Investment Scenario in Bangladesh

BANGLADESH *120 million population *50 million civilian labour force *trained and educated workforce at low wage rate *sizeable domestic market *political stability *steady growth of GDP * stable rate of exchange *low interest rate *low rate of inflation *comfortable foreign exchange reserve INDUSTRIAL POLICY REFORMS
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Liberalized Industrial Policy Export-oriented, private sector-led growth strategy No limitation pertaining to equity participation i.e. up to 100 per cent foreign private investment allowed Except five reserve sectors, all industries are open for private investment> Industries earmarked for public sector investment are included in the reserve sector namely: (i) arms, ammunition and other defence equipment and machinery (ii) production of nuclear energy (iii) forest plantation and mechanized extraction within the bounds of reserved forests (iv) security printing (currency notes) and minting, and (v) railways and air transportation (except certain domestic routes and air cargo) No permission of the Government required to set up new industries

For obtaining institutional facilities like procurement of land, electricity, gas and sewerage connection, importation of capital machinery and raw materials, tax rebate, duty drawback facilities etc., industries need only to be registered with the Board of Investment (BOI) in a simple prescribed from REFORM and LIBERALIZATION OF POLICIES
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Creation of Law Reform Commission to update existing Laws Setting up Administrative Reform Commission to modernise the administrative system and to remove bureaucratic roadblocks Enactment of law allowing private sector to establish export processing zones Approval of policy parameters and incentives for private power generation Identification of road blocks on the way of implementation of projects and measures to remove them

Updating of Companies Act and relevant laws INVESTMENT GUARANTEE Foreign Private Investment (Promotion and Protection) Act, 1980 ensures legal protection to foreign investment in Bangladesh against nationalization and expropriation. It also guarantees repatriation of capital and dividend and equitable treatment with local investors. Adequate

protection is available for intellectual property rights, such as patents, designs and trade marks and copyrights. Bilateral Investment Guarantee Agreements have been signed with a number of countries. Bangladesh is signatory to MIGA, OPIC of USA, ICSID and member of WIPO Permanent Committee on development co-operation related to industrial property. FACILITIES INCENTIVES
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tax holiday from 5-10 years depending on location of industries 15 year's tax holiday for private power generation companies facilities for repatriation of invested capital, profit and dividend exemption of tax on interest on foreign loan tax exemption on royalties, technical know-how and technical assistance fees avoidance of double taxation on the basis of bilateral agreement six months multiple entry visa for the investors TAKA, the nation's currency, is convertible for international payments in the current account Re-investment of repatriable dividend treated as new investment Working capital loan, as well as term loan, from local commercial banks allowed to the industries set up with foreign capital

Citizenship by investing a minimum of US$ 5,00,000 or by transferring US$ 10,00,000 to any recognized financial institution (non repatriable) INCORPORATION OF A COMPANY IN BANGLADESH In Bangladesh, business may be carried on by a locally incorporated company and a foreign company incorporated outside but registered in Bangladesh. POTENTIAL AREAS FOR INVESTMENT Investments in areas of manufacturing and services are welcome. Investors are free to choose fields of investment. However, from the point of view of comparative advantage, the following are potential areas for investment. Textile: export market of US$ 2 billion from the