Nurturing Dreams To Reality

Bridging the gap between the public and private sectors, BIDA is creating an encouraging climate for investors



Published: Thu 16 Dec 2021, 5:58 PM

Last updated: Thu 16 Dec 2021, 6:00 PM

Bangladesh Investment Development Authority (BIDA) is the country's top investment promotion agency, which wasfounded on September 1, 2016 by the Bangladesh Investment Development Authority Act 2016, merging the former Board of Investment (BOI) and the Privatisation Commission (PC).

BIDA's mission is to develop an investment environment that encourages both domestic and foreign investment in the country's private sector. The Executive Chairman of BIDA serves its clients and stakeholders through the various wings and directorates. BIDA is placed under the supervision of the Prime Minister’s Office to reflect the government’s vision that assigns high priority to private sector development in ensuring economic growth.

The Prime Minister, who is also the Chairman of the Governing Board, guides the authority in achieving the objectives narrated in the BIDA Act.

Vision: To become a world class investment promotion agency for achieving economic progress.

Mission: To attract domestic and foreign investment in the private sector, providing improved services, effective coordination and creating an investment-friendly environment.

MANAGEMENT of BIDA

The tiers are stated as below:

(A) Governing board

The Governing Board is headed by the Prime Minister. The Executive Chairman of BIDA serves as Member-Secretary to the Governing Board.

(B) The executive council

The Executive Council supports the Governing Board in making policy decisions essential to promote investment. The composition is:

Executive Chairman

Executive Member (Strategic Investment)

Executive Member (Marketing and Communication)

Executive Member (International Investment Promotion)

Executive Member (Local Investment Promotion)

Executive Member (Investment Environment Services)

Executive Member (Investment Eco-system)

Apart from the above officials, the Secretary of BIDA plays a pivotal role in conducting the executive council meeting and running the administrative activities.

The Executive Chairman leads the Council as Chief Executive Officer in its day-to-day activities. In the fiscal year 2020-2021, the Executive Council held 12 meetings for delivering its assigned duties.

(C) Head and Divisional Offices

The Head Office of BIDA is located at Agargaon, Dhaka and its five divisional offices are in the administrative divisions of Chattogram, Rajshahi, Khulna, Sylhet and Barishal. BIDA plans to establish two more offices in the divisions of Rangpur and Mymensingh.

FUNCTIONS

BIDA delivers specific services to local and foreign private investors, ranging from counseling to starting business. These are as follows:

Assist local and foreign investors in accelerating private sector industrialisation

Carry out government policies relating to capital investment in private-sector companies

Develop and implement an investment plan for private-sector businesses

Develop and implement an area schedule with particular facilities for prospering private-sector industries

Register local and foreign industrial projects and commercial offices in the private sector

Identify new areas and facilities for boosting private-sector investment and communicate this knowledge locally and internationally

Develop and implement particular tools and tactics to encourage private-sector investment

Establish terms and conditions for the hiring of foreign workers in commercial and industrial enterprises

Develop and execute regulations in the private sector for technology transfer and phased local production

Establish a data bank to gather, assemble, evaluate, and disseminate investment and industrial data

Success of BIDA

‘Sonar Bangla’ — the dream of 164 million people in these two words. The greatest Bangali of all times, the father of the Nation, Bangabandhu Sheikh Mujibur Rahman, the dreamer of ‘Sonar Bangla’, laid the foundation of the golden future of the beloved motherland. But his dream remained unfulfilled after the demise of the Father of the Nation on August 15, 1975.

The Prime Minister, has returned the country once again to our golden days. In the past years, Bangladesh has redefined development at home and abroad and has continued its journey of progress. Bangladesh has emerged as one of the leading economic powers in Asia in the last decade, rising to the position of developing country from an underdeveloped one. In fact, Bangladesh has accomplished a unique case of achieving inclusive growth.

‘Investment Development’ is one of the 10 special initiatives of the Prime Minister and special priority is being given to job creation, development of technology and knowledge-based industries and services through increasing domestic and foreign private investment.

In line with this, as an apex investment promotion agency, Bangladesh Investment Development Authority (BIDA) is playing a significant/focal role in facilitating fast-track investment support services for new as well as existing investors of local and foreign sources. BIDA is always working relentlessly to take initiatives for the advancement of the investment environment climate. Some of the significant achievements are discussed further beow:

Strategic Roadmap

The Prime Minister Sheikh Hasina MP has approved the Strategic Roadmap 2020-24 of BIDA. During the second meeting of the Governing Board of BIDA held on Aug 6, 2020, the Prime Minister asked BIDA to include the role of Bangladesh’s Embassies and High Commissions in its promotional strategy. BIDA has included a new section on the role of overseas diplomats in investment promotion and also provided a list of actions that may be taken by economic and commercial counsellors to establish cooperation with BIDA on foreign investment promotion activities.

The roadmap has set five main objectives for BIDA, based on which a one-year Action Plan has been prepared. The objectives are: (i) to attract private investment (ii) to support existing investors with expansion potential (iii) to coordinate and assist for a better business ecosystem (iv) to establish effective and efficient OSS services and (v) to promote investment in the regions through divisional offices.

One Stop Service

The One Stop Service Act-2018 was enacted on February 12, 2018. Under this act, the One Stop Service (OSS) rule titled 'One stop Service (Bangladesh Investment Development Authority) Rules, 2020' was approved by the Prime Minister’s Office. The gazette notification was published on May 10th 2020.

An agreement was signed between BIDA and Business Automation Ltd on September 16, 2018 to develop an online OSS portal by managed service model through which around 154 services of 35 different agencies would be provided to the investors on a single platform.

Covid-19 Initiatives

New opportunities to attract foreign investment have been created in Bangladesh due to the strategies taken in the context of the changes in the global economy due to Covid-19, the emergence of potential industries and shifting of the supply chain. In this regard, BIDA has formed a task force headed by the Executive Member (International Investment Promotion) to determine strategies for safeguarding, expanding and attracting new investment flows in the country.

The task force arranged dialogue with the stakeholders and provided a report with recommendations. The report includes recommendations to increase the scope of tax holidays, facilitate borrowing from abroad, improve port facilities, digitise government services and facilitate bonded warehouses to facilitate trade processes.

The United Nations Trade and Development Organisation (UNCTAD) in a report titled 'IPA Observer' published in July 2020, cited BIDA's activities as a successful example of strategic use of social media to promote investment.

Investment Promotion:

Being a part of its regular investment promotion activities, BIDA organises and joins in bilateral dialogue, summits, seminar/webinars, roadshows and so on. In this connection, BIDA participated as a representative of the Government of Bangladesh in the virtual UK-South Asia Roadshow organised by the United Kingdom Government. BIDA organised a virtual outreach titled 'Turkey and Bangladesh: A New Era in Investment and Trade' in collaboration with the IFC, focusing on the Foreign Minister's visit to Ankara, the capital of Turkey and the Turkish Government's decision to increase investment and trade with Bangladesh.

On January 25, 2021, BIDA organised a virtual event titled 'Showcase Bangladesh' in association with Standard Chartered Bank (SCB) to attract Chinese investors to Bangladesh's leather, pharmaceutical, medical equipment, software and information technology, electronics and shipbuilding sectors. About 400 representatives of the private sector have attended the event. On March 30, 2021, BIDA organised a virtual event titled 'Bangladesh-Korea Business Corridor: Stakeholders Dialogue and Way Forward' with HSBC Bangladesh to attract South Korean investors to Bangladesh.

As part of the overall effort to reach out to potential foreign and domestic investors through various channels, BIDA has published a document titled 'The Bangladesh Investment Handbook: A Guide for Investors.' The handbook was unveiled by the Prime Minister during the Governing Board meeting of BIDA.

Investment Aftercare:

BIDA’s mandate is to provide its registered investors with aftercare services. Once project registration is completed, , BIDA’s Aftercare Unit focuses on the seamless facilitation of businesses and potential investors; we also aspire to keep in regular contact with existing investors. An effective aftercare approach provides a wide range of strategies for host economies to better retain foreign investors, encourage follow-on expansions and achieve greater local economic embeddedness through multi-stakeholder dialogue, leading to improvement of the overall business climate. BIDA arranged several virtual meetings/dialogues with investors from China, Singapore, South Korea, Malaysia and Japan, as well as representatives of foreign business organisations and government agencies.

BIDA has already published a list of 81 services concerned with 25 Ministries or Departments or Organisations and contact details of the Director (Investment Aftercare) including email address and relevant telephone number in the website so that any investor and their representatives can easily reach/communicate for their desired services.

Policy/Guideline:

‘Guideline for Outward Remittance Repatriation for Payment of Royalty, Technical Knowledge/ Technical Know-how fees, Technical Assistance Fees and Franchise Fees, 2020’ published by Bangladesh Investment Development Authority is a historic landmark step. A draft 'Economic Corridor Policy-2021' has already been developed through the initiative of BIDA for attracting FDI and internal investment. Soon it will be finalised.

Working for ensuring a safe workplace environment at Industries.

Recently, the government has moved to ensure a safe workplace environment at industrial and commercial units with instructions to take steps for a swift inspection of all plants considering the accidents that took place at different times. In this context, a 24-member national committee has been constituted. BIDA has also been directed to take immediate necessary steps to inspect all the industrial factories and in the light of these inspections, review the infrastructural condition of the industries and to make necessary recommendations for reviewing the existing situation of fire-accident and other accident prevention. Therefore, BIDA has been leading the initiative in coordination with business associations FBCCI, BGMEA and other concerned government and non-government authorities.


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