Bangladesh’s liberalized industrial policy, along with its export-focused and private sector-driven economic strategy, presents ample investment prospects. Private investment is welcome in all but four of the following sectors: (a) weapons, ammunition, and other defense hardware; (b) plantations and automated extraction from forests inside designated areas; (c) nuclear energy production; and (d) mining and security printing. The function of the government is to act as an enabler, contributing to the development of favorable conditions for increased private investment, both domestically and internationally.

Key pointers to Bangladesh’s investment climate are highlighted below:

1. Bangladesh’s people are extremely resilient in the face of misfortune, such as natural disasters, and the country boasts a fairly homogeneous society with little internal or foreign conflict.
2. There is a liberal democracy in Bangladesh. For thousands of years, people in this land have lived in peace and harmony, regardless of their color or religion.
3. Broad non-partisan political support for market-oriented reform and the most investor-friendly regulatory regime in South Asia.
4. Trainable, enthusiastic, hardworking, and low-cost (even by regional standards) labor force suitable for any labor-intensive industry.
5. The geographic location of the country is ideal for global trade, with very convenient access to international sea and air routes.
6. Bangladesh is endowed with an abundant supply of natural gas, water, and its soil is very fertile.
7. Although Bangla is the official language, English is generally used as a second language.

Nearly all industrialized nations grant duty-free and quota-free access to products from Bangladesh. The fact that Bangladesh has by far the best foreign direct investment policy framework in South Asia also has an impact on this access to the global market. The EU, Canada, Australia, and Norway all offer full duty- and quota-free access to the majority of Bangladeshi products. Although on a small scale, Bangladeshi goods have already been able to enter Thailand, India, and Pakistani markets with reduced duties. On the other hand, discussions about this are now taking place with China, Russia, Malaysia, and other nearby nations.

Bangladesh Investment Development Authority (BIDA)

Established under the Bangladesh Investment Development Authority (BIDA) Act 2016, the Bangladesh Investment Development Authority (BIDA) is the principal private investment promotion and facilitation agency of Bangladesh. The act has mandated BIDA to provide diversified promotional and facilitating services with a view to accelerating the industrial development of the country. In addition, the government has also entrusted BIDA with some more functions in its service list. Combining all, BIDA’s functions can be categorized as follows:

• Pre-investment information and counseling service
• Investor welcome service (faster immigration)
• Registration/approval of foreign, joint-venture, and local projects
• Registration/approval of branch/liaison/representative offices
• Approving work permits for foreign nationals
• Facilitating utility connections (electricity, gas, water & sewerage, telecom, etc.)
• Assistance in obtaining industrial plots
• Approving remittance of royalty, technical know-how, and technical assistance fees
• Facilitating import of capital machinery & raw materials
• Approving foreign loan suppliers’ credit, PAYE scheme, etc.

Bangladesh Hi-Tech Park Authority

Bangladesh Hi-Tech Park Authority was established under the ‘Bangladesh Hi-Tech Park Authority Act 2010 with the objective of creating an investment-friendly environment and creating employment through the development and growth of high-tech industries in the country. Since its inception, the Bangladesh Hi-Tech Park Authority has been working for socio-economic development by establishing Hi-Tech Parks / Software Technology Parks / IT Training and Incubation Centers in different parts of the country to ensure employment of the country’s large number of youth and to create skilled human resources. Bangladesh Hi-Tech Park Authority has set up 28 (eighty) Hi-Tech Parks (HTP) / Software Technology Parks (STP) / IT Training and Incubation Centers across the country. The construction work of 4 (four) parks has already been completed and business activities are ongoing. Construction work on the remaining parks is underway.

Please visit the Bangladesh Hi-Tech Park Authority website www.bhtpa.gov.bd for further information

Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN)

Bangabandhu Sheikh Mujib Shilpa Nagar, one of the largest industrial areas in the country is being developed by BEZA (Bangladesh Economic Zones Authorities) on a contiguous land of 30,000 acres of Mrisarai, Sitakundu, and Sonagazi- the adjoining upazilas of Chittagong and Feni with the target of making it a leading regional business hub.

BSMSN is one of the most suitable sites in Bangladesh for setting up industrial establishments. It is the first planned city in the country and expects to pave the way for establishing a truly world-class business and industrial center. It is situated along the strategic location of the Dhaka-Chittagong industrial corridor on the mouth of the Feni River, covering 25 km of coastlines of the Sandeep channel of the Bay of Bengal. BSMSN can utilize the Chittagong Sea Port to facilitate 95% of exports and imports of the country. Moreover, the business costs and cost of living are significantly lower in Chittagong and Feni than those of the other competing cities of the world. With all its potentialities, BSMSN is an attractive destination for setting up a huge number of industries, commercial establishments, and financial institutions.

BEZA seeks to build strong partnerships with the private sector and local entrepreneurs for BSMSN. BEZA is in the process of developing a comprehensive master plan for developing this self-contained Industrial City, incorporating Sea Port, Rail Connectivity, Marine Drive, Residential Area, Tourism Park, Power Plant, Hospital, School University etc. BEZA is committed to assisting, encouraging, and facilitating investment in BSMSN.

Please visit BSMSN website https://www.beza.gov.bd/economic-zones-site/government-owned-sites/mirsorai-chittagong/ for further information.

Special Economic Zones for attracting FDI

Bangladesh has taken initiatives to establish 100 Special Economic Zones (SEZs) by 2030, (70 Government Approved Economic Zones and 30 Private Economic Zones). With investors already having started production in some of the zones, FDI has witnessed a significant boost. Bangladesh has already awarded pre-qualification licenses to 20 private economic zones and of them, 11 have been given final licenses.

G2G Economic Zones are being established upon initiative by the governments of foreign countries and the Government of Bangladesh. Several requests have been received from various Asian countries like Japan, China and India to develop G2G EZs. Till now India has signed an MoU to invest in 2 EZs (One in Kustia and another in Mongla). Chinese Economic and Industrial Zone is being constructed in Anwara of Chattagrom and the Japanese Economic Zone is being built near Dhaka City in Arihajar Upazila of Naryanganj District.

Bangladesh Economic Zones Authority signed a Joint Venture Agreement with Sumitomo Corporation of Japan for developing the Japanese Economic Zone in May 2019 which was expected to attract 20 billion worth of foreign investment, most of which would be from Japan.  Renowned companies, such as Honda Motors, Sumitomo Nippon, Asian Paint, Barger Paint, Adani Group, Wilmar, Yabang, Siam Group, TIC Group, Unilever, Sakata Inch, and Chain Harbour are the major foreign investors in the special economic zone in Bangladesh.

Japanese automobile giant Honda started manufacturing at Abdul Monem Economic Zone (AMEZ) in Munshiganj. The company set up a plant on 25 acres of land and invested USD 27.38 million. Similarly, Jinyuan Chemical Industry Limited, a sister concern of the Chinese ZhuzhouJinyuan Chemical Industry Limited, set up their factory in the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN).

Please visit the Bangladesh Economic Zones Authority website www.beza.gov.bd for further information.

Export Processing Zones (EPZs)

Export Processing Zones (EPZs) are export-oriented industrial enclaves in Bangladesh that provide infrastructures, facilities, administrative, and support services for various enterprises. The primary objective of an EPZ is to provide special areas where potential investors would find a congenial investment climate, and location free from cumbersome procedures. Businesses from 32 countries have so far invested in the existing zones. Industrial setups in EPZs are receiving incentives like tax holidays, duty-free import of construction materials, machinery, office equipment & spare parts, raw materials, and finished goods, Relief from double taxation, 100% foreign ownership permissible, full repatriation of capital and dividend and many more.

Bangladesh’s phenomenally successful EPZs in Dhaka and Chittagong are now complemented by new EPZ developments and other valuable real estate developments around the country. The Bangladesh Export Processing Zones Authority (BEPZA) is the official organ of the government to promote, attract, and facilitate foreign investment in the Export Processing Zones

Potential investment sectors in Bangladesh as emphasized by the government are agribusiness, ceramics, electronics, foreign foods, garment and textiles, ICT and business services, leather and leather goods, light engineering, power industry, and life science.

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