Investment Opportunity

Wpfreeware 6:49 AM Investment Opportunity

Bangladesh offers promising investment opportunities, particularly in infrastructure and manufacturing, potential investors need to navigate regulatory challenges and consider the political and economic landscape carefully.

Fastest-growing Economies

Bangladesh, growing rapidly over a decade, is on its way to becoming the next Asian Tiger. Economic and political stability are driving its journey towards the future. Currently the 41st largest economy, Bangladesh will be the 25th largest economy by 2035.

  1. 7% Average GDP growth in last five years
  2. $2,227 per capita GNI in FY 2020-21, surpasses neighbors
  3. $25 billion remittances, 6% of GDP
  4. $44 billion in Forex reserve, 8-9 months import coverage
  5. 5.56% inflation in FY 2020-21
  6. Stable sovereign ratings by Moody’s, Finch and S&P
  7. 90% businesses express high confidence during COVID-19: survey

Connecting key markets

Currently the world’s 7th most populated country, Bangladesh’s stable growth has raised tens of millions to middle class and affluence (MAC) status. Besides being the location for a booming domestic market, Bangladesh is also strategic hub linking India, China and the ASEAN countries.

  1. Half of the population will be living in urban areas by 2040
  2. 169 million+ population, 3,000 people living per square mile
  3. 3 billion+ regional consumers can be accessed
  4. 0.5% annual growth in MAC population, to reach 34 million by 2025
  5. 47.61 million access the internet
  6. 45 million actively use social media

Young and energetic

Bangladesh is powered by a rising young population. Young Bangladeshis are fuelling a sharp rise in the labor force and supporting industrialization and consumption.

  1. 45% of its population is aged below 24 years
  2. 70% is aged below 40
  3. 2.3 million young professionals enter workforce every year
  4. 74.70% literacy rate, global average 86.3%
  5. Flexible cost of labor

Empowering infrastructure

Bangladesh has implemented mega projects to accelerate the growth of industries and to take full advantage of its strategic location.

  1. 580 km coastline with 90% international trade done via Chittagong and Mongla ports
  2. 10 active land ports linking various states of neighboring India
  3. Deep-sea ports - Matarbari and Payra Ports to be completed by 2025
  4. 3 international and 5 domestic airports
  5. 22,418 km of highways and extensive network of good quality roads
  6. 2,955 km of railways connecting eastern Bangladesh extensively
  7. 3 Asian highways - AH1, AH2 and AH41 connecting India & Myanmar
  8. Part of regional highway corridors like SASEC, BIMSTEC and SAARC

Investment focus

Bangladesh has the most liberal investment regime in the region, characterized by a wide array of facilities, attractive incentive policies and consistent reforms. Investment development is one of the 10 Special Initiatives of Bangladesh’s Honourable Prime Minister.

  1. Tax exemption, reduced taxation available depending on industry type and locations
  2. Investment protected by Foreign Private Investment (Promotion & Protection) Act 1980
  3. 100% foreign ownership is allowed in nearly all sectors
  4. Simplified procedure for issuing work permits to foreign nationals
  5. Bonded warehousing facilities for export oriented industries
  6. Intellectual Property Right is protected by law.
  7. Equal treatment of domestic and foreign investment
  8. Bilateral Investment Treaties (BITs) with 31 countries
  9. Double Taxation Treaties (DTTs) with 36 countries
  10. Signatory of 4 Treaties with Investment Provisions (TIPs) and 20 Investment Related Instruments (IRIs)
(Data compilition from BIDA website)

(Investment Opportunity in Bangladesh- Bangladesh Trade Portal)

Cash Incentive Facilities:

In Bangladesh, cash incentives are provided to exporters to encourage and boost the country's export performance. For the fiscal year 2023-2024, Bangladesh Bank has announced cash incentives for 43 specific export products. These incentives range from 1% to 20%, depending on the product category.

(Bangladesh Bank Circular dated 12 Feb 2024)

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