South Asia’s premier business hub

Foreign Direct Investment
| The European | 7 May 2019

Bangladesh is widely regarded as one of the most attractive destinations for business and investment opportunities, due to the abundant, low-cost labour, an investment friendly environment, a global-standard legal framework and strong macro-economic fundamentals. Bangladesh has been maintaining steady GDP growth of more than 6% over the last decade, an achievement that points to the government’s firm commitment to support the private sector and practice prudent fiscal policy.

Development through economic zones

Economic zones (EZ) in Bangladesh refer to designated areas for special economic regulations that differ from other areas in the country. These regulations tend to contain measures that are conducive to foreign direct investment (FDI). Conducting business in an EZ usually means a company receives both fiscal and non-fiscal incentives and the opportunity to pay lower tariffs. Bangladesh aims to establish 100 economic zones on 30,000 hectors of land over the next 15 years, generating the direct and indirect employment of 10 million people.

A winning combination

Bangladesh is now on the way to establishing itself as South Asia’s rising star for foreign investment. The government has implemented a number of policy reforms designed to create a more open and competitive climate for private investment, both foreign and local. Bangladesh provides a winning combination of competitive markets, business-friendly environments and competitive cost structures.

The nations enjoys tariff-free access to the European Union, Canada and Japan. In Europe, it benefits from 60% of RMG (Ready-made Garment) market share and is one of the top-manufacturing exporters. Bangladesh offers the most liberal FDI regime in South Asia, allowing 100% foreign equity with unrestricted exit policy, remittance of royalty and repatriation of equity and dividend. Moreover, Bangladesh offers export-oriented industrial enclaves with infrastructural facilities and logistic support for foreign investors by creating Special Economic Zones in the country.

Competitive advantage

As mentioned, Bangladesh offers the most liberal investment climate and FDI regime in South Asia, with no prior approval requirements or limits on equity participation and repatriation of capital, dividends, profit and income for foreign investors. The Foreign Private Investment (Promotion and Protection) Act, 1980, which deals with promotion and protection of investment in Bangladesh, ensures equal treatment for local and foreign investors.

Bangladesh offers a competitive advantage for doing business in terms of cost, human resources, market access, logistics, infrastructure, and much more. Investing in the appropriate sector in Bangladesh can yield higher returns than most other competing countries, with lesser risks. ν

Further information

www.beza.gov.bd

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