Bangladesh investment development authority has identified ten reasons to invest in Bangladesh

Filed on March 26, 2021 | Last updated on March 27, 2021 at 01.07 pm

1. Open to inward investment 

Foreign Direct Investment inflows for CY 2018 is $3.61 Billion which is 67.9 per cent highercompared to CY 2017 across diversified industry sub-sectors, despite a decline in total global FDI flow.

Status of Agriculture and Agro-processing sector

3rd in vegetable cultivation

4th in rice production 

7th in potato production

The domestic Agro-processing sector in Bangladesh is currently valued at $2.2 billion 

The average growth rate of the food processing industry is about eight per cent

The average export growth rate in last four years is 37 per cent

At present products are exported to 104 countries (major destinations include US, Canada, UK, Saudi Arabia, the UAE, China, Japan and Australia) 

2. Opportunities in domestic market

MAC (Middle and Affluent Class)  

33 Key MAC Cities by year 2025

Two million MAC population being added per annum (BCG 2015) 

A nationwide network of 1.3 million retail outlets 

Plain land delta crisscrossed with 700+ rivers and a network of roads connecting all 492 Upazilas (sub-districts) ensuring efficient 'source to delivery' 

3. Demographic dividend 

Median age of Bangladeshi citizen is 26.7 years.

46.83 million people are less than 15 years old (the future workforce)

118 million hard working tech-friendly working age

Homogenous culture: In South Asia, Bangladesh has a high degree of linguistic, religious, and ethnic homogeneity.

4. Geo-Strategic Gateway 

Bangladesh is a gateway to India and China, while connecting regional important new markets (Bhutan, Nepal and Myanmar) to provide access to total 2.9 billion consumers who are yearly spending more than $8.53 trillion.

5. Preferential Market Access

Bangladesh is getting Generalised System of Preferences (GSP) facilities from 38 countries; 28 countries of European Union and 10 other countries: Australia, Belarus, Canada, Liechtenstein, Japan, New Zealand, Norway, Russian Federation, Switzerland and Turkey.

1st in denim export to EU market

2nd largest apparel exporter worldwide 

1st in jute production and export

8th  largest exporter of the leather products in the world

8th  largest exporter of bicycle

DFQF Access in GSP schemes of Developed Members: Australia, Canada, European Union, Iceland, Japan, New Zealand, Norway, Switzerland, Russia, United States

DFQF Access of selected Developing Countries: Chile, China, India, Republic of Korea, Chinese Taipei, Turkey

6. Infrastructure Support

97 Economic Zones selected

100 Economic Zones in the next 15 years

Padma bridge linking the south-west of the country, to northern and eastern regions

Bangabandhu Satellite-I is the first Bangladeshi geostationary communications and Broadcasting Satellite 

Power and Energy 

Energy diversification through introduction of LNG, Nuclear power, Solar, Wind, LPG etc. 

Rail Road and Four Lane Highway

All national highways are being converted into four lanes

All mega cities will be connected via metro rail, elevated expressway and high speed express railway

Hi-Tech and Software Parks

39 Hi-Tech and Software Parks to attract foreign direct investment in hardware and software manufacturing industry.

4G is being rolled out across the country and 5G is to be deployed by 2021

7. Low Cost of Doing Business

Six to 89 per cent savings in water cost

10 to 55 per cent savings in electricity cost

Bangladesh investment development authority has identified ten reasons to invest in Bangladesh (KT28369327.PNG)

8. Initiatives to Foster Competitiveness 

Tax Holidays 

Five to ten years for some sectors and up to 10 Years for infrastructure and Economic Zones

Tax Concessions for capital machines and import of raw materials


Cash Incentives

Export Development Fund

Equity Entrepreneurship Fund

Accelerated Depreciation in lieu of tax holidays 


Fast Track Approvals, Citizenship, Quick Immigration, Bonded Warehousing, NRB Preferences, Skilled Work Permits, Permanent Residency 

Secured by law against nationalisation and expropriation

Local and Foreign investments are given equal treatment

100 per cent foreign equity is allowed along with unrestricted exit

Almost all  industrial sectors are open for foreign investors

Bilateral Investment treaties (BITs) signed with 32 countries

Double taxation treaties with 28 countries

Bangladesh is a signatory to ICSID, UNCITRAL, OPIC, MIGA, WAIPA, WIPO and WTO

All laws, regulations are conducive to investment

9. One Stop Service (OSS) for Investors

Provides the investors with world class client services (virtual and cloud-based) 

150 services of 34 agencies are being identified and process simplification of these have started. Once these are completed clients will receive their services from one point

10. Country Stability 

Business Friendly Government

Bangladesh government has created an enabling environment for the private sector to drive economic growth 

Stable Political Environment

Multi-party democracy with Union, Upazila, City Corporation and National Parliament Elections held regularly


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