framework and Incen ves Country Policy and Ins tu onal Assessment of the World Bank Bangladesh has scored higher than the average ra ng of around 100 developing countries in the CPIA of the World Bank the assesses four broad areas including economic and public sector management. The areas are (a) economic management, (b) structural policies, (c) policies for social inclusion and (d) public sector management and ins tu ons. Bangladesh scores 3.5 out of a maximum 6 points. Developing countries average point is 3.3 (Bangladesh score 0.2% higher). Basic requirements for sound investment are (a) good macroeconomic sta s cs, (b) accurate nancial statements, (c) stable regulatory framework and (d) clear understanding of corporate governance structure. Bangladesh possesses all of the above at the present me and the quality of macroeconomic sta s cs is improving gradually.

World Bank on Bangladesh as an FDI des na on The FDI friendly index in the World Banks latest report Inves ng Across Borders 2010 covering 87 countries lists Bangladesh as one of the most convenient des na ons for FDI for its investment friendly facili es and regula ons. 49

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w w w. b o i . g o v. b d Bangladesh is in the top of the list of countries which provides the strongest land or property lease rights to foreign investors along side Canada, Singapore, UK, USA, France and Spain. Leasing a private land by foreign investors is easy in Bangladesh while buying private land here is much easier than in India, Pakistan and Sri Lanka. Time required to lease private land is 2 months in Bangladesh, 7 months in Afghanistan and 10 months in Sri Lanka. Foreign business in Bangladesh requires 55 days on an average comple ng 9 procedures, in India 46 days with 16 procedures and in China 99 days with 18 procedures. Bangladesh is one of the most open countries to foreign equity ownership, as measured by Inves ng Across Sectors indicators. All of 33 sectors covered by the World Bank indicators are fully open to foreign capital par cipa on in Bangladesh with no constraints. This is the rst World Bank report to oer objec ve data on regula ons aec ng foreign direct investment that can be compared across 87 countries. Clear and eec ve laws and regula ons are vital for ensuring best results for host countries, their ci zens and inventors the World Bank report men ons. The report nds that countries which do well on the Inves ng Across Borders indicators also tend to a ract more foreign direct investment rela ve to the size of their economies and popula on, and coun es that score poorly tend to have higher incidence of corrup on, poli cal risks and weaker governance structures.

Bangladesh is keen to s mulate the economy and transform a poverty-stricken economy to NIE by 2021. Government has liberalized the industrial and investment policies in recent years by reducing regulatory requirements and opening up many areas. Substan al incen ve program has also been implemented which is presented below:

Summary of Incen ves provided to the investors


Approval Authori es Major Fiscal Incen ves Major Non-Fiscal Incen ves Remi ance of royalty, technical know-how, technical assistance fee. 100% Foreign Equity allowed. Unrestricted Exit Policy. Full Repatria on facili es of dividend and capital at the event of exit. Permanent Residence Permit on inves ng US$ 75,000 and Ci zenship oer for inves ng US$ 5,00,000.
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Tax Holiday Accelerated Deprecia on Allowance (ADA) instead of Bangladesh Bank tax holiday Na onal Board of Revenue Reduced corporate tax in Bangladesh Export lieu of Tax Holiday and Processing Zones Authority Accelerated Deprecia on Board of Investment Allowance Bangladesh Small & Concessionary duty on Co age industries imported machinery Corpora on Avoidance of Double Taxa on Ministry of Finance

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a. Tax Holiday & Concessions:


: 1. For Exis ng Industry: Tax holiday facili es (THF) are available in the exis ng industry for 5 or 7 years depending on the loca on of the industrial enterprise. Loca on Years Dhaka and Chi agong Divisions 5 years (Excluding 3 Hill Tract districts of Chi agong Division) For rst 2 yrs. 100%, next 2 yrs. 50% and last 1 yr. 25% Khulna, Sylhet, Barisal & Rajshahi Divisions and 3 Chi agong Hill Tract districts For rst 3 yrs 100%, next 3 yrs. 50% and last 1 yr. 25% Tax Holiday for Private Power Companies (100% for each year) 7 years i. Incen ve

15 years

List of Tax Holiday Applicable Sectors (Up to 30th June 2012)* 1. 3. 5. 7. 9. Tex le Melamine Ceramic & Sanitary ware Fer lizer Produc on Computer Hardware Produc on 2. 4. 6. 8. 10. 12. Pharmaceu cals Plas c Steel Produc on from Iron ore Insec cide and Pes cide Residen al Hotels of Three Star Standard and above Basic Ingredients of Drug, Chemicals & Pharmaceu cals Ship Building Tex le Machinery High Value garments CI Sheet Agro Processing

11. Petro-Chemicals

13. Agro Machinery 14. 15. Boilers and compressor 16. 17. Jute goods 18. 19. M S Rod 20. 21. Diamond Cu ng 22. 23. Solar Energy Plants 24. Physical Infrastructure a. Sea/River Port b. Container terminal/Internal Container depot/Container Freight Sta on c. LNG terminal and Transmission line d. CNG terminal and Transmission line e. Gas Pipe Line f. Flyover

*Subject to Condi ons. For details please contact Na onal Board of Revenue www.nbr.gov.bd
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w w w. b o i . g o v. b d g. h. i. j. k. Large Scale water treatment plant and its supply through pipe line Waste Processing plant and Export Processing Zone Telecommunica on other than Mobile Phone Monorail, underground rail.

Important to note: Tax Holiday Facility (THF) for Extension Unit is not allowed. THF will be available for the industrial undertaking formed as a Separate Company. THF availing companies are required to reinvest at least 30% of their exempted income during Tax Holiday period and also extra more 10% of incomes have to be invested in any registered company of stock exchange during last 3 months of the scal year. ii. How to Avail : 1. Register your project with BOI. 2. Apply for Tax holiday approval and cer ca on from NBR. 3. NBR issues Tax holiday cer cate within 90 days of submission of applica on.

Accelerated Deprecia on Allowance : i. Incen ve : 1. Accelerated Deprecia on Allowance: Only New industrial undertakings will enjoy accelerated deprecia on allowance in lieu of tax holiday as per following schedule:
a) For the rst year in - Fi y percent of the which the undertaking actual cost of plant and stars machinery b) Next following second - Thirty percent of the year actual cost of plant and machinery c) Next following third - Twenty percent of the year actual cost of plant and machinery

2. Ini al Deprecia on Allowance was reintroduced from the FY 2006-07 as per following schedule: On the Machinery On the Factory 52 : : 25% of its costs. 10% of its costs.
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w w w. b o i . g o v. b d 3. Restructuring of Deprecia on Allowance to ensure be er protability of the industry as follows: General Building Factory Building Furniture Machinery Vehicle (not plying for hire) : : : : : 10% 20% 10% 20% 47%

ii. How to Avail

By se ng up and opera ng business in Bangladesh.

Reduced corporate tax facili es Industries and Services Sector listed under reduced corporate tax facili es under SRO No. 172-Law/Income Tax/2009: Tax of newly set up industries will be reduced on fulllment of the following: (a) The industries set up between July 01, 2009 and June 30, 2012. (b) The industry must be registered under the Companies Act 1994 which will be engaged in agro-processing (fruit processing, packed baby corn processing, fruit juice, rubber products) and industries such as: tex le, spinning, tex le machinery, garments, backward and forward linkages to RMG, leather goods, toys, furniture, ICT, pharmaceu cals, light engineering, ceramic or ceramic products, melamine, plas c products, sanitary wares, steel from ore iron, MS-rod, CI sheet, fer lizer, insec cide, pes cide, computer hardware, petro-chemical, agricultural machine, boiler, chemical products, basic ingredients of pharmaceu cals compressor, ship building, diamond cu ng, prawn processing, milk processing, accumulator & ba ery, tour operators, energy saving bulb, products from waste, jute goods, investment friendly recycling industry, ayurvadic medicine, basic chemicals, paints, cosme cs & toiletries, tourism, footwear, MS-billet or any other industry to be included by government gaze e no ca on (c) Depending on the loca on the reduced tax rate would vary for newly established industries:

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w w w. b o i . g o v. b d i) In Dhaka and Chi agong divisions (barring Rangama , Bandorbon and Khagrachori districts) for rst & second year 5%, for third & fourth year 10% and for h year 15% and In Rajshahi, Khulna, Sylhet and Barisal divisions and Rangama , Bandorbon and Khagrachori districts of Chi agong division for the rst, second and third year 5%, for fourth, h & sixth year 10% and seventh year 15%.

ii)

(d) Such industries will not be a reorganized unit of an exis ng one or division thereof or any new industry set up by transferring machinery or establishing from an exis ng industry in Bangladesh (e) The industry will not be an extended unit of an exis ng unit (f) The above industries will not be en tled to get tax holiday as per sec on 46(b) of Income Tax Ordinance 1984

(g) The industry will not be en tled to claim accelerated deprecia on allowance under Third Schedule, Para 7 and (h) The industry must submit income tax return every year to the concerned circle with audited accounts within me as specied in its memorandum. Note: The above text has been derived from SRO No. 172-Law/Income Tax/2009 (Bengali version) published in Bangladesh Gaze e on 30th June, 2009. For accurate and detailed informa on please consult with the aforesaid SRO of Internal Resource Division, Ministry of Finance, the Government of Peoples Republic of Bangladesh.

b. Duty Exemp ons and Concessions on Machinery


i. Incen ves : 1. 1% import duty on capital machinery and spares for 80% to 100% export oriented industry. This is applicable for ini al installa on or BMR/BMRE of the exis ng industries. 2. 3% import duty on capital machinery and spares for other industries. This is applicable for ini al installa on or BMR/BMRE of the exis ng industries.

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w w w. b o i . g o v. b d 3. Value Added Tax (VAT) is not payable for or imported capital machinery and spares. ii. How to Avail : 1. Register your project with BOI. 2. Apply for Import Permit (IP) at BOI for importa on of machinery against foreign equity. 3. BOI sends recommenda on to CCI&E for issuance of IRC and IP within 7 days from the date of applica on. 4. Apply for import duty exemp on cer cate at BOI. 5. BOI issues cer cate within 7 days from the date of applica on.

c. Avoidance of Double Taxa on


i. Incen ves : 1. For foreign investors, double taxa on can be avoided on the basis of bilateral Double Taxa on Avoidance Trea es (DTTs). : 1. Register your project with BOI. 2. Apply for Tax Avoidance approval at NBR. 3. NBR arranges Tax Avoidance facili es.

ii. How to Avail

d. Remi ancs
i. Incen ves : 1. For investors, remi ance of royalty, technical know- how, technical assistance fee. : 1. Register your project with BOI. 2. Apply for remi ance of royalty, technical know-how, technical assistance fee approval from BOI. 3. BOI gives remi ance approval.

ii. How to Avail

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e. Exit
i. Incen ves : 1. Foreign investors can wind up on investment either through a decision of the AGM or EGM. : 1. Decide to wind up company in an AGM or EGM. 2. Complete the formali es to exit the country. 3. Apply for repatria on approval for sales proceeds from Bangladesh Bank (BB). 4. Bangladesh Bank gives repatria on approval within a specied period.

ii. How to Avail

f. Ownership
i. Incen ves : 1. Foreign investors can set up ventures either wholly owned or in joint collabora on with local partner. : 1. Incorporate a company. 2. Register your project with BOI.

ii. How to Avail

g. Incen ves to Non-Resident Bangladeshis (NRBs)


In recogni on of enormous contribu on of NRBs to the economy, the Government established a Ministry of Expatriate Welfare and Overseas Employment in early 2002 to look a er the interests of the NRBs. i. Incen ves : 1. Investment of NRBs is treated at par with FDI and enjoy facili es similar to those of foreign investors. 2. NRBs can buy newly issued shares/ debentures of Bangladeshi companies. 3. A quota of 10% has been xed for NRBs in primary public shares. 4. They can maintain foreign currency deposits in the Non- resident Foreign Currency Deposit (NFCD) account. 5. On fulllment of certain condi ons Important Non-Resident Bangladeshi (INRB) is selected.

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w w w. b o i . g o v. b d ii. How to Avail : 1. Contact BOI and Ministry of Expatriate Welfare re and the Overseas Employment. 2. Register your project with BOI.

h. Corporate Tax Rates


a) Company For publicly traded companies (except bank , insurance, leasing and other nancial ins tu ons) Rate 27.5% a) Condi on/Rebate Any listed company declares dividend at 20%, or higher, will benet from tax abatement at 10% Any listed company which declares a dividend at 10% or lower, or does not distribute a dividend by the declared by SEC will be required to pay tax at 37.5%

b)

b)

For non-publicly traded companies (except bank , insurance, leasing and other nancial ins tu ons) Bank, insurance, leasing and other nancial ins tu ons For mobile phone operator companies

37.5%

c)

42.5%

d)

45%

If the mobile phone operator company transforms to a publicly traded company oering at least 10% of paid up capital in an IPO, then the tax rate will be 35%.

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i. Other Incen ves


There is no discrimina on in case of du es and taxes for the same type of industries set up by foreign and local investors and in the public and private sectors. Tax exemp on on royal es, technical know-how fees received by any foreign collaborator, rm, company and expert. Tax exemp on on the interest on foreign loans under certain condi ons. Tax exemp on on income of the private sector power genera on company for 15 years from the date of commercial produc on. Mul ple entry visa facili es for the prospec ve new investors. Re-investment of repatriable dividend treated as new investment. Ci zenship by inves ng a minimum of US$ 5,00,000 or by transferring US$ 10,00,000 to any recognized nancial ins tu on (non-repatriable). Permanent resident by inves ng a minimum of US$ 75,000 (non-repatriable). Tax exemp on on capital gains from the transfer of shares of public limited companies listed with a stock exchange.

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General Packages of Incen ves for Investment:


Non-Fiscal Incen ves Cash incen ves and export subsidies on the FOB value ranging from 5% to 20% on selected products Eligibility/Applicability Sector Rate of Subsidy/ Cash Incen ves 5% 12.5% 17.50% 15% to 20% 20% 10% (for April-June 2010 20%) FE-08/2010 15% 15% 10% 15% 10% 20% 20% 7.5% 5% 5% 10% FE-23/2009, FE-04/2010 FE-05/2010 FE-06/2010 FE-22/2009, FE-09/2010 FE-25/2009 Concerned Circulars FE-14/2009

Tex le Sector Frozen Shrimp and other sh Leather Goods Hogla Agricultural and Agro Processed Goods Potato

Bi-cycle Bones Jute Hatching eggs from Poultry & day old chicken Light Engineering Products Liquid Glucose (Ishardy EPZ) 100% Halal Meat Finished Leather Crust Leather Ship Export Pet Bo le Flakes Funds for export promo on, export credit guarantee scheme Full repatria on of dividends and capital

Bangladesh Bank maintains Export Development Fund (EDF) for USD 300 million to facilitate access to nancing in foreign exchange for input procurements by manufacturer-exporters. (Bangladesh Bank does not operate export credit guarantee scheme) Foreign investment in Bangladesh is well protected by Foreign Private Investment (Promo on & Protec on) Act, 1980. Sec on 7(1) of this Act states that Foreign Private Investment shall not be expropriated or na onalized or be subject to any measures having eect of expropria on or na onaliza on except for a public purpose against adequate compensa on which shall be paid expedi ously and be freely transferable.

Foreign Private Investment (Promo on & Protec on) Act, 1980

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Repatria on of Dividend against direct investment There is general authoriza on to Authorized Dealer banks to eect remi ances without prior approval from Bangladesh Bank on account of dividends (both nal and interim) to the non-resident shareholders subject to compliance of instruc ons as contained in para 31, chapter 10 of Guidelines for Foreign Exchange Transac on (GFET) Vol-1 (Edi on-2009). Repatria on of dividends against por olio investment Non-resident persons/ins tu ons including non-resident Bangladesh na onals may buy Bangladeshi shares and securi es in Bangladesh against freely conver ble foreign currency remi ed from abroad through Non-Resident Investors Taka Account (NITA) maintained with any AD in Bangladesh. Dividends/interests earnings on the shares/securi es bought through the NITA, net of taxes payable on such earnings of the non-resident holder, received from the issuing company/ins tu ons may be credited to the NITAN. Balances in the NITA are freely remi able abroad in equivalent foreign exchange without any prior permission from Bangladesh Bank. Repatria on of capital a) Sales proceeds of securi es of public limited companies listed with stock exchanges held by non-residents can be remi ed without prior approval of Bangladesh Bank. In such cases, repatriable amount must not exceed the market price of securi es prevailing in the stock exchange on the date of sales. b) Prior approval of Bangladesh Bank is required for repatria on of sales proceeds of non-residents equity investment in (1) public limited companies that are not listed with the stock exchange companies; and (2) private limited companies. There being no established market price for such investment, Bangladesh Bank, while determining the remi able amount, works out the net asset value of the shares on the basis of audited nancial statements as on the date of sales and net asset value thus calculated above is considered repatriable. If net asset value so calculated exceeds the face value of the share of the company concerned, capital gain derived there from may also be repatriated. However, only the net asset value shall be considered as repatriable/or for reinvestment in Bangladesh even if the declared sale value exceeds the net asset value. Prior permission of Bangladesh Bank, however, is not required for sales/transfer of shares of public limited companies not listed with the stock exchange companies by one non-resident to another non-resident. c) Sale proceeds of the shares/securi es purchased through the NITA (net of taxes payable, if any, on the capital gain) may be credited to the NITA. Balances in the NITA are freely remi able abroad in equivalent foreign exchange without permission from Bangladesh Bank.

GFET-2009, Chapter-10, Para 31.

GFET-2009, Chapter-14, Sec on-IV

GFET-2009, Chapter-09, Sec on3(A) GFET-2009, Chapter-09, Sec on3(B)

GFET-2009, Chapter-14, Sec on- IV

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j. Incen ves to Export-Oriented and Export-Linkage Industries


Export-oriented industrializa on is one of the major objec ves of the Industrial Policy. Export-oriented industries are given priority and full public policy supports are ensured in this respect. An industry expor ng at least 80% of its manufactured goods or an industry contribu ng at least 80% of its products as an input to nished exportable, and similarly, a business en ty expor ng at least 80% of services including informa on technology related products are considered as an export-oriented industry. To make investment in 100% export-oriented industries a rac ve, the following incen ves and facili es will be provided : i. 1% import duty on capital machinery and spare parts. Bonded Warehouse and back-to-back Le er of Credit facility. Duty drawback facility. Providing loans up to 90% of the value against irrevocable and conrmed Le er of Credit/Sales Agreement. Suppor ng backward linkage "deemed exporters". The export-oriented industries, further to the provisions of Bangladesh Bank foreign exchange regula ons, are en tled to receive addi onal foreign exchange, on case by case basis, for publicity campaign, opening overseas oces and par cipa ng in interna onal trade fairs.

Subsidy
To encourage further export, Government has oered following cash incen ves/export subsidy on net FOB value of following export items: Tex le Sector Frozen Shrimp & other sh Leather Goods Hogla Agriculture & Agro Processed Goods Potato Bi-Cycle Bones Jute Hatching eggs of Poultry & day old chicken Light engineering products Liquid Glucose (Iswardi EPZ) 100% Halal Meat Finished Leather Crust Leather Ship Export Pet Bo le Flakes

ii.

iii. iv.

v. vi.

vii. The en re export earning from handicra s and co age industries are exempted from income tax. For all other industries, income tax rebate on export earning are given.

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w w w. b o i . g o v. b d viii. The facility for impor ng raw materials included in the banned/restricted list, but required in the manufacture of exportable commodi es. ix. The import of specied quan es of duty-free samples for manufacturing exportable products is allowed consistent with the prevailing relevant government policy. The local products supplied to local industries or projects against foreign exchange L/C are treated as indirect exports and are en tled to all export facili es. The Export Credit Guarantee Scheme facility.

x.

xi.

xii. 10% products of the enterprises, located in both public and private EPZs are allowed to be exported to domes c tari area against foreign currency L/C on payment of applicable du es and taxes. xiii. 100% export-oriented industry outside EPZ is allowed to sell 20% of their products in the domes c market on payment of applicable du es and taxes. xiv. The Export-oriented industries which are iden ed by the government as "Thrust Sector" are provided special facili es and venture capital support. Apart from the above-men oned facili es, other facili es announced and provided in the Export Policy is applicable to export-oriented and export-linkage industries.

Power Sector Incen ves


Fiscal Incen ves 1. 2. The private power companies shall be exempted from corporate income tax for a period of 15 years. The companies will be allowed to import plant, equipment and spare parts up to a maximum of ten percent (10%) of the original value of total plant and equipment within a period of twelve (12) years of Commercial Opera on without payment of customs du es, VAT (Value Added Tax) and any other surcharges as well as import permit fee except for indigenously produced equipment manufactured according to interna onal standards. Repatria on of equity along with dividends will be allowed freely. Exemp on from income tax in Bangladesh for foreign lenders to such companies. The foreign investors will be free to enter into joint ventures but this is op onal and not mandatory.
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w w w. b o i . g o v. b d The companies will be exempted from the requirements of obtaining insurance/ reinsurance only from the Na onal Insurance Company, namely Sadharan Bima Corpora on (SBC). 7. Private power companies will be allowed to buy insurance of their choice as per requirements of the lenders and the u li es. 8. The Instruments and Deeds required to be registered under local regula ons will be exempted from stamp duty payments. 9. Power genera on has been declared as an industry and the companies are eligible for all other concessions which are available to industrial projects. 10. The private par es may raise local and foreign nance in accordance with regula ons applicable to industrial projects as dened by the Board of Investment (BOI). 11. Local engineering and manufacturing companies shall be encouraged to provide indigenously manufactured equipment of interna onal standard to private power plants. BOI Counseling Service at Investment Facili es and Services Sec on provides all necessary assistance with regard to the above incen ves. Investors are encouraged to contact BOI. 6.

2.5 FDI Policy Framework and Incentives


Country Policy and Ins tu onal Assessment of the World Bank
Bangladesh has scored higher than the average ra ng of around 100 developing countries in the CPIA of the World Bank the assesses four broad areas including economic and public sector management. The areas are (a) economic management, (b) structural policies, (c) policies for social inclusion and (d) public sector management and ins tu ons. Bangladesh scores 3.5 out of a maximum 6 points. Developing countries average point is 3.3 (Bangladesh score 0.2% higher). Basic requirements for sound investment are (a) good macroeconomic sta s cs, (b) accurate nancial statements, (c) stable regulatory framework and (d) clear understanding of corporate governance structure. Bangladesh possesses all of the above at the present me and the quality of macroeconomic sta s cs is improving gradually. 63

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World Bank on Bangladesh as an FDI des na on


The FDI friendly index in the World Banks latest report Inves ng Across Borders 2010 covering 87 countries lists Bangladesh as one of the most convenient des na ons for FDI for its investment friendly facili es and regula ons. Bangladesh is at the top of the list of countries which provides the strongest land or property lease rights to foreign investors along side Canada, Singapore, UK, USA, France and Spain. Leasing a private land by foreign investors is easy in Bangladesh while buying private land here is much easier than in India, Pakistan and Sri Lanka. Time required to lease private land is 2 months in Bangladesh, 7 months in Afghanistan and 10 months in Sri Lanka. Foreign business in Bangladesh requires 55 days on an average comple ng 9 procedures, in India 46 days with 16 procedures and in China 99 days with 18 procedures. Bangladesh is one of the most open countries to foreign equity ownership, as measured by Inves ng Across Sectors indicators. All of 33 sectors covered by the World Bank indicators are fully open to foreign capital par cipa on in Bangladesh with no constraints. This is rst World Bank report to oer objec ve data on regula ons aec ng foreign direct investment that can be compared across 87 countries. Clear and eec ve laws and regula ons are vital for ensuring best results for host countries, their ci zens and investors the World Bank report men ons. The report nds that countries which do well on the Inves ng Across Borders indicators also tend to a ract more foreign direct investment rela ve to the size of their economies and popula on, and coun es that score poorly tend to have higher incidence of corrup on, poli cal risks and weaker governance structures.

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2.6 CIP (NRB) Policy


1. Commercially Important Person (Non Resident Bangladeshi) Selec on Policy 2006

Original Version is in Bangla, This is an unocial English Version Translated by the ins tute of Modern Languages, University of Dhaka, Bangladesh 2. Classica on and number of Commercially Important Persons.

The criteria for selec on, classica on and number of Commercially Important Person (Non Resident Bangladeshi) here a er known as CIP (NRB) are given below: SL. Classica on for Selec on 1) 2) 3) Number

NRBs inves ng directly in industrial sector Maximum 10 NRBs remi ng highest amount of foreign currency through formal channel. Maximum 10 NRBs impor ng Bangladeshi goods in foreign country. Maximum 05 Total: Maximum 25

3.

Eligibility for selec on of CIP (NRB) [Investors in Industries] 1) 2) 3) For a Calendar year, amount of investments in Bangladeshi industry by a non-resident Bangladeshi in previous scal year Capital investment in foreign currency equivalent to US$ 500,000 or more and For industries under implementa on, bill of landing, bill of entry, LC etc. shall have to be furnished as an evidence in shipment of machinery

4.

Eligibility for selec on of CIP (NRB) [Foreign Currency Remi ers] 1) For a calendar year, the amount of non-repatriable foreign currency remi ed in a par cular account through legal banking channel in previous scal year. Remi ance to Bangladesh of a non-repatriable minimum amount equivalent to US$ 1,50,000 through legal banking channel.

2)

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w w w. b o i . g o v. b d 5. Eligibility for selec on of CIP (NRB) [ Importers] The following determinants will be considered 1) 2) 3) For a Calendar year, the value of commodity imported from Bangladesh during the previous scal year by the NRB. For the year in considera on, Bangladeshi goods amoun ng to a minimum of equivalent to US$ 500,000 FOB value shall have to be imported. Amount of imports through Proceeds Realisa on Cer cate (PRC) and Priority shall be given to the importers impor ng high value added products.

Privileges for Selected CIP (NRB)


1. The Expatriate Welfare and Overseas Employment Ministry of Bangladesh will provide iden ty card to the selected CIPs (NRB). CIPs (NRB) will receive entry pass to enter the Bangladesh secretariat during valid period of ID Card. CIPs (NRB) shall be eligible to become members in dierent policy making concerned commi ees of the Govt. of Bangladesh. CIPs (NRB) will be given priority in mee ng with local and foreign high ocials. CIPs (NRB) will be invited by foreign Bangladeshi missions on dierent occasions like Independence and Na onal Day, Eid-ul-Fiter, Eid-ul-Azha, 21st February Interna onal Mother Language Day etc. (important days) CIPs (NRB) will be given priority to reserve seats in Air, Rail, Roads & Waterways for their business trips. CIPs (NRB) and their wives, sons, daughters will be given priority to get cabin facili es for treatment in government hospitals. For Investment in Bangladesh, CIP (NRB) investors shall be en tled to facili es like that of foreign investors and their investment will be protected under the Foreign Private Investment (Promo on and Protec on) Act 1980 (Act No. XI of 1980) CIPs (NRB) will be en tled to use VIP lounge to and facili es of special handling in Airports.
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2.

3.

4. 5.

6.

7.

8.

9.

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Disqualica on to be a CIP (NRB)


In the following cases, an individual will be disqualied to be selected as CIP (NRB) : 1. 2. If the applicant is loan defaulter/tax defaulter in his country or foreign country. If the applicant has got business dispute with foreign buyer and if the applicant is unwilling to resolve the dispute or adopts means to linger the issue. If the applicant is convicted by Court and unless ve years have been elapsed a er imprisonment, or has been declared a persona non grata. If it is proved that the applicant has furnished false informa on in all such cases, NRB shall not be eligible to apply for facili es.

3.

4.

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BOI

Profile & Procedures

w w w. b o i . g o v. b d

w w w. b o i . g o v. b d

3.1 Structure & Objectives


a. Forma on of BOI
Board of Investment (BOI) was established by the Investment Board Act of 1989 to promote and facilitate investment in the private sector both from domes c and overseas sources with a view to contribu ng to the socio-economic development of Bangladesh. It is headed by the honorable Prime Minister. Its membership includes representa ves (at the highest level) of the relevant ministries industry, nance, planning, tex les, Jute, commerce, energy, power, as well as others, such as the Governor of Bangladesh Bank, Presidents of FBCCI and BCI . The Opera onal Head and CEO of BOI is the Execu ve Chairman. The key organogram of BOI is depicted below:

Exhibit 1.1
Key Organiza on Structure of BOI

Derived from Investment Board Act

i Federa on of Bangladesh Chamber of Commerce & Industries (FBCCI) ii Bangladesh Chamber of Industries (BCI)

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b. Objec ves of BOI


Broadly, the objec ve of BOI is to encourage and promote investment in the private sector both from domes c and overseas sources and to provide necessary facili es and assistance in the establishment of industrial setup with a view to contribu ng to the socio-economic development of Bangladesh.

3.2 Functions & Services


a. Func ons of BOI
Broadly, BOI is responsible for facilita ng private investment in the country. Its func ons are : i. Providing all kinds of facili es in the ma er of investment of local and foreign capital for the purpose of rapid industrializa on in the private sector.
BOI Func ons are broadly categorized into three: 1. Investment promo on 2. Investment facilita on and 3. Policy advocacy

ii. Implementa on of the government policy rela ng to the investment of capital in industries in the private sector. iii. Prepara on of investment schedule in rela on to industries in the private sector and its implementa on. iv. Prepara on of area-schedule for establishment of industries in the private sector and determina on of special facili es for such areas. v. Approval and Registra on of all industrial projects in the private sector involving local and foreign capital.

vi. Iden ca on of investment sectors and facilita on of investment in industries in the private sector and giving wide publicity thereof abroad. vii. Inven on of specic devices for the purpose of promo on of investment in industries in the private sector and their implementa on. viii. Crea on of infrastructural facili es for industries in the private sector. 70
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w w w. b o i . g o v. b d ix. Determina on of terms and condi ons for employment of foreign ocers, experts and other employees necessary for industries in the private sector. x. Prepara on of policies rela ng to transfer of technology and phase-wise local produc on in the private sector and their implementa on. xi. Providing necessary assistance for rehabilita on of sickly industries in the private sector. xii. Financing and providing of assistance in the nancing of important new industries in the private sector. xiii. Adop on of necessary measures for crea on of capital for investment in industries in the private sector. xiv. Collec on, compila on, analysis and dissemina on of all kinds of industrial data and establishment of data-bank for that purpose. In addi on, BOI has been entrusted with authority to give approval to foreign commercial oces, provides secretarial services to PICOM.

b. Services Available from BOI


To summarize, BOI services available for the investors could be categorized in three stages. Stage 1: Pre-investment Informa on and Counseling At this stage, BOI provides all sorts of informa on required by an investor to undertake ini al investment move. Professional Investment & Business Counselors provide cordial assistance upon visit to the BOI oce, over phone, by email & fax and express mailing. It also assists in ge ng BOI registra on. Stage 2: Special Welcome Service to Foreign Investors BOI has Welcome Service Desk at Hazrat Shahjalal Interna onal Airport, Dhaka. It assists in obtaining necessary immigra on and Visa on Arrival / Landing Permit, hotel accommoda on. It also provides necessary courtesy services and rst hand investment counseling at the airport.

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w w w. b o i . g o v. b d Stage 3: Investment Implementa on and Commercial Opera on Once the investor decides to invest and forms a company, BOI provides following specic facili es and comprehensive services: a. Industrial registra on b. Industrial Plot (if available)/ in any designated industrial area other than BSCIC & BEPZA c. U lity Connec ons d. Terms and Condi ons of Foreign Loan, Suppliers' Credit, deferred payment, PAYE Scheme, etc. e. Import of Machinery and Raw Materials f. Work Permit g. Remi ance of Royalty, Technical Know-How and Technical Assistance Fees h. Miscellaneous

3.3 Procedural Mapping: First Contacts


To avail the facili es and services provided by BOI to the investors, approaching the right Service Desk brings eciency and economy in the process and interac on. Following Guide Table shows a summary of such desks by func ons / services (for details please visit www.boi.gov.bd):

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3.4 BOI Partnership with the Private Sector


a. Advocacy for Private Sector Development
BOI is a key government agency for policy advocacy and facilita on for private sector. It maintains a strong rela onship with the private sector business chambers, industry associa ons, professional development bodies, economic research ini a ves, independent think tanks, etc. The 18-Member Board of BOI is also represented by two private sector chambers namely FBCCI and BCI. Besides, BOI also engages private sector in all the policy making and implementa on ini a ves and in all its conferences, seminars, symposia and workshops at home and overseas.

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Business
Setup Roadmap p p

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4.1 Business Setup at a Glance


Implemen ng a private sector industrial project in Bangladesh either local, joint venture or 100% foreign follows a rather simplied process. The en re process could be divided into 5 (ve) major steps as presented in the following diagram. BOI supports are available in Step 1 through 4.

Exhibit 1.1
Major Steps to Set up a Plant in Bangladesh & BOI Assistance

4.2 Info Searching


Once an investor intends to do business in Bangladesh, the rst thing is to have relevant, sucient and reliable informa on on the investment and business climate, opportuni es, compe ve strengths, industry structure etc. of the country. This could be collected from a number of agencies like: BOI : The most direct, relevant, reliable and state-of-the-art informa on source in the Government.

GOB Agencies Ministries : Other sources of the Government of Bangladesh like trade & investment related oces.
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Exhibit 1.2
Business Setup Road Map

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w w w. b o i . g o v. b d Missions : Direct queries to the Bangladesh Diploma c & Trade Missions in the mother country of the investor would also result in reliable informa on. Diploma c Mission of the intending host country could also be a dependable source of informa on (For details, pls. visit www.businesslaws.boi.gov.bd and click on Links for (1) Foreign Missions in Bangladesh and (2) Bangladesh Missions Abroad). : Business Chambers can provide relevant informa on on investment. These include FBCCI , FICCI , ICC , DCCI , MCCI , BCI, CCCI and other regional chambers. Joint Business Councils and Chambers between the countries (For details, pls. visit www.businesslaws.boi.gov.bd and click on Links for Trade Bodies of Bangladesh). : Business associa ons of the country could also provide sector-pecic informa on related to the respec ve industry (For details, pls. visit www.businesslaws.boi.gov.bd and click on Links for Trade Associa ons of Bangladesh). : UN bodies like World Bank, UNCTAD, UNDP, WTO, IFC, MIGA, Foreign Investment Advisory Service (FIAS), etc. and other interna onal organiza ons could be reliable sources. : Independent business consul ng rms and consultants provide professional services and assistance (For details, pls. visit www.businesslaws.boi.gov.bd and click on Links for CA Ins tutes and Law Firms). : A number of independent websites on Bangladesh hosted in dierent loca ons of the world could be visited. The keywords like Bangladesh Investment, Bangladesh Business, Bangladesh Prole, FDI Bangladesh etc. would provide numerous results. To have more results, please search in dierent search engines like Google, Yahoo, Bing, etc. BOI ocial website is www.boi.gov.bd while the ocial website of Government of Bangladesh is www.bangladesh.gov.bd.

Chambers

Associa ons

Interna onal

Consultants

Websites

i Federa on of Bangladesh Chamber of Commerce & Industries ii Foreign Investments Chamber of Commerce & Industries iii Interna onal Chamber & Commerce iv Dhaka Chamber of Commerce & Industries v Metropolitan Chamber of Commerce & Industries vi Bangladesh Chamber Industries vii Chi agong Chamber of Commerce & Industries

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4.3 Physical Verification


Upon analysis of the collected informa on and ini al decision to move forward, the investor requires to visit Bangladesh to have physical verica on. He could either visit independently or ask BOI to arrange the visit. However, to make the visit more meaningful and eec ve, BOI recommends the investor to contact and avail BOI Welcome Service at Hazrat Shahjalal Interna onal Airport, Dhaka.

a. Immigra on Procedures
Business travelers may request Bangladesh Missions Abroad for visas for a specied dura on and mul ple entries. Bangladesh issues appropriate categories of visas to business persons to conduct feasibili es, do business and make investment and also work in the private sector industries. Period of visa may vary from 1 month to ve years with entry-restric ons depending on applica ons. Landing Permit (LP) / Visa on Arrival (VOA) The foreign investors and businesspersons could avail LP/VOA from Hazrat Shahjalal Interna onal Airport for a maximum of 30 days under the following condi ons: The foreign investors are iden ed on the basis of cer ca on from Board of Investment (BOI). Ocials from the BOI are on duty round-the-clock to facilitate cer ca on of the relevant documents to get VOAs / LPs. The foreign business persons who are directly associated with import of Bangladesh products are iden ed on the basis of the cer cate by the relevant associa ons of export-oriented commercial/industrial organiza ons or the FBCCI, BGMEA & BKMEA. The cer cate shall include Tax Iden ca on Number (TIN) of the respec ve local commercial/industrial organiza ons. The condi ons of issuing LP/VOA include following: i. The period of LP/VOA can not be extended ii. The LP/VOA applicant shall have endorsement of US$500 in the passport / in cash iii. The LP/VOA Fee will be determined on Reciprocity Policy with the respec ve countries iv. The applicant shall have a Return Air Ticket v. The applicant shall u lize the same port for entry and departure. Also please contact Bangladesh mission in your country for further details. 80
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b. BOI Counseling
On arrival in Bangladesh, investors could avail in-depth BOI counseling. Professional Investment and Business Counselors provide cordial assistance through over-the Desk-Mee ng at BOI oce, a ending phone, by email and fax and express mail.

4.4 Getting Structured


a. Selec ng a Business structure
To know the appropriate procedures for doing business in Bangladesh, it is important to select the type of business opera on. These could either be: - Establishing Industrial Projects/Factories/Plants etc. - Opera ng as a Branch or Liaison or Representa ve Oce.

b. Incorpora ng a Company
Various Types of Company: Business in Bangladesh may be carried on by a company formed and incorporated locally or by a company incorporated abroad but registered in Bangladesh. The incorpora on or registra on is done by the Registrar of Joint Stock Companies and Firms (RJSC&F), under the provisions of the Companies Act 1994. Companies could be classied in following categories: 1. Limited Companies: a. Company Limited by Shares i. Public Limited Company and ii. Private Limited Company b. Company Limited by Guarantees. 2. Unlimited Companies Unlimited companies and companies limited by guarantees may or may not have share capital.

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w w w. b o i . g o v. b d Private Limited Company: A private limited company is a business en ty that a. restricts the rights to transfer the shares b. limits the number of its members to minimum 2 and maximum 50 excluding the persons employed in the company c. prohibits any invita on to the public to subscribe for the shares or debentures of the company and d. en tles to commence business from the date of its incorpora on. Public Limited Company: On the other hand, a public limited company: a. may issue invita on to the members of the public to subscribe the shares and debentures of the company through a prospectus which complies with the requirements of the Companies' Act 1994 and the Securi es and Exchange Commission Act 1993 as amended from me to me b. has minimum 7 members, but there is no maximum limit c. has at least 3 Directors and d. a private company may be converted into a public company. Incorpora on Op ons for Foreign Investor: Incorpora on op ons to a foreign investor include: a. b. c. d. e. Se ng up a 100% foreign-owned company in Bangladesh Se ng up a Joint Venture with Bangladeshi company / investor Establishing the Companys Place of Business in Bangladesh Se ng up a branch or a subsidiary of a foreign company in Bangladesh Se ng up a Bangladeshi Company or par cipate in a Bangladeshi Company already formed.

Company Forma on Procedure: To register a company with the Registrar of Joint Stock Companies and Firms (RJSC&F), promoters have to undertake ac vi es in following steps:

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w w w. b o i . g o v. b d Name Clearance This is a pre-requisite for registra on of a new company (other than Foreign Company and Partnership Firms) or a society or a trade organiza on. Promoters of a new en ty (company, society or trade organiza on) apply for, and RJSC&F provides name clearance for one of the proposed names upon sa sfac on that it does not closely match or resembles with any of the already taken names (registered, booked or under the process of registra on of the same en ty type) Documents Required A Name Clearance (NC) Applica on Registra on Promoters of a new en ty apply for, and RJSC&F issues a cer cate of incorpora on, for a new en ty upon sa sfac on that the applica on conforms to the provisions of the applicable act and that requisite fees are paid. How to submit RJSC&F Computerized Applica on facilitates online submission of applica on/returns (through internet). If a RJSC&F client does not have access to internet (web) s/he may submit applica ons/returns of the following two(2) ways: i. ii. Using kiosks facility at RJSC&F (also an Online Submission) or Manual Submission at RJSC&F counter

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Documents Cons tu ng a Registra on Applica on

PRIVATE COMPANY (Companies Act, 1994)


a. b. c. d. e. f. g. h. Memorandum & Articles of Association, original + 2 copies Filled in Form I: Declaration on Registration of Company [Section 25]. Filled in Form VI: Notice of Situation of Registered Office and of Any Change therein [Section 77]. Filled in Form IX: Consent of Director to act [Section 92]. Filled in Form X: List of Persons Consenting to be Directors [Section 92] Filled in Form XII: Particulars of the Directors, Manager and Managing Agents and of any change therein [Section 115] Evidence of Name Clearance. Special Adhesive Stamps and Treasury Challan from Bangladesh Bank to Treasury (photocopy) of Collecting the Stamps

PUBLIC COMPANY (Companies Act, 1994) a. b. c. d. e. f. g. h. i. j. Memorandum & Articles of Association, original + 2 copies Filled in Form I: Declaration on Registration of Company [Section 25]. Filled in Form VI: Notice of situation of Registered Office and of any change therein [Section 77]. Filled in Form IX: Consents of Directors to Act [Section 92]. Filled in Form X: List of Persons Consenting to be Directors [Section 92]. Filled in Form XII: Particulars of the Directors, Manager and Managing Agents and of any Change therein [Section 115]. Filled in Form XIV: Declaration before Commencing Business in case of Company Filing Statement in lieu of Prospectus [Section 150] Filled in Form XI (if necessary): Agreement to Take Qualification Shares in Proposed Company [Section 92]. Evidence of Name Clearance Special Adhesive Stamps and Treasury Challan from Bangladesh Bank to Treasury (photocopy) of Collecting the Stamps

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FOREIGN COMPANY (Companies Act, 1994) a. Filled in Form XXXVI - Charter or Statutes or Memorandum and Articles of the Company or Other Instrument Constituting or Defining the Constitution of the Company. Filled in Form XXXVII Notice of the Address of the Registered or Principal Office of the Company. Filled in Form XXXVIII - List of Directors and Managers [Section 379]. Filled in Form XXXIX Return of Persons Authorized to Accept Service [Section 379]. Filled in form XLII: Notice of Situation of the Principal Place of Business in Bangladesh or of any Change therein [Section 379 (I)]. Encashment Certificate Obtained From any Scheduled Bank. Permission from Board of Investment of Bangladesh. Memorandum and Articles of Association, original + 2 copies. Filled in Form I: Declaration on Registration of Company [Section 25]. Filled in Form VI: Notice of Situation of Registered Office and of any Change therein [Section 77]. Filled in Form IX: Consent of Director to act [Section 92]. Filled in Form X: List of Persons Consenting to be Directors [Section 92]. Filled in Form XII: Particulars of the Directors, Manager and Managing Agents and of any change therein [Section 115]. Government License (Trade License from the Ministry of Commerce). Evidence of Name Clearance. Special adhesive stamps and Treasury Challan from Bangladesh Bank to Treasury (photocopy) of Collecting the Stamps.

b. c. d. e. f. g. a. b. c. d. e. f. g. h. i.

TRADE ORGANIZATION (Companies Act, 1994)

SOCIETY (Societies Registration Act, 1860) a. Memorandum of Association

b. Evidence of Name Clearance. PARTNERSHIP FIRM (Partnership Act, 1932) a. b. Filled in FORM - I: Statement Containing the Particulars of the Firm for Registration.

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Upon complete submission of the above, registra on is given by the RJSCF. For the latest informa on, please contact the Registrar of the Joint Stock Companies & Firms or visit www.roc.gov.bd Establishing Place of Business In establishing a place of business of a foreign company, the company has to be registered with the Registrar of Joint Stock Companies as the place of business. Such registra on is required in respect of capital issue and obtaining clearance from the central bank i.e. Bangladesh Bank. Documentary requirements include Prescribed Applica on Form. Duly lled in, signed and stamped Copies of Charter, statutes or MOA and AOA or other similar instrument duly cer ed by Oath Commissioner or Notary Public and authen cated by Bangladesh Embassy in the respec ve country List of Company Directors and Secretary, and Complete address of the Registered or Principal Oce in the country of origin.

c. Opening of Branch or Liaison or Representa ve Oce:


To open or seek extension of Branch or Liaison or Representa ve Oce of a foreign company, the company has to submit in prescribed Applica on Form to Board of Investment along with following documents: Prescribed Applica on Form duly lled in, signed and stamped MOA and AOA of the Principal Company Cer cate of Incorpora on Name and Na onali es of the Directors/Promoters of the Principal Company Board Resolu on to open a Branch/Liaison/Representa ve Oce in Bangladesh Audited Accounts of the last nancial year Proposed organogram of the oce List of ac vi es of the proposed oce.

All papers/documents must be a ested by the Bangladesh Embassy/High Commission of the country of origin, Embassy/High Commission of the applicants country of origin or Apex Chamber of Commerce of the country of origin. For details, please contact Director (R&I-1, Commercial), BOI or visit www.boi.gov.bd.

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d. Securing Trade License


The Trade License has to be secured from the local government oce like City Corpora on or Municipality or Union Parishad, a local level administra ve en ty as applicable. More informa on on the procedures of Trade License could be viewed at www.dhakacity.org. Each and every individual and company doing business are required to obtain TIN cer cate from the concerned income tax oce.

4.5 Operational set up for Industries


a. Registra on with BOI
I. Joint venture and 100% foreign investment proposals in the private sector Entrepreneur/investors are advised to apply for registra on to BOI in order to avail of facili es and the ins tu onal support services provided by the Government Prescribed applica on form has to be collected from BOI Oce or downloaded from BOI website www.boi.gov.bd. Documents to be enclosed with the applica on are:

Applica on in prescribed Form duly lled in. - (two copies) Cer cate of incorpora on along with Memorandum & Ar cles of Associa on in case of Public / Private Limited Company. In case of Joint Venture Project (JVP), JVP Agreement duly signed in by both the par es.(two copies) iii. A ested copies of Deeds/Documents in support of project land (in case of own land, Purchase Deed and in case of lease / rental premises, Deed of Agreement). - (two copies) iv. If the total project cost exceeds Tk. 50 ( y) million, submit Project Prole. (two copies) v. Background of the Promoters in ocial le erhead pad describing a) Name, b) Permanent and Mailing Address, c) Posi on d) Na onality. - (two copies) vi. In case the project is nanced by loan, copy of relevant documents in support of loan. - (two copies) vii. Pay order / bank dra amoun ng required amount in favor of "EXECUTIVE CHAIRMAN AND MEMBER SECRETARY, BOARD OF INVESTMENT".
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A er receiving the applica on duly lled in, signed and with required documents enclosed, BOI reviews the applica on and, if found suitable, Registra on Cer cate is issued within 7 days. BOI registra on makes the industrial unit eligible for all the incen ves and facili es provided by the government. For details, please contact Director (R&I-1, Industry), BOI or visit www.boi.gov.bd.

II. Self nanced local investment proposals including industries sanc oned/ nanced by nancial ins tu ons or commercial banks. The entrepreneurs of such projects are to ll up a simple prescribed applica on form and submit to BOI for registra on. A er a rst hand scru ny of the informa on, BOI issues the registra on le er. Entrepreneur/investors are advised to apply for registra on to BOI in order to avail of facili es and the ins tu onal support services provided by the Government. Prescribed applica on form has to be collected from BOI Oce or downloaded from BOI website www.boi.gov.bd. Documents to be enclosed with the applica on are: Applica on in prescribed Form duly lled in. - (two copies) Cer cate of incorpora on along with Memorandum & Ar cles of Associa on in case of Public / Private Limited Company. In case of Partnership Project, Partnership Agreement duly signed in by both the par es - (two copies) A ested copies of Deeds/Documents in support of project land (in case of own land, Purchase Deed and in case of lease / rental premises, Deed of Agreement). - (two copies) If the total project cost exceeds Tk. 50 ( y) million, submit Project Prole.(two copies) Pay order / bank dra of the required amount in favor of "EXECUTIVE CHAIRMAN AND MEMBER SECRETARY, BOARD OF INVESTMENT". - A er receiving the applica on duly lled in, signed and with required documents enclosed, BOI reviews the applica on and, if found suitable, Registra on Cer cate is issued within 7 days. - BOI registra on makes the company eligible of the incen ves and facili es provided by the government. 88 For details, please contact Director (R&I-2), BOI or visit www.boi.gov.bd.
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III. Permission for se ng up industrial units with the public sector corpora ons Any individual entrepreneur either local or foreign can set up an industry with Public Sector Corpora on. Such joint venture is required to be registered with the BOI if the private sectors contribu on is more than 50% of the project cost and in such a case it is treated as private sector project. Any public sector which makes contribu on out of their own fund needs approval of the Ministry concerned. If the contribu on of the corpora on is 50% or above, it is treated as a public sector project. The public sector project is processed by the Ministry concerned for approval of the Planning Commission/Execu ve Commi ee of Na onal Economic Council (ECNEC), the highest level economic policy framing agency of the government.

b. Obtaining Industrial Plot


Entrepreneurs requiring industrial plot for se ng up of industry in any industrial areas/estates apart from BEPZA and BSCIC, may apply to BOI with a view to jus fying actual requirement: Men on the loca on and size of the plot Copies of sanc on / registra on le er and Industrial Layout Plan.

A er receiving the applica on, BOI provides assistance to get the industrial plot. Most of the industrial areas/ estates are owned / controlled by city development authori es in three divisional headquarters, RAJUK in Dhaka, CDA in Chi agong and KDA in Khulna. Besides, a few industrial estates are owned and controlled by some other government agencies namely (a) Public Works Department and (b) Na onal Housing Authority. BOI also recommends for acquisi on of private land required by the industrial units. In such cases, the entrepreneurs are required to submit relevant papers and informa on, in connec on with the land to be acquired by the Deputy Commissioners (DC) concerned.

c. Approval of Foreign Loan, Suppliers' Credit, PAYE Scheme etc.:


Entrepreneurs in the private industrial sector arranging foreign credit in the form of loan, suppliers' credit, PAYE scheme etc. are required to obtain prior approval from the Scru ny Commi ee headed by the Governor of Bangladesh Bank. However, all
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necessary processes are completed by an Inter-Ministerial Commi ee with representa ves of Prime Ministers Oce, Ministry of Finance and Ministry of Industries. Representa ves from Bangladesh Bank provide technical assistance to the applicants.

d. Obtaining U lity Connec ons


i. U lity connec ons and respec ve providers are: Electricity : Bangladesh Power Development Board (BPDB), Dhaka Power Distribu on Company (DPDC), Dhaka Electric Supply Company Limited (DESCO) and Rural Electrica on Board (REB). Titas Gas Transmission & Distribu on Company Ltd. (TGTDCL), Bakhrabad Gas System Ltd. (BGSL) and Jalalabad Gas Transmission & Distribu on System Ltd. (JGTDSL) Bangladesh Telecommunica ons Company (BTCL) and PSTN operators for Land Phone, and other companies for cellular phone services. WASA or self generated. WASA or self serviced. WASA.

ii. Gas

iii. Telephone

iv. Water v. Sewerage vi. Tubewell Licensing

: : :

Entrepreneurs are encouraged to contact BOI One Stop Service for obtaining u lity services BOI One Stop Service (OSS) has been suciently strengthened with placement of Senior Ocials from the u lity service providers. Investors may apply in prescribed forms for specic connec vity to BOI One Stop Service (OSS). The OSS arranges necessary u lity services from the respec ve providers within the s pulated period.

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e. Import of Raw Materials


Prescribed applica on form for Import Registra on Cer cate (IRC) should be collected from BOI or Chief Controller of Imports & Exports (CCI&E). A er receiving the applica on duly lled in, signed and required documents enclosed, BOI reviews the applica on, arranges necessary inspec on of the plant. BOI xes the import en tlement and recommend to CCI&E for issuance of IRC. CCI&E issues IRC in favor of the industrial enterprises. Items included in the banned list cannot be imported unless specied otherwise. In case of import of raw and packaging materials for pharmaceu cal industry, the Drug Administra on Directorate under the Ministry of Health and Family Welfare prepares the Block list on half-yearly basis. BOI provides necessary assistance rela ng to import of their respec ve jurisdic ons.

f. Work Permit
Work permit for foreign na onals is required for employment in Bangladesh. Private sector industrial enterprises (outside EPZs) & branch/liaison/ representa ve oces of foreign origin and also local commercial enterprises desiring to employ foreign na onals are required to apply in the prescribed form obtainable from BOI. For expatriate employment, the guidelines are as follows: Na onals of the countries recognized by Bangladesh are considered for employment. Employment of expatriate personnel are considered only in industrial establishments and commercial enterprises duly registered/permi ed by the BOI. Employment of foreign na onals is normally considered for the job for which local experts / technicians are not available and persons below 18 years of age are not eligible for employment. Decision of the Board of Directors of the company concerned for new employment/ extension has to be furnished. Ini ally employment of any foreign na onal is considered for a term of two years which may be extended on the basis of merit of the case. 91

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w w w. b o i . g o v. b d Necessary security clearance has to be obtained from the Ministry of Home Aairs a er issuance of Work Permit and the dura on of visa would be extended upto the period of Work Permit. For obtaining new Work Permit, the expatriate investors and employees must arrive in Bangladesh with PI, E and E1 types visa respec vely obtainable from Bangladesh Diploma c Mission concerned abroad. Recommenda on from BOI is required for obtaining PI, E and E1 type visa. Applica on for Expatriate Work Permit must be submi ed to BOI within 15 ( een) days from the date of arrival. Number of the expatriate employees in an industrial enterprise should not exceed 1:20 (foreign: local) ra o at any me during regular produc on and the ra o for commercial oces be 1:5 (foreign: local). Prescribed applica on form need to be collected from BOI. The applica on form could also be downloaded from BOI website www.boi.gov.bd.

g. Registering with Factories Act


In order to regulate working condi ons and to ensure safety in the factory, any manufacturing company employing ten or more workers is required to be registered under the Factories Act, 1965, along with the oce of the Chief Inspector of Factories and Establishment (CIF&E). The act is primarily to regulate working condi ons and to ensure safety in the factory. Prescribed Applica on Form has to be collected from the oce of the Chief Inspector of Factories and Establishment, lled in and submi ed with requirements. The CIF&E oce issues registra on within the s pulated period.

h. Registering with Environmental Legisla on


Environment Conserva on Act 1995 made it mandatory to all industrial projects to obtain Environmental Clearance Cer cate from the Department of Environment.

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The main criteria for obtaining clearance are set out in the Environment Conserva on Rules 1997 which was established under the Act. Dierent levels of assessment are required depending on the par cular industry concerned. Investors may apply in prescribed form for Environmental Clearance Cer cate to BOI One Stop Service (OSS) enclosing required documents. The OSS facilitates necessary clearance from the DOE.

i. Remi ance of Royalty, Technical Know-How and Technical Assistance Fees


Prior permission of BOI is not required for entering into agreements for the purpose of royalty, technical know-how and technical assistance if the total fees and other expenses connected with technology transfer are within the following prescribed limits: - For new projects, such fees and other expenses should not exceed an aggregate limit of 6 % of C&F value of imported machinery. - Recurrent annual fees for royal es and other expenses such as fees for technical know-how, technical assistance, opera onal services, marke ng of products etc. should not exceed an aggregate limit of 6% of the previous year's sales of the rms as declared in the tax return. Proposals which are not covered under the prescribed limits require prior approval of BOI for which applica on has to be submi ed along with necessary documents and copy of the relevant dra agreement. Prior approval from BOI is required for remi ng any technical fees. Industrial concern desiring to remit technical fees must be registered with BOI. Applica on in prescribed form has to be submi ed to BOI along with necessary documents. Sample applica on form can also be downloaded from : BOI website www.boi.gov.bd

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4.6 Commercial Operation


A er comple on of the setup, the plant goes into trial produc on. Successful trial produc on leads to commercial produc on. The investor is required to submit half-yearly performance report to BOI on produc on and employment in the project. Any change required in the registra on le er needs permission of BOI.

4.7 Human Resources & Employment


Bangladesh oers a substan al manpower reserve-skilled, unskilled, educated and otherwise. There is a large number of rela vely low cost labor in the country. Many of them have a working knowledge of English and possess the basic skills required by industries. Of late, there is an increasing supply of professionals, technologists and other middle and low-level skilled workers. They receive technical training from universi es, colleges, technical training centers, polytechnic ins tu ons etc. The expenditure incurred by an employer to train his employees is exempted from income tax. Laws related to consolidate and amend the ma er rela ng to employment of labor, rela on between employees and employers, xa on of minimum rate of wages, payment of wages, compensa on for the workers in industrial hazards, forma on of trade union, occurrence of industrial dispute and dispute se lement mechanism, labor health, security, safety, environment of working place, proba on and other labor related ma ers and are incorporated with The Bangladesh Labour Act, 2006. This law has replaced the previously used laws for labor related issues.

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4.8 Foreign Exchange Transaction


Bangladesh Bank (BB) is the central Bank of the country and is responsible for issuing Bangladeshi currency and maintaining its value. BB administers the foreign exchange regula ons. It has been con nuing to liberalize foreign exchange regula ons in conformity with the governments reform agenda in macroeconomic policies with a view to crea ng an environment conducive to investment, growth and produc vity. Instruc ons rela ng to foreign exchange transac ons by a foreign investor are available in the Guidelines for Foreign Exchange Transac ons (31st May, 2009), Volume-I and Volume-II, and Circulars issued by Bangladesh Bank from me to me. For detailed instruc ons, investors may consult the relevant guidelines/circulars. Salient features of some of those instruc ons are given below.

a. Conver bility of Bangladesh Taka


The Taka is fully conver ble for current account transac ons. All current transac ons including trade and investment & investment related transac ons may be conducted by individuals / rms through authorized dealer (AD) banks without prior permission of BB.

b. Opening of Bank Account by a Foreign Investor


A non-resident may open Non-Resident Taka Account (NRTA) in the name of the proposed company/enterprise of foreign investors contempla ng to invest in Bangladesh without prior approval of Bangladesh Bank. Such accounts may be credited with inward remi ances received from abroad only. Upon Registra on/ Commencement of the business, a new account in the name of the company may be opened following usual procedure. If, for any reason, the proposed investment/incorpora on does not take place the balance of the account, a er mee ng the required expenses, may be allowed to be repatriated without prior approval from Bangladesh Bank. However, account opened previously should be closed immediately and balances lying therein shall be transferred to the new Foreign Currency (FC) accounts and Non-resident Foreign Currency Deposit (NFCD) accounts with foreign exchange brought in from outside. Balances of these accounts are freely transferable abroad. A foreign investor may also open and operate a Taka account freely with any bank while he is a resident. A non-resident can open a Non-Resident Investor's Taka Account (NITA) with any AD bank in Bangladesh with foreign exchange remi ed from abroad through normal banking channel or by transfer of funds from the non-resident investor's foreign currency account for por olio investment in Bangladesh.
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c. Bringing in Cash from Abroad by a Foreign Investor


A foreigner can bring in foreign exchange in any form including cash without limit. But for amounts in excess of US$ 5,000 a declara on on FMJ form is required to be made to the Customs Authori es at the me of entry. Amounts brought in may also be taken out freely, subject to produc on of the declara on where applicable.

d. Transfer of Capital and Capital Gains


Foreign Investors are free to make investment in Bangladesh in industrial enterprises excep ng a few reserved sectors. An industrial en ty may be set up in collabora on with local investors or may even be wholly owned by the foreign investors. The repatria on of sale proceeds (including capital gains) of shares of companies listed in a Stock Exchange in Bangladesh may be made through an AD if such investment takes place through NITA opera on. Remi ance of sale proceeds of shares of companies not listed in a Stock Exchange requires prior Bangladesh Bank (BB) permission, which is accorded to for amounts not exceeding the net asset value of the shares. Transfer of shares and securi es from one non-resident to another non-resident requires no prior BB approval.

e. Remi ance of Proceeds from Liquida on of Industrial Undertaking


Remi ance of proceeds arising out of liquida on of industrial undertaking requires prior BB approval.

f. Transfer of Prot and Dividend Accruing to a Foreign Investor


i. Prots: Branches of foreign rms/companies including foreign banks, insurance companies, nancial ins tu ons are free to remit their post-tax prots to their head oces through ADs without prior approval of Bangladesh Bank. ii. Dividends: ADs are allowed to remit dividends (both nal & interim) to the non-resident share holders on receipt of the applica on in the prescribed form duly cer ed by the auditors.

g. Repatria on of Savings, Re rement Benets & Salary of Foreigners Employed in Bangladesh


Foreigners employed in Bangladesh with the approval of the Government may remit 50% of salary/net income, actual savings and admissible re rement benets through an AD. Net salary of foreign na onals payable for the period of leave 96
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admissible to them as per their service contract duly approved by the Government will be remi able.

h. Loans & Overdra s


a) Bangladesh Bank has accorded general authoriza on to banks for extending to foreign owned/ controlled industrial and trading rms/companies opera ng in Bangladesh Taka working capital loans necessary for their opera on in due course of business, according to prevailing credit norms and on the basis of normal customer rela onship. b) The term loans in taka for capacity expansion/BMRE of foreign owned/controlled industrial rms may be extended/renewed by banks without prior Bangladesh Bank approval provided that: i) the term loan in taka does not exceed, as percentage of total term borrowing, the percentages of equity of the rm/company held by Bangladesh na onals and rms/companies not owned or controlled by foreigners, and ii) total debt of the rm/company does not exceed the 50 : 50 debt equity ra o.

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i. Borrowing from Abroad


Borrowing from abroad in foreign currency requires prior BOI approval. Filled in prescribed applica on for approval of foreign borrowings should be submi ed to BOI with analyses and suppor ng documents. In examining the approval request for foreign borrowing proposals, the Board of Investment shall a ach priority mainly to medium and longer term borrowing. Scru nized fully proposals will be submi ed to the commi ee headed by Governor, Bangladesh Bank, for approval. Repayment of principal and interest of approved foreign currency borrowing may be made through Authorized Dealer (AD) bank as per agreed terms. 100% foreign owned and joint venture units in EPZs may, however, obtain foreign currency loans from overseas banks and nancial ins tu ons without prior BOI or BB approval. Joint ventures in EPZ cannot, however, create charge on their assets favoring non-residents.

j. Export Encouragement Measures


i. Annual foreign exchange reten on quota for exporter has been rexed at 50% of FOB export earnings.

ii. Reten on quota for high import content exporters is 10% of FOB export earnings. iii. Exporters are allowed to keep foreign exchange reten on quota in foreign currency accounts in a bank in Bangladesh dealing with foreign currency. iv. Foreign exchange out of the reten on quota may be maintained in FC accounts with the concerned ADs in US Dollar, Pound Sterling, Euro or Japanese Yen upon realiza on of the export proceeds. Balance in these accounts may be used by exporters for bonade business purposes, such as business visits abroad, par cipa on in export fairs and seminars, establishment and maintenance of oce abroad, import of raw materials, machinery and spares etc. without prior approval of Bangladesh Bank.

4.9. Public Private Partnership (PPP)


1. CONCEPT OF PPP a. Public-private partnership (PPP) projects normally cover public good provisions characterised by indivisibility and non-excludability, natural monopoly characterised by declining marginal cost (and associated average cost), and lumpy investment characterised by long gesta on period.

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b. PPP is a win-win rela onship between the government and various private sector players for the purpose of delivering a service by sharing the risks and rewards of the venture under a contractual obliga on. c. A project under PPP may include all stages of lifecycle star ng from idea on, design, construc on of infrastructure, where necessary, and up to delivery of services and maintenance. d. In the PPP projects, the private sector is the ac ve party who undertakes ac vi es, depending on the model, star ng from the stage of concep on and up to the stage of opera on and maintenance, and e. In most of the cases, PPP allows private sector into areas of business, where the government holds control over infrastructure or service before such partnership. The public sector retains a signicant role in the partnership, either as the sole purchaser of the services provided or as the main enabler of the project. The private party commonly provides the detailed design, construc on, opera on and nancing for the PPP project, and is paid according to the performance. 2. APPLICABILITY OF PPP a. Applicability of PPP: Any project that generates public goods and services may be considered under the public-private partnership, if at least one of the following circumstances exist for the project: i. The implementa on of the project is dicult with the nancial resources or exper se of the government alone. ii. Private investment would increase the quality or level of service or reduce the me to implement compared to what the government could accomplish on its own. iii. There is an opportunity for compe on, where possible, among prospec ve private investors, which may reduce the cost of providing a public service. iv. Private investment in public service provides an opportunity for innova on and v. There are no regulatory or legisla ve restric ons in taking private investment in the delivery of public service. b. Non-applicability of PPP: The following ac on/ac vi es will not fall under the PPP purview: i. Outsourcing of a simple func on of a public service. ii. Crea ng a government owned enterprise (State Owned Company) and iii. Borrowing by government from the private sector.

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3. SECTORAL COVERAGE OF PPP Any project fullling one or more of the above-men oned applicability criteria in any economic sector, according to the Interna onal Standard Industrial Classica on of All Economic Ac vi es, Rev.4, specied by the United Na ons, is eligible for PPP. However, the priority sectors are: (a) explora on, produc on, transmission, and distribu on of oil, gas, coal and other mineral resources (ISIC 05-09); (b) oil renery, and produc on of LPG (ISIC 19); (c) produc on of fer lizer (ISIC 20); (d) power genera on, transmission, distribu on and services (ISIC 35); (e) airports, terminals and related avia on facili es (ISIC 42 and 51); (f) water supply and distribu on, sewerage and drainage, euent treatment plants (ISIC 36-39); (g) land reclama on, dredging of rivers, canals, wetlands, lakes and other related facili es (ISIC 42); (h) highways and expressways including mass-transit, bridges, tunnels, yovers, interchanges, city roads, bus terminals, commercial car parking, etc. (ISIC 42 and 49); (i) port development (sea, river and land) including inland container terminals, inland container depot and other services (ISIC 52); (j) deep sea port development (ISIC 52); (k) telecommunica on systems, networks and services including informa on and communica on technology (ICT) (ISIC 60-63); (l) environmental, industrial and solid waste management projects, (ISIC 38-39) railway systems, rolling stock, equipment and facili es (ISIC 49); (m) tourism industry (ISIC 79);

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(n) economic zone, industrial estates and parks, city and property development, including services to support commercial and non-commercial ac vi es (ISIC 81-82); (o) social infrastructure e.g. health, educa on, human resource development, research and development, and cultural facili es, (ISIC 85-88); (p) e-service delivery to ci zens (ISIC 85); (q) Poverty Allevia on Projects (ISIC 84): i. ii. iii. iv. v. vi. Pourashava and village water supply (ISIC 36) Remote Area Power Supply Systems (RAPSS), Rural gas supply (ISIC 35) Rural Internet projects (ISIC 61) River passenger terminals/landing sta ons (ISIC 52) Rural health services and hospital (ISIC 86) Irriga on and other agricultural services (ISIC 36)

(r) other urban, municipal and rural projects that the Government views as priority areas for development.

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COSTS OF DOING
BUSINESS IN BANGLADESH

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5.1 Typical Costs of Doing Business


The cost of doing business in Bangladesh is signicantly compe ve in comparison to other economies in the region. A summary of relevant costs of doing business is given below for the prospec ve investors.

a. Arrival and Ge ng Started

Business Startup Costs: Arrival

70.00

Please see the Annex

Business Startup Costs: Structuring Registrar of Joint Stock Companies & Firms (RJSC&F) Fees To apply for Name Clearance, Registra on, Cer ed Copies and to submit returns, fees and stamps are to be provided as under: Fees of Name Clearance i. For NC clearance: @ BDT 100.00 for each of the proposed names. ii. For me extension: @ BDT 100.00 for each me extension applica on. Stamps and Fees of Registra on PRIVATE COMPANY (Companies Act, 1994)
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w w w. b o i . g o v. b d Stamps i. For axing on the Memorandum of Associa on: BDT 500.00 ii. for axing on the Ar cles of Associa on: For Authorized Capital Up to 10,00,000.00 > 10,00,000.00 up to 3,00,00,000.00 > 3,00,00,000.00 Stamp (BDT) 2,000.00 4,000.00 10,000.00

Registra on fee i. For ling 6 documents (5 lled in forms plus 1 memorandum & ar cles of associa on, @ BDT 200.00 per document): BDT 1,200.00 ii. For the authorized share capital: Authorized Capital (BDT) Up to 20,000.00 Addi onal for every 10,000.00 or part a er rst 20,000.00 up to 50,000.00 Addi onal for every 10,000.00 or part a er rst 50,000.00 up to 10,00,000.00 Addi onal for every 10,000.00 or part a er rst 10,00,000.00 up to 50,00,000.00 Addi onal for every 1,00,000.00 or part a er rst 50,00,000.00 PUBLIC COMPANY (Companies Act, 1994) Stamps i. For axing on the Memorandum of Associa on: BDT 500.00 ii. For axing on the Ar cles of Associa on: For Authorized Capital (BDT) Up to 10,00,000.00 > 10,00,000.00 up to 3,00,00,000.00 > 3,00,00,000.00 i. Stamp (BDT) 2,000.00 4,000.00 10,000.00 Fee (BDT) 360.00 180.00 45.00 24.00 45.00

Registra on fee For ling 8 or 9 documents (7 or 8 lled in forms plus 1 memorandum & ar cles of associa on, @ BDT 200.00 per document): BDT 1,600.00 or 1,800.00 ii. For the authorized share capital: Authorized Capital (BDT) Up to 20,000.00 Addi onal for every 10,000.00 or part a er rst 20,000.00 up to 50,000.00 Addi onal for every 10,000.00 or part a er rst 50,000.00 up to 10,00,000.00 Addi onal for every 10,000.00 or part a er rst 10,00,000.00 up to 50,00,000.00 Addi onal for every 1,00,000.00 or part a er rst 50,00,000.00 104 360.00 180.00 45.00 24.00 45.00

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w w w. b o i . g o v. b d FOREIGN COMPANY (Companies Act, 1994) i. For ling 6 document (1 memorandum and ar cles of associa on @ BDT 200.00 and 5 other documents @ BDT 200.00 per document): BDT 1,200.00 TRADE ORGANIZATION (Companies Act, 1994) Stamps i. For axing on the Ar cles of Associa on: BDT 1,500.00 Registra on fee i. for ling 6 documents (5 lled in forms @ BDT 200.00 per document plus 1 memorandum & ar cles of associa on, @ BDT 200.00): BDT 1,200.00 ii. For the number of members of associa on: For up to 20: BDT 600.00 For >20 up to 100: BDT 1,500.00 For every 100 or part above the rst 100 (limited member) BDT 150.00 For unlimited members BDT 4500.00 SOCIETY (Socie es Registra on Act, 1860) i. Registra on Fee: ii. Registra on Filing Fee: PARTNERSHIP FIRM (Partnership Act, 1932) i. Registra on fee: Fees of Returns Filing COMPANIES (Private & Public) a. Returns Filing i. For ling any document within the schedule me: @ BDT 200.00 per document ii. Late fee for ling any document beyond the schedule me: @ BDT 2.00 per day not exceeding BDT 1,000.00 per document. b. Registra on of Mortgage, Debentures and Charges Secured Amount (BDT) upto 5,00,000.00 Addi onal for every 5,00,000.00 or part a er the rst 5,00,000.00 upto 50,00,000.00 Addi onal for every 5,00,000.00 or part a er the rst 50,00,000.00 FOREIGN COMPANY a. Returns Filing
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BDT. 250.00 BDT. 0.00

BDT. 10.00

Fee (BDT) 150.00 120.00 60.00

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w w w. b o i . g o v. b d i. For ling any document within the schedule me: @ BDT 200.00 per document ii. Late fee for ling any document beyond the schedule me: @ BDT 2.00 per day not exceeding BDT 1,000.00 per document. b. Registra on of Mortgage, Debentures and Charges Secured Amount (BDT) upto 5,00,000.00 Addi onal for every 5,00,000.00 or part a er the rst 5,00,000.00 upto 50,00,000.00 Addi onal for every 5,00,000.00 or part a er the rst 50,00,000.00 Fee (BDT) 200.00 120.00 30.00

TRADE ORGANIZATION a. Returns Filing i. For ling any document within the schedule me: BDT 200.00 per document ii. Late fee for ling any document beyond the schedule me: BDT 2.00 per day not exceeding BDT 1,000.00 per document b. Registra on of Mortgage, Debentures and Charges Secured Amount (BDT) upto 5,00,000.00 Addi onal for every 5,00,000.00 or part a er the rst 5,00,000.00 upto 50,00,000.00 Addi onal for every 5,00,000.00 or part a er the rst 50,00,000.00 SOCIETIES i. For ling any document: @ BDT 200.00 per document PARTNERSHIP FIRM i. For ling Form -2, 5 or 6: BDT 4.00 each Stamps and Fees of Issuance of Cer ed Copies Private Company, Public Company, Trade Organiza on and Foreign Company a. Non-judicial stamp i. For Memorandum of Associa on or part thereof: BDT 20.00 ii. For Ar cles of Associa on or part thereof: BDT 20.00 iii. For each of other document : BDT 20.00 b. Court fee (stamp) - per applica on per company: BDT 20.00 c. Fees i. For inspec on of records: BDT 100.00 ii. For copy of cer cate of incorpora on: BDT 100.00 iii. For copy of cer cate of commencement of business: BDT 100.00 Fee (BDT) 200.00 120.00 60.00

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w w w. b o i . g o v. b d iv. Copying of documents for each 100 words or part: @ BDT 5.00 subject to a minimum of BDT 100.00 v. Comparison of document each 100 words or part: @ BDT 5.00 subject to a minimum of BDT 100.00 of each document Society a. Iden ed by the applicable year For Inspec on of documents: BDT 1.50 For copy of Annual list of Managing Body: BDT 20.00 b. Iden ed by the eec ve date For copy of Address : BDT 20.00 For copy of Altera on of Name: BDT 20.00 For copy: BDT 0.50 for each 100 words or part thereof Partnership rm a. Iden ed by the eec ve date i. For Inspec on of documents: BDT 1.50 ii. For copy: BDT 0.50 for each 100 words or part thereof Fees of Winding Up i. For Private and Public Company: BDT 20.00 ii. For Trade Organiza on and Foreign Company: BDT 10.00

b. Industrial Land and Factory Building


Registered industrial projects are eligible to obtain land from the government. Price of land in most of the industrial estates/areas is rela vely lower than the market rate. These estates are developed with necessary infrastructure and u lity facili es such as electricity, gas, water, sewerage etc. Industrial plots are allo ed by BEPZA and BSCIC in industrial areas developed by them. Plots in other industrial estates/areas, owned by the government or owned/controlled by any local authority, are allo ed on the recommenda on of BOI. Quality construc on materials including civil, structural and architectural design and labor force are locally available in every part of the country. Moreover, interna onal construc on rms are also present in the country. Fully serviced Industrial plots and standard factory buildings are oered by Bangladesh Export Processing Zones Authority (BEPZA) as per rate stated below:

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Industrial Land & Factory Building Cost Heads Land in EPZs (30 years renewable lease) a. Dhaka, Chi agong, Comilla, Adamjee & Karnphuli b. Mongla, Ishwardi, U ara Standard Factory Building Rental a. EPZs: Dhaka, Chi agong, Comilla, Adamjee & Karnphuli b. EPZs: Mongla, Ishwardi, U ara c. Average Construc on Cost Sq.m/month Sq.m 72 1.25 5790-7238 86.98-108.73 Sq.m/month 145 2.75 Sq.m/year 70 1.00 Sq.m/year 154 2.20 Unit In Taka In US $

Source: Bangladesh Export Processing Zones Authority (BEPZA)

c. Business Setup
Following is a list of costs incurred in various kinds of registra on and license. Business Se ng Up Cost Cost Heads 1. BOI Registra on Registra on Fees Based on Project Cost Fee Project Cost upto Tk. 100,000,000 Project Cost upto Tk. 250,000,000 Project Cost upto Tk. 500,000,000 Project Cost upto Tk.1,000,000,000 Project Cost above Tk.1,000,000,000 2. Any changes in registra on le er 3. Work Permit For Private Sector (permission given by BOI) Work Permit Fee per person (new industry) for 2 years Work Permit Fee per person (Branch/Liaison Oce) for 2 years Extension Fee per person per year in Tk. Fee 5,000 10,000 25,000 50,000 100,000 1000 72 144 360 720 1440 15 In US$

10,000 10,000 5,000

144 144 72

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Directorate of Environment (DOE) Clearance/Renewal Project Cost in Tk. Upto Upto Upto Upto Upto Upto Above 500,000 1,000,000 5,000,000 10,000,000 200,000,000 500,000,000 500,000,000 Fees in Tk. Clearance 1,500 3,000 5,000 10,000 25,000 50,000 100,000 Renewal 375 750 1,250 2,500 6,250 12,500 25,000 Fees in US$ Clearance 21.43 42.86 71.43 142.86 357.14 714.29 1428.57 Renewal 5.35 10.71 17.86 35.71 89.29 178.57 357.14

d. U li es: Electricity, Gas, Water, Sewerage


Electricity: Bangladesh Power Development Board (BPDB) is the responsible agency for genera on, transmission and distribu on of electricity in Bangladesh. Power is generated in hydro, steam, gas turbine and diesel power plants. All the genera ng sta ons are interconnected through a na onal grid. The Dhaka Power Distribu on Company (DPDC) started opera on to maintain uninterrupted supply of electricity in the capital city. The industrial consump on rate of electricity varies from Tk. 3.43 to Tk. 7.12 per kW (US$ 0.05 to 0.10) depending on the size of the industries, load capacity and peak & o-peak hour consump on. However, cap ve power genera on is allowed for private sector enterprise. U lity Costs: Electricity Cost Heads Providers: (BPDB, DPDC, DESCO, REB) 1. BPDB, DESA&DESCO (I) Temporary Connec on a. Applica on Fee b. Connec vity Fee & Tari (II) Permanent Connec on a. Applica on Fee b. Security Deposit /KW load 220-440 c. Instruments, Transformers, Service Line Drawing, Bay Extension, Installa on, etc. (In DPDC, Item C except bay extension is xed at 1 -ht)
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in Tk.

In US$

250 3.57 As determined As determined 15-250 375-550-600 As per rate 5000-55,000 0.21-3.57 5.36-7.86-8.57 As per rate 71.4-785.71 109

w w w. b o i . g o v. b d d. Tari per unit (excluding VAT and SD) Pump used in Agriculture Small Enterprise (as on usage me) at Residen al Rate: a. 1st Stage: 00-100 unit b. 2nd Stage: 101-400 unit c. 3rd Stage: Above 401unit Commercial Rate (as on usage me) Flat O Peak Peak Class F: Medium Pressure (11 KV) Flat O Peak Peak Class G-1: Very high pressure DPDC (132 KV)/Flat Class G-2: Very high pressure General use (132 KV)/Flat

1.93 4.35 2.60 3.30 5.65 5.58 4.04 7.12 4.17 3.43 7.12 2.415

0.03 0.06 0.04 0.05 0.08 0.08 0.06 0.10 0.06 0.05 0.10 0.034

3.10

0.044

*BPDB: Bangladesh Power Development Board, **DPDC: Dhaka Power Distribu on Company, ***DESCO: Dhaka Electricity Supply Company. REB (Rural Electrica on Board): Provisional Connec on for Construc on Period only a. Applica on Fee b. Security Advance c. Transformer supply charges Advance installa on & removal For single phase For three phase Monthly rent for single phase Monthly rent for three phase Applica on Deposit (Non refundable) Capacity Reten on Charge for En re Period (06 months 02 years)

No As per rule

No As per rule

2000 6500 500 1000/30KVA (Which is higher) 1,000

28.57 92.86 7.14 14.28/0.42KVA (Which is higher) 14.28

5.00 KVP/month 0.071 KVP/month Min. Tk.1000 Min. 14.38

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CIFE (Chief Inspector of Factories and Establishments) License Fees: Maximum number of workers to be employed on any day during the year 1 A B C D E F G H I License Fees in Tk. 2 10 to 30 31 to 50 50 to 100 101 to 200 201 to 300 301 to 500 501 to 750 751 to 1000 Above 1000 3 80.00 200.00 400.00 600.00 800.00 1400.00 1600.00 2000.00 2400.00 Renewal License Fees in Tk. 4 16.00 40.00 80.00 120.00 160.00 280.00 320.00 400.00 480.00
Tk.1= US$ 0.01438

Gas: Natural gas supply is available in major industrial areas of Dhaka and Chi agong Division. Gas tari for industrial consump on is Tk. 5.86 (US$ 0.084) per cubic meter including supplementary duty and VAT. The major gas provider companies are Bakhrabad Gs System Ltd. (BGSL), Jalalabad Gas Transmission and Distribu on System Ltd. (JGTDSL), Titas Gas Transmission and Distribu on Company Ltd.(TGTDCL), Pashmimanchal Gas Company (PGCL), Karnaphuly Gas Distribu on Company Ltd.(KGDCL). U lity sevice charge of TGTDCL has been shown below. Cost Heads a. Applica on fee b. Demand note c. Tari (including VAT & SD)/m3 1. Industrial 2. Tea garden 3. Cap ve power genera on
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In Tk. 100-300 Actual cost 5.86 5.86 4.18

In US$ 1.43-4.29 Actual cost 0.084 0.084 0.06 111

w w w. b o i . g o v. b d 4. Fer lizer 5. Power 6. Commercial 7. Household 8. Feed gas for CNG 2.58 2.82 9.47 5.16 9.97 0.037 0.04 0.135 0.074 0.142

Water and Sewerage: Water is supplied by the Water Supply and Sewerage Authority (WASA) in metropolitan areas of Dhaka and Chi agong. In other municipal areas, local municipali es provide the service. Dhaka WASA supplies fresh water to the city consumers at the following rate: Residen al / Domes c : Tk 5.15 (US$ 0.074) / 1000 liter Commercial / Industrial : Tk 19.48 (US$ 0.34) / 1000 liter Sewerage bill is equal to water bill for those who has sewerage connec on. The consumer who does not have a sewerage connec on but there is sewerage main line within 100 distance from the respec ve premise has to pay an amount of 10.02% to municipal valua on annually as sewerage bill.
U lity Costs
Cost Heads Water (WASA)
1. Piped Water a. Applica on Form b. Connec vity For Size of Connec on : 0.75 inch Dia - Connec on Fee - Meter Cost with Installa on Fee - Other Charges For Size of Connec on :1 inch Dia - Connec on Fee - Meter Cost with Installa on Fee - Other Charges For Size of Connec on :1.5-2 inch Dia - Connec on Fee - Meter Cost with Installa on Fee - Other Charges 3500 17000 As may be determined 50 242.85 As may be determined 500 2780 As may be determined 7.14 39.11 As may be determined 100 1.42

In Taka

In US$

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c. Water Tari During Construc on Period -0.75 inch Dia (per month) -1.00 inch Dia (per month) -1.50 inch Dia (per month) -2.00 inch Dia (per month) Post Construc on Opera on Period

Domes c/Residen al in taka 662 1134 2268 4725 in US$ 9.45 16.20 32.40 67.50

Commercial/Industrial in taka 1902 3416 6830 14230 17.50 5.25 100 in US$ 27.17 48.80 97.57 203.28 0.25 0.075 1.42 in US$ 2142.85 4285.71 5000.00 99.21 905.48 1529.57

- Commercial / Industrial (per 1000 liter) - Residen al / Domes c (per 1000 liter 2. Deep Tube Well (DTW) max 6 inch Dia a. Applica on Form b. Permission Fee (annual) - 2 & 3 inch Dia - 4 inch Dia - 6 inch Dia c. Meter Charge (annual) - 2 & 3 inch Dia - 4 inch Dia - 6 inch Dia Sewerage (WASA) 1. Applica on Form 2. Connec vity - 4 inch Dia - 6 inch Dia - 8 & 9 inch Dia 3. Sewerage Tari a. Have both Water & Sewer b. Have No Sewerage Connec on, but lying within 100 the Sewer Line. c. Have Sewerage, but no Water Connec on of Domes c/Residen al in taka 80000 140000 220000 in US$ 1142.85 2000.00 3142.85

Commercial/Industrial in taka 150000 300000 350000 6945 63384 107070

100 400 1000 5000 Same as Water 10.02% of annual valua on 27.80% of annual valua on

1.42 5.71 14.28 71.42 Same as Water 10.02% of annual valua on 27.80% of annual valua on

* annual valua on of the holding per year. But, not exceed Water Tari.
Source: BPDB, DPDC, REB and WASA

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e. Telecommunica on:
Comprehensive telecommunica on service such as fully automa c telex, fax, e-mail, internet, telephone including interna onal direct dialing are available with important countries of the world. Telecommunica on Costs Cost Heads a. Installa on and security: Dhaka Mul -Exchange, Narayangonj proper, Gazipur proper Chi agong Mul -Exchange Other Districts Upazila and Growth Centers (Un l further no ce) b. Internet & Broadband: 1. Dial Up Connec on i. Connec on Fee ii. Connec vity rate per minute 2. Broadband (available in selected areas) i. Connec on fee (ADSL) Depends on bandwidth in Tk. In US$

2000 1000 600 Free

28.57 14.29 8.57 Free

Nil 0.20-0.40

Nil 0.002-.005

500

7.14

(For detail informa on, please visit: www.btcl.gov.bd)

f. Human Resources
The government is commi ed to provide fair wages to all level of industrial workers. Wages may be xed through collec ve bargaining process. In case of inadequacy of the collec ve bargaining procedure, wages, would, however, be xed by the Minimum Wages Board. Due emphasis is given so that the interests of the management and the workers are properly safeguarded.

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Human Resources
Cost Heads Execu ve Salary & Benets a. Senior Management b. Mid-level Execu ve c. Entry-level Execu ves Non-Execu ve Salary & Benets a. Senior Management b. Mid-level Execu ve c. Entry-level Execu ves 50-70 40-55 30-40 25-30 20-25 20-25 75-100 60-80 50-65 Salary In US$ 1000-2000 400-600 200-400 Benets In US$ 500-1000 200-300 100-200 Total In US$ 1500-3000 600-900 300-600

Note: According to Labor Act 2006, Minimum Gross Monthly Labor Wage 1662.50 Tk. This has been revised.

g. Transporta on
Road Transport: Bangladesh has about 40,344 km of paved roads. ports and important business centers are well connected by roads and highways. Bangladesh Land Port Authority was established under Ministry of Shipping to make easy and smooth transporta on of merchandise through land ports. Only Benapole Land Port is handled by government among thirteen land ports. Railway: Bangladesh Railway has a network of about 2,835.04 km connec ng all the administra ve and business points of the country. Railway container service from Chi agong Port to Dhaka is available. Airway: Bangladesh is connected with important major ci es of the world by air. Many of the world's reputed airlines have their air link with Hazrat Shahjalal (R) Interna onal Airport, Dhaka, Shah Amanat Interna onal Airport, Chi agong, and Osmani Interna onal Airport, Sylhet. Marine Transporta on: Bangladesh has two sea-ports Chi agong & Mongla. World's reputed shipping lines are opera ng through these two ports.

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Transporta on
Cost Heads Ocean Freights to intl Destinations Major European Ports USA - East Coast (NY) USA West Coast (LA) Canada (Toronto / Montreal) Australia (Melbourne) New Zealand (Auckland) Hong Kong UAE (Dubai) Express Mail Service (depending on destinations) Weight : 20 gm Weight : 01 kg Weight : 02 kg Weight : 10 kg 200 - 655 435 - 990 590 - 1395 1710 5200 3.00 - 9.84 6.35 - 14.87 8.86 - 20.9 25.68 - 78.11 20 ft Container In US$ 900 2000 1900 2700 800 1250 500 800 40 ft Container In US$ 1800 3000 2550 3700 1600 2400 900 1600

h. Living Costs
Living in Bangladesh is highly aordable and pleasant. Following are the major living expenses in Dhaka Metropolis:

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Accommoda on Costs (Dollar convert into Taka)


Cost Heads Accommoda on : Apartment Rental/month - 2-3 Bedroom Unfurnished Flats - 3-4 Bedroom Unfurnished Flats Domes c Help / Maid Services - Full me Living Maid - Car Driver Hotel Rental : Single Room - Deluxe Room (5 star) - Execu ve Suit (5 star) - Standard (3 star) - Guest House Petrol & Gas - Unleaded Petrol - Octane - CNG Car Opera ng Expenses - Annual Road Tax - Annual Insurance Premiums Ea ng out (one person) - Buet Lunch/Driver per person - 3-Course Dinner at Top Restaurant - Simple Meal at 5-star Coee Shop Health Services (one person : First visit) - To call on a General Prac oner 100-200 400-700 1500-2000 1.42-2.85 5.71-10 21.42-28.57 250-500 3000-5000 1000-1500 3.57-7.14 42.85-71.42 14.28-21.42 4845 40000-85000 69.21 571-1214 65.00/liter 67.00/liter 8.50/m (vol)
3

In Taka

In US$

25000-80000 40000-85000

257.14-857.14 571.42-1214.28

4000-5000 6000-8000

57.14-71.42 85.71-114.28

170-260 330-460 70-100 40-80

0.9/liter 0.95/liter 0.121/c.

- Specialist (Ass . Professor & Professor) - Expatriate Specialist

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5.2 Taxation in Bangladesh


a. Corporate tax rate for industrial companies whose shares are publicly traded is 27.5% and the rate of those whose shares are not publicly traded is 37.5%. Tax rate for bank, insurance, leasing & other nancial ins tu ons is 42.5%. Tax rate for mobile operator companies is 45% but when a mobile phone operator company transforms to a public traded company oering at least 10% of paid up capital in an IPO, then the tax rate will be 35%. Acceptance of returns of public limited companies: Returns led by the public limited companies shall be accepted if it is accompanied by audited accounts and cer ed by a chartered accountant as to the correctness of the total income of the assessee. Remunera on of foreign technicians employed by the consul ng and engineering rms : Expenditure incurred as remunera on payable to a foreign technician by a Bangladesh rm carrying on the business of consul ng and engineering is fully exempted from tax (subject to prescribed condi ons and limita ons).

b. c.

d.

e.

Tax Rate (Assessment Year 2010-11):


Other than Company: For individuals other than female taxpayers, senior taxpayers of 70 years and above and retarded taxpayers, tax payable for the First Next Next Next Rest Amount 1,65,000/2,75,000/3,25,000/3,75,000/Nil 10% 15% 20% 25%

For female taxpayers, senior taxpayers of age 70 years and above and retarded taxpayers, tax payable for the First Next Next Next Rest Amount 118 1, 80,000/2, 75,000/3, 25,000/3, 75,000/Nil 10% 15% 20% 25%
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w w w. b o i . g o v. b d Minimum tax for any individual assessee is Tk. 2,000 Non-resident Individual (other than non-resident Bangladeshi) 25% For Companies Publicly Traded Company Non-publicly Traded Company Bank, Insurance & Financial Company Mobile Phone Operator Company

27.5% 37.5% 42.5% 45% if it transforms to a publicly traded company oering at least 10% of paid up capital in an IPO, then the tax rate will be 35%.

If any publicly traded company declares more than 20% dividend, 10% rebate on total tax is allowed.
Source: Na onal Board of Revenue, Bangladesh

5.3 Customs Tariff


For the updated customs tari rate, please visit BOIs ocial website www.boi.gov.bd or the ocial website of Na onal Board of Revenue www.nbr-bd.org.

5.4 Comparative Costs in Competing Locations


Compara ve cost structure of doing business in similar ci es of compe ng economies like Dhaka, Bangkok, Colombo, Hanoi, Jakarta, Karachi, Kuala Lumpur, Manila, New Delhi, Seoul, Shanghai and Yangoon have also been presented in page no 128. This would enable investors to easily compare the costs of compac ng investment des na ons and facilitate undertaking decision.

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5.5 Visa Policy


Government has revised its Visa Policy recently. Relevant por on of that policy has been annexed: Please note that the following is NOT an ocial transla on of the original Visa Policy issued in Bangla. Please contact your nearest Bangladesh Mission for an ocial version and other queries. Required Condi ons (Relevant Por ons only): Please note that following is NOT an ocial transla on of the original Visa Policy issued in Bangla. Please contact your nearest Bangladesh Mission for an ocial version and other queries: 1. 2. 3. Visa issuing authority shall mean Ministry of Home Aairs, Directorate of Immigra on and Passport, Bangladesh Embassy/Mission abroad and, wherever applicable, Ministry of Foreign Aairs. Persons coming from Europe, USA, Canada, Australia, New Zealand, Japan, China and Hong Kong will be waived from registra on. Persons coming by airways from all other countries except those men oned with a valid visa for 90 days or more than 90 days, shall have to register with Special Branch (SB)/District Special Branch (DSB)/City Special Branch (CSB) of Bangladesh Police located at the arriving airport. During extension of visa for the persons who came with a visa for less than 90 days stay and are from the countries other than countries exempted from registra on and persons exempted from registra on under Registra on of Foreigners (Exemp on) Order, 1966, the Directorate of Immigra on and Passports shall assure the compliance of the seal men oned Please report to respec ve SB/DSB/CSB oce within 7 days of extension visa. A er ge ng the work permit, the Director General of the Directorate of Immigra on and Passports, upon his/her own sa sfac on and based on cer ca on by the Ministry of Home Aairs men oning that security clearance is under process, may extend. However, if the report is adverse, the visa has to be cancelled and order has to be issued to leave the country. For the visa applicants whose work permit and/or security clearance is under process, the Directorate of Immigra on and Passports, upon its own sa sfac on,
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4.

5.

6.

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w w w. b o i . g o v. b d may extend visa with re-entry facility, if required, for a maximum period of 03 (three) months. 7. Applica on for extension of visa should be made prior to expiry of visa. If the applica on of extension is made a er expiry of visa, a ne will be applicable for over stay. A er arriving in Bangladesh, no foreigners will be able to change their Visa Category. However, if the visa issuing authority issued a wrong category of visa mistakenly, the Directorate of Immigra on and Passports may change such visa category subject to appropriate proof and approval of the Ministry of Home Aairs. A valid visa of old passport may be transferred to a new passport.

8.

9.

10. If relaxa on of any condi ons or visa extension for any addi onal period of more than the maximum period men oned in the visa policy required, it has to be sent to Ministry of Home Aairs for approval. 11. If a police report is required for extension of short-period (less than three months) visa, the Special Branch of Police will submit such report by 14 (fourteen) days and in case of others, the report will be submi ed by 30 (thirty) days. I f the Police report is not received within specied period, a reminder shall be issued allowing addi onal 07 (seven) days. A er expiry of that period, the Directorate of Immigra on and Passports, upon its own sa sfac on and responsibility, will extend the period of visa considering that there is no objec on by the Special Branch of Police. However, in case of children aged less than 15 years, opinion of Special Branch of Police will not be required. 12. The visa will be issued and extended for recrui ng representa ves as per condi ons of B Category, if he/she intends to come to Bangladesh for business purposes for a short period; and as per condi ons of E Category, if he/she intends to join in the invested enterprise as an employee. 13. Except for other reasons, in case of similar period of visa, the spouse or dependent of accompanying person will be granted similar facili es (for example number of entries) as given to the principal visa applicant. 14. Wherever applicable, the arriving foreigners shall have to register with the Special Branch of Police according to exis ng rules. 15. The Joint Secretary (Poli cal), Ministry of Home Aaires shall act as the Focal Point of any issues rela ng to visa.

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Wage in US$

Land price, Oce rents Etc In US$

Telecommunica on Expenses US$

Public U li es In US$

Con nua on to next page

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Source: JETRO 20th Compara ve Survey 2010 Board of Investment 2011

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Competitive
Sectors for Investment

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6.1 Bangladesh: Stable Outlook


The global ra ng agencies Standard & Poor (S&P) and Moodys Investors Service (Moodys) rated Bangladesh with a stable outlook in April 2010. S&Ps BB- and Moodys BA3 ranked Bangladesh above its regional compe tors Pakistan and Sri Lanka. S&P observed that Bangladeshs economy is largely free of macroeconomic imbalances in spite of its low income level, rela vely narrow economic prole, and signicant scal constraints. Global investors view this as posi ve for growth and the external sector, given that it will encourage foreign investor inows and reduce borrowing costs, thus suppor ng investment. Table1: Sovereign Ra ngs of the South Asian Economies
Bangladesh Ra ng Foreign Currency Local Currency Outlook Foreign Stable Currency Local Stable Currency Stable Stable Stable Stable Stable Stable Stable Posi ve Stable Posi ve Stable S&P BBBBMoodys S&P Ba3 Ba3 BBBBBBIndia Pakistan Moodys B3 B3 Sri Lanka S&P B B+ Fitch B+ B+

Moodys S&P Baa3 Ba2 BB-

Stable Posi ve Stable

Source: S&P and Moodys, 2010

With the most liberal investment policy and incen ve regime in South Asia, Bangladesh has been promo ng FDI since decades. There is no denial of economic benets of FDI at the na onal policy level. Policy reviews, amendments and ini a ons are being conducted on a regular basis.

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6.2 Agro-based Industry


Fresh Fruits & Vegetables Cooked/Semi Cooked Food Items Canned Juice Dairy and Poultry Livestock and Fisheries

Sector Highlights
Bangladesh has a tropical climate, a lot of fresh water, indeed it is a land interspersed with numerous rivers, fer le soil and possibility to cul vate crops round the year. Thus, it is richly endowed to supply raw materials for the agro-based industry. Fruits and vegetable produc on has increased signicantly in recent years. Government and NGOs have been conduc ng regular training programs in developing skilled manpower for agro-based industry. Substan al demand supply gap in the agro-based industry both in the domes c and interna onal market.

Industry Incen ves


Specially arranged Equity Entrepreneurship Fund for development of agro-based industry. Special loan facili es available to set up an agro-based industry. Agro-based industry enjoys tax holiday. Any investment in this sector will enjoy similar tax concession as are available in other sectors. Imposi on of supplementary duty on mango, orange, grape, apples, dates and others to u lize the high quality and cheaper local resources. Cash incen ve to the exporters ranges from 20% in various sub-sectors.

Sector Background
Being an agrarian economy, agriculture has dominated the economy for years. It has fullled the precondi ons of access to inputs and raw materials in se ng up successful agro-based industries. Alluvial soil, a year-round frost-free environment, adequate water supply and abundance of cheap labor are available in Bangladesh Increased cul va on of vegetables, spices and tropical fruits now grown in Bangladesh could supply raw materials to local agro-processing industries for both domes c and export markets.

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w w w. b o i . g o v. b d In 2009-10 export of agricultural products accounted for about 1.46% of total exports ts amoun ng to US$ 236.7 million approximately.

Industry Outlook
To avail the compe ve and compara ve advantages, Bangladesh invites modern agricultural prac ces, improved marke ng techniques and modern processing facili es. The government emphasizes development of the agricultural sector through appropriate measures to increase crop sector produc vity and produc on of non-crop agriculture by providing increased credit, and facilita ng greater access to inputs and modern technology. Investment incen ves in se ng up agro-based industries in Bangladesh are adequate.

6.3 Ceramics Tableware Sanitary ware Insulator


Sector Highlights
Global market of ceramic tableware is about US$ 10 billion. Bangladesh Ceramic tableware has a good reputa on in the interna onal market like North America and EU countries. Bangladesh has achieved/signicant technical exper se in ceramic tableware manufacturing. Historically, tableware industry is labor-intensive and Bangladesh has skilled manpower in ceramic industry with high value addi on. Sanitaryware and insulator have also domes c and interna onal market demand. The clean gas reserve required for ring is a great compe ve advantage for Bangladesh.

Industry Status
A few ceramic tableware manufacturers dominate the industry producing high quality products for the interna onal brands. A pool of skilled manpower has been developed. The latest technological advancements in ceramic are also adopted. Bangladesh produces high quality Bone China transferring the technology from Japan. The domes c market is also a rac ve. Some low-quality tableware is imported mainly from China to cater to the demand of lower segment of the domes c market.

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Exhibit 6.1
Growth of Ceramic Tableware Export from Bangladesh
(in Million US$)
38.33

31.70

28.75

30

19.47

20

10.02

10

9.46

17.50

18.82

24.07

27.50

29.95

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

Source: Bangladesh Export Promo on Bureau

Industry Outlook
Global ceramic tableware industry is currently going through a phase of acquisi on and consolida on as smaller industries in the developed countries are becoming uncompe ve and bankrupt. As a result, the big names like Noritake, Wedgewood, Lenox, Villeroy & Boch and Royal Doulton are all individually becoming billion-dollar opera ons. Historically, tableware industry is labor-intensive and even a er spending billions of dollars on automa on, developed countries could not reduce the number of workforce according to their expecta ons. As a result, the cost of produc on will always remain extremely high in developed countries and the premium brands are only surviving because they are charging huge price to the consumers for their brand equity. Bangladesh, being a gas-rich and low-labor-cost economy, can be strategic partners in produc on and supply of ceramic products. Investment interests in this sector are strong.

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2008-09

2009-10

30.78

40

w w w. b o i . g o v. b d The growing sanitaryware and insulator items have a large domes c and interna onal al market.

6.4 Electronics Home Appliances Telecommunication Equipment Semi-Conductor


Sector Highlights
Rapid urbaniza on, migra ons to urban centers and emergence of a consuming middle class have resulted in a modest growth in home appliance usage in Bangladesh. Global market of semi-conductor amoun ng about US$ 200 billion is clearly dominated by the Asian NIEs. Manufacturing of semi-conductors could be established as a poten al co age industry. Since 1996, phenomenal growth in cellular phone usage in Bangladesh has been registered and, today, the number of customers reached nearly two million. The labor-intensity of electronic industry highly matches Bangladeshs compe veness and a racts foreign investment in this sector. 129

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Industry Background
The electronics industry in Bangladesh mostly produces consumer items. Home appliances like television, radio, VCD and CD players, refrigerator, air condi oners, oven, electronic fan, blenders etc. are being assembled to a large extent. To ensure the performance reliability, the key challenges in this sector are technical assistance and proper technology orienta on of the industry. Developing the signicant capacity and skill in assembly and manufacture of a wide range of electronic components and parts is crucial. As yet, Bangladesh does not have any telecommunica on equipment industry in the private sector. However, an urgent need for diversica on and moderniza on is felt among the exis ng entrepreneurs, government and professionals. Government is keen to provide and ensure enabling assistance to the development of this sector.

Industry Outlook and Opportuni es


Skilled, easily trainable and low-cost human resources are the main cost advantage of se ng up electronic industry in Bangladesh. Growing domes c demand and interna onal market access are some key a rac ve issues to the investors. In the economies like Malaysia, Singapore, Korea, China and Thailand, electronics contribute 130
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w w w. b o i . g o v. b d a major por on in the GDP. They are encouraging electronic industry to shi from m low-end assembly opera ons with high import content of inputs to upstream highervalue-added ac vi es. In this context, reloca on, outward investment and joint venture with Bangladeshi companies could be gainful strategies. To capitalize on the compara ve advantages, substan al foreign investment from those countries is highly encouraged.

6.5 Frozen Foods Frozen Shrimp Frozen Fish Other Items


Sector Highlights
Government is promo ng semi-intensive shrimp farming. Fish and prawn exports registered a modest growth in the past decade. Shrimp processing and export industry is largely dominated by the smaller unorganized sector. Government has taken various ini a ves and measures of quality assurance of frozen foods in co-opera on with exporters. 12.5% cash incen ve is given for shrimp export.

Industry Situa on

Exhibit 6.2
Frozen Food Export from Bangladesh

Source: Bangladesh Export Promo on Bureau Board of Investment 2011

131

2009-10

437

w w w. b o i . g o v. b d The frozen foods export is the second largest export sector of the country. A er some ini al dicul es in terms of quality achievement, exporters have earned credibility and trustworthiness in the global market. Assurance of reliable and con nued product quality is a major challenge in this sector. Technology orienta on, marke ng percep ons, and quality improvement aspects invite foreign investment in this sector. The current challenges of interna onal trading are largely dictated by price, quality, me and service.

Industry Outlook
Frozen food sub-sector has credible opportuni es in Middle East, EU and North American and Far Eastern countries. According to informa on from Bangladesh Frozen Foods Exporters Associa on there are 145 sh processing plants having a processing capacity of 265,000 MT. 74 plants are licensed by the government and 71 are approved by the EU. This export-oriented industry includes the following sub-sectors, which need proper a en on for augmenta on of produc on, a aining interna onal standard quality and export earnings.

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w w w. b o i . g o v. b d Hatcheries Sustainable aquaculture technology Feed meals plants Processing unit for value-added products. Investment in frozen food sector with new technology and equipment has a vast poten al for growth.

6.6 Information Technology Data Processing Software Development Hardware Manufacturing


Sector Highlights
To give a llip to the IT industry robustly, deregula on of the telephone service has been decided and this was executed by mid 2003. The extensive growth of mobile telephony resulted in signicant opportuni es. The industry is at its introductory stage and has opportunity of capitalizing the poten al. Bangladesh has a well-educated, skilled, dedicated and growing IT workforce. There is a fast growing domes c market and export demand. Strong research assistance from the universi es and research ins tu ons are available. Government is keen in establishing IT related infrastructure for the development of the industry.

Call Centre in Bangladesh

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Industry Incen ve
IT is declared as one of the thrust sectors for development. So loan facility from the Equity and Entrepreneurship Fund is available. Tax holiday for So ware and IT services companies. All other facili es and incen ves applicable in general to a foreign investor.

Industry Background
Compared to the neighboring India, Pakistan and other South and South East Asian na ons, Bangladesh has been lagging behind in IT Sector. But it is true that the sector has vast poten ality to develop. Availability of substan al number of qualied and experienced young people in various branches of engineering, science and technologies have opened up the scope of protable investment in these sectors. The concept of digital Bangladesh creates many windows of opportuni es for this sector. The annual market size for IT including computer hardware, peripherals and so ware was es mated to be worth approximately 20 million US$. The market is fast growing at an annual rate of about 25%. Since the introduc on of internet services in 1996, computer has become an important tool of communica on to the majority of businessmen, professionals and individuals. The development of telecommunica on infrastructure is a major precondi on to the development of IT. It has been recognized as the key driving force for socio-economic and industrial development of Bangladesh. Realizing the importance of ICT, government has declared its commitment to take ICT to the door-steps of the mass people and to establish Digital Bangladesh by 2021. Several signicant steps have been taken for the development of infrastructure, human resources and legal framework of ICT. The ICT Act (Revision), 2009, and Na onal ICT Policy, 2009, have already been promulgated. The development of telecommunica on infrastructure is a major precondi on to the development of IT. The Government of Bangladesh has adopted Na onal Telecommunica on Policy 1998. However recent policy shi towards deregula on of telecommunica on would give real advantage to the country in IT development.

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Industry Outlook
Formaliza on of VOIP by the early 2003 and telecom deregula on in mid 2003 would boost the overall IT sector. Foreign investors from Asian, European and North American countries could avail these opportuni es. A number of Bangladeshi IT rms are interested in nding interna onal investors or joint venture partners in various sub-sectors. Currently more than 50 so ware and IT service companies are expor ng so ware and related services to 30 dierent countries around the world including, among others, USA, Canada, UK, Sweden, Italy, Netherlands, Norway, Australia, Japan, etc.

Exhibit 6.3
Source: Bangladesh Associa on of So ware and Informa on Services (BASIS)

(in Million US$)

27.01

26.08

30

20

2004-05

4.54

10

2005-06

2006-07

2007-08

24.82

2008-09

26.06

Source: Bangladesh Associa on of So ware and Informa on Services (BASIS)

So ware applica ons and IT-related services are also available in the eld of custom business applica on, contract programming services, web content development, e-governance so ware tools, data conversion and transcrip on services, call centers and BPO (Business Process Outsourcing) services, etc.

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27.01

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Exhibit 6.4
Sea-me-we- 4 Landing Map

Source: www.b b.gov.bd

Submarine Cable
Bangladesh has joined the consor um of SEA-ME-WE-4 submarine cable, which started its commercial ac vi es from 21st may, 2006. This will especially help data entry and so ware sectors. The landing sta on of this cable is situated at Jhelong in Coxs bazaar. There are 14 countries of this consor um; the countries are Singapore, Thailand, UAE, Bangladesh, India, Pakistan, Sri Lanka, KSA, Egypt, Tunisia, Italy, Algeria and France. With the direct help from submarine cable Bangladesh can earn more foreign currency by increasing interna onal voice circuit (e.g. submarine cable will give support to establish 1 lac voice circuit, Voice and data communica on will be faster. Consor um has created capacity pool, which we can sell, also can manage IRV. Broadband service, data transmission, call centre, so ware export will be cheaper. Unemployed youths can easily engage themselves in those services by taking short term training. Bangladesh has the right to land 15 landing sta on without charge. It will help smoother opera on of e-commerce, e-governance, e-educa on, telemedicine etc. There are huge opportuni es of development of ICT sector and an alloca on of US$160 million (approx.) for the ICT sector from its non-development budget and another US$ 286 million (approx.) have been allocated for ICT through the exis ng Equity and Enterpreneurship Fund in the current budget (FY 2010-2011). 136
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6.7 Leather
Sector Highlights
The labor-intensive leather industry is well suited to Bangladesh having low labour cost and abundant labor. Bangladesh has a domes c supply of good quality raw material, as hides and skins are a by-product of a large livestock industry. Adequate government support in the form of tax holidays, duty free imports of raw materials and machinery for export-oriented leather market The industry lacks domes c technology and exper se and local support industries such as chemicals are s ll under-developed.

Investment Incen ve
Present government is in the process of se ng up separate Leather Park reloca ng the exis ng industry sites to a well-organized place. Leather exporters have been given 17.5% duty drawback of cash incen ve.

Exhibit 6.5
Trend of Leather Export from Bangladesh

Source: Bangladesh Economic Review Board of Investment 2011

137

2009-10

153

w w w. b o i . g o v. b d

Industry Situa on
Bangladesh leather industry is dominated substan ally by domes c investment which is mostly export-oriented. The leather includes some ready-made garments, although that aspect is con nued mainly to a small export-trade in "Italian-made" garments for the US market. Footwear is more important in terms of value addi on. This is the fast growing category for leather products. Presently Bangladesh produces between 2 and 3 percent of the worlds leather market. Most of the livestock base for this produc on is domes c which is es mated at 1.8 percent of the worlds ca le stock and 3.7 percent of the goat stock. The hides and skins (average annual output is 150 million sq. .) have a good interna onal reputa on. Foreign direct investment in this sector along with the produc on of tanning chemicals appears to be highly rewarding. Having the basic raw materials for leather goods as well as for the produc on of leather shoes, a large pool of low cost but trainable labor force together with tari concession facility to major impor ng countries under GSP coverage, Bangladesh can be a poten al o shore loca on for leather and leather products manufacturing with low cost but high quality. In 2008-09 total export of leather goods was 177 million US$ which dropped during 2009-10 most probably due to the global recession.

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Industry Outlook
Provision of newly announced infrastructural facili es through establishment of an integrated Leather Park and, simultaneously, growth in the global demand, opportuni es for inves ng in and se ng up export-oriented leather industry in Bangladesh is denitely a rac ve and protable. Foreign investors are welcome to capitalize on this opportunity.

6.8 Light Engineering Machinery Parts Bicycle Other Consumer Items


Sector Highlights
Bangladesh has about 40,000 small-scale light engineering enterprises spread over the country. Current light engineering industry manufactures about 10,000 types of items for the local market amoun ng to an annual value of approximately US$ 120 million. As the demand and usage of engineering and electronic goods increase, the demand for light engineering products is also increasing. Signicant numbers of co age industries are engaged in produc on of simple electronic goods. Government provides cash incen ve facili es to exporters of value-added light engineering products.

Industry Situa on
Light engineering industry in Bangladesh has grown with informal co age status over the years. This labor-intensive opera on produces a diverse range of items having an annual valua on of about US$ 120 million. These items include import-subs tute machinery spares, plant, machinery, small tools, toys, consumer items and paper products for the domes c market. Most of these enterprises are located in and around Dhaka metropolis. The industry has been turning to more formal set up and is expected to grow remarkably in the upcoming years. Bicycle is one of the most important items in light engineering industry. Its role in the world transport system is expanding. Not only does it provide low-cost mobility, but in ci es it oers more mobility than the automobile. Because it provides mobility and exercise, does not pollute the air or disrupt the earths climate and is ecient in its use of land, the bicycle is emerging as the transport vehicle of the future.
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Industry Outlook
Because of the shortage in labor and wage hike in the light engineering sector, and simultaneously, strategy shi of the NIEs to concentrate on upstream higher-value-added industries, establishment and development of light engineering industry in Bangladesh has a huge poten al. Foreign investors could take advantage of Bangladeshs low-cost and easily trainable labor, already established light engineering industry and its infrastructure facili es to manufacture quality products for the export market.

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6.9 Natural Gas-based Industries Electricity Fertilizer Petrochemicals CNG Distribution Network
Sector Highlights
Bangladesh has a net recoverable gas reserve of approximately 29.234 TCF of which primary recoverable is 21.055 TCF. The amount of gas produc on ll June 2009 was 8.37 TCF leaving 12.678 TCF net recoverable. Joint venture opportuni es between Petrobangla and private sector are open. There is a huge demand for fer lizer in Bangladesh as agriculture is the dominant sector of the economy. Usage of indigenous resources and conserva on of environment are important policy concerns of the Government in hydrocarbon sector. Introduc on of CNG fuelling in the metropolises has geared up the need for the establishment of sucient CNG Distribu on Sta ons.

Industry Incen ves


Energy and Power sector has signicant investment incen ves like: The private power companies shall be exempted from corporate income tax for a period of 15 years. The companies will be allowed to import plant, equipment and spare parts up to a maximum of ten percent (10%) of the original value of total plant and equipment within a period of twelve (12) years of Commercial Opera on without payment of customs du es, VAT (Value Added Tax) and any other surcharges as well as import permit fee except for indigenously produced equipment manufactured according to interna onal standards. Repatria on of equity along with dividends will be allowed freely. Exemp on from income tax in Bangladesh for foreign lenders to such companies. The foreign investors will be free to enter into joint ventures but this is op onal and not mandatory. The companies will be exempted from the requirements of obtaining insurance/ reinsurance only from the Na onal Insurance Company, namely Sadharan Bima Corpora on (SBC). Private power companies will be allowed to buy insurance of their choice as per requirements of the lenders and the u li es. The Instruments and Deeds required to be registered under local regula ons will be exempted from stamp duty payments. 141

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Power genera on has been declared as an industry and the companies are eligible for all other concessions which are available to industrial projects. The private par es may raise local and foreign nance in accordance with regula ons applicable to industrial projects as dened by the Board of Investment (BOI). Local engineering and manufacturing companies shall be encouraged to provide indigenously manufactured equipment of interna onal standard to private power plants.

Industry Situa on
Among the three main operators in power sector, un l recently, Bangladesh Power Development Board (BPDB) was the sole public sector power generator in Bangladesh. It is also responsible for transmission and distribu on of electricity outside Dhaka and in some rural areas. Dhaka Power Distribu on Company (DPDC) is responsible for transmission and distribu on of electricity in and around Dhaka the largest load center in Bangladesh. Rural Electrica on Board (REB) distributes electricity in rural areas through opera ng Palli Biddyut Sami es (PBSs). All of them are controlled by the Ministry of Energy and Mineral Resources (MEMR). Up to September 2010, the total installed genera on capacity was 5776 MW including 3481 MW in public sector and 2295 MW in the private sector. With the increasing growth in industry, commerce and household usage, the demand for electricity in Bangladesh is enormous. It is assumed that the power demand will increase at around 6% per annum in the upcoming years. Income elas city of demand for electric power is 3. CNG is a highly ecient, eco-friendly and cost-eec ve fuelling op on for motorized vehicles. It could also make signicant cross-savings in the health sector and reduce public health hazard. The increasing demand for maintaining air quality in the metropolis ci es has become the na ons top-most priority. As such, two-stroke petrol fuelled taxies have been mostly replaced with CNG-fuelled taxies. Other vehicles are also being converted to CNG orienta on. In 2001-2002 the number of CNG run vehicles was 6,734 and this number has reached to more than 1,60,000 in June 2009. In these circumstances, a huge opportunity for investment in CNG Distribu on Network has become imminent.

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Table 2: Trends of Gas Demand in Dierent Sectors (Billion Cubic Feet)

Sector Power Cap ve Fer lizer Industry Commercial Domes c Tea -Estates CNG System Loss* Total

2007-08 234.30 80.20 78.67 92.20 6.60 69.02 0.71 22.82 16.10 600.62

2008-09 256.30 94.70 74.85 104.30 7.46 73.78 0.65 31.02 20.00 663.06

2009-10 278.20 120.90 94.00 133.90 9.00 88.90 1.00 37.20 20.00 783.10

2010-11 300.50 142.60 94.00 160.70 9.80 99.50 1.00 44.70 20.00 872.80

2011-12 324.50 164.00 94.00 184.80 10.80 111.44 1.00 51.36 20.00 961.90

*Including own usages


Source: Bangladesh Economic Review

Industry Outlook
Opportuni es that exist for foreign investors include: Developing new plants (barge-mounted and other, large, small and mini) in joint venture with BPDB. Maintaining and expanding exis ng power transmission and distribu on system. Rehabilita ng or upgrading exis ng plants and supplying a variety of support services. Privately owned Remote Area Power Supply System (RAPSS). Technology transfer through manufacturing / assembly of power equipment. Inves ng in CNG distribu on network development.

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6.10 Pharmaceuticals
Sector Highlights
Skilled workforce, compe ve labor costs and linguis c skills

The pharma sector is the largest while collar employer in Bangladesh. Around 35,000 people work in the industry. Of these, roughly 50% are pharmacists, chemists, biochemists and microbiologists. The remainder is involved in marke ng. As the industry expands, so too does the pool of skilled labor. Bangladesh enjoys a signicant advantage over India with regard to wage costs, which are es mated to be 20-30% below that of its neighbor and is now the lowest in the world. English is widely spoken in Bangladesh, especially at the managerial level, where 90% of the sta is uent.

Human resources development Six public and sixteen private universi es oer BSc and MSc courses relevant to the pharma sector. The total number of graduates each year in each discipline is as follows: Pharmacy 660 Applied Chemistry 120 Chemistry 360 Chemical Engineering 210 Microbiology 150 144
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Financial and scal advantages Pharmaceu cal is regarded by the Government as a thrust sector. Investors enjoy a broad range of incen ves, mostly in the form of tax exemp ons. There is no discrimina on in the case of du es and taxes payable by the same type of industry, whether foreign or locally-owned. Foreign investors may set up wholly-owned subsidiaries or joint ventures with local partners. They may also wind up an investment and repatriate the sales proceeds a er securing authoriza on from the Central Bank which is an easy exit policy. Manufacturing costs The cost of manufacturing 1 million tablets is es mated to be US$ 18,000 in USA, US$ 8,000 in India and US$ 6,500 7,500 in Bangladesh. This is accounted for by Bangladeshs highly compe ve labor and energy costs. For example, the cost of natural gas in Dhaka is only 25% of what it is in Shanghai, while labor costs in the pharma industry are 20 30% lower, than in India. Bangladesh also benets from cheap inland transport, while the cost of expor ng a container is US$ 970, compared with a regional average of US$ 1,339. Bangladesh is the ideal least cost and high prot op on for investors.

Outlook
Bangladesh is poised for major growth in its pharmaceu cal industry which is already the largest of any Least Developed Country (LDC). Dominated by the manufacturer of generic nal formula ons using mostly imported Ac ve Phermaceu cal Ingredients (API), the market was worth US$ 590 million in 2007 and growth has averaged 12% per annum since 2002. According to a June 2009 Business Monitor Interna onal (BMI) report, Bangladesh had a domes c pharma market worth US$ 858 million in 2008. It is es mated that with a CAGR of over 18%, the Bangladeshi domes c allopathic pharmaceu cals market will be worth over US$ 1.88 billion by 2013. The industry manufactures around 450 generic drugs for 5,300 registered brands with 8,300 dierent strengths and dosages. These include a wide range of products such as anit-ulcerants, ouroquinolones, an -rheuma c non-steroid drugs, non-narco c analgesics, an histamines, and oral an -diabe c drugs. Some larger rms are also star ng to produce an -cancer and an -retroviral drugs. Over 95% of Bangladeshs own pharmaceu cal needs are met by domes c rms, which number around 230 and account for 82% of the market in nal formula ons. Their dominance is explained by the 1982 Drugs Ordinance which prohibits the import of
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drugs which are manufactured in Bangladesh by local companies. A further 13% of the market is served by local subsidiaries of MNCs, Novar s and Aven s. Imports account for only 5%. However, Bangladesh imports around 80% of the APIs used in the sector. The industry is heavily centralized. The top 10 enjoy a 70% market share. The three largest companies are Square, Incepta and BEXIMCO. Bangladesh also exports nal formula ons. In 2008-09, drugs worth US$ 45.7 million were exported to 72 dierent countries. The export of pharmaceu cals is set for a boom in the near future, say industry analysts. Bangladesh is now expor ng a wide range of pharmaceu cal products covering all major therapeu c classes and dosage forms like tablets, capsules and syrups. It is also expor ng high-tech specialized products like HFA inhalers, suppositories, hormones, steroids, oncology and immunosuppressant products, nasal sprays, injec bles and IV infusions. Some of the most stringent regulatory authori es in the world have approved Bangladeshi pharma companies for export. The GCCs Gulf Central Commi ee for Drug Registra on, Therapeu c Goods Administra on of Australia, UKs MHRA, USAs FDA, Brazils ANVISA, Chiles ISPCH and Austrias EMEA have issued GMP clearance to many local companies.

Investment Incen ves


Accelerated deprecia on Concessionary Duty on imported raw materials and capital machinery Reduced corporate tax facili es Tax holidays

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Taris As a Least Developed Country, Bangladesh enjoys tari and quota-free access under the Generalized System of Preferences (GSP) to the EU market for all its products (apart from arms and armaments) provided that they sa sfy the EU rules of origin. These s pulate that manufactured products have to be suciently worked or processed in the expor ng country in order to qualify as having originated there. Bangladesh also enjoys tari-free access for exports of manufactured products to the USA and Japan under their respec ve Generalized Preference Systems. The GSP therefore allows Bangladesh tari-free access to a market of over 882 million people for its pharma products. Bangladesh will also benet from membership of the South Asian Free Trade Area (SAFTA) which commits India to reduce its taris on a wide range of products, including Pharma. Furthermore, Bangladesh belongs to the Asia Pacic Trade Agreement (APTA) and therefore enjoys reduced taris on exports of certain goods to China. These include many pharma products, though of course rules of origin apply.

Exhibit 6.6
Trends of Pharmaceu cals Export from Bangladesh

Source: Bangladesh Export Promo on Bureau

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6.11 Shipbuilding
Industry Background
Bangladesh shipbuilding industry suddenly emerged as a new exportable. With its unique nature, convenient geographical advantage, availability of technically knowledgeable personnel, skilled and semi-skilled workers and long past heritage the shipbuilding industry of Bangladesh has started its journey with a bang. The history of indigenous shipbuilding in Bangladesh dates back to the distant past. It is one of the early industries developed in ancient Bengal based on its old business of building boats and sea vessels. Many countries of Asia and Europe regularly bought ships built at Chi agong. During the Pakistan period the shipbuilding industry was dominated by public sector enterprises. Khulna Shipyard and Sonakanda Shipyard were established in that period in order to build new ships, and for repairing and maintenance of worn out vessels. At present the private sector has emerged as the major player. There are dozens of shipyards in Dhaka, Chi agong , Narayangonj, Barisal and Khulna districts where small size ships are built. Bangladesh got its rst exposure of interna onal shipbuilding in 1979, when the inland shipbuilding was at its nascent stage. Japanese shipbuilding giant Mitsui Engineering developed the rst and the largest joint venture shipyard with High Speed Shipbuilding and Engineering Co. Ltd. at Fatullah, Dhaka, and were able to build eight grain carriers under interna onal tender oated by FAO according to the Inten onal Classica on.

Ship Building Industry in Bangladesh

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Industry Outlook
The industry is manufacturing row ferries, tug boats, shing trawlers, inland oil tankers etc. catering to the local demand. Cost-eec ve human resource in comparison with other shipbuilding na ons and compara ve advantages such as simple importa on facility of raw materials, duty free market access for Bangladesh ships to other countries etc. have encouraged the Bangladesh entrepreneurs of this sector to come forward in export business. Bangladesh Government has taken ini a ves to promote this sector with a view to including a new item in the export basket, and promote as the next cost eec ve des na on for global buyers dealing in ships, ship machinery, ngs and marine technology. Recently Bangladesh has successfully exported her rst ocean going ship to a high-end market like Denmark by compe ng with Chinese and Vietnamese shipbuilders. Some shipbuilding units including Ananda Shipyard and Slipways Ltd. and Western Marine have come up with standard building facili es that enabled them to receive export orders. According to the Inten onal Trade Centre (ITC) calcula ons based on COMTRADE sta s cs the world export of ships, boats, and other oa ng structures (HS Chapter-89) was worth US$ 106.79 billion in 2007 where the annual growth in value between 2006 and 2007 was 19%. There is a huge gap between demand and supply of ships in the interna onal shipbuilding market. In the overbooked market, shipyards are signing contracts much in excess of their actual capacity.

Industry Incen ves


In the Na onal Industrial Policy 2010, this sector has been included as a thrust sector. Tax holiday facility available. 5% cash incen ve. 100% foreign or joint venture allowed.

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6.12 Spinning
Value Addi on to the Fibrous Substances
Spinning is the rst step in tex le value chain that adds value to the brous substances by conver ng them into yarn or thread through the processes of drawing, twis ng and winding (Exhibit 7). Characteris cs of the yarn vary based on the materials used, ber length and alignment, quan ty of ber used and degree of twist. The earliest spinning probably involved simply twis ng the bers in the hand. Later, the use of a s ck to help twist the ber was introduced. Drop spinning involves the use of a s ck with a whorl or weight to stabilize the spinning of the s ck (called a spindle). The spindle is spun, and hangs supported by the yarn as more ber is introduced. This introduced ber picks up the twist and becomes yarn. However, the development of spinning wheel allowed a con nuous and faster yarn produc on. Spinning wheels are either foot or hand powered. Modern powered spinning, originally done by water or steam power but now done by electricity, is vastly faster than hand spinning. Materials that can be used to create yarn fall into three broad classes: plant, animal, and synthe c. Plant materials: co on, ax (to produce linen), hemp, raa, yucca, coconut husk, etc. Animal materials: wool, goat (angora or cashmere goat), rabbit (angora), llama, ilk, alpaca, dog, camel, silk, etc. p Synthe c materials: polyester, nylon, rayon, acetate, mylar, etc. e, Apart from the above mineral materials like asbestos are also used, but not above, very o en.

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Exhibit 6.7
Major Produc on Steps for the Tex le & Apparel Sector

Spinning Industry in Bangladesh


Development of spinning industry in Bangladesh is closely associated with the development of Tex le and Clothing (T&C) sector as a whole. Power-driven modern tex les in Bengal can be traced back to early twen eth century. Before 1947, modern tex les were the composite tex le mills only having spinning and weaving facili es. Later, ac vi es like specialized tex le weaving, kni ng and hosiery and dyeing-prin ng-nishing were added. During 1947, there were about 11 composite tex le mills in Bangladesh (then East Pakistan) with 1.1 millions spindles and 2.7 thousand looms. Spindles grew to 3.2 millions in 1956 but declined to 0.8 million in 1972 as worn-out obsolete spindles went out of opera on. In 1972, large-scale manufacturing units including tex le mills were na onalized. A er 1982, state-owned spinning mills were gradually dena onalized. By 1999, spindles installed were 2.8 million (2.4 million in the private sector and 0.4 million in the public sector) with an annual produc on capacity of 200 million kg. BOI sectoral Survey found that in 2004, about 3.44 millions spindles are producing 382 million kg of yarn for the tex le industry. Which now stands at 1711.46 million kg of yarn.

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Challenges of and Supports to the Spinners


The success of a robust tex le sector largely depends upon an improved and reliable spinning sub-sector. If spinning sub-sector produces substandard / inferior yarn, its adverse eect persists right across through the en re value chain. Availability of raw materials, transporta on, port facili es and tari ra onaliza on are the key challenges to the spinners.
Table 4: Produc on Capacity of Yarn Manufacturing Mill (Spinning) in 2008

Yarn Manufacturing Mill (Spinning) a) Private BTMA b) Public - BTMC Total

No. of Units 365 22 387

Produc on Capacity 1700 million kgs 11.46 million kgs 1711.46 million kgs

Source: BTMA website: www.btmadhaka.com

The Government has been suppor ng the spinners providing lower tari for machinery spares and raw materials, cash incen ves, reduced tax rate, and low-cost funding etc.

Exhibit 6.9
Import of Yarn in Bangladesh

Source: Bangladesh Bank

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Investment Outlook
Tex le & Clothing is the largest manufacturing sector of Bangladesh providing about 5 million jobs, accoun ng for more than 10% of GDP and about 82% of total foreign exchange earnings. The growing demand for yarn in the local market, compara vely low cost of doing business, lucra ve incen ve package, favorable investment policy regime etc are the main reasons for investment in this sustainable sector.

6.13 Textiles Ready Made Garments Textiles Composite Textiles


Sector Highlights
The Ready Made Garments (RMG) industry experienced an export boom in the 1990s because of the excellent nego a on with the U.S in 1984-85. The most benecial public policy of introducing back to back LC and bonded warehouse facility gave a tremendous impetus to the export scenario in Bangladesh. Bangladesh is best placed in the region for tex les and garments because of low-cost labor, preferen al trade status and advantageous global market access. Government incen ves for the tex le sector include a 5% cash subsidy to exporters. There is a huge fabric demand supply gap in the RMG industry which is being met by imports. Thus, the poten al for backward linkage industry is enormous.

Industry Background and Status


The phenomenal growth in RMG was experienced in the last decade. In 1984-85, the number of garment factories was 800. RMG jointly with knitwear accounted for more than 70% of total investments in the manufacturing sector during the rst half of the 1990s. It is es mated that RMG and knitwear now account for about 4,000 factories and a workforce of three million almost 80% of whom are women. This sector now employs over 50% of the industrial workforce and accounts for 75% of the total export earnings of the country. The growing trend in the tex le and the garments sector means that Bangladesh is perfectly posi oned to appeal to foreign investors. Exhibit 6.10 shows the growth of RMG exports from Bangladesh.
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Exhibit 6.10
Growth of RMG Exports from Bangladesh

Source: Bangladesh Economic Review

Industry Outlook
Mul -Fiber Agreement (MFA) and Generalized System of Preferences (GSP) of the EU had been the main actors behind introducing Bangladesh RMG products to global market. However, MFA on tex le and clothing has been abolished since 2005. As a result, many had been doub ul about Bangladeshs ability to maintain the fast growth of the recent years in this sector but Bangladesh has taken even a be er posi on in the U.S.A market through compe on, quality gains and is a signicant RMG supplier to North America and Europe, and the fourth largest in the world. The objec ves and implementa on strategies of Export Policy (2009-2012) provides all incen ves including nancial and general ones to stakeholders to enhance their compe ve edge and to successfully meet the challenges of post-MFA world. Besides, steps are being taken to make the exis ng tari structure me be ng and realis c. Mean me, Bangladesh RMG industry has earned strong compe veness as a global standard RMG source. Marke ng network has been spread over the economies of the con nents. End users could well recognize and dieren ate the products condently.

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Till today, Bangladesh RMG industry largely depends on the imported yarns and fabrics. The need for establishment of backward-linkage industry has become an immediate concern to the government and the exporters. There are enormous opportuni es in se ng up composite tex les industry combining tex le, yarn and garments.

Investment Opportuni es
RMG and tex le sectors have enormous investment opportuni es. Government provides highly favorable policy framework for investment in these sectors. Investors have the following choices: Establishment of new tex le / RMG mill in the private sector. Joint ventures with the exis ng tex le / RMG mill. Acquisi on of public sector tex le mills that are being priva zed. Indirect investment through nancial services and / or leasing.

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Settling
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7.1 Harmonious Living

Pahela Baishakh, Dhaka

The People Bangladesh are by nature very polite, courteous, friendly and hospitable. They have imagina on, tastes, intelligence, camaraderie and crea vity. Thats why it is an exci ng place to live and visit. Historical and archeological sites dot the countryside, some da ng as far back as the third century, B.C. It is blessed with enchan ng scenic beauty, mighty rivers, sunny beaches, historical relics and colorful tribal life. Today, Bangladesh is a home to some of the major religions of the world like Islam, Hinduism, Buddhism and Chris anity. Owing to a long tradi on of tolerance, there is no communal animosity or ethnic conict in Bangladesh. The cons tu on of the country also guarantees full freedom of religion and there is no discrimina on based on race, religion, caste, sex or place of birth. Bangladesh is a vast family of diverse countries and civiliza on blending the ancient with the modern in a rich kaleidoscope.

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7.2 Cultural Orientation

Rikshaw Dhaka Rikshaw,

Paharpur Buddhist Vihara, Naogaon

Horse Carriage, Dhaka

Saint Khan Jahan Alis Sixty-domed ancient mosque (1459 A. D.), Bagerhat

It is really challenging for a family or individual to adjust to a new culture. Although it may involve some periods of pain, its accomplishment is certain to be gra fying. Coping with the stresses experienced in an unfamiliar situa on in Bangladesh is rather easy. Human beings are actually very good at adjus ng to changes and learn to live happy and produc ve lives in many se ngs.

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7.3 Adapting to Life


Bangladesh is no less secure and safe than any other country. Professional domes c help and maid services suitable for a foreign family are available at aordable costs. There are large number of good restaurants and eateries. The People of Bangladesh are friendly, hospitable, cordial and warm. They relate easily to strangers of any na on.

7.4 Affordable Living Costs


For the expatriates, Bangladesh is aordable and comfortable to live in. Expatriates accommoda on is available in centrally located apartments and houses. In several suburban areas, much quiet, more secluded houses are also available for rent. For those visi ng Bangladesh, Dhaka oers interna onal ve-star hotels like the Pan Pacic Sonargaon Hotel, Dhaka Sheraton Hotel, Radisson Water Garden Hotel, Wes n Hotel etc. Besides, a number of interna onal standard hotels are available in dierent ci es in Bangladesh. All the hotels provide deluxe accommoda on, restaurants, health-club and entertainment facili es. In addi on, there are a number of medium standard hotels and guesthouses in Dhaka, Chi agong and Khulna to accommodate the expatriates.

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7.5 Schooling & Healthcare


Large number of schools are available in Dhaka, Chi agong and other major ci es. An American Interna onal School for grades 1 to 12 is located near the high-class residen al area of Gulshan in Dhaka. The professional teaching stas follow the American school curriculum. The school library maintains a substan al collec on. Tui on charges are reasonable. A Japanese school is located in the residen al area of Baridhara in Dhaka. The school is managed by the Japanese Associa on in Bangladesh. Also there are some English medium schools with interna onal standards having examina on center of O-level and A-level examina on. In addi on, there is an interna onal school in the diploma c zone. Basic health care needs can be met at any of the countrys hospitals or clinics, or by foreign-trained registered physicians, engaged in various state owned and private hospitals and clinics. Most of them are highly qualied, well experienced and educated in U.S.A., U.K., Japan, and other European countries. There are also some good hospitals and clinics with modern diagnos c equipment and facili es.

An Interna onal School

Primary School, Dhaka

Bangladesh University of Engineering and Technology (BUET)

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7.6 Entertainment & Recreations


Expatriates have access to many private clubs in Dhaka to play tennis, squash, golf and billiards, and to swim or dine. Nearly all American and European countries have their own private clubs with the normal ameni es. There are Hash House Harriers/Harriets clubs in Dhaka and Chi agong. Local entertainment includes plays, art exhibits, lms and instrumental and vocal music groups. As Bangladesh is endowed with rich tradi onal culture, special occasions are o en marked by folk dance fes vals and dierent rituals. Similar sports and recrea onal facili es are also available in Chi agong, Khulna and other ci es and towns of Bangladesh. Both the rural and urban people are very sound in culture. Local drama, lm fes vals, cultural exhibi ons etc. are regularly held in the urban centers. People observe na onal days in a very fes ve, colourful and joyous manner.

Kurmitola Golf Club, Dhaka

Mirpur Stadium, Dhaka Stadium

A Restaurant in Dhaka

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7.7 Tours & Travels


Chi agong, Khulna, Rangama , Barishal, Sylhet and other places have some special a rac ons for visitors. Chi agong, the second largest city, is the gateway to the Bay of Bengal with a picturesque hinterland of large hills and forests, broad sandy beaches and ne temperate climate which always a ract holiday-makers. It combines the humming of a busy sea-port with the pleasure of a charming hill-town with undula ng topography. Chi agong is the countrys principal sea-port and is the main site of heavy, medium and light industries. Chi agong is also close to other unique tourist spots like Coxs Bazar, Kaptai and Rangama .

St. Mar ns Island

Royal Bengal Tigers in the Sundarbans

A 5 Star Hotel in Dhaka

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w w w. b o i . g o v. b d Khulna, the countrys third largest city, serves as the gateway to the port of Mongla a and the Sundarbans, the largest mangrove forest of the world, A UN heritage sight and the home of the Royal Bengal Tiger. A journey by paddle steamer from Dhaka to Khulna along the southern river system running through the green countryside is guaranteed to be an unforge able experience for foreigners. Saint Khan Jahan Alis sixty-domed ancient mosque (1459 A.D.) and his mausoleum at Bagerhat about 32 kms, away from Khulna are the popular tourist a rac ons.

Bandarban

Celebra ng a Bangladeshi Fes val

Ancient City of Sonargaon

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7.8 Workdays & Business Hours


Bangladesh observes Friday and Saturday as weekend for government oces. Business hours are 9:00 17:00. Banks observe the same hours while industry has a 48-hour week. But dierent business and private organiza ons observe a Friday weekend.

7.9 Flight Schedules


It is very easy and simple to travel to Bangladesh from any country in the world. Please contact your travels agent or the airline oces for latest ight schedules from major interna onal hubs like London, Dubai, Bangkok and Singapore. Also visit the ocial website of Biman Bangladesh Airlines. www.bimanair.com.

7.10 Useful Bangla Words


People of Bangladesh regard Bangla as central and overarching to the sense of pride of their na on. Speaking a few words in Bangla may not facilitate your communica on a lot. But this would be appreciated by every Bangladeshi. Here are some very common Bangla words and phrases:

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Useful Bangla Words


Gree ngs and Conversa on Muslim Gree ng : Assalamu Alaikum Response : Wa Alaikum Assalam Hindu Gree ng : Nomoshkar Response : Nomoshkar Muslim Farewell : Khuda Hafez/Allah Hafez Response : Khuda Hafez/Allah Hafez Thank you : Dhanyabad Yes : Ji or Ha No : Na Ok : Acchcha How are you? : Kemon Aachen? I am well : Ami bhalo Aachi. What is your name? : Apnar nam ki? My name is ....... : Amar nam ........ I have : Aache I dont have ....... : Nai I need : Lagbe I dont need : Lagbe na Food & Shopping Vegetable : Shobji Potato : Alu Onion : Peyaj Cauliower : Phulkopi Cabbage : Badhacopi Banana : Kola Mango : Aam Lemon : Lebu Apple : Apel Papaya : Pepe Orange : Komla Rice (cooked) : Bhat Rice (uncooked) : Chaal Len ls : Dal Curry : Torkari Sugar (white) : Chini Water : Pani Market : Bazar Numbers 1 2 3 4 5 6 7 8 9 10 20 30 40 50 100 200 1,000 1,00,000 Time Morning In the Morning A ernoon Evening Night Today Yesterday Tomorrow Hour Day Week Month Year Everyday Whole day Later Thanks Shop : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : Ek Dui Tin Char Panch Chhoy Shat Aat Noy Dosh Bish Trish Chollish Ponchash Ek Sho Dui Sho Ek Hajar Ek Lakh Shokal Shokale Bikal Sondha Raat Aaj Gotokal Agamikal Ghonta Din Shopta Mash Bochhor Roj Sara din Pore Dhanayabad Dokan

For more informa on on living in Bangladesh, its culture, travel informa on, places to visit and security, you may also please contact Bangladesh Parjatan Corpora on. Board of Investment 2011

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Contacts & Information Sources

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8.1 Government Bodies


The Web address of government is www.bangladesh.gov.bd
Ministry of Civil Avia on & Tourism Bhaban No. 6, 19th Floor, Bangladesh Secretariat, Dhaka 1000 Tel : (880-2) 716 7244 Fax : (880-2) 716 9206 E-mail : smcat@yahoo.com Web : www.mocat.gov.bd Ministry of Communica ons Bhaban No. 7 (8th oor), Secretariat, Dhaka 1000 Tel : (880-2) 716 2866 Fax : (880-2) 955 3900 Email : secretary@moc.gov.bd Web : www.moc.gov.bd Ministry of Commerce Room No. 129, Building 3, Bangladesh Secretariat, Dhaka-1000 Tel : (880-2) 716 9679, 716 9006 Fax : (880-2) 716 7999, 716 0346 Email : mincom@b b.net.bd, mincom@intechworld.net Web : www.mincom.gov.bd Ministry of Finance Bhaban No. 7 (3rd oor), Bangladesh Secretariat, Dhaka 1000 Tel : (880-2) 716 2785, 716 0406, 716 2641 Fax : (880-2) 716 5581 Email : fso@bdmail.net Web : www.mof.gov.bd Ministry of Foreign Aairs Segun Bagicha, Dhaka-1000 Tel : (880-2) 956 2862 Fax : (880-2) 9572259 Email: communica oncell@mofa.gov.bd Web : www.mofa.gov.bd Ministry of Home Aairs Bangladesh Secretariat, Dhaka-1000 Tel : (880-2) 7169069, 7160405 Fax : (880-2) 7164788 Email : secretary@mha.gov.bd, info@mha.gov.bd Web : www.mha.gov.bd
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Ministry of Industries Shilpa Bhaban (2nd oor), 91 Mo jheel Commercial Area, Dhaka 1000 Tel : (880-2) 9563545, 9563549 Fax : (880-2) 9563564 Email : indsecy@b b.net.bd, industry@moind.gov.bd Web : www.moind.gov.bd Ministry of Power, Energy & Mineral Resources Bhaban No. 6 (1st oor), Bangladesh Secretariat, Dhaka 1000 Tel : (880-2) 716 6188 Fax : (880-2) 716 1110 Email : secyenergy@yahoo.com, Power Division Tel: (880-2) 9559928 E-mail: info@powerdivision.gov.bd Ministry of Posts & Telecommunica ons Bhaban No. 7 (6th oor), Bangladesh Secretariat, Dhaka 1000 Tel : 880-2-716 2160, 7168689, 7169033 Fax : 880-2-716 5775, 7166670 Email : mopt@b b.net.bd, info@mopt.gov.bd Web : www.mopt.gov.bd Ministry of Tex les and Jute Bhaban No. 6 (11th oor), Bangladesh Secretariat, Dhaka 1000 Tel : (880-2) 716 7266 Fax : (880-2) 716 0600, 7168766 Email : sectext@gmail.com Web : www.motj.gov.bd Ministry of Housing & Public Works Bangladesh Secretariat, Dhaka, Bangladesh Phone : (88 02) 7160465 Fax No : (88 02) 9571984, 7167125 Email : secretary@mohpw.gov.bd Web : www.mohpw.gov.bd Ministry of Labour and Employment Bangladesh Secretariat, Dhaka, Bangladesh Phone : (88 02) 7162487 Fax No : (88 02) 7168660 Email : info@mole.gov.bd Web : www.mole.gov.bd

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Ministry of Fisheries and Livestock Bangladesh Secretariat, Building No. 6, Floor 5th & 14th, Dhaka, Bangladesh Phone : (88 02) 7162487 Fax No : (88 02) 7168660 Email : info@mole.gov.bd Web : www.mole.gov.bd Bangladesh Bank Mo jheel Commercial Area, Dhaka 1000 Tel : (880-2) 712 6101-20, 712 6280-95, 7125625, 7120959 Fax : (880-2) 956 6212, 9564117 E-mail : gmfrtmbb@bangla.net Web: www.bangladesh-bank.org Bangladesh Export Processing Zones Authority (BEPZA) BEPZA Complex, House # 19/D, Raod # 6, Green Road, Dhaka-1205, Bangladesh Tel : (880-2) 865 0059, 8650061, 8650058 Fax : (880-2) 8650060 Email : chairman@bepza.org Web : www.epzbangladesh.org.bd Bangladesh Standard & Tes ng Ins tu on (BSTI) Ministry of Industries Mann Bhaban, 116/KA, Tejgaon Industrial Area, Dhaka-1208 Tel: (880-2) 8821462 (DG), 8821462, 8813322 Fax: (880-2) 913 1581 Email: bs @bangla.net Web: www.bs .gov.bd Bangladesh Tari Commission 1st Twelve Storied Govt. Building (10th Floor), Segunbagicha, Dhaka Tel : (880-2) 9335930, 9335933 Fax : (880-2) 831 5685 Email : btari@intechworld.net Web : www.bdtaricom.org Bangladesh Telecommunica ons Company Ltd. Telejogajog Bhaban, 37/E Eskaton Graden, Dhaka-1000 Tel: (880-2) 831 1500, 865 1800 Fax: (880-2) 831 2577 E-mail: md@btcl.net.bd Web: www.btcl.gov.bd

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Dhaka City Corpora on Nagar Bhaban, Fulbaria, Dhaka Tel: (880-2) 956 3447, 956 3504, 9563506 Fax: (880-2) 956 3514 E-mail: dcc@bijoy.com Web: www.dhakacity.org Export Promo on Bureau (EPB) TCB Bhaban, 1-2, Kawran Bazar C/A Commercial Area, Dhaka 1215, Bangladesh Tel : (880-2) 914 4821-4, 912 8377, 815 1496, 811 2427 Fax : (880-2) 911 9531 Email : epb.bd@aitbd.net, info@epb.gov.bd Web: www.epb.gov.bd Na onal Board of Revenue Segunbagicha, Dhaka Tel : (880-2) 831 8120-26, 831 8101-8, 8362442 Fax : (880-2) 831 6143, 8316143 E-mail : nbr-bd@bobnline.com, bdnbr@mail.com Web: www.nbr-bd.org Oce of the Chief Controller of Import & Export (CCI&E) 111-113 Mo jheel Commercial Area (2nd Floor), Dhaka-1000 Tel : (880-2) 955 1556, 9553349 Fax : (880-2) 955 0217 Email : ccie@bdmail.net Web : www.ccie.gov.bd Directorate of Immigra on and Passport Agargaon Passport Bhaban, Sher-E-Bangla Nagar, Dhaka-1207 Tel: (880-2) 8159525, 8123193, 8123767, 8123837 Fax: (880-2) 9123399 Web: www.dip.gov.bd Priva za on Commission Prime Ministers Oce Paribahan Pool Bhaban (8th & 9th Floor), Secretariat Link Road Tel: (880-2) 7168563, 9551986 Fax : (880-2) 9556433 Email: pb@bdonline.com Web: www.pc.gov.bd

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Petrobangla Petrocenter, 3 Kawran Bazar, Dhaka-1215 Tel: (880-2) 811 4972, 8156655, 8117116 Fax: (880-2) 912 0224 Email: petchair@petrobangla.org.bd. Web: www.petrobangla.org.bd Power Development Board WAPDA Building, (1st oor) Chairman Bhaban, Dhaka 1000 Tel: (880-2) 956 2154, 9566061-5 Fax: (880-2) 956 4765 Email: chbpd@bd-online.com Web: www.bpdb.gov.bd Registrar of Joint Stock Companies and Firms TCB Bhaban (6th Floor), 1, Kawran Bazar, Dhaka - 1215 Tel: 88028189401, 88 02 8189403 Fax: 88 02 8189402, Email: rjsc@roc.gov.bd Web: www.roc.gov.bd Department of Patents, Designs & Trade Marks Shilpa Bhaban (5th Floor), 91 Mo jheel C/A. Dhaka-1000 Tel: (880-2) 9560696, 8333337 Fax: (880-2) 9556556, 9556714 Email: depdt.bd@komnikt.net Registry of Copyrights Na onal Library Building (2nd Floor) 32 S. M. Morshed Sarani, Agargaon, Sher-E-Bangla Nagar, Dhaka Tel: (880-2) 9119632, 9119380 Fax: (880-2) 7169008, 9118704 Email: infor@copyrightocebd.com Chi agong Port Authority (CPA) Bandar Bhaban P. O. Box-2013, Chi agong-4100, Bangladesh Tel : 880-31- 2522200 Fax : 880-31- 2510889 Web: www.cpa.gov.bd

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Directorate General of Health Services (DGHS) Mohakhali, Dhaka-1212, Bangladesh Phone: 880-2-8816459 Fax: 880-2-8813875 email: info@dghs.gov.bd web: www.dghs.gov.bd Department of Narco cs Control Ministry of Home Aairs 71-72 Old Elephant Road (Eskaton Garden), Ramna, Dhaka Tel : (88 02) 8312131 Fax : (88 02) 8311155 email: dgdnc@b b.net.bd web: www.dnc.gov.bd Oce of the chief Inspector of Boilers Shilpo Bhoban (Annex Bldg.), 91, Mo jheel, Dhaka-1000 Phone : (88 02) 9567108, 02-9567353 E-mail : infoboiler@yahoo.com Oce of the Chief Inspector of Factory Establishment Ministry of Labour and Employment Sramo Bhaban (7th & 8th Floor), 4, Rajuk Avenue, Paltan, Dhaka-1000. Phone : (88 02) 9555546 E-mail : Registry of Copyrights Na onal Library Building (2nd Floor) 32 S. M. Morshed Sarani, Agargaon, Sher-E-Bangla Nagar, Dhaka Tel: (880-2) 9119632, 9119380 Fax: (880-2) 7169008, 9118704 Email: infor@copyrightocebd.com Bangladesh Small and Co age Industries Corpora on (BSCIC) 137-138, Mo jheel Commercial Area, Dhaka137-138 Phone : PABX-9556191-2 Fax : (88 02)-9550704 E-mail : info@bscic.gov.bd, bscic@bdonline.com

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Bangladesh Parjatan Corpora on 83-88 Mohakhali C/A, Dhaka-1212, Bangladesh Phone : (88 02)-8833229, 8834600 Fax : (88 02)-8833900 E-mail : info@bangladeshtourism.gov.bd, info@parjatan.gov.bd Web : www.bangladeshtourism.gov.bd, www.parjatan.gov.bd Rajdhani Unnayan Kartripakkha (RAJUK) Rajuk Bhaban Rajuk Avenue, Dilkusha C/A, Dhaka -1000, Bangladesh Phone : (88 02)-9551355 E-mail : direst@rajukdhaka.gov.bd Web : www.rajukdhaka.gov.bd Na onal Housing Authority Grihayan Bhaban, 82, Segunbagicha, Dhaka, Bangladesh Phone : 9562762 Fax : (88 02) 9562618 E-mail : nha@bdcom.com

8.2 Trade & Chamber Bodies


The Federa on of Bangladesh Chambers of Commerce & Industry (FBCCI) Federa on Bhaban, 60 Mo jheel Commercial Area, Dhaka 1000 Tel : (880-2) 956 0102-3, 956 0588-9, 956 0482 Fax: (880-2) 861 3213, 955 1233, 9560588, 7176030 Email : cci@bol-online.com Web : www. cci-bd.org Foreign Investors Chambers of Commerce and Industry (FICCI) Prime View (03-303) 7 Gulshan Avenue, Gulshan-1, Dhaka-1212 Tel : (880-2) 989 3049, 9892913 Fax : (880-2) 989 3058 Email : cci@bangla.net, cci@bdcom.net Web : www.cci.org.bd Bangladesh Chamber of Industry (BCI) BCIC Bhaban (3rd Floor) 30-31, Dilkusha C/A, Dhaka-1000, Bangladesh Tel : (880-2) 955 1669, 956 9601, 956 5345 Fax : (880-2) 956 4170 Email : bci@bdcom.com Web : www.bangladeshchamber.org
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Interna onal Chamber of Commerce Bangladesh (ICC-Bangladesh) Chandrashila Suvastu Tower (6th Floor), 69/1, Panthapath, Dhaka Tel : (880-2) 956 4174, 862 2583-84 Fax:: (88-02) 8621917 Email : iccb@bdmail.net, iccb@citechco.net Metropolitan Chamber of Commerce & Industry (MCCI) Chamber Building, (4th oor) 122-124, Mo jheel C/A, Dhaka-1000 Tel : (880-2) 956 5208-11, 716 1028-29 (PABX) Fax : (880-2) 956 5212 Email : sg@citechco.net Web : www.mccibd.org The Dhaka Chamber of Commerce & Industry (DCCI) Dhaka Chamber Bhaban 65-66, Mo jheel C/A, Dhaka Tel : (880-2) 955 2808, 955 2562, 9552562 Fax : (880-2) 956 0830 Email : dcci@agni.com, dcci@bangla.net Web : www.dhakachember.com Chi agong Chamber of Commerce & Industry (CCCI) Chamber House # 38, Agrabad C/A, Chi agong, Bangladesh Tel : (880-31) 713 366-69 Fax : (880-31) 710 183 Email : ccc@golbalctg.net Khulna Chamber of Commerce & Industry (KCCI) Chamber Mansion, 5, KDA C/A P.O. Box 26, Khan-A-Sadur Road, Khulna Tel : (880-41) 723 953, 811 248 Fax : (880-41) 726 535, 725635 Rajshahi Chamber of Commerce & Industry (RCCI) Chamber Bhaban, Sta on Road, Rajshahi Tel : (880-721) 774508, 774476 (Oce) Fax: (880-721) 774463 Barisal Chamber of Commerce & Industry (BCCI) P.O. Box 30, Shaow Road, (Nazirer Pool) Barishal, Bangladesh Tel : (880-431) 522 20, 618 76 Fax : (880-431) 546 91 Sylhet Chamber of Commerce & Industry (SCCI) Chamber Building P.O. Box 97 Jail Road, Sylhet Tel : (880-821) 714403, 716069, 716808 Fax : (880-821) 715210

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8.3 Joint Chambers


Australia-Bangladesh Chamber of Commerce & Industry (ABCCI) House # 296 (Ground Fl.), Road # 04 (east side), DOHS Baridhara, Dhaka-1206 Tel : (880-2) 988 3926 Fax : 880-2-988 8450, 8826815 Email : abcci@citek_bd.com American Chamber of Commerce in Bangladesh (AmCham) Dhaka Sheraton Hotel (Room 319) 1, Minto Road, Dhaka 1000 Tel : (880-2) 861 3391, 988 5881 Fax : (880-2) 934 9217, 8312915 Email : amcham@bangla.net Web : www.amachambd.org Bangladesh-Malaysia Chamber of Commerce & Industrics (BMCCI) House # 14, Road # 27, Block # J, Banani, Dhaka 1213 Tel: (880-2) 989 5124, 989 5525, 988 7071 Fax : (880-2) 989 5541, 988 7072, 885 8527 Email : bmcci@dhaka.net Bangladesh-China Chamber of Commerce & Industrics (BCCCI) House # 432, (2nd Floor) Road # 30, New DOHS, Mohakhali, Dhaka Tel: (880-2) 885 9080, 0172-290417, 0171-031049 Fax: (880-2) 988 3444 Bangladeshi-German Chamber of Commerce & Industry (BGCCI) GTZ Building, Road # 09, House # 10/C, Gulshan-2 Tel: (880-2) 8826480 Fax: (880-2) 8824858 Email : bgccibd@yahoo.com, info@bgcci-bd.com Web : www.bgcci.org.bd Bangladesh-Norway Chamber of Commerce & Industry (BNCCI) East Coast Centre, SW(G), 8 Gulshan Avenue, Gulshan-1, Dhaka-1212 Tel : (880-2) 988 4312-7 Fax: (880-2) 988 3783, 988 3785 E-mail : ecg@bangla.net Web : www.ecg.com.bd

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Bangladesh-Thai Chamber of Commerce and Industry (BTCCI) 52/1, New Eskaton Road (2nd Floor), Dhaka - 1000 Tel: (880-2) 934 3948, 934 5174, 935 6085 Fax : (880-2) 831 4933 Email: rmkhan@dbn-bd.net Web : www.bscl.net Dutch-Bangla Chamber of Commerce & Industry (DBCCI) Chowdhury Centre (2nd Floor) 23Ka New Eskaton Road, Dhaka - 1000 Tel : (880-2) 8359337 Fax : (880-2) 8359562 Email : dbcci10@gmail.com, dbcci@dbn-bd.net Web : www.dbcci.org Japan-Bangladesh Chamber of Commerce & Industries (JBCCI) Sharif Plaza (3rd Floor), 39, Kemal Ataturk Avenue, Banani, Dhaka-1213 Tel : (880-2) 8860105 Fax : (880-2) 881 8224 E-mail : jbcci@citech-bd.com Web : www.jetro.gojp/bangladesh/eng/jbcci/index.hdml Bangladesh-France Chamber of Commerce & Industry (BFCCI) House No. 2, Road No. 1, Baridhara, Dhaka-1212 Tel: (880-2) 8821450, 882 2751-4 Fax: (880-2) 882 1450, 986 0712 Email: dhaka@missionceo.org Russia-Bangladesh Joint Chamber of Commerce & Industry (RBJCCI) House 2, at 6/1, Road 17, block C, Banani, Dhaka -1213 Tel : (880-2) Fax: (880-2) 882 2275 Email: info@russia-bangladesh-cci.com Korea-Bangladesh Chamber of Commerce & Industry Concord Centre (4th Floor), 43 North Commercial Area, Gulshan, Dhaka-1212 Tel: (88-02) 8829434, 9882168 Fax: (88-02) 8823552 Email: kbcciadmin@gmail.com

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Bangladesh Jute Associa on BJA Bhaban, 77, Mo jheel C/A, Dhaka 1000 Tel : (880-2) 955 2916 Fax : (880-2) 956 3589 Bangladesh Jute Mills Associa on Adamjee Court (4th oor) 115-120 Mo jheel C/A, Dhaka Tel : (880-2) 955 0664, 913 2520, 912 4982 Fax : (880-2) 955 0664 Bangladesh Jewelery Manufacturers & Exporters Associa on F-37, Anarkoli Super Market (1st Floor) Mowchak, Dhaka Tel : (880-2) 935 7539, 934 3491 Bangladesh Knitwear Manufacturers & Exporters Associa on (BKMEA) 233/1, B.B. Road, Narayanganj-14000 Tel : (880-2) 955 3866, 955 3422, 971 5494 Fax : (880-2) 971 6050 Email : bjmajutegood@oagnionline.com Bangladesh Milk Products Manufacturers & Traders Associa on 46/1, Lake Circus, Kalabagan, Dhaka Tel : (880-2) 811 6576 Fax : (880-2) 811 6576 Bangladesh Marine Fisheries Associa on Head Oce-Suite no. 10/4, Eastern Plaza (9th oor) Ha rpul, Dhaka. Tel : (880-2) 861 6934 Fax : 880-2-861 6934 Email : bmfa@bdcom.com Bangaldesh Poultry Industries Associa on Adamjee Court (Ground oor) 115-120, Mo jheel C/A, Dhaka Tel : (880-2) 956 46133, 955 0543 Fax : (880-2) 933 2866 Email : bpiadhaka@yahoo.com Bangladesh Re-rolling Mills Associa on Asif Mansion (9th Floor) 77/1 Kakrail, Dhaka-1000 Tel : (880-2) 835 3051 Bangladesh Reshom Industry Owners Associa on 23, Liknath High School Market, Rajshahi-6000 Tel : (880-721) 775 271, 772 739

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8.4 Specialized Associations


Bangladesh Freight Forwarders Associa on House # 45/E, Road # 13/C, Block # E Banani C/A, Dhaka Tel : (880-2) 988 1663, 8836324-5 Fax : (880-2) 988 1664 Email : baa@pradeshta.net Bangladesh Computer Samity (BCS) Sonartori Tower (12th Floor) Plot # 12, Biponon C/A, Sonargaon Road, Dhaka-1205, Bangladesh Tel: (880-2) 967 0955-56 Ext-108 Fax: 880-2-967 0955-56 E-mail: samity@bcs.org.bd Wed: www. bcs.org.bd Bangladesh Frozen Foods Exporters Associa on (BFFEA) Sky Lark Point (10th oor) 24/A Bijay Nagar, Dhaka-1000 Tel : (880-2) 8316882, 8317531 Fax : (880-2) 8317531 Email : bea@dhaka.net Bangladesh Finished Leather & Leather goods and footwear Export Associa on House 61, Road 2/A Dhanmondi, Dhaka Tel : (880-2) 862 2167, 861 5977 Fax : (880-2) 862 2168 E-mail : info@blfea.org Web : www.dif.net Bangladesh Garment Manufacturers & Exporters Associa on (BGMEA) 23/1 Panthapath Link Road, Karwan Bazar (3rd & 4thFloor) Dhaka-1215 Tel : (880-2) 811 5597, 811 5751 Fax : (880-2) 811 3951 Email : info@bgmea.com, bgmea@dhaka.agni.com Web : www.bangladeshgarments.info Bangladesh Jute Mills Associa on Adamjee Court (4th oor) 115-120 Mo jheel C/A, Dhaka Tel : (880-2) 955 0664, 913 2520, 912 4982, 9566472, 9560071-2 Fax : (880-2) 955 0664

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Bangladesh Knitwear Manufacturers & Exporters Associa on (BKMEA) 233/1, B.B. Road, Narayanganj-14000 Tel : (880-2) 955 3866, 955 3422, 971 5494, 7610535, 7611295, 7611857 Fax : (880-2) 971 6050 Email : bkmea@aitlbd.net Bangladesh Tanners Associa on 99, Hazaribagh, Tannerbag Jame Masjid Area, Dhaka 1209 Tel : (880-2) 966 2836, 9660754 Fax : (880-2) 861 8564 Bangladesh Tex le Mills Associa on (BTMA) Unique Trade Centre (Level 8) 8 Panthapath, Karwan Bazar, Dhaka, Bangladesh Tel : (880-2) 9143461,9130969, 8112361 Fax: (880-2) 912 5338 E-mail : btmasg@gmail.com , btma2@yahoo.com , btma3@hotmail.com Web : www.btmadhaka.com Real Estate & Housing Associa on of Bangladesh (REHAB) Na onal Plaza (6th oor) 1/G, Free School Street, Sonargaon Road, Dhaka-1205, Bangladesh Tel : (880-2) 966 2482, 9669897, 8652064 Fax : (880-2) 8619919 E-mail : info@rehab-bd.org Web : www. rehab-bd.org

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8.5 Board of Investment (BOI)


PABX (Auto-Hun ng): (88 02) 716 9580 Email: service@boi.gov.bd Web: www.boi.gov.bd

Execu ve Chairman Board of Investment Prime Ministers Oce Jiban Bima Tower (19th Floor) 10 Dilkusha C/A, Dhaka-1000 Tel: (88 02) 9559378, 9563566 716 9580 (Ex-1901 / PA-1904) Fax: (88 02) 9562312 Email: ec@boi.gov.bd Execu ve Member (Foreign Investment, Communica on, S & P and MIS) Board of Investment Prime Ministers Oce Jiban Bima Tower (19th Floor) 10 Dilkusha C/A, Dhaka-1000 Tel: (88 02) 9563570 716 9580 (Ex-1911 / PA-1951) Fax: (88 02) 9562312 Email: em1@boi.gov.bd Execu ve Member (Local Investment, Services) Board of Investment Prime Ministers Oce Jiban Bima Tower (19th Floor) 10 Dilkusha C/A, Dhaka-1000 Tel: (88 02) 7172144 716 9580 (Ex-1913 / PA-1953) Fax: (88 02) 9562312 Email: em2@boi.gov.bd

Execu ve Member (Policy & Planning, IIMC, Industrial Park) Board of Investment Prime Ministers Oce Jiban Bima Tower (19th Floor) 10 Dilkusha C/A, Dhaka-1000 Tel: (88 02) 9562414 716 9580 (Ex- 1910 / PA -1960) Fax: (88 02) 9562312 Email: em3@boi.gov.bd Secretary Board of Investment Prime Ministers Oce Jiban Bima Tower (19th Floor) 10 Dilkusha C/A, Dhaka-1000 Tel: (88 02) 9563572 716 9580 (Ex-1909 / PA-1959) Fax: (88 02) 9562312 Email: secretary@boi.gov.bd Director (Local Investment) Board of Investment Prime Ministers Oce Jiban Bima Tower (17th Floor) 10 Dilkusha C/A, Dhaka Tel: (88 02) 9551644 716 9580 (Ex-1701) Fax: (88 02) 9562312 Email: tauhidur@boi.gov.bd

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Director (Foreign Investment, Industry) Board of Investment Prime Ministers Oce Jiban Bima Tower (18th Floor) 10 Dilkusha C/A, Dhaka Tel: (88 02) 9552426 716 9580 (Ex-1807) Fax: (88 02) 9562312 Email: tofazzel@boi.gov.bd Director (Foreign Investment, Commercial) Board of Investment Prime Ministers Oce Jiban Bima Tower (18th Floor) 10 Dilkusha C/A, Dhaka-1000 Tel: (88 02) 9562546 716 9580 (Ex-1801) Fax: (88 02) 9562312 Email: jhai@boi.gov.bd Director (Communica on) Board of Investment Prime Ministers Oce Jiban Bima Tower (17th Floor) 10 Dilkusha C/A, Dhaka-1000 Tel: (88 02) 9552518 716 9580 (Ex-1706) Fax: (88 02) 9562312 Email: chowdhury@boi.gov.bd Director (Policy & Planning) Board of Investment Prime Ministers Oce Jiban Bima Tower (18th Floor) 10 Dilkusha C/A, Dhaka-1000 Tel: (88 02) 9552097 716 9580 (Ex-1713) Fax: (88 02) 9562312 Email: nahar@boi.gov.bd

Director (Strategy & Programme) Board of Investment Prime Ministers Oce Jiban Bima Tower (18th Floor) 10 Dilkusha C/A, Dhaka Tel: (88 02) 7168372 716 9580 (Ex-1001) Fax: (88 02) 9562312 Email: tofazzel@boi.gov.bd Director (MIS & Library) Board of Investment Prime Ministers Oce Jiban Bima Tower (10th Floor) 10 Dilkusha C/A, Dhaka Tel: (88 02) 9563854 716 9580 (Ex-1005) Fax: (88 02) 9562312 Email: molla@boi.gov.bd Director (IIMC) Board of Investment Prime Ministers Oce Jiban Bima Tower (18th Floor) 10 Dilkusha C/A, Dhaka-1000 Tel: (88 02) 9552089 716 9580 (Ex-1710) Fax: (88 02) 9562312

Director (Services) Board of Investment Prime Ministers Oce Jiban Bima Tower (18th Floor) 10 Dilkusha C/A, Dhaka-1000 Tel: (88 02) 9551432 716 9580 (Ex-1816) Fax: (88 02) 9562312 Email: aminullah@boi.gov.bd

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Director Board of Investment Chi agong Divisional Oce, 1 CGO Building, Agrabad, Chi agong Tel: (031) 2520608 Fax: (031) 722382 Email: chi agong@boi.gov.bd Director Board of Investment Rajshahi Divisional Oce, Hia Bitan, Kazihata, C&B Road, Rajshahi Tel: (0721) 772047 Email: hakim@boi.gov.bd Director Board of Investment Sylhet Divisional Oce, Prabah-18, Telihaor, Taltala, Sylhet Tel: (0821) 724306 mail: sylhet@boi.gov.bd

Assistant Director Board of Investment Khulna Divisional Oce, Shilpa Bank Bhaban (9th Floor) 25-26, KDA, C/A, Khulna. Tel: (041) 724716 Email: khulna@boi.gov.bd Assistant Director Board of Investment Barisal Divisional Oce, 90/87, Jhordan Road, Barisal Tel: (0431) 63869 Email: barisal@boi.gov.bd

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